New Jersey 2026-2027 Regular Session

New Jersey Assembly Bill A1189

Introduced
1/13/26  

Caption

"Fully Funding Schools and Cutting Property Taxes Act"; repeals certain sections of law; requires additional aid to lower property taxes commensurate with residents' ability to support schools; appropriates $2.9 billion.

Impact

The bill seeks to secure additional State funding amounting to approximately $2.9 billion to support its objectives. A critical component of A1189 is its stipulation that school districts must reduce their tax levies in accordance with any increases in State aid. This is particularly impactful for districts where the municipal tax levy exceeds five percent of the school district's income, as it ensures that local tax burdens remain manageable while still adequately funding schools. A1189 aims to address disparities in school funding that arose from prior legislative measures, specifically referencing changes made in 2018 that resulted in reduced funding for certain districts.

Summary

Assembly Bill A1189, known as the "Fully Funding Schools and Cutting Property Taxes Act," is aimed at reforming the school funding framework in New Jersey. It is specifically crafted to enhance State school aid for school districts to ensure that aid meets the adequacy budget established under the School Funding Reform Act of 2008 (SFRA). This bill is intended to stabilize funding for schools while also providing a pathway to reduce property taxes, thereby aligning school funding with the capacity of each district's residents to support their educational system. Starting in the 2023-2024 academic year, this bill mandates that school districts receive the highest of a specified amount of aid based on prior funding levels or calculations set by the SFRA.

Contention

While proponents argue that the bill will enhance equity in school funding and relieve property tax burdens on residents, concerns have been raised about its implications. Opponents fear that enforcing strict reductions in local tax levies in correlation with state aid increases might not adequately account for local needs and could result in funding shortages in the face of rising educational costs. Additionally, the bill’s repeal of previous laws related to school funding could lead to debates over their effectiveness and the historical context of the issues they were designed to address. Ultimately, the success of A1189 will hinge on its implementation and the ongoing dialogue among stakeholders regarding the best ways to achieve equitable, efficient school funding in New Jersey.

Companion Bills

NJ A1125

Carry Over "Fully Funding Schools and Cutting Property Taxes Act"; repeals certain sections of law; requires additional aid to lower property taxes commensurate with residents' ability to support schools; appropriates $2.9 billion.

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