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Bill

A 4750

Appropriates funds to support increases in tax levy resulting from health care costs in certain school districts.

2026-2027 Regular Session Introduced by Alex Sauickie

The bill would allocate up to $50 million from the Property Tax Relief Fund to help qualifying New Jersey school districts offset large 2026-2027 health care cost-driven tax levy i

Introduced, Referred to Assembly Education Committee
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Bill Summary · A 4750

Bill overview

  • Bill: A 4750
  • Session: 222 (New Jersey)
  • Jurisdiction: New Jersey
  • Title: Appropriates funds to support increases in tax levy resulting from health care costs in certain school districts
  • Status: Introduced; referred to Assembly Education Committee (March 19, 2026)
  • Sponsor: Co-sponsor Alex Sauickie

Main purpose and intent

  • The bill authorizes an appropriation of up to $50 million from the Property Tax Relief Fund.
  • The funds are intended to support qualifying school districts that experience large increases in their adjusted tax levy for the 2026-2027 school year due to higher health care costs.
  • The goal is to offset a portion of the property tax burden caused by health care cost increases, reducing pressure on local taxpayers.

Key provisions and how it works

  • Funding mechanism:
    • Not more than $50,000,000 is appropriated, as determined by the Commissioner of Education and subject to approval by the Director of the Division of Budget and Accounting.
    • Eligible funds to a qualifying district are proportional to that district’s share of the statewide increase in health care costs among all districts.
  • Definition of a “qualifying school district”:
    • A district whose 2026-2027 adjusted tax levy increased by more than 9.9% compared to the district’s 2024-2025 adjusted tax levy.
  • Calculation of district aid:
    • Each qualifying district receives funding equal to its proportionate share of the statewide health care cost increase, multiplied by the total available appropriation for the program (up to $50 million).
  • Context and linkage to current law:
    • Under current law, districts may increase their adjusted tax levy for health care cost increases beyond 2% of the prior year’s total health care costs, but only up to the annual average increase in the State Health Benefits Program (SHBP) as determined by the Division of Pensions and Benefits (Treasury).
    • For 2026-2027, the allowable SHBP-based adjustment is 29.9%—an unusually large increase. The bill aims to cushion districts disproportionately affected by such high health care cost growth.

Who would be affected

  • Qualifying districts:
    • Districts with a 2026-2027 adjusted tax levy increase exceeding 9.9% relative to their 2024-2025 adjusted levy.
  • Beneficiaries:
    • Local property taxpayers in those districts, who would see some relief from property tax levy increases attributable to health care cost growth.
  • Administrative bodies:
    • New Jersey Department of Education (determines eligibility and disbursement within the appropriation limits)
    • Director of the Division of Budget and Accounting (approves the allocation)
    • Statewide accounting and budget offices (oversee the proportional calculation and funding transfers)

Procedural and timeline aspects

  • Effective date: Immediate (the act takes effect upon enactment).
  • Fiscal timing:
    • Funds would be used to support the 2026-2027 school year adjustments to the tax levy attributable to health care costs.
    • The total program cap is $50 million, with the actual amount for each district determined by statewide health care cost increases and each district’s relative share.
  • Approval process:
    • The extent of funding and specific allocations require approval by the Director of the Division of Budget and Accounting, after determination by the Commissioner of Education.

Practical impact and considerations

  • The bill provides targeted relief to districts facing steep health care cost-driven levy increases, potentially moderating local tax increases for residents.
  • The program is capped and contingent on statewide health care cost trends, which means the actual distribution depends on total increases and each district’s share.
  • It complements existing statutory allowances for health care cost adjustments but offers a dedicated funding stream to mitigate sharp 2026-2027 increases in the most affected districts.

Compiled from official sources — confirm details with the bill’s official record.

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