Modifies calculation of preschool education aid for certain school districts.

S4281

SENATE, No. 4281

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 15, 2026

Sponsored by:

Senator� PAUL A. SARLO

District 36 (Bergen and Passaic)

Senator �BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

SYNOPSIS

���� Modifies calculation of preschool education aid for
certain school districts.

�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning preschool education and amending P.L.2007,
c.62 and P.L.2007, c.260.

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

���� 1.� Section 3 of P.L.2007,
c.62 (C.18A:7F-38) is amended to read as follows:

���� 3. a. Notwithstanding the
provisions of any other law to the contrary, a school district shall not adopt
a budget pursuant to sections 5 and 6 of P.L.1996, c.138 (C.18A:7F-5 and
C.
18A:7F-6)
with an increase in its adjusted tax levy that exceeds, except as provided in
subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39), the tax levy growth
limitation calculated as follows: the sum of the prebudget year adjusted tax
levy and the adjustment for increases in enrollment multiplied by 2.0 percent,
and adjustments for an increase in health care costs, increases in amounts for
certain normal and accrued liability pension contributions set forth in
sections 1 and 2 of P.L.2009, c.19 amending section 24 of P.L.1954, c.84
(C.43:15A-24) and section 15 of P.L.1944, c.255 (C.43:16A-15) for the year set
forth in those sections, in the case of an SDA district as defined pursuant to
section 3 of P.L.2000, c.72 (C.18A:7G-3), during the 2018-2019 through the
2024-2025 school years, increases to raise a general fund tax levy to an amount
that does not exceed its local share, and, in the case of a school district
first receiving preschool education aid in the
[
2025-2026, 2026-2027, or
]
2027-2028
school
[
years
]

year

and participating in the pilot program established by the commissioner pursuant
to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54), increases to
raise a general fund tax levy for the local share of preschool education costs.

���� b. (1) The allowable
adjustment for increases in enrollment authorized pursuant to subsection a. of
this section shall equal the per pupil prebudget year adjusted tax levy
multiplied by EP, where EP equals the sum of:

���� (a)�� 0.50 for each unit of
weighted resident enrollment that constitutes an increase from the prebudget
year over
[
1%
]

1 percent
,
but not more than
[
2.5%
]

2.5
percent
;

���� (b)�� 0.75 for each unit of
weighted resident enrollment that constitutes an increase from the prebudget
year over
[
2.5%
]

2.5
percent
, but not more than
[
4%
]

4 percent
;
and

���� (c)�� 1.00 for each unit of
weighted resident enrollment that constitutes an increase from the prebudget
year over
[
4%
]

4 percent
.

���� (2)�� A school district may
request approval from the commissioner to calculate EP equal to 1.00 for any
increase in weighted resident enrollment if it can demonstrate that the
calculation pursuant to paragraph (1) of this subsection would result in an
average class size that exceeds
[
10%
]

10 percent

above the facilities efficiency standards established pursuant to P.L.2000,
c.72 (C.18A:7G-1 et al.).

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

���� d. (1) The allowable
adjustment for increases in health care costs authorized pursuant to subsection
a. of this section shall equal that portion of the actual increase in total
health care costs for the budget year, less any withdrawals from the current expense
emergency reserve account for increases in total health care costs, that
exceeds 2.0 percent of the total health care costs in the prebudget year, but
that is not in excess of the product of the total health care costs in the
prebudget year multiplied by the average percentage increase of the State
Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually
determined by the Division of Pensions and Benefits in the Department of the
Treasury.

���� (2) The allowable adjustment
for increases in the amount of normal and accrued liability pension
contributions authorized pursuant to subsection a. of this section shall equal
that portion of the actual increase in total normal and accrued liability pension
contributions for the budget year that exceeds 2.0 percent of the total normal
and accrued liability pension contributions in the prebudget year.

���� (3) In the case of an SDA
district, as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3), in
which the prebudget year adjusted tax levy is less than the school district's
prebudget year local share as calculated pursuant to section 10 of P.L.2007,
c.260 (C.18A:7F-52), the allowable adjustment for increases to raise a tax levy
that does not exceed the school district's local share shall equal the
difference between the prebudget year adjusted tax levy and the prebudget year
local share.

���� (4) In the case of a school
district first receiving preschool education aid in the
[
2025-2026,
2026-2027, or
]

2027-2028 school
[
years
]

year

and participating in the pilot program established by the commissioner pursuant
to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54), the allowable
adjustment for increases to raise a general fund tax levy for the local share
of preschool education costs shall be equal to the actual increase required to
provide preschool education under the pilot program less State aid provided
pursuant to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54).

����
[
A school district first receiving
preschool education aid in the 2025-2026 school year and participating in the
pilot program established by the commissioner pursuant to subsection h. of
section 12 of P.L.2007, c.260 (C.18A:7F-54) may, prior to the delivery of tax
bills pursuant to R.S.54:4-64, recertify to the county board of taxation the
sum to be raised in the district during the ensuing school year if the change
in the amount to be raised is equal to the district's local share of preschool
education costs for that school year.
]

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

���� f.���� The adjusted tax levy
shall be increased or decreased accordingly whenever the responsibility and
associated cost of a school district activity is transferred to another school
district or governmental entity.

(cf: P.L.2025, c.100, s.3)

���� 2.� Section 12 of P.L.2007,
c.260 (C.18A:7F-54) is amended to read as follows:

���� 12. a. (Deleted by amendment,
P.L.2025, c.100)

���� (1) In the case of a school
district that
[
received
]

receives

preschool education aid in the 2024-2025
[
school
year
]

,
2025-2026, or 2026-2027 school years
, preschool education aid shall be
calculated as follows:

���� Aid = (IDE x IDA) + (PRE x
PRA) + (HSE x HSA)

���� where

���� IDE is the projected FTE
enrollment for the upcoming school year of district pupils, other than
preschool disabled pupils, in an in-district preschool program;

���� IDA is the per pupil aid
amount for an in-district preschool program;

���� PRE is the projected FTE
enrollment for the upcoming school year of district pupils, other than
preschool disabled pupils, in a preschool program operated by a licensed child
care provider;

���� PRA is the per pupil aid
amount for a preschool program operated by a licensed child care provider;

���� HSE is the projected FTE
enrollment for the upcoming school year of district pupils, other than
preschool disabled pupils, in a Head Start Program; and

���� HSA is the per pupil aid
amount for a Head Start Program.

���� (2) (Deleted by amendment,
P.L.2025, c.100)

���� b.��� (Deleted by amendment,
P.L.2025, c.100)

���� c. (1) (Deleted by amendment,
P.L.2025, c.100)

���� (2)�� In the case of a school
district that received Early Launch to Learning Initiative aid in the 2007-2008
school year, the school district shall receive preschool education aid
calculated in accordance with the provisions of paragraph (1) of subsection a. of
this section pending a determination by the commissioner that the district is
prepared to meet all program requirements for high-quality preschool pursuant
to regulations adopted by the commissioner.

���� (3)�� In the case of a school
district that received early childhood program aid in the 2007-2008 school year
but did not receive preschool expansion aid or education opportunity aid in
that year, the school district shall receive preschool education aid calculated
in accordance with the provisions of paragraph (1) of subsection a. of this
section pending a determination by the commissioner that the district is
prepared to meet all program requirements for high-quality preschool pursuant
to regulations adopted by the commissioner.

���� (4)�� (Deleted by amendment,
P.L.2025, c.100)

���� d.��� For the 2008-2009 school
year, the preschool per pupil aid amounts shall be $11,506 for pupils enrolled
in an in-district program, $12,934 for pupils enrolled in a licensed child care
provider program, and $7,146 for pupils enrolled in a Head Start Program.� The
preschool per pupil aid amounts shall be adjusted by the CPI in the 2009-2010
and 2010-2011 school years as required pursuant to subsection b. of section 4
of this act.� For subsequent school years, the preschool per pupil aid amounts
shall be established in the Educational Adequacy Report, with the amounts
adjusted by the CPI for each of the two school years following the first school
year to which the report is applicable.

���� e.���� A district shall
appropriate preschool education aid in a special revenue fund for expenditure.�
In the event that any preschool education aid is not expended during the budget
year, the aid may be carried forward in accordance with regulations adopted by
the commissioner.

���� f.���� In the event that a
district has fully implemented a full-day preschool program for three- and
four-year old pupils and meets the preschool quality standards or has provided
preschool education to the number of eligible students to be served during a
school year in accordance with the preschool quality standards, the district
may appropriate preschool education aid for additional purposes that may be
designated by the commissioner, which purposes shall include, but not be
limited to, providing summer programming for preschool students, professional
development for preschool staff, preschool facilities improvements, and
transportation services for preschool pupils.

���� g.��� A school district shall
maintain the preschool quality standards as adopted by the commissioner as a
condition of receipt of preschool education aid.

���� h.��� In the case of a school
district that first receives preschool education aid in the
[
2025-2026,
2026-2027, or
]

2027-2028 school
[
years
]

year
,
the aid shall be provided, within the limit of available appropriations,
pursuant to a
[
three-year
]
pilot program
established by the commissioner that includes a cost-sharing methodology
between the State and the school district such that the amount of preschool
education aid allocated to the district shall be calculated by multiplying the
district aid percentage by the amount calculated pursuant to the formula in
paragraph (1) of subsection a. of this section, where the district aid
percentage shall be equal to the greater of the district aid percentage as
defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3) or 40 percent of
eligible costs.

���� i.���� A school district
receiving preschool education aid shall obtain approval by the Commissioner of
Education, in a manner prescribed by the commissioner, prior to implementing
any significant redistribution, as defined by the commissioner, of State-funded
preschool seats among district-operated programs, licensed child care
providers, and Head Start programs.

(cf: P.L.2025, c.100, s.5)

���� 3. (New section)� A school
district first receiving preschool education aid in the 2026-2027 school year
may, prior to the delivery of tax bills pursuant to R.S.54:4-64, recertify to
the county board of taxation the sum to be raised in the district during the 2026-2027
school year if the sum is lower than that initially certified to the county
board of taxation and if the reduction is equivalent to the amount that the district
initially budgeted to be the local share of preschool education costs for that
school year.

���� 4. �This act shall take effect
immediately.

STATEMENT

���� 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.