Equalization Aid is New Jersey's primary school funding formula for districts that can't raise enough money locally to fund an adequate education. The state fills the gap. Towns with less property wealth per student typically receive more; towns with more property wealth — which can raise the same dollars from a lower tax rate — often receive little or none.
Alongside local property taxes, it's one of the two channels that fund every New Jersey school district. How much of each channel a town relies on varies enormously — some districts run almost entirely on local taxes, while others get the majority of their school budget from the state.
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