N.J. Admin. Code § 6A:23A-8.3

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

Section 6A:23A-8.3 - Administrative cost limits

(a) Each district board of education shall budget and report administrative costs using the minimum chart of accounts and other reporting directives published and distributed by the Commissioner pursuant to N.J.S.A. 18A:4-14 and N.J.A.C. 6A:23A-16, which includes, but is not limited to, recording the full salary of the SBA, chief school administrator, and principal/vice principal(s) as administrative costs, except as follows:

1. The salary of the chief school administrator may be prorated between general administration and school administration whenever the chief school administrator also acts as a building principal.

2. The salary of a chief school administrator, SBA, or principal/vice principal shall not be prorated between other functions, except as otherwise provided at (a)1 above, or to instruction when providing direct classroom instruction as part of the school district's regular curriculum.

(b) Each district board of education, except for CVSDs and non-operating school districts, shall prepare and submit to the executive county superintendent a proposed budget consistent with N.J.S.A. 18A:7F-5, and N.J.S.A. 18A:22-1 et seq. and this chapter, in which the advertised per pupil administrative cost does not exceed the lower of the following:

1. The school district's adjusted, as of February 1, prebudget year per pupil administrative costs as reported in the proposed budget; or

2. The per pupil administrative cost limit for the school district's region. The per pupil administrative cost limits are calculated individually for each of the three regions, North, Central and South, using audited expenditure data from the 2003-04 school year inflated annually by the CPI or 2.5 percent, whichever is greater. Each district board of education will receive a statement of its regional administrative cost limit with the annual State aid notices.

(c) Each district board of education, pursuant to N.J.S.A. 18A:7F-5, may request approval of the executive county superintendent, as the Commissioner's designee, to exceed the school district's adjusted, as of February 1, prebudget year per pupil administrative costs up to 2.5 percent or the CPI, whichever is greater, as follows:

1. The district board of education shall submit the request to the executive county superintendent in writing no less than two weeks prior to budget submission;

2. The request shall not exceed the per pupil administrative cost limits for the school district's region at (b)2 above; and

3. The district board of education shall include, with the request, documentation that supports the request for factors including, but not limited to:

i. Enrollment changes;

ii. Administrative changes to fulfill mandated requirements;

iii. Changes to nondiscretionary fixed costs; and

iv. Opening a new school.

(d) Each district board of education subject to (b) above may submit to the executive county superintendent any shared services contractual agreement(s) and documented costs for the provision of administrative services to other school districts or governmental units. The executive county superintendent may consider the contractual agreements and documented costs in the calculation of total administrative spending in the prebudget and budget year for purposes of determining the district board of education's adherence with the per pupil administrative cost limits.

(e) Each district board of education subject to (b) above shall submit to the executive county superintendent a proposed budget in which the advertised per pupil administrative cost is within the per pupil administrative cost limits at (b) above. A district board of education may include as a separate proposal for voter or board of school estimate approval any excess administrative spending above the cost limits only if the proposal is consistent with N.J.A.C. 6A:23A-12.1.

(f) Each district board of education subject to (b) above that submits to the executive county superintendent a proposed budget in which the advertised per pupil administrative cost exceeds the per pupil administrative cost limits at (b) above, and has not received executive county superintendent approval to exceed this requirement as set forth at (c) above, or has not presented documentation to the executive county superintendent as set forth at (d) above, shall not receive budget approval.

1. The district board of education shall resubmit to the executive county superintendent a budget that has met the administrative cost limits, through either a reduction in administrative costs and/or submission of a separate proposal for voter or board of school estimate approval of the excess administrative costs, no later than five working days prior to the school district's last day to advertise for the public hearing.

2. A district board of education that does not resubmit a budget in accordance with (f)1 above within this timeframe:

i. Shall lose the authority and decision-making capacity for development of the final administrative budget for advertisement to the voters or board of school estimate and this responsibility shall be shifted to the executive county superintendent as the Commissioner's designee. The executive county superintendent shall conduct all necessary budgetary reallocations and reductions to meet these requirements; and

ii. May be subject to withholding of State aid, pursuant to N.J.S.A. 18A:7F-9.

(g) Each district board of education subject to (b) above that fails to submit to the executive county superintendent an approvable budget in a second consecutive year or any year thereafter shall be subject to:

1. A more restrictive fiscal and budgetary review and approval process as deemed appropriate by the Commissioner; and

2. Withholding of State aid, pursuant to N.J.S.A. 18A:7F-9.

N.J. Admin. Code § 6A:23A-8.3

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

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