This bill amends existing law to ensure that regional school districts are not subject to reductions in State school aid under specific conditions. It establishes that a regional school district spending at least 10 percent below adequacy, where each constituent school district is located in a municipality with an equalized total tax rate at least 10 percent greater than the Statewide average, will be exempt from such reductions. This provision aims to provide financial stability to districts that are already facing fiscal challenges.

Additionally, the bill outlines the calculation of State school aid, which includes equalization aid, special education categorical aid, security categorical aid, and transportation aid. The changes are set to take effect immediately and will first apply to State school aid distributed in the first full school year following the enactment of the bill. Overall, the legislation seeks to protect certain regional school districts from financial penalties while promoting equitable funding based on local tax rates and spending adequacy.

Statutes affected:
Introduced: 18A:7F-68