The Senate Education Committee has moved forward with legislation aimed at modifying the state's school funding formula. The bill, identified as S-3917 and sponsored by Senate Education Chairman Vin Gopal (D-11), was passed by a narrow 3-2 vote. The proposed changes seek to provide school districts with more predictable funding from year to year while maintaining the existing 2% tax cap designed to protect taxpayers from significant property tax increases.
Althea D. Ford, Vice President of Government Affairs for NJBIA, expressed support for the amended legislation during her testimony. "NJBIA is supportive of investments in school funding as the K-12 system is part of our state’s economic and workforce development pipeline shaping the next generation of employees, entrepreneurs and job creators," she stated.
The bill aims to mitigate substantial fluctuations in state school aid that can lead to severe budget cuts impacting programs and staffing within districts. It proposes that no district's aid should be reduced by more than 2% annually. Additionally, it mandates full funding for special education by eliminating caps on eligibility that restrict state funds for students with disabilities.
Amendments made by the committee also removed a provision allowing districts to exceed the current 2% tax levy cap under certain conditions. This cap limits annual increases in school taxes paid by property owners.
Ford highlighted concerns about taxpayer burdens: "Equally, as an association representing our state’s job creators and a significant percentage of its taxpayers, we remain concerned about any funding model that overburdens taxpayers."
Businesses contribute nearly half of local property taxes collected across New Jersey but are excluded from programs like ANCHOR and Stay NJ property tax rebates. Ford emphasized the need for careful consideration regarding property taxes: "The state must be more intentional about addressing one of the key drivers of unaffordability in this state – property taxes."
She further acknowledged Chairman Gopal's efforts: “We thank Chairman Gopal for the bill’s proposal to engage stakeholders to review the feasibility of multiyear averages to calculate local fair share, methods to improve preschool funding, and adjustments to deadlines concerning the school budget process.”
