Expresses intent of Legislature that "School Funding Reform Act of 2008" be revised to stabilize State aid reductions.

SCR108

SENATE CONCURRENT RESOLUTION No. 108

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 5, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

Co-Sponsored by:

Senator Space

SYNOPSIS

���� Expresses intent of Legislature that �School Funding
Reform Act of 2008� be revised to stabilize State aid reductions.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution
expressing the intent
of the Legislature that the �School Funding Reform Act of 2008,� P.L.2007,
c.260, be revised.

Whereas,

In May of 2009, the New Jersey Supreme Court held that the �School Funding
Reform Act of 2008,� (SFRA) was constitutional and could be applied to the
poorer urban districts, now known as �SDA districts.�� The court�s finding was
premised on the expectation that the State would continue to provide school
funding aid at the level required by the SFRA�s formula.� However, the SFRA was
fully funded only in the 2008-2009 school year and for the next eight years
school aid was distributed through language in the annual appropriations act
rather than through the court-approved formula; and

Whereas,

In July of 2018, the Legislature modified the SFRA through the enactment of
P.L.2018, c.67, commonly referred to as S2, and one of its provisions
eliminated the State aid category of adjustment aid for school districts.�
Adjustment aid was a State aid category enacted under SFRA that was intended to
hold districts harmless against a precipitous loss in State aid; and

Whereas,

The elimination of adjustment aid and the mechanism established under S2 for
the redistribution of State aid among school districts resulted in the loss of
significant amounts of State aid for many school districts, including districts
in the Highlands Region; and

Whereas,

The �Highlands Water Protection and Planning Act� is the landmark environmental
legislation enacted in 2004 to protect and enhance the significant value of the
natural resources of the Highlands Region; and

Whereas,

The Highlands Region is an over 800,000 acre area encompassing 88
municipalities and seven counties.� The region is an essential source of clean
drinking water for the State, generating over 370 million gallons of water a
day, and providing a critical drinking water source for over 70 percent of New
Jersey�s population; and

Whereas,

In order to protect the watershed and other valuable natural resources of the
area, development in the Highlands Region is restricted and strictly regulated
under the Highlands Act.� As a result of this limitation on development, it is
difficult for school districts located in the Highlands Region to raise the
increased tax levy necessary to offset losses of State aid, such as those
districts in the region have experienced as result of S2; and

Whereas,

In light of the fact that the SFRA is based on student population among other
factors, school districts in the Highlands Region have been and will continue�
to be disadvantaged, as the restrictions on development in the Highlands Region
limit the ability of the Highlands municipalities to build new residential
housing which would increase school district enrollment and add businesses to
increase ratables; and

Whereas,

These precipitous drops in State aid over the past several years under S2 may
have actually moved the State further away from its goal of providing a
�thorough and efficient education� and have imposed a heavy strain on property
taxpayers who are already burdened trying to provide a quality education for
New Jersey students; and

Whereas,

Due to the unique circumstances faced by school districts in the Highlands
Region and the extraordinary benefits provided to the citizens of the State
through the preservation of this region, it is critical and only equitable that
the Legislature make revisions to the SFRA to ensure that school districts in
the Highlands Region and other areas of the State are not subject to abrupt
cuts in State aid that impact their ability to provide students with a
�thorough and efficient education�; now, therefore,

����
Be It
Resolved
by the Senate of the State of New
Jersey (the General Assembly concurring):

���� 1.��� The Legislature of the
State of New Jersey hereby expresses its intent that the �School Funding Reform
Act of 2008,� P.L.2007, c.260 (C.18A:7F-43 et al.), be revised to eliminate
significant reductions in State aid to school districts, especially those districts
located in the Highlands Region and other areas of the State in which
development is restricted.

���� 2.��� Copies of this
resolution, as filed with the Secretary of State, shall be transmitted by the
Clerk of the General Assembly or the Secretary of the Senate to the Governor,
the State Board of Education, and the Commissioner of Education.

STATEMENT

���� This concurrent resolution
expresses the intent of the Legislature that the �School Funding Reform Act of
2008,� (SFRA) be revised to eliminate significant reductions in State aid to
school districts, especially those districts located in the Highlands Region
and other areas of the State in which development is restricted.

���� In May of 2009, the New Jersey
Supreme Court held that the SFRA was constitutional.� The court�s determination
was premised on the expectation that the State would continue to fund the SFRA
at the level required by the SFRA�s formula.� However in July of 2018, the
Legislature modified the SFRA through the enactment of P.L.2018, c.67, commonly
referred to as S2.� One of the provisions of S2 eliminated the State aid
category of adjustment aid which was intended to hold school districts harmless
against a precipitous loss in State aid.� The elimination of adjustment aid and
the mechanism established under S2 for the redistribution of State aid among
school districts resulted in the loss of significant amounts of State aid for
school districts, including school districts in the Highlands Region.

���� Under the �Highlands Water
Protection and Planning Act,� development is restricted and strictly regulated
in order to protect the vast natural resources found in the Highlands Region.�
As a result, it is difficult for school districts located in the Highlands
Region to raise the increased tax levy necessary to offset losses in school
aid, such as those experienced under S2.� In light of the fact that State aid
under the SFRA is based on student population and other factors, the
restrictions on development in the Highlands Region limit the ability of these
municipalities to build new residential housing, which would increase school
district enrollment, and add businesses to increase ratables.

���� Due to the unique
circumstances faced by school districts in the Highlands Region and the
extraordinary benefits provided to the citizens of the State through the
preservation of this region, it is critical and only equitable that the
Legislature make revisions to the SFRA to ensure that school districts in the
Highlands Region and other areas of the State are not subject to abrupt cuts in
State aid.