Modifies school district property tax cap law; appropriates $67.9 million to provide additional State school aid to school districts experiencing reductions in 2025-2026 school year.

This bill (A5509) appropriates $67.9 million to ensure New Jersey school districts do not experience a reduction in state school aid during the 2025-2026 school year compared to the 2024-2025 school year. It directly affects approximately 200 school districts identified as facing aid cuts based on the February 2025 state aid notice. The law requires districts receiving less state aid in 2025-2026 than in 2024-2025 to receive additional funds to match their prior year's total aid amount. This provision supplements existing tax levy cap rules, which generally limit property tax increases to the greater of the Consumer Price Index or 2%.