Requires Commissioner of Education to take certain action concerning preliminary State school aid notices and school district budgets and creates New Jersey Education Funding Portal; modifies certain provisions in school funding law.

A3881 1R

[First Reprint]

ASSEMBLY, No. 3881

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CRAIG J. COUGHLIN

District 19 (Middlesex)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

Assemblywoman� VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblyman Angelozzi

SYNOPSIS

���� Requires Commissioner of Education to take certain
action concerning preliminary State school aid notices and school district
budgets and creates New Jersey Education Funding Portal; modifies certain
provisions in school funding law.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Education Committee on
June 15, 2026, with amendments.

��

An Act
concerning State school aid
, amending P.L.1996,
c.138 and P.L.2007, c.260,
and supplementing
P.L.2007,
c.260
.

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

����
1
[
1.� Section 5
of P.L.1996, c.138 (C.18A:7F-5) is amended to read as follows:

���� 5.��� As used in this section,
"cost of living" means the CPI as defined in section 3 of P.L.2007,
c.260 (C.18A:7F-45).

���� a.���� Within 30 days
following the approval of the Educational Adequacy Report, the commissioner
shall notify each district of the base per pupil amount, the per pupil amounts
for full-day preschool, the weights for grade level, county vocational school
districts, at-risk pupils, bilingual pupils, and combination pupils, the cost
coefficients for security aid and for transportation aid, the State average
classification rate and the excess cost for general special education services
pupils, the State average classification rate and the excess cost for
speech-only pupils, and the geographic cost adjustment for each of the school
years to which the report is applicable.

����
Beginning with State school
aid calculated for the 2026-2027 school year, the commissioner shall annually, no
later than the end of the first week in December, provide each district with a
preliminary State aid notice that details the minimum amount of State aid
payable to the district in the succeeding school year pursuant to the
provisions of P.L.2007, c.260 (C.18A:7F-43 et al.).

���� Annually, within two days
following the transmittal of the State budget message to the Legislature by the
Governor pursuant to section 11 of P.L.1944, c.112 (C.52:27B-20), the
commissioner shall notify each district of the maximum amount of aid payable to
the district in the succeeding school year pursuant to the provisions of
P.L.2007, c.260 (C.18A:7F-43 et al.)
or the amount of aid payable to the
district in the succeeding school year pursuant to the State budget message
,
and shall notify each district of the district's adequacy budget for the
succeeding school year.�
The commissioner shall, on the same date, notify
each school district of the projected Statewide property value rate and the
projected Statewide income rate to be used in the calculation of a district�s
local share in the year following the succeeding school year.

���� For the 2008-2009 school year
and thereafter, unless otherwise specified within P.L.2007, c.260 (C.18A:7F-43
et al.), aid amounts payable for the budget year shall be based on budget year
pupil counts, which shall be projected by the commissioner using data from
prior years.� Adjustments for the actual pupil counts of the budget year shall
be made to State aid amounts payable during the school year succeeding the
budget year.� Additional amounts payable shall be reflected as revenue and an
account receivable for the budget year.

���� Notwithstanding any other
provision of this act to the contrary, each district's State aid payable for
the 2008-2009 school year, with the exception of aid for school facilities
projects, shall be based on simulations employing the various formulas and State
aid amounts contained in P.L.2007, c.260 (C.18A:7F-43 et al.).� The
commissioner shall prepare a report dated December 12, 2007 reflecting the
State aid amounts payable by category for each district and shall submit the
report to the Legislature prior to the adoption of P.L.2007, c.260 (C.18A:7F-43
et al.).� Except as otherwise provided pursuant to this subsection and
paragraph (3) of subsection d. of section 5 of P.L.2007, c.260 (C.18A:7F-47),
the amounts contained in the commissioner's report shall be the final amounts
payable and shall not be subsequently adjusted other than to reflect the
phase-in of the required general fund local levy pursuant to paragraph (4) of
subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58) and to reflect
school choice aid to which a district may be entitled pursuant to section 20 of
that act. The projected pupil counts and equalized valuations used for the
calculation of State aid shall also be used for the calculation of adequacy
budget, local share, and required local share.� For 2008-2009, extraordinary
special education State aid shall be included as a projected amount in the
commissioner's report dated December 12, 2007 pending the final approval of
applications for the aid.� If the actual award of extraordinary special
education State aid is greater than the projected amount, the district shall
receive the increase in the aid payable in the subsequent school year pursuant
to the provisions of subsection c. of section 13 of P.L.2007, c.260
(C.18A:7F-55).� If the actual award of extraordinary special education State
aid is less than the projected amount, other State aid categories shall be
adjusted accordingly so that the district shall not receive less State aid than
as provided in accordance with the provisions of sections 5 and 16 of P.L.2007,
c.260 (C.18A:7F-47 and C.18A:7F-58).

���� In the event that the
commissioner determines, following the enactment of P.L.2007, c.260
(C.18A:7F-43 et al.) but prior to the issuance of State aid notices for the
2008-2009 school year, that a significant district-specific change in data
warrants an increase in State aid for that district, the commissioner may
adjust the State aid amount provided for the district in the December 12, 2007
report to reflect the increase.

���� b.��� Each district shall have
a required local share.� For districts that receive educational adequacy aid
pursuant to subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58), the
required local share shall be calculated in accordance with the provisions of
that subsection.

���� For all other districts, the
required local share shall equal the lesser of the local share calculated at
the district's adequacy budget pursuant to section 9 of P.L.2007, c.260
(C.18A:7F-51), or the district's budgeted local share for the prebudget year.

���� In order to meet this
requirement, each district shall raise a general fund tax levy which equals its
required local share.

���� No municipal governing body or
bodies or board of school estimate, as appropriate, shall certify a general
fund tax levy which does not meet the required local share provisions of this
section.

���� c.���� Annually, on or before
March 4, or on or before March 20 in the case of a school district with an
annual school election in November, each district board of education shall
adopt, and submit to the commissioner for approval, together with such
supporting documentation as the commissioner may prescribe, a budget that
provides for a thorough and efficient education. Notwithstanding the provisions
of this subsection to the contrary, the commissioner may adjust the date for
the submission of district budgets if the commissioner determines that the
availability of preliminary aid numbers for the subsequent school year warrants
such adjustment.

���� Notwithstanding any provision
of this section to the contrary, for the 2005-2006 school year each district
board of education shall submit a proposed budget in which the advertised per
pupil administrative costs do not exceed the lower of the following:

���� (1)�� the district's
advertised per pupil administrative costs for the 2004-2005 school year
inflated by the cost of living or 2.5 percent, whichever is greater; or

���� (2)�� the per pupil
administrative cost limits for the district's region as determined by the
commissioner based on audited expenditures for the 2003-2004 school year.

���� The executive county
superintendent of schools may disapprove the school district's 2005-2006
proposed budget if he determines that the district has not implemented all
potential efficiencies in the administrative operations of the district.� The
executive county superintendent shall work with each school district in the
county during the 2004-2005 school year to identify administrative
inefficiencies in the operations of the district that might cause the
superintendent to reject the district's proposed 2005-2006 school year budget.

���� For the 2006-2007 school year
and each school year thereafter, each district board of education shall submit
a proposed budget in which the advertised per pupil administrative costs do not
exceed the lower of the following:

���� (1)�� the district's prior
year per pupil administrative costs; except that the district may submit a
request to the commissioner for approval to exceed the district's prior year
per pupil administrative costs due to increases in enrollment, administrative
positions necessary as a result of mandated programs, administrative vacancies,
nondiscretionary fixed costs, and such other items as defined in accordance
with regulations adopted pursuant to section 7 of P.L.2004, c.73.� In the event
that the commissioner approves a district's request to exceed its prior year
per pupil administrative costs, the increase authorized by the commissioner
shall not exceed the cost of living or 2.5 percent, whichever is greater; or

���� (2)�� the prior year per pupil
administrative cost limits for the district's region inflated by the cost of
living or 2.5 percent, whichever is greater.

���� d.��� (1) A district's general
fund tax levy shall not exceed the district's adjusted tax levy as calculated
pursuant to sections 3 and 4 of P.L.2007, c.62 (C.18A:7F-38 and 18A:7F-39).

���� (2)�� (Deleted by amendment,
P.L.2007, c.260).

���� (3)�� (Deleted by amendment,
P.L.2007, c.260).

���� (4)�� Any debt service payment
made by a school district during the budget year shall not be included in the
calculation of the district's adjusted tax levy.

���� (5)�� (Deleted by amendment,
P.L.2007, c.260).

���� (6)�� (Deleted by amendment,
P.L.2007, c.260).

���� (7)�� (Deleted by amendment,
P.L.2004, c.73).

���� (8)�� (Deleted by amendment,
P.L.2010, c.44)

���� (9)�� Any district may submit
at the annual school budget election, in accordance with subsection c. of
section 4 of P.L.2007, c.62 (C.18A:7F-39), a separate proposal or proposals for
additional funds, including interpretive statements, specifically identifying
the program purposes for which the proposed funds shall be used, to the voters,
who may, by voter approval, authorize the raising of an additional general fund
tax levy for such purposes.� In the case of a district with a board of school
estimate, one proposal for the additional spending shall be submitted to the
board of school estimate. Any proposal or proposals submitted to the voters or
the board of school estimate shall not: include any programs and services that
were included in the district's prebudget year net budget unless the proposal
is approved by the commissioner upon submission by the district of sufficient
reason for an exemption to this requirement; or include any new programs and
services necessary for students to achieve the thoroughness standards
established pursuant to subsection a. of section 4 of P.L.2007, c.260
(C.18A:7F-46).

���� A district without a board of
school estimate may also submit to the voters at a special election authorized
pursuant to section 2 of P.L.1995, c.278 (C.19:60-2), a separate proposal or
proposals for additional funds for the subsequent budget year, including
interpretive statements, specifically identifying the program purposes for
which the proposed funds shall be used.� A proposal submitted at a special
election shall comply with the requirements of this paragraph and section 4 of
P.L.2007, c.62 (C.18A:7F-39).� A separate proposal or proposals for additional
funds may only be submitted on a date of a special election once during a
school year.� Nothing in this paragraph shall be construed to prohibit the
submission to the voters of a question or questions for the approval of a
capital project or projects on the same special election date as the submission
of a separate proposal or proposals for additional funds.

���� The executive county
superintendent of schools may prohibit the submission of a separate proposal or
proposals to the voters or board of school estimate if he determines that the
district has not implemented all potential efficiencies in the administrative
operations of the district, which efficiencies would eliminate the need for the
raising of an additional general fund tax levy.

���� (10) Notwithstanding any
provision of law to the contrary, if a district proposes a budget with a
general fund tax levy and equalization aid which exceed the adequacy budget,
the following statement shall be published in the legal notice of public hearing
on the budget pursuant to N.J.S.18A:22-28, and posted at the public hearing
held on the budget pursuant to N.J.S.18A:22-29:

���� "Your school district has
proposed programs and services in addition to the core curriculum content
standards adopted by the State Board of Education.� Information on this budget
and the programs and services it provides is available from your local school
district."

���� (11) Any reduction that may be
required to be made to programs and services included in a district's prebudget
year net budget in order for the district to limit the growth in its budget
between the prebudget and budget years by its tax levy growth limitation as
calculated pursuant to sections 3 and 4 of P.L.2007, c.62 (C.18A:7F-38 and
18A:7F-39), shall only include reductions to excessive administration or
programs and services that are inefficient or ineffective.

���� e. (1)� In the case of a
district having a board of school estimate, other than a Type II district with
a board of school estimate, which has a proposed budget that includes a general
fund tax levy and equalization aid in excess of the adequacy budget, the
general fund tax levy shall be submitted to the board for determination of the
amount that should be expended.� If the board of school estimate reduces the
district's proposed budget, the district may appeal any of the reductions to
the commissioner on the grounds that the reductions will negatively impact on
the stability of the district given the need for long term planning and
budgeting.� In considering the appeal, the commissioner shall consider
enrollment increases or decreases within the district; the impact on the local
levy; and whether the reductions will impact on the ability of the district to
fulfill its contractual obligations.� A district may not appeal any reductions
on the grounds that the amount is necessary for a thorough and efficient education.

���� (2)�� � In the case of a
district having a board of school estimate, other than a Type II district with
a board of school estimate, which has a proposed budget that includes a general
fund tax levy and equalization aid at or below the adequacy budget, the general
fund tax levy shall be submitted to the board for determination.� Any
reductions may be appealed to the commissioner on the grounds that the amount
is necessary for a thorough and efficient education or that the reductions will
negatively impact on the stability of the district given the need for long term
planning and budgeting.� In considering the appeal, the commissioner shall also
consider the factors outlined in paragraph (1) of this subsection.

���� In addition, the board of
school estimate shall be required to demonstrate clearly to the commissioner
that the proposed budget reductions shall not adversely affect the ability of
the school district to provide a thorough and efficient education or the stability
of the district given the need for long term planning and budgeting.

���� (3)�� In lieu of any budget
reduction appeal provided for pursuant to paragraphs (1) and (2) of this
subsection, the State board may establish pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), an expedited budget
review process based on a district's application to the commissioner for an
order to restore a budget reduction.

���� (4)�� When the board of
education or the board of school estimate authorize the general fund tax levy,
the district shall submit the resulting budget to the commissioner within 15
days of the authorization.

���� f.���� (Deleted by amendment,
P.L.2007, c.260).

���� g.��� (Deleted by amendment,
P.L.2007, c.260).

(cf: P.L.2024, c.60, s.1)
]
1

�����
1
1.� Section 5 of P.L.1996, c.138 (C.18A:7F-5) is
amended to read as follows:

����� 5.�
As used in this section, "cost of living" means the CPI as defined in
section 3 of P.L.2007, c.260 (C.18A:7F-45).

����� a.�� Within
30 days following the approval of the Educational Adequacy Report, the
commissioner shall notify each district of the base per pupil amount, the per
pupil amounts for full-day preschool, the weights for grade level, county
vocational school districts, at-risk pupils, bilingual pupils, and combination
pupils, the cost coefficients for security aid and for transportation aid, the
State average classification rate and the excess cost for general special
education services pupils, the State average classification rate and the excess
cost for speech-only pupils, and the geographic cost adjustment for each of the
school years to which the report is applicable.

�����
Beginning
with State school aid calculated for the 2026-2027 school year, the
commissioner shall annually, no later than the end of the first week in
December, provide each district with a preliminary State aid notice that
details the minimum amount of State aid payable to the district in the
succeeding school year pursuant to the provisions of P.L.2007, c.260
(C.18A:7F-43 et al.).

����� Annually,
within two days following the transmittal of the State budget message to the
Legislature by the Governor pursuant to section 11 of P.L.1944, c.112
(C.52:27B-20), the commissioner shall notify each district of the maximum
amount of aid payable to the district in the succeeding school year pursuant to
the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.)
or the amount of aid
payable to the district in the succeeding school year pursuant to the State
budget message
, and shall notify each district of the district's adequacy
budget for the succeeding school year.�
The commissioner shall, on the same
date, notify each school district of the projected Statewide property value
rate and the projected Statewide income rate to be used in the calculation of a
district�s local share in the year following the succeeding school year.
���������� For
the 2008-2009 school year and thereafter, unless otherwise specified within
P.L.2007, c.260 (C.18A:7F-43 et al.), aid amounts payable for the budget year
shall be based on budget year pupil counts, which shall be projected by the
commissioner using data from prior years.� Adjustments for the actual pupil
counts of the budget year shall be made to State aid amounts payable during the
school year succeeding the budget year.� Additional amounts payable shall be
reflected as revenue and an account receivable for the budget year.

����� Notwithstanding
any other provision of this act to the contrary, each district's State aid
payable for the 2008-2009 school year, with the exception of aid for school
facilities projects, shall be based on simulations employing the various
formulas and State aid amounts contained in P.L.2007, c.260 (C.18A:7F-43 et
al.). The commissioner shall prepare a report dated December 12, 2007
reflecting the State aid amounts payable by category for each district and
shall submit the report to the Legislature prior to the adoption of P.L.2007,
c.260 (C.18A:7F-43 et al.).� Except as otherwise provided pursuant to this
subsection and paragraph (3) of subsection d. of section 5 of P.L.2007, c.260
(C.18A:7F-47), the amounts contained in the commissioner's report shall be the
final amounts payable and shall not be subsequently adjusted other than to
reflect the phase-in of the required general fund local levy pursuant to
paragraph (4) of subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58)
and to reflect school choice aid to which a district may be entitled pursuant
to section 20 of that act. The projected pupil counts and equalized valuations
used for the calculation of State aid shall also be used for the calculation of
adequacy budget, local share, and required local share.� For 2008-2009,
extraordinary special education State aid shall be included as a projected
amount in the commissioner's report dated December 12, 2007 pending the final
approval of applications for the aid.� If the actual award of extraordinary special
education State aid is greater than the projected amount, the district shall
receive the increase in the aid payable in the subsequent school year pursuant
to the provisions of subsection c. of section 13 of P.L.2007, c.260
(C.18A:7F-55).� If the actual award of extraordinary special education State
aid is less than the projected amount, other State aid categories shall be
adjusted accordingly so that the district shall not receive less State aid than
as provided in accordance with the provisions of sections 5 and 16 of P.L.2007,
c.260 (C.18A:7F-47 and C.18A:7F-58).

����� In
the event that the commissioner determines, following the enactment of
P.L.2007, c.260 (C.18A:7F-43 et al.) but prior to the issuance of State aid
notices for the 2008-2009 school year, that a significant district-specific
change in data warrants an increase in State aid for that district, the
commissioner may adjust the State aid amount provided for the district in the
December 12, 2007 report to reflect the increase.

����� b.�� Each
district shall have a required local share.� For districts that receive
educational adequacy aid pursuant to subsection b. of section 16 of P.L.2007,
c.260 (C.18A:7F-58), the required local share shall be calculated in accordance
with the provisions of that subsection.

����� For
all other districts, the required local share shall equal the lesser of the
local share calculated at the district's adequacy budget pursuant to section 9
of P.L.2007, c.260 (C.18A:7F-51), or the district's budgeted local share for
the prebudget year.

����� In
order to meet this requirement, each district shall raise a general fund tax
levy which equals its required local share.

����� No
municipal governing body or bodies or board of school estimate, as appropriate,
shall certify a general fund tax levy which does not meet the required local
share provisions of this section.

����� c.�� Annually,
on or before March 4, or on or before March 20 in the case of a school district
with an annual school election in November, each district board of education
shall adopt, and submit to the commissioner for approval, together with such
supporting documentation as the commissioner may prescribe, a budget that
provides for a thorough and efficient education. Notwithstanding the provisions
of this subsection to the contrary, the commissioner may adjust the date for
the submission of district budgets if the commissioner determines that the
availability of preliminary aid numbers for the subsequent school year warrants
such adjustment.

����� Notwithstanding
any provision of this section to the contrary, for the 2005-2006 school year
each district board of education shall submit a proposed budget in which the
advertised per pupil administrative costs do not exceed the lower of the
following:

����� (1)� the
district's advertised per pupil administrative costs for the 2004-2005 school
year inflated by the cost of living or 2.5 percent, whichever is greater; or

����� (2)� the
per pupil administrative cost limits for the district's region as determined by
the commissioner based on audited expenditures for the 2003-2004 school year.

����� The
executive county superintendent of schools may disapprove the school district's
2005-2006 proposed budget if he determines that the district has not
implemented all potential efficiencies in the administrative operations of the
district.� The executive county superintendent shall work with each school
district in the county during the 2004-2005 school year to identify
administrative inefficiencies in the operations of the district that might
cause the superintendent to reject the district's proposed 2005-2006 school
year budget.

����� For
the 2006-2007 school year and each school year thereafter, each district board
of education shall submit a proposed budget in which the advertised per pupil
administrative costs do not exceed the lower of the following:

����� (1)� the
district's prior year per pupil administrative costs; except that the district
may submit a request to the commissioner for approval to exceed the district's
prior year per pupil administrative costs due to increases in enrollment,
administrative positions necessary as a result of mandated programs,
administrative vacancies, nondiscretionary fixed costs, and such other items as
defined in accordance with regulations adopted pursuant to section 7 of
P.L.2004, c.73.� In the event that the commissioner approves a district's
request to exceed its prior year per pupil administrative costs, the increase
authorized by the commissioner shall not exceed the cost of living or 2.5
percent, whichever is greater; or

����� (2)� the
prior year per pupil administrative cost limits for the district's region
inflated by the cost of living or 2.5 percent, whichever is greater.

����� d.
(1) A district's general fund tax levy shall not exceed the district's adjusted
tax levy as calculated pursuant to sections 3 and 4 of P.L.2007, c.62
(C.18A:7F-38 and 18A:7F-39).

����� (2)� (Deleted
by amendment, P.L.2007, c.260)

����� (3)� (Deleted
by amendment, P.L.2007, c.260)

����� (4)� Any
debt service payment made by a school district during the budget year shall not
be included in the calculation of the district's adjusted tax levy.

����� (5)� (Deleted
by amendment, P.L.2007, c.260)

����� (6)� (Deleted
by amendment, P.L.2007, c.260)

����� (7)� (Deleted
by amendment, P.L.2004, c.73)

����� (8)� (Deleted
by amendment, P.L.2010, c.44)

����� (9)� Any
district may submit at the annual school budget election, in accordance with
subsection c. of section 4 of P.L.2007, c.62 (C.18A:7F-39), a separate proposal
or proposals for additional funds, including interpretive statements,
specifically identifying the program purposes for which the proposed funds
shall be used, to the voters, who may, by voter approval, authorize the raising
of an additional general fund tax levy for such purposes.� In the case of a
district with a board of school estimate, one proposal for the additional
spending shall be submitted to the board of school estimate. Any proposal or
proposals submitted to the voters or the board of school estimate shall not:
include any programs and services that were included in the district's prebudget
year net budget unless the proposal is approved by the commissioner upon
submission by the district of sufficient reason for an exemption to this
requirement or include any new programs and services necessary for students to
achieve the thoroughness standards established pursuant to subsection a. of
section 4 of P.L.2007, c.260 (C.18A:7F-46).

����� A
district without a board of school estimate may also submit to the voters at a
special election authorized pursuant to section 2 of P.L.1995, c.278
(C.19:60-2), a separate proposal or proposals for additional funds for the
subsequent budget year, including interpretive statements, specifically
identifying the program purposes for which the proposed funds shall be used.� A
proposal submitted at a special election shall comply with the requirements of
this paragraph and section 4 of P.L.2007, c.62 (C.18A:7F-39).� A separate
proposal or proposals for additional funds may only be submitted on a date of a
special election once during a school year.� Nothing in this paragraph shall be
construed to prohibit the submission to the voters of a question or questions
for the approval of a capital project or projects on the same special election
date as the submission of a separate proposal or proposals for additional
funds.

����� In
the case of a school district in which the annual school election has been
moved to November pursuant to subsection a. of section 1 of P.L.2011, c.202
(C.19:60-1.1), the school district may submit a separate proposal for
additional funds for the budget year, or a separate proposal for additional
funds for the subsequent budget year, or separate proposals for additional
funds for each of those budget years.� In the event that a school district
submits a separate proposal for additional funds for the subsequent budget year
and the separate proposal is approved, the school district shall not add to its
adjusted tax levy for the subsequent budget year any amount authorized pursuant
to subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39).

����� The
executive county superintendent of schools may prohibit the submission of a
separate proposal or proposals to the voters or board of school estimate if he
determines that the district has not implemented all potential efficiencies in
the administrative operations of the district, which efficiencies would
eliminate the need for the raising of an additional general fund tax levy.

����� (10)�
Notwithstanding any provision of law to the contrary, if a district proposes a
budget with a general fund tax levy and equalization aid which exceed the
adequacy budget, the following statement shall be published in the legal notice
of public hearing on the budget pursuant to N.J.S.18A:22-28, and posted at the
public hearing held on the budget pursuant to N.J.S.18A:22-29:

����� "Your
school district has proposed programs and services in addition to the core
curriculum content standards adopted by the State Board of Education.�
Information on this budget and the programs and services it provides is
available from your local school district."

����� (11)�
Any reduction that may be required to be made to programs and services included
in a district's prebudget year net budget in order for the district to limit
the growth in its budget between the prebudget and budget years by its tax levy
growth limitation as calculated pursuant to sections 3 and 4 of P.L.2007, c.62
(C.18A:7F-38 and 18A:7F-39), shall only include reductions to excessive
administration or programs and services that are inefficient or ineffective.

����� e.
(1) In the case of a district having a board of school estimate, other than a
Type II district with a board of school estimate, which has a proposed budget
that includes a general fund tax levy and equalization aid in excess of the
adequacy budget, the general fund tax levy shall be submitted to the board for
determination of the amount that should be expended.� If the board of school
estimate reduces the district's proposed budget, the district may appeal any of
the reductions to the commissioner on the grounds that the reductions will
negatively impact on the stability of the district given the need for long term
planning and budgeting.� In considering the appeal, the commissioner shall
consider enrollment increases or decreases within the district, the impact on
the local levy, and whether the reductions will impact on the ability of the
district to fulfill its contractual obligations.� A district may not appeal any
reductions on the grounds that the amount is necessary for a thorough and
efficient education.

����� (2)
In the case of a district having a board of school estimate, other than a Type
II district with a board of school estimate, which has a proposed budget that
includes a general fund tax levy and equalization aid at or below the adequacy
budget, the general fund tax levy shall be submitted to the board for
determination.� Any reductions may be appealed to the commissioner on the
grounds that the amount is necessary for a thorough and efficient education or
that the reductions will negatively impact on the stability of the district
given the need for long term planning and budgeting.� In considering the
appeal, the commissioner shall also consider the factors outlined in paragraph
(1) of this subsection.

����� In
addition, the board of school estimate shall be required to demonstrate clearly
to the commissioner that the proposed budget reductions shall not adversely
affect the ability of the school district to provide a thorough and efficient
education or the stability of the district given the need for long term
planning and budgeting.

����� (3)� In
lieu of any budget reduction appeal provided for pursuant to paragraphs (1) and
(2) of this subsection, the State board may establish pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
an expedited budget review process based on a district's application to the
commissioner for an order to restore a budget reduction.

����� (4)� When
the board of education or the board of school estimate authorize the general
fund tax levy, the district shall submit the resulting budget to the
commissioner within 15 days of the authorization.

����� f.��� (Deleted
by amendment, P.L.2007, c.260)

����� g.�� (Deleted
by amendment, P.L.2007, c.260)
1

(cf:
P.L.2025, c.234, s.1)

���� 2. Section 4 of P.L.2007,
c.260 (C.18A:7F-46) is amended to read as follows:

���� 4. a. The State Board of
Education shall review and update the core curriculum content standards every
five years.� The standards shall ensure that all children are provided the
educational opportunity needed to equip them for the role of citizen and labor
market competitor.

���� The Commissioner of Education
shall develop and establish, through the report issued pursuant to subsection
b. of this section, efficiency standards which define the types of programs,
services, activities, and materials necessary to achieve a thorough and
efficient education.

���� b.��� By September 1 of 2010
and by September 1 every three years thereafter, the Governor, after
consultation with the commissioner, shall recommend to the Legislature through
the issuance of the Educational Adequacy Report for the three school years to
which the report is applicable:

���� (1)�� the base per pupil
amount based upon the core curriculum content standards established pursuant to
subsection a. of this section;

���� (2)�� the per pupil amounts
for full-day preschool;

���� (3)�� the weights for grade
level, county vocational school districts, at-risk pupils, bilingual pupils,
and combination pupils;

���� (4)�� the cost coefficients
for security aid and transportation aid;

���� (5)�� the State average
classification rate for general special education services pupils and for
speech-only pupils;

���� (6)�� the excess cost for
general special education services pupils and for speech-only pupils; and

���� (7)�� the extraordinary
special education aid thresholds.

���� The base per pupil amount, the
per pupil amounts for full-day preschool, the excess costs for general special
education services pupils and for speech-only pupils, and the cost-coefficients
for security aid and transportation aid shall be adjusted by the CPI for each
of the two school years following the first school year to which the report is
applicable.

���� The amounts shall be deemed
approved for the three successive fiscal years beginning from the subsequent
July 1
[
,
unless between the date of transmittal and the subsequent November 30,
]

only if

the Legislature adopts a concurrent resolution stating that the Legislature is
[
not
]
in agreement
with
[
all
or any specific part of
]

the report.�
[
The
]

If the
Legislature is not in agreement with all or any specific part of the report,
the Legislature shall adopt a
concurrent resolution
[
shall advise
]

that
advises
the Governor of the Legislature's specific objections to the report
and shall direct the commissioner to submit to the Legislature a revised report
which responds to those objections by January 1.

(cf: P.L.2007, c.260, s.4)

����� 3.
� 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
three school years, except that, when calculating the average, the value used
for the prebudget year shall be the lesser of the actual equalized valuation
for that year and the equalized valuation for the year preceding the prebudget
year multiplied by 1.05.� For the 2026-2027 school year, the value used for the
prebudget year shall be the equalized valuation for the year preceding the
prebudget year multiplied by 1.05
;

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

����� INC
is the
average of the
district's income
for the calendar year ending
two years prior to the prebudget year and the two calendar years prior to that,
except that, when calculating the average, the value used for the calendar year
ending two years prior to the prebudget year shall be the lesser of the actual
district income for that year and the district income for the year preceding
that year multiplied by 1.05.� For the 2026-2027 school year, the value used
for the calendar year ending two years prior to the prebudget year shall be the
district income for the year preceding that year multiplied by 1.05
; 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
1
[
five-year
]

three-year
1

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
1
three-year average
1
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)

���� 4.��� (New section)�
Notwithstanding the provisions of any law, rule, or regulation to the contrary,
the Commissioner of Education shall, beginning with the 2026-2027 school year
and each school year thereafter, permit a school district, which is proposed to
experience a State school aid reduction according to the State aid notice
distributed to school districts pursuant to section 5 of P.L.1996, c.138
(C.18A:7F-5), to first submit its budget to the commissioner no later than five
days following the enactment of the appropriations act for the budget year and
to revise the school district�s budget at any point within the first six months
of the budget year.� The commissioner is authorized to make any adjustments to
the school budget calendar that are necessary to conform with the provisions of
this section, which adjustments shall include a compressed schedule by which a
school district can enact its budget.

���� 5.��� (New section)� a.� The
Department of Education shall create, maintain, and update, as appropriate, a
New Jersey Education Funding Portal on the department�s Internet website.� The
portal shall make available to school districts and members of the public the
data inputs and calculations used by the department in formulating State school
aid for all school districts under the �School Funding Reform Act of 2008,�
P.L.2007, c.260 (C.18A:7F-43 et al.) and P.L.2018, c.67 (C.18A:7F-67 et al.).�
The portal shall allow individuals to adjust certain data inputs for a school
district, including enrollment, equalized property values, and district income,
and provide an estimate of the impact of these changes on the district�s State
aid.

���� b.� The portal shall utilize
user-friendly plain language to specify the:

���� (1)� manner in which school
district adequacy budgets and local shares are calculated;

���� (2)� current methodology of
measuring and weighting at-risk students and students with limited English
proficiency;�

���� (3)� weights applied to
students in different grade levels, as well as those applied to students
enrolled in county vocational school districts;

���� (4)� current methodology used
to calculate the geographic cost adjustment;

���� (5)� current methodology used
to calculate the amount of State funding a school district receives to educate
its special education population;

���� (6)� provision of
extraordinary special education aid and the cost thresholds used as the bases
for reimbursement of extraordinary special education costs; and

���� (7)� methodologies used to
calculate security categorical aid and transportation aid.�

���� c.� The portal shall be
searchable by school district and shall include, for each school district:

���� (1)�� preliminary State aid
notices;

���� (2)�� measurements of the
budgeted local share, district income, equalized valuation, and resident
enrollment;

���� (3)� the total amount of State
school aid received in each of the most recent three school years; and

���� (4)� the amount received by
the district for each type of categorical State aid in each of the most recent
three school years.

���� d.� The portal shall include
links to:

���� (1)� relevant State laws,
regulations, and guidelines pertaining to school funding;

���� (2)� current budgets for each
school district and, as available, proposed budgets for the upcoming school
year; and

���� (3)� the Educational Adequacy
Report issued by the commissioner pursuant to section 4 of P.L.2007, c.260, (C.18A:7F-46).�

���� 6.� (New section)�
Notwithstanding the provisions of sections 6 and 10 of P.L.2007, c.260
(C.18A:7F-48 and C.18A:7F-52) or any other law, rule, or regulation to the
contrary, for the purposes of calculating a school district�s local share for
the 2026-2027 school year, the Statewide property value rate and the Statewide
income rate otherwise determined pursuant to subsection c. of section 10 of
P.L.2007, c.260 (C.18A:7F-52) shall be the same as the rates used in the
2025-2026 school year.� The total amount of Statewide equalization aid
available for the 2026-2027 school year shall be equal to the sum of each
school district�s allocation of equalization aid.

���� 7.��� Sections 1 through 4 and
section 6 of this act shall take effect immediately.� Section 5 of this act
shall take effect on the first day of the fourth month next following the date
of enactment, except that the Commissioner of Education may take such anticipatory
action as may be necessary for the implementation of section 5 of this act.