N.J. Admin. Code § 6A:23A-9.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:23A-9.7 - Procedures following voter defeat of proposed budget; municipal governing body or board of school estimate action

(a) Procedures following voter defeat of the proposed budget with a general fund tax levy above the school district's required local share, calculated pursuant to N.J.S.A. 18A:7F-5.b, are as follows:

1. A district board of education in which the general fund tax levy proposed in the base budget has been rejected by voters at the April school election shall submit, within two days of the certification of election results, to the executive county superintendent and the governing body(ies) comprising the school district, the following information:

i. A complete line-item budget listing each item by code and line description, including actual expenditures for the previous school year, actual budgeted amount for the current school year, proposed budgeted amount for the ensuing school year as proposed to voters, the advertised budget for the ensuing school year, and all supporting documentation and narrative explanations, including copies of approved spending proposals, indicating which were approved;

ii. A copy of the annual progress report, if any, submitted to the Commissioner, pursuant to N.J.S.A. 18A:7A-11 and N.J.A.C. 6A:30;

iii. A copy of the school district's most recent annual audit;

iv. An explanation of any action(s) to reallocate, direct additional expenditures, and so forth, taken by the Commissioner, or the executive county superintendent on behalf of the Commissioner, pursuant to N.J.S.A. 18A:7F-5 through 7, 18A:7F-39, or 18A:7-8, or a statement that no such action(s) was taken;

v. The numbers of professional and nonprofessional staff during the current school year and projected staff for the ensuing school year, together with reasons for any increase or decrease;

vi. Pupil enrollment by grade for the school district as of the preceding June 30, the last school day prior to the preceding October 16, and as projected for October of the ensuing school year;

vii. Salary schedules for all employees;

viii. The number of schools and classrooms in each school;

ix. Tuition received or paid during the previous school year, anticipated for the current school year, and projected for the ensuing school year;

x. Substantiation of need for any proposed capital projects and/or deposits into the capital reserve, including documentation of the projects' inclusion in the long-range facilities plan (LRFP);

xi. Any information required for budget submission to the executive county superintendent and not specifically enumerated in (a)1i through x above;

xii. The applicable portions of the Taxpayers' Guide to Education Spending;

xiii. The applicable portions of the school performance report; and

xiv. Any other documentary materials or records the Commissioner deems appropriate for a specific district board of education.

2. The governing body(ies) shall transmit to the district board of education a letter acknowledging the receipt of the information at (a)1 above.

3. The governing body(ies) comprising the school district, or a formally approved committee thereof, shall consult, as soon as immediately practicable, with the district board of education, or a formally approved committee thereof, for purposes of determining the amount of general fund tax levy sufficient to ensure provision of a T&E education or to maintain the stability of a school district's programs.

4. If either the district board of education or municipal governing body, or both, will have a majority present at the meeting, the meeting shall be publicly announced and advertised according to the Senator Byron M. Baer Open Public Meetings Act, N.J.S.A. 10:4-1 through 21, by the body(ies) with the majority present.

5. On or before May 19, or the Commissioner-established date if the April school election date is changed pursuant to N.J.S.A. 19:60-1, the governing body(ies) shall certify to the county board of taxation an amount to be appropriated as school district tax levy, pursuant to N.J.S.A. 18A:22-37. Copies of the certification shall be forwarded to the district board of education and executive county superintendent. The governing body(ies) shall not certify an amount less than the minimum tax levy required to meet the required local share established pursuant to N.J.S.A. 18A:7F-5. The governing body does not have the authority to recommend a reduction in the debt service fund tax levy, only the general fund tax levy.

i. The general fund tax levy certification, in the form of a resolution, shall be for the sum of the base budget amount and additional amounts approved by voters through separate questions.

ii. If the amount certified for the base budget is less than the amount proposed to voters by the district board of education, the governing body(ies) shall present, in the form of a resolution, to the district board of education and the executive county superintendent a statement of the specific line item expenditure reductions or increases in budgeted revenues or designated general fund balance recommended by the governing body(ies). The governing body(ies) shall also submit a certification attesting it has reviewed the budget proposed by the district board of education and it deems the revised budget sufficient for provision of T&E.

iii. If the sum of the equalization aid and general fund tax levy resulting from the review pursuant to (a)5ii above is at or below the school district's adequacy budget, as calculated pursuant to N.J.S.A. 18A:7F-51, the governing body(ies) shall concurrently present to the district board of education and to the executive county superintendent a specific written explanation documenting by clear and convincing evidence for each line item reduced that it either will not adversely affect the ability of the district board of education to meet the NJSLS and the efficiency standards or will not adversely affect the stability of a district board of education's overall operations given the need for long-term planning and budgeting, as required at N.J.S.A. 18A:7F-5.e(2).

(b) Procedures following voter defeat of the proposed budget with a general fund tax levy at the school district's required local share, calculated pursuant to N.J.S.A. 18A:7F-5.b, are as follows:

1. A district board of education in which the general fund tax levy proposed in the base budget has been rejected by voters at the April school election shall submit, within two days of the certification of election results, to the governing body(ies) comprising the school district the following information:

i. A complete line-item budget listing each item by code and line description, including actual expenditures for the previous school year, actual budgeted amount for the current school year, proposed budgeted amount for the ensuing school year as proposed to voters, the advertised budget for the ensuing school year, and all supporting documentation and narrative explanations, including copies of approved spending proposals, indicating which were approved;

ii. A copy of the school district's most recent annual audit;

iii. An explanation of any action(s) to reallocate, direct additional expenditures, and so forth, taken by the Commissioner, or the executive county superintendent on behalf of the Commissioner, pursuant to N.J.S.A. 18A:7F-5 through 7, 18A:7F-39, or 18A:7-8, or a statement that no such action(s) was taken; and

iv. Any other documentary materials or records the Commissioner deems appropriate for a specific district board of education.

2. The governing body(ies) shall transmit to the district board of education a letter acknowledging the receipt of the information at (a)1 above.

3. If the board of education or municipal governing body, or both, will have a majority present at the meeting, the meeting shall be publicly announced and advertised according to the Open Public Meetings Act by the body(ies) with the majority present.

4. On or before May 19, or the Commissioner-established date if the April school election date is changed pursuant to N.J.S.A. 19:60-1, the governing body(ies) shall certify to the county board of taxation an amount not less than the required local share established pursuant to N.J.S.A. 18A:7F-5.b for this purpose, pursuant to N.J.S.A. 18A:22-37. Copies of the certification shall be forwarded to the district board of education and executive county superintendent. The governing body(ies) does not have the authority to certify a reduction in the general fund tax levy or debt service fund tax levy.

i. The general fund tax levy certification, in the form of a resolution, shall be for the base budget amount plus any additional amount(s) approved by voters through separate questions.

ii. The governing body(ies) may include in the resolution a list of recommended line-item reallocations for district board of education consideration.

iii. If the amount certified for the base budget is less than the required local share, the certification shall be considered a failure to certify in accordance with N.J.A.C. 6A:23A-9.8.

(c) Procedures following review of the budget by the board of school estimate shall be as follows:

1. When submitting its proposed budget to the board of school estimate, a district board of education shall also submit to the board of school estimate, the governing body(ies), and the executive county superintendent the documents enumerated at (a)1 above.

i. If the amount of money appropriated by the board of school estimate for general fund purposes for the ensuing year, which shall not be less than the required local share established pursuant to N.J.S.A. 18A:7F-5.b, is less than the amount proposed by the district board of education, the board of school estimate shall present to the district board of education, the governing body(ies), and the executive county superintendent a statement of the specific line-item reductions made. The board of school estimate shall submit with the statement a certification that the board of school estimate has reviewed the budget proposed by the district board of education and that the board of school estimate deems the revised budget sufficient for provision of T&E.

2. The governing body of each municipality comprising the school district shall appropriate the amount certified by the board of school estimate.

i. If the amount of money appropriated by the governing body(ies) for general fund purposes for the ensuing year, pursuant to N.J.S.A. 18A:22-17, which shall not be less than the required local share established pursuant to N.J.S.A. 18A:7F-5.b, is less than the amount certified by the board of school estimate, the governing body(ies) shall present to the board of school estimate, the district board of education, and the executive county superintendent a statement of the specific line-item reductions made by the governing body(ies). The board of school estimate shall submit with the statement a certification that the amount appropriated for school purposes is sufficient for provision of T&E.

ii. If the sum of the equalization aid and general fund tax levy resulting from board of school estimate review or subsequent governing body certification is at or below the school district's adequacy budget, as calculated pursuant to N.J.S.A. 18A:7F-51, the board of school estimate and/or governing body(ies) shall concurrently present a specific written demonstration as to why such reductions will not adversely affect the ability of the school district to provide a T&E education or the stability of the school district given the need for long-term planning and budgeting as required at N.J.S.A. 18A:7F-5.e(2).

3. If the money appropriated by the governing body(ies) for general fund purposes for the ensuing year, pursuant to N.J.S.A. 18A:22-17, is less than the required local share established pursuant to N.J.S.A. 18A:7F-5.b, the certification shall be considered a failure to certify in accordance with N.J.A.C. 6A:23A-9.8.

(d) If the governing body(ies) or the board of school estimate has certified an amount of tax levy less than the amount proposed by the district board of education as a result of reductions eligible for restoration through application to the Commissioner as set forth at N.J.A.C. 6A:23A-9.9, the executive county superintendent shall schedule a conference between the district board of education, or a formally approved committee thereof, and the governing body(ies) or the board of school estimate, or a formally approved committee thereof, for the purpose of assisting the respective bodies in reaching agreement on the amount of tax levy sufficient to ensure provision of a T&E education consistent with N.J.S.A. 18A:7F-5 through 63.

1. If an agreement is reached, any resultant adjustment in tax levy shall be certified forthwith to the county board of taxation.

2. If an agreement is not reached and a tax levy has already been certified pursuant to N.J.S.A. 18A:22-37, the levy shall stand as originally certified and application to the Commissioner for restoration of reductions may be made in accordance with N.J.A.C. 6A:23A-9.9.

N.J. Admin. Code § 6A:23A-9.7

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

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