LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5239

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JULY 2, 2026

 

 

SUMMARY

 

Synopsis:

Modifies calculation of preschool education aid for certain school districts.

Type of Impact:

State expenditure increase from the Property Tax Relief Fund.  Revenue increase for local school districts.

Agencies Affected:

Department of Education; certain local school districts.

 

 

Office of Legislative Services Estimate

Fiscal Impact

FY 2027

FY 2028

 

State Expenditure Increase

Approximately $7.5 million

Indeterminate

 

Local Revenue Increase

Approximately $7.5 million

Indeterminate

 

 

·       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.

 

Preschool Education Aid

District

County

FY 2027 Governor’s Budget

A5239

Change

Edison Twp

Middlesex

$2,307,310

$5,769,524

$3,461,714

Elmwood Park

Bergen

$1,529,672

$3,824,180

$2,294,508

Wood-Ridge Boro

Bergen

$591,853

$1,479,632

$887,779

Greenwich Twp

Gloucester

$409,046

$1,022,616

$613,570

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.

 

Section:

Education

Analyst:

Abigail Chambers

Senior Fiscal Analyst

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.).