Sponsored by:
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Prohibits limitation of State school aid increases in 2026-2027 school year; appropriates $332.6 million.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning State school aid and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law, rule, or regulation to the contrary, the Commissioner of Education shall not limit increases in State school aid such that a school district’s uncapped State school aid for the 2026-2027 school year is reduced.
b. As used in this section:
“State school aid” means the sum of a district’s equalization aid, transportation aid, special education categorical aid, and security categorical aid; and
“Uncapped State school aid” means the amount of equalization aid, transportation aid, special education categorical aid, and security categorical aid, as calculated for a school district prior to the limitation of any State aid increases.
2. There is appropriated from the Property Tax Relief Fund to the Department of Education the sum of $332,570,597 to effectuate the provisions of this act.
3. This act shall take effect immediately.
STATEMENT
This bill prohibits the limitation of increases in State school aid provided to school districts in the 2026-2027 school year.
The FY2027 appropriations act includes language limiting increases in State school aid, defined as the sum of equalization aid, transportation aid, special education categorical aid, and security categorical aid, to six percent of a district’s allocation of aid in the 2025-2026 school year. The bill would entitle a school district to receive the full amount of State school aid calculated for the 2026-2027 school year prior to the application of the six percent growth limit.
The bill appropriates $332.6 million to provide additional aid to the affected school districts.