The New Jersey Department of Education recently issued an advisory providing information regarding K-12 state school aid allocations for the upcoming school year to local educational agencies. The advisory is meant to assist LEAs in planning their fiscal year 2026 budgets.
The notice states that the NJDOE intends to limit the amount by which districts’ state school aid may decrease next year. It states:
“Specifically, school districts can anticipate that total K-12 State aid will not decrease by an amount greater than 3% of their K-12 State aid for the 2024-2025 school year. This limit will apply to the four primary aid categories – equalization, special education, security, and transportation aid as calculated under the ‘School Funding Reform Act of 2008.’ Changes to other aid categories, including Choice funding, Military Impact Aid, County Vocational Stabilization Aid, and Educational Adequacy Aid are determined through factors such as annual participation or enrollment and are therefore not considered in the calculation of the limit.”
The NJDOE encourages LEA leaders to take this into consideration when planning for a balanced budget in fiscal year 2026 and to coordinate this discussion with their local board of education throughout the school district budget process. The department advises stakeholders to reach out to their county office team for additional support and assistance that may be needed.
