TRENTON – Legislation sponsored by Senator Troy Singleton and Senator Vin Gopal that would eliminate the use of census-based funding for certain special education aid under New Jersey’s school funding law was approved by the Senate Education Committee.

The bill, S-1767, would base special education for school districts on the actual number of students receiving special education services in each district, rather than using a statewide estimate generated from the census-based formula.

“Every school district should receive funding that reflects the needs of the students they actually serve,” said Senator Singleton (D-Burlington). “This legislation would help ensure districts receive more accurate and equitable support for special education services while providing greater stability and predictability in school funding.”

Under the current funding structure established through the “School Funding Reform Act of 2008” (SFRA), districts receive special education aid using a statewide average classification rate instead of actual enrollment figures. The formula assumes a fixed percentage of students in every district require special education services, regardless of the district’s true student population or needs.

“This legislation is about making sure State funding reflects the realities districts are facing in the classroom,” said Senator Gopal (D-Monmouth). “School districts with higher numbers of students requiring special education services should have confidence that aid calculations are tied to actual enrollment and student need, not a one-size-fits-all estimate.”

Recent State data shows the percentage of students requiring special education services has continued to rise in recent years. Supporters of the bill also note that statewide special education costs have increased by 44 percent since 2009, while the average per-student cost for services has nearly doubled from $19,519 in FY2009 to $38,984 in FY2026, according to the New Jersey Council on Developmental Disabilities.

The bill would also address disparities between districts, where some identify fewer than five percent of students as requiring special education services while others identify nearly 40 percent.

In response to these concerns, the FY2026 State budget used actual district enrollment data instead of the census-based formula, an approach that was also continued in Governor Sherrill’s proposed FY2027 budget. This bill would make that change permanent in State law, giving school districts greater predictability in future funding.

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