Establishes State school aid reduction cap.

This bill establishes a 5% annual cap on reductions to New Jersey school districts' state aid, preventing cuts larger than 5% of a district's prior year total budget. It directly affects all public school districts receiving state aid, including equalization, special education, security, and transportation funding. The cap applies to all districts unless they meet specific exemptions, such as being a high-tax district with spending below adequacy or a regional district meeting cost-saving criteria. The bill ensures no district faces a sudden, steep reduction in state funding beyond this 5% threshold.