New Jersey's school funding reform initiative, the Quality Education Act of 1990 and its 1991 amendments, are described in this booklet. The amendments attempt to equalize the tax burden of all districts, provide property relief, and impose stricter spending limitations. In the new foundation funding system, the state provides aid based on a district's capacity to meet the state-determined, statewide standard of per-pupil expenditures. The distribution of each of the types of state education aid are described. The first section provides information on state foundation aid, such as calculation of the maximum foundation budget, district local fair share, and state foundation aid; on spending limits; and on special needs districts. State aid for other costs is described in the next section, which includes categorical aid for special and bilingual education, at-risk students, and county vocational schools; state aid for transportation, pension and social security, and debt service; and transition aid. Appendices describe the calculation of state education aid for a sample district, special needs districts, special education categories, state aid totals for 1991-92, and the impact of Quality Education Act amendments. A glossary is included. (LMI)