State school aid
Money the state gives school districts under the School Funding Reform Act (SFRA). Its biggest piece, equalization aid, gives more to districts with higher student needs and fewer local resources, measured by income and property values.
New Jersey example
The state fully funded the SFRA formula for the first time in its fiscal year 2025 budget. The formula estimates a "local share" each district can pay. If local incomes or property values rise, that share can go up and equalization aid can drop, putting more pressure on the school tax levy.
Official source
Examination of School Funding Policies (New Jersey Department of Education, December 2025)
This is a plain-English summary. Rules and dollar amounts change, so check the official source or a professional before you file or sign anything.