WeVote
Log In

Bill

Bill

S 4281

Modifies calculation of preschool education aid for certain school districts.

2026-2027 Regular Session Introduced by Paul Sarlo

The bill changes how preschool aid is calculated for districts starting aid in 2025–2028, increasing state aid based on enrollment and costs and exempting some from cost-sharing.

Reported from Senate Committee, 2nd Reading
0
WeVote Research Nonpartisan
Bill Summary · S 4281

Overview

Bill S 4281 (New Jersey, Session 222) aims to modify how preschool education aid is calculated for certain school districts, particularly those that first receive preschool education aid in the 2025-2026, 2026-2027, and 2027-2028 school years. It adjusts the funding formula and related pilot/cost-sharing provisions to affect local levy requirements and how aid is determined for these districts.

Main purpose and intent

  • To modify the calculation of preschool education State aid for districts that are first-year recipients of preschool aid in later years.
  • To address changes in funding rules by exempting certain districts from the existing cost-sharing methodology and instead providing an increased aid amount based on total program enrollment and costs.
  • To align aid computation with current and projected preschool program costs and enrollment, while preserving mechanisms for statewide standards and accountability.

Key provisions and changes

  • Section 3 (amending P.L.2007, c.62):

    • For SDA districts and for districts first receiving preschool aid in the 2025-2026, 2026-2027, or 2027-2028 years, the annual tax levy growth limitation is adjusted to allow increases sufficient to cover local shares of preschool costs, under a specific framework tied to enrollment, health care costs, and pension contributions.
    • Enrollment adjustments (EP) are defined with tiered factors based on percent increases in weighted enrollment, and a district may request commissioner approval to set EP equal to 1.00 if average class size would exceed standards.
    • Health care cost increases and pension contribution increases have defined caps for allowable adjustments.
    • Special provisions exist for SDA districts and pilot-program districts, including cost-sharing or local share considerations.
    • Provisions regarding budgeting, carryover of unexpended preschool aid, and allowable uses of aid (including potential flexibility for summer programs, staff development, facilities, and transportation) remain, with emphasis on preserving preschool quality standards.
    • Requires commissioner approval before significant redistribution of State-funded preschool seats.

  • Section 12 (amending P.L.2007, c.260):

    • Revisions to how preschool aid is calculated for districts that receive aid in 2024-2025, 2025-2026, or 2026-2027 (and by implication 2027-2028) years, with a shift away from the prior cost-sharing methodology for the affected districts.
    • The act references a pilot program and cost-sharing methodology with a district aid percentage or 40 percent of eligible costs, but the new changes exempt 2025-2026 and 2026-2027 recipients from the cost-sharing calculation, instead increasing aid based on total program enrollment and costs.
    • Specifies per-pupil aid amounts and indexing for the 2008-2009 year (and CPI adjustments in later years) and other administrative details regarding how aid is computed and carried forward.

  • Section 3 new provision:

    • Districts first receiving preschool aid in 2026-2027 may recertify with the county board of taxation to reduce the amount raised if the reduction equals the district’s initially budgeted local share.

  • Effective date:

    • The act takes effect immediately.

Who would be affected

  • Districts that first receive preschool education aid in the 2025-2026, 2026-2027, or 2027-2028 school years.
  • SDA districts (regarding tax levy adjustments and funding calculations).
  • Districts participating in pilot programs or subject to preschool seat redistribution rules may see changes in funding mechanisms and local levy requirements.
  • School districts may experience changes in budgeting flexibility, permissible uses of aid, and oversight requirements (e.g., approvals by the Commissioner of Education for significant redistributions).

Procedural and timeline aspects

  • The bill modifies existing law (P.L.2007, c.62 and P.L.2007, c.260) and introduces new sections for first-year recipients in the specified years.
  • It requires Commissioner of Education approvals for certain actions (e.g., EP calculations, significant redistribution of preschool seats).
  • For districts newly receiving aid in 2026-2027 (and possibly 2027-2028), there is a recertification mechanism with the county board of taxation for tax bill delivery, aligning with local budgeting.
  • Immediate effective date means these changes would apply promptly upon enactment.

Note: The bill’s language is technical and relates to funding formulas, enrollment weights, and power to adjust levy limits, so the practical impact will depend on district enrollment changes, health care/pension cost trends, and the state’s annual appropriation and CPI adjustments.

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

Sign in to ask a question.