The bill proposes comprehensive reforms to New Jersey's school funding and budgeting laws, particularly focusing on special education aid and the management of school district finances. It eliminates the census-based funding method for special education, replacing it with a reimbursement program for costs exceeding $40,000 for individual classified students. 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, a shift from the previous requirement of notifying districts shortly after the Governor's budget address. The allowable undesignated general fund balance for school districts is increased from two percent of the budgeted general fund or $250,000 to six percent of the first $100 million and three percent of any amount exceeding that.

Moreover, the bill introduces measures to enhance financial stability for school districts, including a cap on State aid reductions limited to two percent of the previous year's aid and provisions for Stabilization Aid for districts facing budgetary challenges. It also emphasizes the need for a new equitable funding formula that addresses the needs of at-risk students, expanding the definition to include those eligible for free or reduced-price lunch and incorporating high-quality preschool programs. The bill aims to create a more predictable and transparent funding system, ensuring that all New Jersey children receive a thorough and efficient education while streamlining the process for districts to access financial support.

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