ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 2691

STATE OF NEW JERSEY

DATED:  FEBRUARY 24, 2021

      The Assembly Appropriations Committee reports favorably Senate Bill No. 2691 (1R).

      This bill provides that during the 2020-2021 school year, a school district may maintain a surplus (i.e., undesignated general fund balance) of four percent of the budgeted general fund expenses for the prior year.  Under current law a school district, other than a county vocational school district, may only maintain a surplus of two percent.  The bill also provides that for the 2020-2021 and 2021-2022 school years, the transfer of surplus funds between line items and program categories will not require the approval of the Commissioner of Education.

     As reported by the committee, Senate Bill No. 2691 (1R) is identical to Assembly Bill No. 4310, which also was reported by the committee on this date.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.