Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Permits school district to use capital reserve account funds for certain expenses during state of emergency.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of school district capital reserve accounts during a state of emergency and supplementing chapter 21 of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of N.J.S.18A:21-4 or any other section of law to the contrary, whenever a school district is required to close the schools of the district for more than three consecutive school days due to a declared public health emergency, a state of emergency, or a directive by the appropriate health agency or officer to institute a public health related closure, the school district may use the funds in the district’s capital reserve account to support the general fund expenses of the school district as follows:
a. for current expenses related to the public health emergency, state of emergency, or directive; and
b. for expenses incurred in connection with the transition to and use of virtual or remote instruction.
2. This act shall take effect immediately and shall be retroactive to March 18, 2020.
STATEMENT
Under current law, a board of education is prohibited from using its capital reserve account for current expenses of the general fund.
Under this bill, when a school district is required to close the schools of the district for more than three consecutive school days because of a declared public health emergency, state of emergency, or directive by the appropriate health agency or officer to institute a public health related closure, the district may use the funds in its capital reserve account for: current expenses related to the declared public health emergency, state of emergency, or directive; and for expenses incurred in connection with the transition to and use of virtual or remote instruction.
The bill will be retroactive to March 18, 2020, the date on which the Governor required that schools be closed under Executive Order 104 of 2020 issued in response to the coronavirus disease 2019.