TRENTON – The Senate Education Committee advanced legislation sponsored by Senator Vin Gopal that aims to make critical improvements to the state’s school funding system. The bill proposes updates to the School Funding Reform Act of 2008 (SFRA) offering new protections for municipalities and school districts while improving transparency and support for public schools.

“New Jersey’s school funding system must reflect the evolving needs of our communities, ensuring equitable access to resources for every student,” said Senator Gopal (D-Monmouth). “This bill addresses long-standing issues and provides real solutions, improving the way we calculate funding, protect local municipalities, and support districts in need.”

The School Funding Reform Act (SFRA) was enacted in 2008 to ensure a fair and equitable system of school funding across New Jersey. Despite efforts to reform the system, many districts still face significant funding challenges, especially in communities with high local tax rates or those with rapidly changing student populations. This bill aims to address these disparities and create a more responsive, equitable funding structure for the future.

The bill requires the Department of Education to publish clear and detailed calculations of each SFRA aid category within two days of the Governor’s annual state budget message. This move is designed to increase transparency and enable local education agencies to better understand the variables that impact their funding.

In addition, S-3917 will require:

State Aid Reduction Cap: limits any reductions to no more than two percent of a district’s pre-budget year total operating budget.

Expanded Municipal Overburden Protections: expands and makes permanent municipal overburden protections designed to shield districts in high-tax municipalities from excessive state aid cuts.

Extraordinary Special Education Aid: requires an increase in State extraordinary special education aid annually.

Vocational Expansion Stabilization Aid: establishes a mechanism to adjust funding for districts experiencing growth in student numbers based on enrollment increases.

Education Adequacy Report (EAR): expands the scope of the EAR and requires the Commissioner of Education to engage diverse stakeholders to review key funding metrics, ensuring that they best reflect a district’s ability to support its students. The expanded study will ensure that key components of the formula are regularly reviewed and updated. They will focus on improving the predictability of state aid to school districts, helping to provide stability. In addition, they will examine possible improvements to preschool funding and adjustments to budget deadlines to streamline the process and give districts more time to prepare.

The bill advanced in a 3-2 vote.