This bill aims to protect certain school districts from reductions in State school aid during the 2026-2027 school year. It mandates that these districts receive at least the same amount of State school aid as they did in the previous school year, 2025-2026, provided they meet specific criteria. The bill outlines that State school aid includes various forms of financial support such as equalization aid, transportation aid, special education aid, security aid, and vocational expansion stabilization aid.

To qualify for this protection, a school district must be facing a proposed reduction in State school aid, be spending below the adequacy threshold, have a maximum tax levy increase authority that is less than the difference between its local share and its general fund tax levy from the previous year, and have total spending per pupil that is below 85 percent of the statewide average. This legislation is designed to ensure that financially struggling districts maintain their funding levels despite potential cuts.