New Jersey Assembly Bill A942

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Refer: 3/11/24

Caption

Requires five-year average of equalized property valuation be used in calculation of local share under State school funding formula.

Impact

The proposed amendment is expected to have significant implications for how state school aid is distributed. By reforming the calculation of the local share, A942 may lead to improvements in funding stability for districts that might otherwise face large swings due to rapid changes in property values. This could provide a fairer distribution of the state resources aimed at supporting school operations and addressing the needs of students across all districts, particularly those in economically disadvantaged areas.

Summary

Assembly Bill A942 seeks to amend the existing formula used to calculate state school aid in New Jersey by requiring that the local share for school districts be determined using a five-year average of equalized property valuations instead of the prebudget year valuation. This change aims to create a more consistent and equitable basis for calculating funding levels across various school districts. By implementing a five-year average, the bill intends to smooth out fluctuations in property values that could unfairly impact individual school districts' funding based solely on a single year's property valuation.

Contention

However, there are potential points of contention surrounding A942. Critics of the proposal may express concerns that shifting to a five-year valuation could complicate the funding formula implementation process, potentially delaying necessary adjustments needed for immediate local needs. Additionally, there may be apprehensions about the impact on districts that have recently experienced property value increases, which could result in reduced funding if their latest valuations do not reflect their actual financial circumstances. These discussions emphasize the need for continued consideration of how funding formulas affect educational equity and adequacy across diverse communities.