Requires five-year average of equalized property valuation be used in calculation of local share under State school funding formula.

A1489

ASSEMBLY, No. 1489

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman MITCHELLE DRULIS

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

SYNOPSIS

���� Requires five-year average of equalized property
valuation be used in calculation of local share under State school funding
formula.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning State school aid and amending
P.L.2007, c.260 (C.18A:7F-43 et al.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� Section 10 of P.L.2007,
c.260 (C.18A:7F-52) is amended to read as follows:

���� 10.� Each school district and
county vocational school district shall receive equalization aid predicated on
a local share determined by district property wealth and district income.

���� a.���� Each district's local
share shall be calculated as follows:

���� LSHARE = (EQVAL x PVR x 50%) +
(INC x INR x 50%)

where

���� EQVAL is the
average of the

district's
[
prebudget
year
]

equalized valuation
amounts for the preceding five school years
;

���� PVR is the Statewide property
value rate determined pursuant to subsection c. of this section;

���� INC is the district's income;
and

���� INR is the Statewide income
rate determined pursuant to subsection c. of this section.

���� b.��� The local share for each
county vocational school district shall be calculated as follows:

���� LSHARE = (COLSHARE/COAB) x AB

where�

���� COLSHARE is the sum of the
local shares for all school districts in the county calculated pursuant to
subsection a. of this section;

���� COAB is the sum of the
adequacy budgets for all school districts in the county calculated pursuant to
section 9 of
[
this
act
]

P.L.2007,
c.260 (C.18A:7F-51)
; and

���� AB is the county vocational
school district's adequacy budget calculated pursuant to section 9 of
[
this act
]

P.L.2007,
c.260 (C.18A:7F-51)
.

���� c.���� For the 2008-2009
school year, the property value rate shall be set at 0.0092690802 and the
income value rate shall be set at 0.04546684.� For subsequent school years the
values for the property value rate and the income value rate shall be annually
determined by the commissioner as follows:

���� the property value rate shall
be determined such that equalization aid equals the Statewide available
equalization aid for all districts determined according to
[
this act
]

P.L.2007,
c.260 (C.18A:7F-43 et al.)
had each school district's local share equaled
the product of the property value rate and the district's
five-year average

equalized valuation and each county vocational school district's local share
equaled the product of the county vocational school district's adequacy budget
and the average local share, expressed as a percent, of the school districts
located in the county; and

���� the income rate shall be
determined such that equalization aid equals the Statewide available
equalization aid for all districts determined according to
[
this act
]

P.L.2007,
c.260 (C.18A:7F-43 et al.)
had each school district's local share equaled
the product of the income rate and the district's income and each county
vocational school district's local share equaled the product of the county
vocational school district's adequacy budget and the average local share,
expressed as a percent, of the school districts located in the county.

���� In the event that these rates,
when used in accordance with the provisions of this section and assuming that
each district's general fund levy is equal to its local share, do not result in
equalization aid for all districts equal to the Statewide available
equalization aid, the commissioner shall adjust these rates appropriately,
giving equal weight to each.

(cf: P.L.2007, c.260, s.10)

���� 2.� This act shall take effect
immediately and shall first affect State school aid calculations for the
2024-2025 school year.

STATEMENT

���� This bill makes changes to the
calculation of a school district�s local share in determining the district�s
State school aid.

���� Under current law, a
district�s local share is calculated by multiplying the district�s prebudget
year equalized valuation by the Statewide property value rate, divided by two,
and adding this to the product of the district�s income and the Statewide income
rate, divided by two.

���� This bill amends the
calculation to use the district�s average equalized valuation over the
preceding five school years instead of the district�s prebudget year equalized
valuation.