Democratic New Jersey Gov. Phil Murphy signed into law on Tuesday several changes to the way the state will go about funding school districts in order to better handle dramatic population shifts that have led to funding imbalances among the districts.
Several districts have growing tax bases and shrinking student enrollments, while others are in just the opposition situation. But because of the way the state’s current—and long-fought over—school funding formula caps and rewards state aid, many districts are left with either not enough money to serve all their students or more money than they need.
The new law, which goes into effect in 2020, eliminates enrollment caps that limit the amount of state aid districts receive due to enrollment fluctuations. And it phases out over seven years the state’s adjustment aid, which currently provides some districts extra money even if they don’t qualify for it.