Requires five-year average of equalized property valuation be used in calculation of local share under State school funding formula.
If enacted, S2071 will modify the financial calculations that underpin how local aid is allocated to school districts across New Jersey. By utilizing a five-year average, the bill aims to provide a buffer against year-to-year fluctuations in property values that could disproportionately affect certain districts, particularly those that may experience sharp increases or decreases in property valuations. This reform is expected to promote equity in funding distribution, allowing for more stable and predictable financial resources for schools.
Senate Bill S2071 addresses how local shares for school funding are calculated in New Jersey by amending existing legislation regarding state school aid. Specifically, it proposes the use of a five-year average of equalized property valuations rather than the prebudget year equalized valuation to determine a school's local share. This change is intended to create a fairer system for distributing state school aid to ensure that financing reflects a more accurate picture of a district's property wealth and income over time.
Although the bill is aimed at improving the fairness of school funding, it could encounter resistance from stakeholders who fear it might not adequately address the needs of underfunded districts. Some legislators and educators may argue that the new calculation method could disadvantage districts that are experiencing rapid growth in property values. Furthermore, there may be concerns over how the implementation of this new calculation will impact the budgeting processes within school districts, as districts plan their finances based on different assumptions about local share calculations.