New Jersey Administrative Code
Title 6A - EDUCATION
Chapter 23A - FISCAL ACCOUNTABILITY, EFFICIENCY AND BUDGETING PROCEDURES
Subchapter 2 - EXECUTIVE COUNTY SUPERINTENDENT OF SCHOOLS
Section 6A:23A-2.4 - Elimination of non-operating school districts

1. The executive county superintendent recommendation as to the most appropriate local school district within the county for the non-operating school district with which to consolidate that results in the least disruption on educational delivery, school district operations, and local finances, including the allocation of tax levy and State aid. The current receiving school district shall be considered the presumptive, most appropriate, local school district that results in the least disruption. Factors to rebut this presumption include the receiving school district's status pursuant to the Every Student Succeeds Act, P.L. 114-95, whether the school district not operating a school is currently sending to multiple school districts, and the long-term goal of creating all-purpose regional districts;

2. A general description of the constituent communities, including the communities' population, housing trends, and ratables;

3. A general description of the constituent school districts, including, but not limited to, the board(s) of education, school buildings, enrollment, grade levels by school district, and financial information. The financial information shall include, but not be limited to, revenues and appropriations, ratables, borrowing margins, general fund and debt service fund tax levies, and State aid;

4. Procedures, if needed, to transition current administrative duties of the non-operating school district to the proposed new school district;

5. An estimate of additional costs, if any, for the proposed new school district to assume the current administrative duties of the non-operating school district;

6. An estimate of efficiencies and cost savings, if any, resulting from the consolidation of school districts such as the elimination of the need to prepare annual tuition contracts and monthly tuition bills;

7. A comparison of the estimated State aid and property tax impact for the proposed new school district and the sum of State aid and property taxes for the constituent school districts as currently authorized by statute. The executive county superintendent may consider alternative approaches to the allocation of property taxes and State aid if such approach results in the least financial disruption to the constituent school districts. If an alternative approach that is not currently authorized by statute is proposed, the alternative approach shall not be implemented unless and until statutory authorization for the alternative approach is duly enacted;

8. A description of the new district board of education as currently authorized by statute, including a description of the constituent districts' boards of education. The executive county superintendent may consider an alternative approach to the new district board of education. If an alternative approach that is not currently authorized by statute is proposed, the alternative approach shall not be implemented unless and until statutory authorization for the alternative approach is duly enacted;

9. District-specific issues and concerns, including, but not limited to, building ownership by the non-operating school district, potential loss of Federal Impact aid or other special revenue sources, and new transportation concerns. If the non-operating school district owns a building(s), a description of the building(s) and plan for the building to be transferred to the municipality in which the non-operating school district is located, unless a deed restriction on the building(s) indicates otherwise;

10. The process to liquidate all remaining assets and close the fiscal books of the non-operating school district, including arranging for the final audit. All remaining cash and fund balances after completion of the liquidation process shall be transferred to the municipal government of the non-operating school district; and

11. The transfer of files, records, equipment, and supplies.