TRENTON, N.J. — Gov. Mikie Sherrill’s proposed fiscal year 2027 budget includes a record $12.4 billion in state aid for K-12 education, a $372 million increase from the previous year, state officials announced.
The funding would go directly to school districts across New Jersey and comes alongside additional investments in preschool programs, student mental health initiatives and academic support programs.
Officials said the spending plan also aims to stabilize school funding levels and begin modernizing the state’s school funding formula.
“My budget is focused on ensuring kids in New Jersey have access to the best education and brightest possible future,” said Governor Mikie Sherrill. “The budget includes a record level of K-12 school funding, while acknowledging that much more work is needed to make sure students and taxpayers get the best return on our investment. It lays the foundation for future improvements – like stronger academic and mental health outcomes, shared services, and more efficient spending – to better support children from birth through graduation and strengthen schools statewide.”
Under the proposal, every county would see a net increase in direct K-12 state aid to its school districts. No individual district would experience a reduction greater than 3 percent in state aid.
Education Commissioner Dr. Lily Laux said the funding plan focuses on equitable opportunities for students while maintaining stability in school funding.
“Governor Sherrill’s proposed budget focuses our state resources to ensure each and every New Jersey student has equitable opportunities for academic growth, while supporting their health and wellness,” said Dr. Lily Laux, Commissioner of Education. “I look forward to continued conversations with stakeholders from across the state as we work to modernize and stabilize the school funding formula. Our core commitment remains: Funding will continue to follow students and their needs, a principle central to New Jersey’s education system.”
The budget proposal also includes additional investments in several education programs.
Preschool Education Aid would rise by 9.3 percent to a record $1.4 billion, including funding to expand preschool programs into additional school districts.
The plan would also double funding for the state’s High Impact Tutoring initiative to $15 million, aimed at improving student performance in math and literacy.
Another $33 million would support the SPARK program — School-based Partnerships for Access and Resilience for Kids — which is designed to expand access to mental health services in schools through partnerships with licensed providers.
State officials said the administration is also looking at ways to help districts control rising costs in areas such as special education, employee benefits, transportation and contracted services.
Additional changes under the proposal include using a three-year average to determine the “local fair share,” the amount school districts are expected to contribute based on property wealth and income. Officials say the adjustment would help reduce year-to-year funding fluctuations.
The New Jersey Department of Education will also begin using actual special education enrollment numbers when calculating funding, rather than relying on statewide averages.
State aid allocations for individual districts are available through the Department of Education’s School Finance website.
