New Jersey Assembly Bill A4030

New Jersey 2022-2023 Regular Session

• Introduced: 5/16/22
• Refer: 5/16/22

Caption

Makes supplemental appropriation of $80 million from Property Tax Relief Fund to DOE for Stabilization Aid.

Impact

The impact of A4030 is particularly significant for school districts that relied on Stabilization Aid in the past. In fiscal year 2022, 16 school districts benefited from Stabilization Aid in amounts ranging from $93,000 to $7.6 million. This funding is crucial for ensuring these districts can maintain necessary educational services despite financial difficulties. The bill aims to counteract the proposed 60 percent decrease from the Governor's budget, which suggested only $20 million for this purpose in FY 2023. This would have represented a substantial cut from the previous fiscal year's allocation, emphasizing the importance of stabilizing funding for affected districts.

Summary

Assembly Bill A4030 is a legislative proposal that seeks to make a supplemental appropriation of $80 million from the Property Tax Relief Fund to the New Jersey Department of Education (DOE) specifically for Stabilization Aid. This appropriation is aimed at addressing budgetary imbalances faced by school districts and increasing total funding for Stabilization Aid to $100 million in the fiscal year 2023. With this bill, New Jersey aims to provide additional financial support to school districts that have experienced significant reductions in state aid or operational imbalances in their budgets.

Contention

Despite the clear intent to bolster educational funding, there might be contention surrounding the disbursement of these funds and the measures that districts must take to justify their reliance on state aid. School districts receiving Stabilization Aid are required to submit written plans detailing how they plan to sustain operations in future years without additional supplemental support. Some critics may raise concerns about the adequacy of oversight in how these funds will be utilized, as well as the overall sustainability of funding models for education in the state.