The bill proposes comprehensive reforms to New Jersey's school funding and budgeting laws, primarily by eliminating census-based funding for special education aid and introducing a reimbursement program for school district fuel costs. It amends Section 5 of P.L.1996, c.138 to require the commissioner to provide each school district with a preliminary State aid notice by the end of the first week in January, enhancing transparency in funding. Additionally, the bill modifies the requirements for appropriating undesignated general fund balances, increasing the threshold for appropriations from 2% to 6% for the first $100 million and 3% for amounts exceeding that in the first full school year after enactment. These changes aim to ensure adequate funding levels while allowing districts to manage their budgets effectively.

Moreover, the bill establishes a new framework for extraordinary special education aid, allowing districts to receive significant financial support when costs exceed certain thresholds, and it sets a cap on State aid reductions to prevent any district from experiencing a decrease greater than 2% of their previous year's aid. The bill also mandates that the Department of Education reimburse school districts for actual fuel costs incurred during student transportation and requires districts to reserve any excess fund balances for the following year's budget. Overall, these amendments are designed to create a more equitable and predictable funding system that addresses the unique challenges faced by districts, particularly those with high concentrations of at-risk students.

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