The bill proposes comprehensive reforms to New Jersey's school funding and budgeting laws, particularly focusing on special education aid and financial support for school districts. It eliminates the census-based funding method for special education and introduces a reimbursement program for school district fuel costs. Additionally, it amends Section 5 of P.L.1996, c.138 to require the commissioner to provide preliminary State aid notices to school districts by the end of the first week in January, detailing the maximum aid for the upcoming school year. The bill also modifies the calculation of required local shares and establishes new budget submission guidelines to ensure that districts adopt budgets that promote a thorough and efficient education.

Key changes include the deletion of outdated provisions related to special education funding methodologies and the introduction of a new framework for extraordinary special education aid, allowing districts to receive reimbursements for costs exceeding specified thresholds. The bill sets a cap on State aid reductions at two percent of the previous year's aid and introduces a Stabilization Aid program for districts facing budgetary challenges. Furthermore, it increases the allowable undesignated general fund balance for school districts and mandates that the Department of Education reimburse actual fuel costs incurred during student transportation. Overall, the bill aims to enhance fiscal responsibility, improve financial stability for school districts, and ensure equitable funding that meets the diverse needs of students across 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