summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes a State aid reduction cap to ensure that the amount of State school aid disbursed to a school district in any given school year is not reduced from the prior year's amount of aid by an amount greater than the cap. Under the bill, the State aid reduction cap for a school district is equal to five percent of the district's net budget for the prior year. A district's net budget is defined under current law as the sum of the district's general fund tax levy, State aid other than preschool education aid, miscellaneous revenue, and designated general fund balance. Under current law, there is no limitation on the size of a district's State aid reduction.
AI Summary
This bill establishes a cap on the amount of State school aid a district can lose from one school year to the next, ensuring that the reduction does not exceed five percent of the district's net budget from the previous year. The net budget is defined as the sum of the district's general fund tax levy, State aid (excluding preschool education aid), miscellaneous revenue, and designated general fund balance. This provision aims to provide greater predictability and stability in school funding by preventing drastic cuts to State aid, a situation that was previously not limited by law.
Committee Categories
Education
Sponsors (2)
Last Action
Introduced, Referred to Assembly Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A394 |
| BillText | https://pub.njleg.gov/Bills/2026/A0500/394_I1.HTM |
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