N.J. Admin. Code § 6A:23A-8.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 6A:23A-8.1 - Budget submission; supporting documentation; website publication

(a) Annually, on or before the due date established at N.J.S.A. 18A:7F-5.c, each district board of education shall adopt and submit to the executive county superintendent for approval, together with Commissioner-prescribed supporting documentation, a budget that provides for a thorough and efficient (T&E) education. The Commissioner may adjust the date for the submission of budgets to conform with the State aid notification date pursuant to N.J.S.A. 18A:7F-5.c or if the Commissioner determines the availability of preliminary aid numbers for the subsequent school year warrants adjustment.

(b) A district board of education shall complete a budget application prepared and distributed by the Commissioner, which shall be referred to as the School District Budget Statement and Supporting Documentation. The district board of education shall include in the budget application a complete reporting of revenues and appropriations and other requirements pursuant to N.J.S.A. 18A:22-8 and 18A:7F-5 through 63.

(c) The budget, as adopted for the school year pursuant to N.J.S.A. 18A:7F-5, shall be provided for public inspection on the school district's website, if one exists, and made available in print in a "user-friendly," plain language budget summary format within 48 hours after the public hearing on the budget.

1. The budget shall be maintained on the school district's website, if one exists, with a visible link off the main page, for the entire budget year and revised, as applicable, when changed as follows:

i. Prior to adoption of a separate proposal(s);

ii. Upon voter approval of a separate proposal(s); and

iii. For any subsequent determination on an application for restoration to the Commissioner pursuant to N.J.S.A. 18A:22-14.

2. Pursuant to N.J.S.A. 18A:22-8.e, the Commissioner shall develop and provide through the Department's Internet site "user-friendly," plain language budget summary forms for the use of school districts. Each school district shall submit the required budget summary form to the Department following the approval of the base budget question by the board of school estimate, as applicable, or, pursuant to N.J.S.A. 18A:22-32, following approval by the district board of education for school districts with April or November elections. When any separate question(s) are approved by voters or the board of school estimate, as applicable, all approved amounts shall be consolidated and reflected in the "user-friendly," plain language budget summary form.

3. The plain language budget summary shall include an abbreviated version of the formal budget adopted by the district board of education and statistical information the Commissioner determines to be useful for the public's understanding of the school district's fiscal matters and condition, including, but not limited to, the following information for both the school district's budget year and the prebudget year:

i. All line items of appropriation aggregated by item type;

ii. The school tax rate;

iii. The equalized school tax rate;

iv. Revenues by major category;

v. The amount of available surplus;

vi. A description of unusual revenues or appropriations, with a description of the circumstances of the revenues or appropriations; and

vii. A list of shared service agreements in which the school district is participating.

4. The Department shall make the plain language budget summary available to the public through its website in an easily accessible location and in a manner that can be downloaded by the public for comparative purposes using commonly used software.

(d) Pursuant to N.J.S.A. 18A:7F-5.3, the Commissioner shall require each school district, CVSD, and CSSSD to submit, as part of the annual budget submission, supporting documentation regarding employment contracts of the superintendent, any assistant superintendent(s), and the SBA regardless of the employee's salary level. The Commissioner also shall require each school district, CVSD, and CSSSD to submit, as part of its annual budget submission, supporting documentation regarding the employment contract of any employee with an annual salary that exceeds $ 75,000 who is not a member of a collective bargaining unit. The supporting documentation submitted pursuant to this subsection shall include the following employment contract information:

1. A detailed statement of the employment contract terms for the school employees, including, but not limited to, the duration of the contract, number of annual work days, number of annual vacation days, number of annual sick days, number of annual personal days, number of annual consulting days, and any other contracted non-working days. The statement shall also include an itemization of all forms of compensation provided for under the contract.

2. The annualized cost of all benefits provided to the school employees, including, but not limited to, all allowances, bonuses and stipends, and all contributions made by the school district toward the costs of health, dental, life, and other types of insurance, medical, and reimbursement plans, any reimbursement of the employee share of Federal and/or State taxes or benefits, and retirement and tax sheltered annuity plans that exceed the contributions for the costs of the items made on behalf of a teaching staff member under a collective bargaining agreement with the district board of education.

i. Allowances include, but are not limited to, the provision of a computer/Internet and cell phone, tuition reimbursement, and payment of professional membership fees.

ii. Bonuses include, but are not limited to, additional compensation for longevity and meeting specific performance goals.

3. A detailed statement of any benefit(s) provided for in the employment contract with the school employees that are to be conferred after or upon the separation from the school district. This includes buyback of vacation days, sick days (if retiring), and any other post-employment benefits. If no post-employment benefits are provided in the contract, such fact shall be disclosed in the detailed statement.

4. A detailed statement of any form of in-kind or other form of remuneration provided to the school employees that is not otherwise included in the employee's salary or benefits. This includes any annual option to buyback vacation time.

(e) The employment contract information at (d) above shall be provided for public inspection, along with the budget as prescribed at (c) above, in an easily accessible location and in a "user-friendly," plain-language format as prescribed by the Commissioner on the school district's website, if one exists, no less than 48 hours after the public hearing on the budget.

1. The employment contract information shall be maintained on the school district's website, if one exists, with a visible link off the main page, for the entire budget year.

2. The Department shall also post the items at (e) above on its website for public inspection after submission by all school districts of the final approved school district budget.

(f) A district board of education shall submit, at the Commissioner's request, supplemental information such as documents, contracts, reports, and financial records and statements required by law or regulation, or other information necessary to conduct a review of the school district's annual spending plan. Additional information may include, but need not be limited to:

1. Contracted salaries:

i. Copies of the current labor contract for each bargaining unit. For any contract that has not been settled or is due to expire at the end of the prebudget year, the school district shall provide a copy of the last or expiring labor contract, as applicable, and the anticipated range of settlement by unit;

ii. An accurate, complete, and up-to-date position control roster, pursuant to N.J.A.C. 6A:23A-6.8;

iii. A list of stipend amounts by staff member name, position, and purpose;

2. Health benefits: The school district shall provide the following:

i. A summary list by type of coverage and aggregate annual amount for major medical, prescription, dental, and all other benefit costs, including actual costs for the year prior to the prebudget year, and actual or estimated, as available, for the prebudget year and budget year;

ii. A summary list by type and category (single, parent and child, or family) by amount for the year prior to the prebudget year, prebudget year, and budget year;

iii. Documentation from provider(s) showing estimated rate increases;

iv. The reimbursement required by employee, if any;

v. School districts that have elected not to participate in the School Employees' Health Benefits Program shall provide a detailed analysis documenting the cost savings of using the alternative provider;

3. Operation and maintenance of plant services:

i. A detailed list of actual or scheduled equipment purchases with a cost of $ 2,000 or more per unit by the actual or estimated cost of each, as available, for the year prior to the prebudget year, prebudget year as of February 1, and the budget year;

ii. The square footage for each building, including administration, schools, temporary classroom units, warehouses, bus garages, and other structures;

iii. The full time equivalent (FTE) number of custodians and/or janitors by building;

iv. A summary of the number of maintenance employees by trade and the cost by regular hours and overtime hours for each of the three years included in the budget: prior year actual, projected prebudget year updated as of February 1, and estimated budget year;

v. An analysis of any lease(s) held by the school district for classroom space, office space, and other spaces. The analysis shall include, but not be limited to, the use of the building, square footage, term of the lease, monthly cost, and the annual cost for each of the three years included in the budget: prior year audited, prebudget year updated as of February 1, and proposed budget; and the school district's long-term plan to obtain school district-owned space for these purposes;

4. Utilities: Where applicable, an analysis of savings by not using the Alliance for Competitive Energy Services (ACES) or Alliance for Competitive Telecommunications (ACT);

5. Purchased professional services: A detailed list of all contracts by service type such as auditor, architect, attorney, etc., by actual cost for the year prior to the prebudget year, actual or maximum cost, as available, for the prebudget year, and actual or estimated maximum cost for the budget year;

6. Purchased technical services: A detailed list of all contracts by service type by actual cost for the year prior to the prebudget year, actual or maximum cost, as available, for the prebudget year, and actual or estimated maximum cost for the budget year. Identification of any technical service(s) purchased without public bidding under the extraordinary unspecified services provision pursuant to N.J.S.A. 18A:18A-5;

7. Textbook adoptions:

i. A list of any new textbook adoption(s) for the budget year by title, title and date published of series being replaced, and cost;

ii. Summary of textbook adoptions expenditures by actual cost for the year prior to the prebudget year, and actual or estimated cost, as available, for the prebudget year and budget year;

8. Equipment purchases: Schedules with descriptions of all actual and scheduled purchases of equipment with a cost of $ 2,000 or greater per unit, other than those for operation and maintenance of plant services, by actual cost for the year prior to the prebudget year, and actual or estimated cost, as available, for the prebudget year and budget year;

9. A detailed list of efforts to improve administrative efficiency and realize other potential or real cost savings;

10. An accounting and analysis of actual salary breakage in the year prior to the prebudget year for replacement of employees who retired or otherwise left school district employment before or during the year, actual or estimated salary breakage, as available, for the prebudget year for replacement of employees who retired or otherwise left school district employment or are known to be retiring or otherwise leaving school district employment before the end of the prebudget year, and estimated salary breakage for the budget year for replacement of employees known to be retiring or otherwise leaving school district employment at the end of the prebudget year;

11. A list of budgeted positions and salaries that have been vacant for more than one year;

12. A list of aides and salaries that are not mandated for preschool and kindergarten or required by IEP for special education; and

13. A list of appropriations to fund deficits in any of the school district's enterprise fund activities.

N.J. Admin. Code § 6A:23A-8.1

Amended by 49 N.J.R. 1038(a), effective 5/1/2017

Amended by 56 N.J.R. 2141(a), effective 11/4/2024