The bill mandates the Commissioner of Education to implement new procedures for preliminary State school aid notices and school district budgets, while also establishing the New Jersey Education Funding Portal. Starting with the 2026-2027 school year, the commissioner is required to provide each school district with a preliminary State aid notice by the end of the first week in December, detailing the minimum amount of State aid for the upcoming school year. Additionally, districts will be notified of the maximum aid amount and their adequacy budget following the Governor's State budget message. The bill also includes provisions for informing districts about projected statewide property and income rates that will affect local share calculations.

Moreover, the bill modifies existing school funding laws by revising definitions and requirements related to the cost of living and local share calculations. It removes outdated provisions and clarifies the budget submission and appeal processes for proposed budget reductions. Key changes include the calculation of equalized valuation and district income based on the average of the preceding three years, with adjustments for the prebudget year. The legislation also allows districts facing aid reductions to submit and revise their budgets within a specified timeframe, enhancing flexibility in financial planning. Overall, these changes aim to create a more equitable and transparent school funding system in New Jersey.

Statutes affected:
Introduced: 18A:7F-5, 18A:7F-46, 18A:7F-52