Trenton, NJ – A new bill sponsored by Senator Andrew Zwicker to provide financial relief to school districts facing state aid cuts has gained traction in the Senate Education Committee.
Senator Zwicker’s bill, S-2434, proposes adjusting the property tax levy cap, allowing affected schools to secure funding for essential instructional programs and retain teaching staff. This measure is designed to uphold the quality of education despite the financial hurdles imposed by reduced state aid.
School districts are generally limited to a two percent increase in their annual property tax levy. However, S-2434 seeks to offer an adjustment equal to the shortfall between state aid received in the previous school year and the aid for the 2023-2024 or 2024-2025 school years.
Furthermore, it introduces a provision for districts spending below the adequacy threshold—determined by the state’s calculation necessary for a thorough and efficient education—to adjust their tax levy accordingly.
A critical feature of the legislation is its prohibition against any school district that raises its tax levy under this bill from reducing its teaching workforce or cutting funds for instructional or support services.
The bill passed the committee stage with a 4-1 vote, signaling a significant step towards granting school districts the flexibility needed to navigate unique financial challenges without sacrificing educational quality.
The bill, if approved and signed by Governor Phil Murphy, could help school districts that suffered state aid cuts under the governor’s new state aid formula.