The bill mandates the Commissioner of Education to implement new procedures for preliminary State school aid notices and school district budgets, while 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, the commissioner must notify districts of the projected Statewide property value and income rates used in calculating local shares for the following year. The bill also modifies existing provisions related to the calculation of State aid and local shares, ensuring timely communication of adequacy budgets and maximum aid amounts to districts.

Moreover, the bill clarifies school districts' responsibilities in adopting budgets that meet educational standards and outlines the appeal process for budget reductions. It emphasizes the need for districts to demonstrate efficiency in their administrative operations and allows for adjustments to aid amounts based on significant changes in district-specific data. The bill introduces the New Jersey Education Funding Portal to enhance transparency in school funding, allowing users to view and adjust data inputs affecting State aid calculations. Key changes include the revision of how equalized valuation and district income are calculated, now based on the average of the preceding three years, with specific adjustments for the prebudget year.

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