Extra School Funding Results in Tax Relief for New Jersey Homeowners

After years of mostly stagnant state funding, a majority of New Jersey school districts received unexpected increases under Gov. Phil Murphy’s inaugural budget. How will these extra funds be used by the districts? The state will dole out $8.5 billion of its $37.4 billion budget in direct aid to fund education. The aid, which is the largest single line item in the budget, represents an increase of $351 million over the previous aid to school districts. The shift is a revamping of the School Funding Reform Act and meant to redistribute aid from districts with shrinking enrollment or growing tax bases to those with booming populations and a large number of high-need students. In total, 391 districts will get more aid, 14 will see no change and 172 will see a reduction in a trend that could continue in future years. That could mean relief for some taxpayers and an added burden for others.