This bill proposes significant amendments to New Jersey's school funding laws, particularly regarding the calculation and distribution of state aid to school districts. It requires the Department of Education to publicly disclose the calculations for each category of aid annually, enhancing transparency. A new Special Education Funding Review Task Force will be established to evaluate and recommend changes to special education funding formulas, including adjustments for inflation. The bill also introduces a more structured process for the Educational Adequacy Report, which will now include specific revisions to funding components, such as per pupil amounts and special education aid thresholds. Notably, extraordinary special education aid must increase annually and will not count against a district's tax levy growth limitations.

Additionally, the bill modifies the State school aid framework by introducing a new category of aid called reduction adjustment aid and ensuring that extraordinary special education aid is increased annually. It also implements municipal overburden protections to prevent significant reductions in State school aid based on tax rates and spending levels. The bill mandates public input on the Educational Adequacy Report draft for at least 30 days, allowing community engagement through public hearings and written submissions. The Special Education Funding Review Task Force will consist of 11 members with expertise in special education and is tasked with issuing a report with findings and recommendations within one year of its formation.

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