N.J. Admin. Code § 6A:23A-10.3

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

Section 6A:23A-10.3 - Unused spending authority (banked cap)

(a) Pursuant to N.J.S.A. 18A:7F-5a, a district board of education that increases its net budget between the prebudget year and budget years less than that authorized pursuant to N.J.S.A. 18A:7F-5d may include 50 percent of the unused spending authority, which is the amount of the difference between its actual net budget and its permitted net budget, in either of the next two succeeding budget years.

(b) A district board of education shall comply with all of the following requirements when including unused spending authority in either of the next two budget years:

1. Fully exhaust all spending authority authorized pursuant to N.J.S.A. 18A:7F-5d in the budget prior to including unused spending authority calculated under (a) above in that budget year;

2. Adopt and submit with the budget application a true copy of a formal board resolution which contains the need for and the amount of the unused spending authority to be included in the base budget, and a statement that said need must be completed by the end of the budget year and cannot be deferred or incrementally completed over a longer period of time; and

3. Submit with the budget application a true copy of the minutes of the board meeting at which the need for the unused spending authority to be included in the base budget was formally introduced and discussed in public.

(c) Unused spending authority calculated pursuant to (a) above that is created by merging a passed separate proposal(s) with the base budget shall not be considered unused spending authority available to a district board of education in the next two subsequent budget years.

(d) A district board of education shall fully utilize unused spending authority from the prior prebudget year before utilizing unused spending authority from the prebudget year.

(e) The Executive County Superintendent may disapprove use of banked cap pursuant to N.J.S.A. 18A:7F-5 if he or she determines that the district board of education has not implemented all potential efficiencies in the administrative operations of the school district.

N.J. Admin. Code § 6A:23A-10.3

Recodified to N.J.A.C. 6A:23A-10.1 by R.2017 d.089, effective 5/1/2017.
See: 48 N.J.R. 2665(a), 49 N.J.R. 1038(a).
Section was "Unused spending authority (banked cap)".