New Jersey Assembly Bill A118

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires school district's general fund tax levy account for at least 25 percent of school district's total general fund revenue; provides four-year phase-in.

Impact

The implementation of A118 is expected to enhance the financial stability of school districts by reducing reliance on state funding. By creating a stronger local tax base through the required increase in general fund levies, the bill intends to empower school boards and encourage more active engagement with local taxpayers regarding school funding. The gradual phase-in period allows districts adequate time to adjust their budgets and tax levies accordingly, aiming to minimize potential financial disruptions for the communities involved.

Summary

Assembly Bill A118 is legislation that mandates school districts in New Jersey to ensure that their general fund tax levy accounts for at least 25% of the total general fund revenue for the budget year. This requirement aims to shift the financial dependency of school districts away from state aid toward more locally generated revenue. The bill introduces a gradual phase-in approach over a four-year period for districts currently falling below this threshold, establishing specific percentages that districts must meet each year. These percentages are set at 6% for the first subsequent year, increasing by 6% each year until the full 25% is achieved by the fourth year.

Contention

Despite its intentions, A118 may encounter opposition from various stakeholders. Critics may argue that the bill places undue financial pressure on low-income districts that may struggle to generate sufficient local revenue to meet the new requirements. Additionally, there are concerns that the bill could exacerbate funding inequalities between wealthier and poorer districts, further leading to disparities in educational quality and resources. Advocates for educational equity may push back against this bill, highlighting the need for a balanced approach to school funding that adequately considers the unique challenges faced by different districts.