TRENTON, N.J. — New Jersey lawmakers have introduced bipartisan legislation aimed at increasing school funding for districts in environmentally protected areas where development restrictions limit local tax revenue.
Assemblyman Alex Sauickie and Assemblywoman Aura Dunn announced the proposal this week, which would provide additional state aid to school districts in municipalities subject to the Highlands Water Protection and Planning Act and the Pinelands Protection Act.
The bill, known as the “Fairness for School Districts in Development Restricted Areas Act,” seeks to address funding challenges in communities where large portions of land cannot be developed, limiting the ability to generate property tax revenue to support schools.
“New Jersey has asked these communities to serve as stewards of our environment, protecting vital natural resources for the benefit of the entire state,” Sauickie (R-Ocean) said. “But in doing so, we have also tied their hands economically. When up to 25% — and in some cases nearly 100% — of a municipality is restricted from development, the ability to generate ratables is severely limited. Our current funding formula ignores that reality, and as a result, students in these districts are being shortchanged. That is fundamentally unfair.”
The legislation would impact districts in several counties, including Jefferson and Washington townships in Morris County; West Milford and Vernon in Sussex County; Jackson, Plumsted and Lacey in Ocean County; and Shamong and Tabernacle in Burlington County.
“These communities are doing the right thing, not just for themselves, but for the entire state, by preserving open space and protecting critical water resources,” Dunn (R-Morris) said. “Unfortunately, our school funding system has failed to account for the economic impact of these environmental burdens that limit a town’s ability to expand their tax base in the same way that urban districts are limited by municipal burdens.”
A municipal burden refers to communities with high service demands and low property values, which often receive additional state aid under current funding formulas.
“This legislation ensures that students in Highlands and Pinelands communities are given the same opportunities as others who live in towns that also cannot expand their tax base,” Dunn explained.
The bill was introduced alongside Assemblywoman Marissa Sweeney (D-Morris), reflecting bipartisan support from lawmakers representing both regions.
“This isn’t about politics; it’s about a flawed school funding system that continues to cut aid to communities responsible for protecting our water,” Dunn added. “This bill thoughtfully balances conservation and education, both now and in the future.”
Sponsors said the proposal aims to ensure that environmental protections do not come at the expense of educational resources.
“Protecting our environment and ensuring access to clean drinking water are essential goals,” Sauickie said. “But we cannot allow the cost of those protections to fall disproportionately on a subset of communities. Their children deserve the same quality education and resources as every other student in New Jersey.”
