N.J. Stat. § 18A:66-17
The expenses of administration of the retirement system shall be paid by the State of New Jersey. Each employing school district shall reimburse the State for a proportionate share of the amount paid by the State for administrative expense. This proportion shall be computed as the number of members under the jurisdiction of such employing school district bears to the total number of members in the system. The pro rata share of the cost of the administrative expense shall be included with the certification by the board of trustees to the Commissioner of Education, the State Treasurer and to each employing school district. The commissioner shall deduct the amount so certified from the certification, to the State Treasurer and the Director of the Division of Budget and Accounting, of State aid payable to such employing school district under the provisions of P.L. 1954, c.85. Similar reimbursement shall be made to the State by institutions and districts to which P.L. 1954, c.85 does not pertain.
For purposes of this section, during the term of the lottery contribution made pursuant to section 4 of P.L. 2017, c. 98(C.5:9-22.8) the expenses of the Lottery Enterprise shall not be considered to be expenses of the retirement system but shall be paid in accordance with section 6 of P.L. 2017, c. 98(C.5:9-22.10).
N.J.S. § 18A:66-17