LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5239
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 2, 2026
SUMMARY
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Synopsis: |
Modifies calculation of preschool education aid for certain school districts. |
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Type of Impact: |
State expenditure increase from the Property Tax Relief Fund. Revenue increase for local school districts. |
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Agencies Affected: |
Department of Education; certain local school districts. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
FY 2027 |
FY 2028 |
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State Expenditure Increase |
Approximately $7.5 million |
Indeterminate |
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Local Revenue Increase |
Approximately $7.5 million |
Indeterminate |
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· The Office of Legislative Services (OLS) estimates that this bill would result in a State expenditure increase of approximately $7.5 million in FY 2027 associated with the provision of additional preschool education aid to school districts that first receive preschool education aid in the 2026-2027 school year. The bill would result in a concurrent revenue increase for impacted districts.
· The OLS is not able to estimate the amount of additional preschool education aid that may be owed to each district in FY 2028, however, there would be an indeterminate State expenditure increase and concurrent revenue increase for local school districts associated with the full funding of preschool education aid for the impacted districts.
BILL DESCRIPTION
This bill modifies the calculation of State preschool education aid for school districts that are first receiving preschool education aid in the 2025-2026 and 2026-2027 school years. Under current law, school districts that first receive preschool education aid in the 2025-2026, 2026-2027, or 2027-2028 school years participate in a pilot program in which the districts raise a portion of preschool education costs locally and receive a percentage of State preschool education aid. The bill would exempt school districts that first receive preschool education aid in the 2025-2026 and 2026-2027 school years from participating in the pilot program and entitle these school districts to 100 percent of their preschool education aid allocations.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill would result in a State expenditure increase of approximately $7.5 million associated with the provision of additional preschool education aid to school districts that first receive preschool education aid in the 2026-2027 school year. The bill would result in a concurrent revenue increase for the impacted districts.
Based on information from the Department of Education regarding preschool education aid allocations, the OLS determines that there are five districts that are proposed to receive preschool education aid for the first time in the 2026-2027 school year.
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Preschool Education Aid |
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District |
County |
FY 2027 Governor’s Budget |
A5239 |
Change |
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Edison Twp |
Middlesex |
$2,307,310 |
$5,769,524 |
$3,461,714 |
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Elmwood Park |
Bergen |
$1,529,672 |
$3,824,180 |
$2,294,508 |
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Wood-Ridge Boro |
Bergen |
$591,853 |
$1,479,632 |
$887,779 |
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Greenwich Twp |
Gloucester |
$409,046 |
$1,022,616 |
$613,570 |
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Frelinghuysen Twp |
Warren |
$174,528 |
$436,320 |
$261,792 |
The total cost of fully funding the five first-time recipients of preschool education aid would be an additional $7.5 million in State expenditures.
The OLS is not able to estimate the amount of additional preschool education aid that may be owed to each district in FY 2028, however, there would be an indeterminate State expenditure increase and concurrent revenue increase for local school districts associated with the full funding of preschool education aid for these five impacted districts.
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Section: |
Education |
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Analyst: |
Senior Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).