Total education formula aid would increase by $206.2 million under Gov. Phil Murphy’s proposed 2019-2020 state budget.
In his second budget address to the Legislature, the governor outlined a spending plan that adds additional preschool aid, bolsters pension payments and continues providing $2 million in grant funding for the expansion of computer science education.
The governor’s budget proposal heads next to the Legislature for consideration. The state is required by law to adopt a budget by June 30.
Education components of the governor’s $38.6 billion state budget include the following:
- Formula aid: The budget would add $206.2 million in formula aid, bringing the total in formula aid to $8.7 billion. Under statute, school districts must receive notice of their state aid allotments within 48 hours of the governor’s budget address.
- Pre-kindergarten: A $68.4 million increase in funding will provide a total of $806.5 million to support the continued goal of expanding pre-kindergarten programs to those who wish to expand or start a pre-k program. About $25 million of the total $806 million will be used to assist new districts that are ready to launch programs. The state’s investment last year in preschool expansion helped make early education accessible for 4,000 more children across 60 districts.
- School construction: The budget increases funding by $32.4 million to support $500 million in school construction projects across the state as well as increases for existing debt service.
Pension Obligation Murphy’s contribution to the Teachers’ Pension and Annuity Fund would increase by 28.1 percent, or $323.8 million.
Revenue Last year, the state enacted a “millionaire’s tax” on incomes over $5 million. This year, Murphy wants to extend the tax to incomes over $1 million. By lowering the tax threshold to include more people, the governor estimates that $447 million in revenue would be added to the budget.
The New Jersey School Boards Association will provide further information as it becomes available on the governor’s budget and state school aid allocations.