New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A5788

Introduced
6/16/25  

Caption

Excludes nonpublic school transportation costs from calculation of school district local share.

Impact

By amending P.L.2007, c.260, the bill fundamentally alters how school districts calculate their local share of school funding. Currently, the local share is partly determined by property valuations and district income, but with A5788, districts will subtract the costs incurred for nonpublic school transportation from these metrics. This may result in an increased eligibility for state aid, potentially benefiting districts with significantly higher transportation costs for nonpublic students.

Summary

Assembly Bill A5788, introduced in June 2025, is a legislative proposal aimed at revising the school funding formula in New Jersey. Specifically, the bill seeks to exclude the costs associated with the transportation of nonpublic school students from the calculation of a school district's local share for state school aid purposes. This adjustment implies that such transportation expenses will not factor into the financial assessment of a district's capability to fund its educational responsibilities.

Conclusion

The bill is set to take effect immediately, with its impact assessed during the first full school year following its enactment. Ultimately, A5788 signifies an important discussion point regarding the balance of funding between public and nonpublic education and how state support should be distributed among various school districts to ensure fairness and equity in educational opportunities.

Contention

The introduction of A5788 is likely to elicit various responses from different stakeholders within the education community. Proponents suggest this change could enable more equitable funding by allowing districts to allocate resources more effectively without the burden of transportation costs affecting their aid calculations. However, dissenters might argue that this could unfairly favor districts that already have more financial support, further widening the gap between affluent and less wealthy districts.

Companion Bills

No companion bills found.

Previously Filed As

NJ A5577

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

NJ S3984

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

NJ S2071

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

NJ A942

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

NJ A5177

Modifies cost thresholds for reimbursement of extraordinary special education costs; requires State to bear full cost of nonpublic school transportation for certain school districts.

NJ A925

Requires school districts to provide transportation to public and nonpublic school pupils living along hazardous routes.

NJ A2534

Requires school districts to provide transportation to public and nonpublic school pupils living along hazardous routes.

NJ A5186

Makes various changes to school funding and budgeting laws; eliminates use of census-based funding for special education aid; establishes reimbursement program for school district fuel costs.

NJ S1378

Establishes State aid reduction cap for calculation of State school aid.

NJ S3937

Establishes State aid reduction cap for calculation of State school aid.

Similar Bills

MT HB483

Revise laws to reduce property taxes while preserving the current 95 school equalization mills

MT HB156

Revise education funding laws by replacing school district BASE levies with countywide BASE levies

NJ S3984

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

NJ A5577

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

NJ S2071

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

CO HB1448

New Public School Finance Formula

NJ A942

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

NJ A5186

Makes various changes to school funding and budgeting laws; eliminates use of census-based funding for special education aid; establishes reimbursement program for school district fuel costs.