This bill proposes significant amendments to New Jersey's school funding laws, focusing on enhancing transparency and support for special education. It mandates the Department of Education to publicly disclose the calculation of state aid for each school district annually, ensuring the information is accessible and includes explanations of the variables used. The bill also revises the Educational Adequacy Report process, requiring the Governor to recommend updates to funding metrics every three years and introducing a public comment period for community input. Additionally, it modifies the calculation of extraordinary special education aid, ensuring districts receive a higher percentage of reimbursement for costs exceeding specified thresholds, which will not count against a district's tax levy growth limitation.

Moreover, the bill establishes a new category of aid called reduction adjustment aid, which limits decreases in state school aid to no more than two percent of a district's pre-budget year total operating budget. It also implements municipal overburden protections to prevent reductions in state school aid for districts in municipalities with higher tax rates than the statewide average and below adequacy spending. The bill outlines changes to the Educational Adequacy Report process, requiring public input and the establishment of a Special Education Funding Review Task Force to assess and recommend improvements to special education funding. This task force will consist of 11 members with expertise in special education and is tasked with issuing a final report within one year of its formation.

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