This bill establishes a cap on the reduction of State school aid for school districts in New Jersey, ensuring that no district experiences a decrease in State aid greater than five percent of its net budget from the previous year. The bill defines State school aid to include various forms of funding such as equalization aid, special education categorical aid, security aid, and transportation aid. This cap aims to provide financial stability for school districts by limiting the potential impact of budget cuts on their funding.

Additionally, the bill amends existing legislation to clarify the distribution of State aid during the 2019-2025 school years, particularly for districts with negative State aid differentials. It introduces new provisions that allow for adjustments in State aid based on specific criteria, including the district's spending relative to adequacy and the equalized tax rate of the municipality. The bill also outlines the conditions under which certain districts may be exempt from reductions in State aid, ensuring that those in need of support are not disproportionately affected by funding cuts.

Statutes affected:
Introduced: 18A:7F-68