This bill proposes significant amendments to New Jersey's school funding laws, including the establishment of a Special Education Funding Review Task Force. 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 introduces provisions for public comment on draft reports, ensuring that final reports reflect stakeholder feedback. Additionally, it modifies the calculation of special education aid, increasing the appropriated amount annually and ensuring that this aid does not count against a district's tax levy growth limitation.

Moreover, the bill introduces new categories of aid, such as reduction adjustment aid, and implements municipal overburden protections to prevent reductions in state school aid for certain districts based on local tax rates and spending levels. It limits any decrease in state school aid to no more than two percent of a district's pre-budget year total operating budget. The bill also enhances public engagement in the Educational Adequacy Report process by allowing for a minimum 30-day public comment period and requiring the commissioner to involve a diverse group of stakeholders in the development of the report. The Special Education Funding Review Task Force will assess the effectiveness of state aid for special education and explore a tier-based funding model, with a final report due to the Governor and Legislature within one year.

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