Sponsored by:
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
Assemblywoman ALIXON COLLAZOS-GILL
District 27 (Essex and Passaic)
SYNOPSIS
Requires Commissioner of Education to permit certain school districts losing State school aid or subject to State aid growth limit to submit budgets after enactment of FY 2026 appropriations act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning budget submissions for certain school districts.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of any law, rule, or regulation to the contrary, the Commissioner of Education shall, for the 2025-2026 school year only, permit a school district which is proposed to experience a State school aid reduction or is subject to the six percent State aid growth limit according to the State aid notice distributed to the district on February 27, 2025 to first submit its budget to the commissioner no later than five days following the enactment of the appropriations act for the State fiscal year ending June 30, 2026, provided that the State school aid reduction to be experienced by the school district or the amount of the State aid eliminated due to the State aid growth limit is greater than the total amount of the district’s unused tax authority determined pursuant to subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39). The commissioner is authorized to make any adjustments to the school budget calendar that are necessary to conform with the provisions of this act, which adjustments shall include a compressed schedule by which a school district can enact its budget.
2. This act shall take effect immediately.
STATEMENT
This bill requires the Commissioner of Education to permit certain school districts that are losing State school aid or are subject to the State aid growth limit specified in the State aid notice distributed to school districts on February 27, 2025 to submit their school budget after the enactment of the State fiscal year 2026 appropriations act. The fiscal year 2026 Governor’s Budget Proposal currently recommends limiting State school aid increases to six percent over the aid received in fiscal year 2025. The commissioner is authorized under the bill to make any adjustments to the school budget calendar that are necessary to conform with the bill’s provisions. The adjustments are to include a compressed schedule by which a school district can enact its budget.
The bill would apply to school districts, which are proposed to receive a State school aid reduction or are subject to the proposed six percent State aid growth limit, if the amount of the reduction or the amount of the State aid eliminated due to the State aid growth limit is greater than the total amount of the district’s unused tax authority permitted under current law. This unused tax authority is often referred to as “banked cap.” Under current law, a school district may add to its adjusted tax levy in any one of the next three succeeding school budget years, the amount of the difference between the maximum allowable amount to be raised by taxation for the current school budget year and the actual amount to be raised by taxation for the current school budget year.