This bill establishes a new formula for distributing State aid to school districts in New Jersey, ensuring compliance with the Legislature's constitutional obligation to maintain a thorough and efficient public school system. The formula calculates State aid based on projected resident enrollment and total projected revenue from the State income tax. Specifically, the Department of Education will determine each district's projected enrollment, while the State Treasurer will assess the total projected income tax revenue for the budget year. The State aid for each district is then calculated using the formula: TDSA = (TITR/TSE) * TDE, where TDSA represents the school district's State aid, TITR is the total projected income tax revenue, TSE is the total projected resident enrollment, and TDE is the district's projected resident enrollment.

The bill overrides previous laws, specifically P.L.2007, c.260, to implement this new formula for the first school year following its enactment and for subsequent years. It aims to ensure equitable distribution of State aid based on actual enrollment figures and projected tax revenues, thereby enhancing the financial support for public schools across the State. The act is set to take effect immediately upon passage.