SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4281

STATE OF NEW JERSEY

DATED:  JUNE 24, 2026

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4281.

      As reported, this bill modifies the calculation of preschool education State aid for school districts that are first receiving preschool education aid in the 2025-2026 and 2026-2027 school years.

      Pursuant to recent changes in State law related to funding for public preschool programs, school districts first receiving preschool education State aid in the 2025-2026, 2026-2027, and 2027-2028 school years are provided aid subject to a cost-sharing methodology. 

      Under this methodology, preschool education State aid covers a portion of a district’s total preschool education program costs.  This portion is equal to the greater of the district aid percentage as calculated in current law or 40 percent of eligible preschool costs.  Districts subject to the cost-sharing methodology are permitted to raise their local tax levies, without separate voter approval, up to the difference between total preschool costs and the amount of preschool education State aid received.  Preschool education aid for all other school districts receiving this category of aid is calculated based on preschool enrollment in different settings within the districts and Statewide average per pupil costs of educating preschool students in those different settings. 

      This bill exempts school districts first receiving preschool education aid in the 2025-2026 and 2026-2027 school years from being subject to current law’s cost-sharing methodology.  These districts would instead receive an increased amount of preschool education aid based on total program enrollment and costs.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that this bill would result in a State expenditure increase of approximately $7.5 million in FY2027 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.