The bill proposes comprehensive reforms to New Jersey's school funding and budgeting laws, particularly focusing on special education aid and the reimbursement of transportation costs. It eliminates the census-based funding method for special education, replacing it with a calculation based on the actual number of students requiring these services. Additionally, the bill mandates that the Department of Education provide school districts with a preliminary notice of State aid amounts by the first week of January, enhancing financial planning for districts. It also establishes a new reimbursement program for school district fuel costs incurred during student transportation, ensuring that districts are compensated for actual expenses.

Key changes include an increase in the allowable undesignated general fund balance for school districts from 2% or $250,000 to 6% for the first $100 million and 3% for amounts exceeding that. The bill also caps State aid reductions at 2% of the previous year's aid and allows districts to apply for stabilization aid in case of budgetary imbalances. Furthermore, it introduces protections for districts in municipalities with tax rates significantly above the State average, ensuring they do not face disproportionate reductions in State aid. Overall, these amendments aim to create a more equitable and predictable funding system that supports the educational needs of all students in New Jersey.

Statutes affected:
Introduced: 18A:7F-5, 18A:7F-7, 18A:7F-44, 18A:7F-46, 18A:7F-51, 18A:7F-55, 18A:7F-68