[First Reprint]

SENATE, No. 2691

STATE OF NEW JERSEY

219th LEGISLATURE

INTRODUCED JULY 9, 2020

 


 

Sponsored by:

Senator† LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

Senator† NELLIE POU

District 35 (Bergen and Passaic)

Senator† SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

Assemblyman† DANIEL R. BENSON

District 14 (Mercer and Middlesex)

Assemblyman† RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Assemblyman† ERIC HOUGHTALING

District 11 (Monmouth)

 

Co-Sponsored by:

Assemblywomen Downey and Timberlake

 

 

 

 

SYNOPSIS

†††† Authorizes school districts to maintain surplus at four percent for 2020-2021 and 2021-2022 school years.

 

CURRENT VERSION OF TEXT

†††† As amended by the Senate on October 29, 2020.

††


An Act concerning 1[the anticipation of miscellaneous revenue in local unit budgets and]1 the level of allowable school district surplus following the COVID-19 pandemic.

 

†††† Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

†††† 1[1.† a.† Notwithstanding the provisions of N.J.S.40A:4-26 or any other section of law to the contrary, due to the financial impacts of COVID-19, miscellaneous revenues from any source may be included as an anticipated revenue in the calendar year 2021 or fiscal year 2021 budget of a local unit, as applicable, in an amount in excess of the amount actually realized in cash from the same source during the next preceding fiscal year.† The governing body of a local unit shall submit an application to the Division of Local Government Services in the Department of Community Affairs demonstrating that the financial impact of COVID-19 clearly warrants the expectation that the excess amount will actually be realized in cash during calendar year 2021 or fiscal year 2021, as applicable.† If the division determines that the anticipated excess revenue is attributed to the financial impact of COVID-19, and the amount of anticipated revenue complies with the guidelines established pursuant to subsection b. of this section, the division shall approve the local unitís application and shall certify the determination, in writing, to the local unit.

†††† b.††† Within 30 days after the date of enactment of this act, the division shall issue guidelines as are necessary to implement the provisions of this act.† At a minimum, these guidelines shall determine for local units the amount of any miscellaneous revenue that may be anticipated in the calendar year 2021 or fiscal year 2021 budget of a local unit, as applicable.]1

 

††††† 1[2.] 1.1††† Notwithstanding the provisions of section 7 of P.L.1996, c.138 (C.18A:7F-7), section 2 of P.L.1979, c.294 (C.18A:22-8.1), or any other section of law to the contrary, due to the financial impacts of COVID-19, a school district, other than a county vocational school district, may maintain for the 2020-2021 1and 2021-20221 school 1[year] years1, an undesignated general fund balance of four percent of the budgeted general fund for the prebudget year, and the use or transfer of those funds between line items and program categories shall not require the approval of the Commissioner of Education.

 

†††† 1[3.] 2.1†††† This act shall take effect immediately 1[and section 1 shall expire one year after enactment]1.