New Jersey Administrative Code
Title 6A - EDUCATION
Chapter 23A - FISCAL ACCOUNTABILITY, EFFICIENCY AND BUDGETING PROCEDURES
Subchapter 9 - EXECUTIVE COUNTY SUPERINTENDENT BUDGET REVIEW PROCEDURES
Section 6A:23A-9.9 - Application for Commissioner restoration of budget reductions
Universal Citation: NJ Admin Code 6A:23A-9.9
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The requirements for application to the Commissioner for restoration of reductions are as follows:
1. A district board of
education that has proposed to voters or the board of school estimate a general
fund budget, pursuant to
N.J.S.A.
18A:7F-5, with a sum of general fund tax levy
and equalization aid in excess of the school district's adequacy budget, as
calculated pursuant to
N.J.S.A.
18A:7F-51, may apply for restoration of
reductions made, pursuant to
N.J.S.A.
18A:7F-5.e(1), by the governing body(ies)
following voter defeat, or by the board of school estimate, only on grounds the
reductions will negatively impact the stability of the school district given
the need for long-term planning and budgeting ("stability grounds"). The
district board of education shall document by clear and convincing evidence its
need for restoration of each item reduced. In such cases, a district board of
education shall not argue that any of the reductions will adversely affect its
ability to meet the thoroughness and efficiency standards established pursuant
to N.J.S.A. 18A:7F-46.
i. "Stability grounds" as used in the School
Funding Reform Act of 2008,
N.J.S.A.
18A:7F-43 et al., means reductions that would
require long-term planning or budgeting and cannot be accomplished within the
budget year; that would adversely affect the district board of education's
ability to operate a school system; and that are not a program, service, or
other expenditure contained within the efficiency standards established
pursuant to
N.J.S.A.
18A:7F-46 or are expenditures for items that
are in excess of those contained in the efficiency standards established
pursuant to
N.J.S.A.
18A:7F-46.
2. A district board of education that has
proposed to voters or the board of school estimate a general fund budget,
pursuant to
N.J.S.A.
18A:7F-5, with a sum of general fund tax levy
and equalization aid at or below the school district's adequacy budget, as
calculated pursuant to
N.J.S.A.
18A:7F-51, may apply for restoration of
reductions made, pursuant to
N.J.S.A.
18A:7F-5.e(2), by the governing body(ies)
following voter defeat, or by the board of school estimate, on grounds the
reductions either will adversely affect the district board of education's
ability to meet the thoroughness and efficiency standards established pursuant
to N.J.S.A. 18A:7F-46 ("T&E
grounds") or will adversely affect the stability of a district board of
education's overall operations given the need for long-term planning and
budgeting ("stability grounds").
i. T&E
grounds means the reduction(s) would adversely affect the district board of
education's ability to implement programs and services at the level contained
in the efficiency standards to ensure its students achieve the New Jersey
Student Learning Standards.
3. Within 10 business days after
certification of the general fund tax levy by the governing body(ies), or the
board of school estimate, a district board of education eligible for
restoration pursuant to (a)1 or 2 above may submit to the Commissioner an
application for restoration on a form deemed appropriate by the school
district. The district board of education shall:
i. Address each line-item reduction made by
the governing body(ies) or the board of school estimate; and
ii. Provide a specific written explanation
supported by attached documentation, or specific reference to information
contained in materials submitted pursuant to
N.J.A.C.
6A:23A-9.7(a)1, as to why
each reduction will adversely affect the ability of the school district to
provide a thorough and efficient education or the stability of the school
district given the need for long-term planning and budgeting, whichever
criterion or criteria will apply under (a)1 or 2 above.
4. A district board of education shall submit
an application for restoration to the executive county superintendent, and
shall concurrently submit a copy of the complete application to the governing
body(ies) or the board of school estimate.
5. Within 10 business days of receipt of the
district board of education's application, the governing body(ies) or the board
of school estimate may submit to the executive county superintendent its
comments on the district board of education's application. A copy of such
comments shall concurrently be submitted to the district board of
education.
(b) Commissioner review and certification of tax levy, and determination of application for restoration shall be as follows:
1. Upon receipt of a district board of
education's application and the governing body's or board of school estimate's
comments thereon, or upon expiration of the time for their submission, the
Commissioner will review the materials submitted and issue an order directing
restorations or reallocations as he or she deems warranted pursuant to the
appropriate standard in
N.J.S.A.
18A:7F-5 consistent with the overall intent
of the Act. For purposes of assessing budgets for certification of tax levy and
assessing applications, the Commissioner may engage the assistance of such
Department staff as he or she deems appropriate.
2. In addition to application materials and
responsive comments, and materials submitted to the executive county
superintendent in accordance with (a)1 above, the Commissioner may consider
additional information available to him or her through established reporting
requirements and Department data collection processes. If the Commissioner or a
designee determines during the course of review that further information or
explanation is required from a district board of education, governing body, or
board of school estimate, the information may be requested at any time during
the review process.
3. In the case
of budgets subject to Commissioner tax levy certification pursuant to
N.J.A.C.
6A:23A-9.8 or applications submitted pursuant
to (a) above, the Commissioner may consider enrollment increases or decreases
within the school district, the history of voter or board of estimate approval
or rejection of school district budgets, the impact on the local tax levy,
whether reductions made will impact the ability of the school district to
fulfill its contractual obligations, and the other factors listed in (b)4
below.
4. In determining the impact
of reductions on the stability of a school district, the Commissioner may
consider the following information:
i.
Increases or decreases in enrollment;
ii. The history of voter approval or
rejection of school district budgets;
iii. The impact on the local tax
levy;
iv. The ability of the school
district to fulfill its existing contractual obligations under
N.J.S.A.
18A:7F-43 et seq. and the relationship of
contractual obligations to Statewide trends in bargaining practices;
v. The impact on class sizes relative to
instructional space;
vi. The impact
on class sizes relative to teaching staff reductions under existing teacher
contracts;
vii. The link between
the proposed reduction and classroom instruction or health and
safety;
viii. The nature of the
reduction as to whether it is a continuation expenditure or a new or increased
expenditure;
ix. The school
district's relative standing in the Taxpayers' Guide to Education Spending on
the indicators for total administration; administrative salaries and benefits;
total operations and maintenance of plant; district board of education
contributions to the food service program; and extracurricular costs;
x. The school district's original budget to
actual spending and unreserved general fund balance usage and projections trend
histories;
xi. Nonrecurring
costs;
xii. The degree to which a
school district exceeds its adequacy budget; and
xiii. Any facts or data that would provide
evidence of the reduction's impact.
5. In directing adjustments to budgets that
are subject to Commissioner certification, application for restoration, or
required review, the Commissioner may reallocate or sustain reductions to
surplus where such reallocations or reductions do not decrease surplus below $
250,000 or the minimum amount necessary based on the school district's specific
circumstances and needs, whichever is greater, notwithstanding that budgeted
amounts are within the level permitted by
N.J.S.A.
18A:7F-7.
6. Commissioner decisions issued pursuant to
this subchapter are final decisions that may be appealed to the Appellate
Division of the Superior Court, pursuant to
N.J.S.A.
18A:6-9.1.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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