Bill Text: NJ A5239 | 2026-2027 | Regular Session | Introduced
Bill Title: Modifies calculation of preschool education aid for certain school districts.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-08 - Introduced, Referred to Assembly Education Committee [A5239 Detail]
Download: New_Jersey-2026-A5239-Introduced.html
Sponsored by:
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
Modifies calculation of preschool education aid for certain school districts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning preschool education and amending P.L.2007, c.62 and P.L.2007, c.260.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2007, c.62 (C.18A:7F-38) is amended to read as follows:
3. a. Notwithstanding the provisions of any other law to the contrary, a school district shall not adopt a budget pursuant to sections 5 and 6 of P.L.1996, c.138 (C.18A:7F-5 and C.18A:7F-6) with an increase in its adjusted tax levy that exceeds, except as provided in subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39), the tax levy growth limitation calculated as follows: the sum of the prebudget year adjusted tax levy and the adjustment for increases in enrollment multiplied by 2.0 percent, and adjustments for an increase in health care costs, increases in amounts for certain normal and accrued liability pension contributions set forth in sections 1 and 2 of P.L.2009, c.19 amending section 24 of P.L.1954, c.84 (C.43:15A-24) and section 15 of P.L.1944, c.255 (C.43:16A-15) for the year set forth in those sections, in the case of an SDA district as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3), during the 2018-2019 through the 2024-2025 school years, increases to raise a general fund tax levy to an amount that does not exceed its local share, and, in the case of a school district first receiving preschool education aid in the [2025-2026, 2026-2027, or] 2027-2028 school [years] year and participating in the pilot program established by the commissioner pursuant to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54), increases to raise a general fund tax levy for the local share of preschool education costs.
b. (1) The allowable adjustment for increases in enrollment authorized pursuant to subsection a. of this section shall equal the per pupil prebudget year adjusted tax levy multiplied by EP, where EP equals the sum of:
(a) 0.50 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over [1%] 1 percent, but not more than [2.5%] 2.5 percent;
(b) 0.75 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over [2.5%] 2.5 percent, but not more than [4%] 4 percent; and
(c) 1.00 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over [4%] 4 percent.
(2) A school district may request approval from the commissioner to calculate EP equal to 1.00 for any increase in weighted resident enrollment if it can demonstrate that the calculation pursuant to paragraph (1) of this subsection would result in an average class size that exceeds [10%] 10 percent above the facilities efficiency standards established pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.).
c. (Deleted by amendment, P.L.2010, c.44)
d. (1) The allowable adjustment for increases in health care costs authorized pursuant to subsection a. of this section shall equal that portion of the actual increase in total health care costs for the budget year, less any withdrawals from the current expense emergency reserve account for increases in total health care costs, that exceeds 2.0 percent of the total health care costs in the prebudget year, but that is not in excess of the product of the total health care costs in the prebudget year multiplied by the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury.
(2) The allowable adjustment for increases in the amount of normal and accrued liability pension contributions authorized pursuant to subsection a. of this section shall equal that portion of the actual increase in total normal and accrued liability pension contributions for the budget year that exceeds 2.0 percent of the total normal and accrued liability pension contributions in the prebudget year.
(3) In the case of an SDA district, as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3), in which the prebudget year adjusted tax levy is less than the school district's prebudget year local share as calculated pursuant to section 10 of P.L.2007, c.260 (C.18A:7F-52), the allowable adjustment for increases to raise a tax levy that does not exceed the school district's local share shall equal the difference between the prebudget year adjusted tax levy and the prebudget year local share.
(4) In the case of a school district first receiving preschool education aid in the [2025-2026, 2026-2027, or] 2027-2028 school [years] year and participating in the pilot program established by the commissioner pursuant to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54), the allowable adjustment for increases to raise a general fund tax levy for the local share of preschool education costs shall be equal to the actual increase required to provide preschool education under the pilot program less State aid provided pursuant to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54).
[A school district first receiving preschool education aid in the 2025-2026 school year and participating in the pilot program established by the commissioner pursuant to subsection h. of section 12 of P.L.2007, c.260 (C.18A:7F-54) may, prior to the delivery of tax bills pursuant to R.S.54:4-64, recertify to the county board of taxation the sum to be raised in the district during the ensuing school year if the change in the amount to be raised is equal to the district's local share of preschool education costs for that school year.]
e. (Deleted by amendment, P.L.2010, c.44)
f. The adjusted tax levy shall be increased or decreased accordingly whenever the responsibility and associated cost of a school district activity is transferred to another school district or governmental entity.
(cf: P.L.2025, c.100, s.3)
2. Section 12 of P.L.2007, c.260 (C.18A:7F-54) is amended to read as follows:
12. a. (Deleted by amendment, P.L.2025, c.100)
(1) In the case of a school district that [received] receives preschool education aid in the 2024-2025 [school year] , 2025-2026, or 2026-2027 school years, preschool education aid shall be calculated as follows:
Aid = (IDE x IDA) + (PRE x PRA) + (HSE x HSA)
where
IDE is the projected FTE enrollment for the upcoming school year of district pupils, other than preschool disabled pupils, in an in-district preschool program;
IDA is the per pupil aid amount for an in-district preschool program;
PRE is the projected FTE enrollment for the upcoming school year of district pupils, other than preschool disabled pupils, in a preschool program operated by a licensed child care provider;
PRA is the per pupil aid amount for a preschool program operated by a licensed child care provider;
HSE is the projected FTE enrollment for the upcoming school year of district pupils, other than preschool disabled pupils, in a Head Start Program; and
HSA is the per pupil aid amount for a Head Start Program.
(2) (Deleted by amendment, P.L.2025, c.100)
b. (Deleted by amendment, P.L.2025, c.100)
c. (1) (Deleted by amendment, P.L.2025, c.100)
(2) In the case of a school district that received Early Launch to Learning Initiative aid in the 2007-2008 school year, the school district shall receive preschool education aid calculated in accordance with the provisions of paragraph (1) of subsection a. of this section pending a determination by the commissioner that the district is prepared to meet all program requirements for high-quality preschool pursuant to regulations adopted by the commissioner.
(3) In the case of a school district that received early childhood program aid in the 2007-2008 school year but did not receive preschool expansion aid or education opportunity aid in that year, the school district shall receive preschool education aid calculated in accordance with the provisions of paragraph (1) of subsection a. of this section pending a determination by the commissioner that the district is prepared to meet all program requirements for high-quality preschool pursuant to regulations adopted by the commissioner.
(4) (Deleted by amendment, P.L.2025, c.100)
d. For the 2008-2009 school year, the preschool per pupil aid amounts shall be $11,506 for pupils enrolled in an in-district program, $12,934 for pupils enrolled in a licensed child care provider program, and $7,146 for pupils enrolled in a Head Start Program. The preschool per pupil aid amounts shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the preschool per pupil aid amounts shall be established in the Educational Adequacy Report, with the amounts adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.
e. A district shall appropriate preschool education aid in a special revenue fund for expenditure. In the event that any preschool education aid is not expended during the budget year, the aid may be carried forward in accordance with regulations adopted by the commissioner.
f. In the event that a district has fully implemented a full-day preschool program for three- and four-year old pupils and meets the preschool quality standards or has provided preschool education to the number of eligible students to be served during a school year in accordance with the preschool quality standards, the district may appropriate preschool education aid for additional purposes that may be designated by the commissioner, which purposes shall include, but not be limited to, providing summer programming for preschool students, professional development for preschool staff, preschool facilities improvements, and transportation services for preschool pupils.
g. A school district shall maintain the preschool quality standards as adopted by the commissioner as a condition of receipt of preschool education aid.
h. In the case of a school district that first receives preschool education aid in the [2025-2026, 2026-2027, or] 2027-2028 school [years] year, the aid shall be provided, within the limit of available appropriations, pursuant to a [three-year] pilot program established by the commissioner that includes a cost-sharing methodology between the State and the school district such that the amount of preschool education aid allocated to the district shall be calculated by multiplying the district aid percentage by the amount calculated pursuant to the formula in paragraph (1) of subsection a. of this section, where the district aid percentage shall be equal to the greater of the district aid percentage as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3) or 40 percent of eligible costs.
i. A school district receiving preschool education aid shall obtain approval by the Commissioner of Education, in a manner prescribed by the commissioner, prior to implementing any significant redistribution, as defined by the commissioner, of State-funded preschool seats among district-operated programs, licensed child care providers, and Head Start programs.
(cf: P.L.2025, c.100, s.5)
3. (New section) A school district first receiving preschool education aid in the 2026-2027 school year may, prior to the delivery of tax bills pursuant to R.S.54:4-64, recertify to the county board of taxation the sum to be raised in the district during the 2026-2027 school year if the sum is lower than that initially certified to the county board of taxation and if the reduction is equivalent to the amount that the district initially budgeted to be the local share of preschool education costs for that school year.
4. This act shall take effect immediately.
STATEMENT
This bill modifies the calculation of preschool education State aid for school districts that are first receiving preschool education aid in the 2025-2026 and 2026-2027 school years.
Pursuant to recent changes in State law related to funding for public preschool programs, school districts first receiving preschool education State aid in the 2025-2026, 2026-2027, and 2027-2028 school years are provided aid subject to a cost-sharing methodology. Under this methodology, preschool education State aid covers a portion of a district's total preschool education program costs. This portion is equal to the greater of the district aid percentage as calculated in current law or 40 percent of eligible preschool costs. Districts subject to the cost-sharing methodology are permitted to raise their local tax levies, without separate voter approval, up to the difference between total preschool costs and the amount of preschool education State aid received. Preschool education aid for all other school districts receiving this category of aid is calculated based on preschool enrollment in different settings within the districts and Statewide average per pupil costs of educating preschool students in those different settings.
This bill exempts school districts first receiving preschool education aid in the 2025-2026 and 2026-2027 school years from being subject to current law's cost-sharing methodology. These districts would instead receive an increased amount of preschool education aid based on total program enrollment and costs.
