The "Fully Funding Schools and Cutting Property Taxes Act" seeks to enhance state school aid for New Jersey school districts by ensuring that funding aligns with the adequacy budget as defined by the School Funding Reform Act of 2008 (SFRA). Starting in the 2023-2024 school year, the bill guarantees that school districts will receive state aid sufficient to meet their adequacy budget levels, thereby preventing future cuts to state aid. It also requires districts that receive an increase in state aid to reduce their tax levy by an equivalent amount under certain conditions, promoting equity in school funding and alleviating property tax burdens based on residents' financial capacity.

To support these initiatives, the bill appropriates $2.9 billion from the Property Tax Relief Fund and repeals specific sections of previous legislation (P.L.2018, c.67) that led to reduced aid and increased property taxes for some districts. The new provisions mandate that the State provide school aid based on the highest calculated amount through SFRA, additional aid for districts that lost funding due to S2, or the amount received from the 2017-2018 to 2022-2023 school years. Furthermore, it establishes a requirement for districts to reduce their tax levy in proportion to any increase in state aid if their total tax levy exceeds five percent of the district's income, with additional stipulations for exceeding this limit. The bill also allocates nearly $2.95 billion for additional aid, with unspent funds designated for school facilities projects and maintenance needs.

Statutes affected:
Introduced: 18A:7F-38, 18A:7F-53