New Jersey Department of Education Commissioner Kevin Dehmer outlined the state’s record-level spending plan for education on Monday.

This historic allocation of $22.2 billion includes $12.1 billion in direct formula aid for schools, a nearly $400 million increase over fiscal year 2025 levels.

Testifying before the Assembly Budget Committee, Dehmer said there would be “added new resources for mental health and adjusted school security resources, better ensuring the formula reflects the realities of today’s schools. Additionally, based on one of the most frequently raised concerns from stakeholders, we’ve proposed a shift to calculate special education aid using each district’s special education enrollment, moving away from the census-based method.”

Other key initiatives include expanding full-day kindergarten to the 10 or so districts that still don’t have it, as well as expanding pre-K around the state and high-impact tutoring in districts where students are struggling to meet state standards.

Committee members questioned Dehmer about the effectiveness of the state’s school funding.

“You have 56% of the schools below adequacy funding. That’s 100 more than when the formula rolled out. Is the formula still working?” asked Assemblyman Roy Freiman (D-Somerset).

“We’re doing our every three-year updates, revising those resources to make sure they align with what’s happening in schools. We’re updating costs, keeping it relevant and timely. And at the same time we’ve made some statutory changes and this year proposing some additional changes,” Dehmer said.

Those changes include a 3% cap on the amount of state aid a district can lose, and 6% on what a district can gain in state aid. This budget also allows districts to reach adequacy levels by increasing local taxes above the 2% cap.

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