New Jersey Administrative Code
Title 6A - EDUCATION
Chapter 23A - FISCAL ACCOUNTABILITY, EFFICIENCY AND BUDGETING PROCEDURES
Subchapter 22 - FINANCIAL OPERATIONS OF CHARTER SCHOOLS
Section 6A:23A-22.4 - Financial requirements

Universal Citation: NJ Admin Code 6A:23A-22.4

Current through Register Vol. 56, No. 18, September 16, 2024

(a) A charter school board of trustees may incur debt for a period no greater than 12 months except:

1. During the first year the charter school is approved when the debt is incurred by the charter school board of trustees for a period no longer than January 15 of the preceding school year to June 30 of the first school year of the charter; and

2. For all other years the charter school is approved when the debt incurred by the charter school board of trustees for a period of 12 months or greater is:
i. Fully secured by the value of the real property or other asset, so the total value of all such debt does not exceed the total appraised value of the property or asset by which the debt is secured; and

ii. Non-recourse to the charter school.

(b) A charter school board of trustees may acquire real property by a lease or a lease with an option to purchase for use as a school facility providing that the charter school board of trustees shall ensure:

1. The lease contains a provision terminating the obligation to pay rent upon the denial, revocation, non-renewal, or surrender of the charter; and

2. The lease does not contain a provision accelerating the obligation to pay rent in the event of default.

(c) A district board of education shall transmit State and local public funds to a charter school only after the final granting of the charter by the Commissioner has occurred. If funds are withheld pending the final granting of the charter, the district board of education shall pay all withheld funds to the charter school with the first scheduled payment after the effective date of the charter.

(d) A charter school shall be subject to monitoring by the Commissioner to ensure that the percentage of school funds spent in the classroom is at least comparable to the average percentage of school funds spent in the classroom in all other public schools in the State. The calculation for this percentage in both the annual budget and the Comprehensive Annual Financial Report is based on National Center for Educational Statistics as published by the U.S. Department of Education.

(e) If, at any time, the Commissioner denies, revokes, or does not renew a school's charter, or a charter school board of trustees surrenders its charter or becomes insolvent, all assets of the charter school board of trustees, after satisfaction of all outstanding claims by creditors, are subject to equitable distribution by the Commissioner among the participating district of residence and non-resident district(s). A charter school board of trustees shall include a provision in its bylaws concerning distribution of assets upon denial, revocation, non-renewal, or surrender of its charter or insolvency of the charter school that is consistent with this rule.

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