This bill proposes significant changes to New Jersey's school funding laws, 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 information. The bill revises the method for determining tax levy growth limitations, allowing for adjustments based on enrollment increases, health care costs, and pension contributions. Additionally, it amends the Educational Adequacy Report process, mandating that the Governor recommend revisions to funding components every three years and introducing provisions for public comment on draft reports.

Moreover, the bill modifies the extraordinary special education aid framework by lowering the cost threshold from $40,000 to $35,000 and establishing a new formula for aid distribution based on actual costs incurred by school districts. It phases in full funding of this aid over five years, starting at 80% and increasing to 100%. The bill also includes protections for districts against reductions in State aid exceeding two percent of their prebudget year total operating budget, particularly for those in municipalities with higher tax rates. Overall, these changes aim to enhance transparency, stability, and responsiveness in school funding, ensuring that districts can adequately meet their financial needs while addressing the challenges of special education funding.

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