Appropriates funds up to $25 million for distribution to certain school districts to support health care cost increases.

S4328

SENATE, No. 4328

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 21, 2026

Sponsored by:

Senator LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Appropriates funds up to $25 million for distribution
to certain school districts to support health care cost increases.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
appropriating funds to support health care cost
increases in certain school districts.�

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

���� 1.� a.� There is appropriated
from the Property Tax Relief Fund such amounts, not to exceed $25,000,000 as
determined by the Commissioner of Education and subject to the approval of the
Director of the Division of Budget and Accounting, as are necessary to support
a qualifying school district that has implemented the allowable adjustment to
the adjusted tax levy for increases in health care costs pursuant to paragraph
(1) of subsection d. of section 3 of P.L.2007, c.62 (C.18A:7F-38) in the
2026-2027 school year.� Funds received by a qualifying school district pursuant
to this section shall be the product of the amount of funds, not to exceed
$25,000,000, determined to be available for the purposes of this section and
the district�s proportionate share of the Statewide total increase in health
care costs among all school districts.�

���� b.� As used in this section,
�qualifying school district� means a school district meeting the following
criteria:

���� (1) the district is spending
below adequacy as calculated pursuant to section 1 of P.L.2018, c.67
(C.18A:7F-70);

���� (2) the district�s maximum adjusted
tax levy increase authority in the 2026-2027 school year pursuant to section 3
and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39) is less than the
difference between the district�s local share in the 2026-2027 school year
calculated pursuant to section 10 of P.L.2007, c.260 (C.18A:7F-52) and the
district�s adjusted tax levy in the 2025-2026 school year;

���� (3)� the district has no
available banked cap to apply to the adjusted tax levy in the 2026-2027 school
year pursuant to subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39);
and

���� (4)� the district has, in the
2026-2027 school year, utilized its maximum adjusted tax levy increase
authority pursuant to section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38
and C.18A:7F-39).

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

STATEMENT

���� This bill authorizes the
appropriation of funds, not to exceed $25 million, to support certain school
districts that have increased their property tax levies to fund increased
health care costs.

���� School districts qualifying
for funds under the bill are those that meet various criteria demonstrating use
of the full level of statutorily authorized, allowable local tax levy
increases.� The amount of funds a qualifying school district would receive
under the bill will be equal to the product of the amount of funds available
for the purposes of the bill, not to exceed $25 million, and the qualifying
district�s proportionate share of the Statewide total increase in health care
costs among all school districts.