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. The bill modifies the calculation of equalized valuation and district income for determining local shares, ensuring that these measures are based on the average of the district's values over the preceding three years, with specific adjustments for the prebudget year. Additionally, it stipulates that the property value and income rates will remain the same as those used in the previous year.

The bill also clarifies the responsibilities of school districts in adopting budgets that meet educational standards and outlines the process for appealing budget reductions. It emphasizes the need for districts to demonstrate efficiency in their administrative operations and allows for adjustments to budget submission deadlines based on the availability of preliminary aid numbers. The introduction of the New Jersey Education Funding Portal will provide public access to data inputs and calculations used in formulating State school aid, allowing users to estimate the impact of data adjustments on State aid. Furthermore, school districts facing a reduction in State aid will have the flexibility to submit and revise their budgets within specified timeframes, ultimately aiming to improve the budgeting process and ensure equitable and transparent funding calculations.

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