Limits and clarifies use of cap banking by school districts.

New Jersey A1245 amends the law to limit and clarify how school districts can use "cap banking." This practice allows districts to save unused tax levy increases for future years. The bill allows districts to consider decreases in their tax levy when calculating the difference between the maximum allowable amount and the actual amount raised by taxation. Districts can add this difference to their tax levy in the next three budget years. The bill prohibits districts from increasing their tax levy by more than six percent compared to the previous year.

Limits and clarifies use of cap banking by school districts.

New Jersey A1245 amends the law to limit and clarify how school districts can use "cap banking." This practice allows districts to save unused tax levy increases for future years. The bill allows districts to consider decreases in their tax levy when calculating the difference between the maximum allowable amount and the actual amount raised by taxation. Districts can add this difference to their tax levy in the next three budget years. The bill prohibits districts from increasing their tax levy by more than six percent compared to the previous year.