New JerseyNew Jersey would remove the 2026–2027 school aid growth cap
New Jersey school districts would receive their calculated aid without the six percent growth cap for 2026–2027, backed by about $332.6 million in state funding.
What it does
School districts would receive the full calculated amount of four state aid categories for 2026–2027, without the current six percent limit on increases.
The state would set aside about $332.6 million from the Property Tax Relief Fund for the Education Department to pay the additional school aid.
Argument forDistricts affected by the six percent cap could receive more money for school services by getting their full calculated aid.
Argument againstUsing $332.6 million from the Property Tax Relief Fund could leave less money in that fund for other uses.
More detail
The education commissioner would have to allow the full calculated aid amount without capping increases. This covers the combined aid for transportation, special education, and school security, plus the state funding category called equalization aid. The rule would take effect immediately upon enactment and apply to aid for the 2026–2027 school year.
The state would set aside $332,570,597 for the Department of Education. The funding would support additional aid to districts affected by the growth limit. The money would come from the Property Tax Relief Fund and pay for carrying out the aid change. The funding provision would take effect immediately upon enactment.
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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
- Oct 19Introduced, Referred to Assembly Education CommitteeIntroduced
EducationTaxes & Budget