ASSEMBLY, No. 336

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman PASCRELL

An Act concerning school district budgets and amending P.L.1979, c.294.

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

    1. Section 2 of P.L.1979, c.294 (C.18A:22-8.1) is amended to read as follows:

    2. [Whenever] No transfer shall be made among line items and program categories except in the last six months of the budget year. If, during the last six months of the budget year, a school district desires to transfer amounts among line items and program categories, the transfers shall be by resolution of the board of education; however, a board may, by resolution, designate the chief school administrator to approve such transfers as are necessary between meetings of the board. Transfers approved by the chief school administrator shall be reported to the board, ratified and duly recorded in the minutes at a subsequent meeting of the board, but not less than monthly. In a school district wherein the Commissioner of Education has directed a comprehensive compliance investigation pursuant to section 14 of P.L.1975, c.212 (C.18A:7A-14), the board of education shall obtain the written approval of the county superintendent of school prior to implementing any transfer of funds.

(cf: P.L.1987,c.398,s.4)

    2. This act shall take effect immediately.

STATEMENT

    This bill prohibits the transfer of funds among line items in school district budgets except during the last six months of the budget year.

    Currently, school districts are given great flexibility in transferring funds among line items during the year; however, the municipal budget law prohibits transfers among line items during the last two months of the budget year and the first three months of the following budget year. The application of this limitation to school districts, modified to account for the length of the school budget cycle, will lead to more responsible school budget practices.

Restricts transfers among line items in school district budgets to last six months of budget year.