ASSEMBLY, No. 1026
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman DiGAETANO
An Act concerning school district budgets, amending P.L.1979, c.294 and supplementing chapter 22 of Title 18A of the New Jersey Statutes.
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. (New section) No transfer may be made under section 2 of P.L.1979, c.294 (C.18A:22-8.1) from the line items and program categories for maintenance and social services programs. Surplus in these accounts at the end of the school year shall be carried forward and appropriated for maintenance and social service programs in the following school year.
3. This act shall take effect immediately and shall first apply to school budgets in the 1993-94 school year.
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. The bill also prohibits transfers from the maintenance and social services line items during the budget year. Any surplus in these accounts must be carried forward and applied for maintenance and social services costs in the following school year.
Under current law, school districts are given great flexibility in transferring funds among line items during the year. This system has led to misleading, inefficient and wasteful spending practices in some school districts. The budget law for municipalities now prohibits transfers among line items during the last two months of the budget year and the first three months of the following budget year and 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. In addition, the diversion of funds budgeted for maintenance and social services may lead to a deferral of needed repairs or a failure to provide necessary social services.
Prohibits transfers among line items in school district budgets except during last six months of budget year; prohibits transfer of funds from maintenance and social services line items.