The Fairness for Coastal School Districts in Development Restricted Areas Act aims to provide additional State school aid to specific school districts located in municipalities governed by the Coastal Area Facility Review Act (CAFRA). A qualifying school district is defined as one that has experienced a net loss in State school aid from the 2017-2018 to the 2024-2025 school year, has a resident enrollment of over 500 students, and is entirely situated in a municipality where at least 20 percent of the land is designated as coastal area. The bill stipulates that these qualifying districts will receive additional aid calculated at $275 per acre of coastal land within the municipality, with caps on the total aid based on student enrollment.

The sponsors of the bill argue that the development restrictions imposed by CAFRA have hindered the ability of coastal municipalities to generate property tax revenue, which is essential for funding local services, including education. As a result, many coastal school districts have faced significant reductions in State support while being unable to benefit from increased local tax revenues due to these limitations. This legislation seeks to address the financial challenges faced by these districts by providing targeted State aid to help mitigate the impact of lost funding and restricted development opportunities.