New JerseyNew Jersey would lift the 2026–27 school aid increase cap
School districts whose aid would be cut by a six percent growth cap would receive their full calculated 2026–27 aid, with $332.6 million set aside.
What it does
For 2026–27, the education commissioner could not use the six percent growth limit to reduce a district’s state aid below its full calculated amount.
New Jersey would set aside $332.6 million from the Property Tax Relief Fund to pay added aid to districts affected by the increase limit.
Argument forDistricts held back by the six percent cap could receive their full calculated aid to help pay school costs.
Argument againstUsing $332.6 million from the Property Tax Relief Fund could leave less in that fund for other needs.
More detail
The education commissioner could not limit a district’s increase in state school aid below its full calculated amount. This covers a district’s combined aid for school costs, transportation, special education, and security when the limit would reduce that aid. The six percent growth limit is based on a district’s 2025–26 aid. This rule would take effect immediately if enacted and apply to aid for the 2026–27 school year.
The state would set aside $332,570,597 for the Education Department. The department would use the money to provide added aid to school districts affected by the increase limit. The money would come from the Property Tax Relief Fund. The funding provision would take effect immediately if enacted.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 28Introduced in the Senate, Referred to Senate Education CommitteeIntroduced
EducationTaxes & Budget