Debra Bradley, Esq.
On Easter Monday, April 21, NJDOE Commissioner Kevin Dehmer testified before the Assembly Budget Committee as part of the ongoing review of Governor Murphy’s proposed budget for FY 2026. Dehmer discussed the education funding components of the proposed FY 26 State Budget. Also appearing before the committee was Manny Da Silva, chief executive officer of the New Jersey Schools Development Authority.
Dehmer reviewed the proposed state aid figures for FY 26 and the updates made to the School Funding Reform Act (SFRA) calculations this year as required by the law. Every three years, the SFRA requires that the NJDOE update the formula components to address increases in the cost of living and for the cost components. Dehmer notified the committee of the increases proposed for transportation funding, special education, student mental health costs and school security costs for example. Additionally, Dehmer explained the specific “guardrails” contained in this year’s state aid calculations where no district would lose more than three percent of the prior year’s state aid or gain more than six percent of that figure. Local fair share calculations which will be based on a three year average for FY 26 will be supplemented by a new form of aid that eligible districts can apply for called Tax Levy Incentive Aid. This aid program is to offset increases in local taxation that result from local districts increasing local funding levels to meet their local fair share. Special education funding based upon actual enrollment numbers not a state average number is another positive change in this year’s funding approach.
The Commissioner of Education and the Schools Development Authority will appear before the Senate Budget and Appropriations Committee on May 13. The Legislature must approve an appropriations bill for the governor’s signature by June 30 pursuant to our State Constitution.
The Office of Legislative Services, the nonpartisan, independent research arm of the State Legislature has conducted its analysis of the education section of the proposed budget.
Resources:
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- The video recording of the hearing is available on the Legislature’s website.
- Commissioner Dehmer’s testimony.
- Budget Analysis documents on Legislature’s website (other documents )
- NJPSA Budget Testimony
- 2025-2026 state aid notices can be found on NJDOE’s website.
- 2026 Budget in Brief can be found on the Office of Management and Budget’s website. I