The "Fully Funding Schools and Cutting Property Taxes Act" seeks to enhance state funding for schools while reducing property taxes. Starting in the 2023-2024 school year, the bill mandates that school districts and county vocational school districts receive state aid that aligns with the School Funding Reform Act of 2008 (SFRA) up to their adequacy budget. It ensures that districts receive the highest funding based on criteria such as previous aid levels and adjustments for those that have seen reductions in state aid from 2018-2019 to 2022-2023. Additionally, districts can petition for further aid if they show a reduction in their adjusted tax levy. The bill appropriates $2.9 billion to support these initiatives, aiming to balance funding with residents' ability to support their schools while alleviating property tax burdens.

The legislation also includes provisions that require districts receiving increased state aid to proportionally reduce their budgets and adjusted tax levies, particularly if their total adjusted tax levy exceeds five percent of district income. It clarifies the conditions under which districts can propose increases to their adjusted tax levies, ensuring that such proposals are subject to voter approval. Furthermore, the bill repeals specific sections of P.L.2018, c.67 that contributed to reduced aid and increased property taxes for some districts. The overall goal of the bill is to promote equity in New Jersey's school funding system and ensure compliance with the constitutional requirement for a thorough and efficient education.

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