This bill proposes significant changes to New Jersey's school funding law, particularly in the areas of tax levy growth limitations and the Educational Adequacy Report. It requires the Department of Education to publicly disclose the calculation of aid for each school district within two days of the Governor's budget message, ensuring clarity and accessibility of the information. The bill revises the method for determining tax levy growth limitations, introducing criteria based on the relationship between a district's prebudget year adjusted tax levy and its budget year local share, while also allowing for adjustments related to enrollment increases, health care costs, and pension contributions. Additionally, it amends the process for the Educational Adequacy Report, mandating the Governor to recommend funding component revisions every three years and ensuring public engagement through a comment period for the draft report.

Moreover, the bill modifies the calculation and distribution of extraordinary special education State aid, lowering the eligibility threshold from $40,000 to $35,000 and implementing a phased increase in aid over five years. It also establishes vocational expansion stabilization aid for county vocational school districts and limits reductions in State school aid to no more than 2% of a district's prebudget year total operating budget. The bill emphasizes stakeholder engagement in reviewing the Educational Adequacy Report and aims to enhance transparency and responsiveness in school funding, ensuring that districts receive adequate support tailored to their financial circumstances.

Statutes affected:
Introduced: 18A:7F-38, 18A:7F-39, 18A:7F-46, 18A:7F-55, 18A:7F-68, 18A:7F-69