Establishes State school aid reduction cap.

This bill establishes a 5% cap on annual reductions to state school aid for New Jersey public school districts. It limits how much a district's state funding can decrease compared to the previous year's budget, ensuring no district loses more than 5% of its net budget in aid. For districts with positive aid differentials (those receiving more aid than the previous year), the bill gradually increases the required aid reduction over time (from 13% to 100% by 2024-2025). Exceptions protect certain districts, including those in high-tax municipalities with spending below adequacy or regional districts formed under specific grant programs.