N.J. Admin. Code § 6A:23A-9.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:23A-9.9 - Application for Commissioner restoration of budget reductions

(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 NJSLS and the efficiency standards.

i. "Stability grounds" as used in the School Funding Reform Act of 2008, N.J.S.A. 18A:7F-43 et seq., 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 or are expenditures for items that are in excess of those contained in the efficiency standards.

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 NJSLS and the efficiency standards ("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 T&E education or the stability of the school district given the need for long-term planning and budgeting, whichever criterion or criteria will apply at (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 pursuant to (a)5 above, the Commissioner will review the materials submitted and issue an order directing restorations or reallocations as warranted pursuant to the appropriate standard at N.J.S.A. 18A:7F-5 consistent with the overall intent of the School Funding Reform Act of 2008. For purposes of assessing budgets for certification of tax levy and assessing applications, the Commissioner may engage the assistance of any Department staff as the Commissioner 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 through established reporting requirements and Department data collection processes. The Commissioner or a designee may request further information or explanation from a district board of education, governing body, or board of school estimate 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 at (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 pursuant to 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 if the 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 pursuant to 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.

N.J. Admin. Code § 6A:23A-9.9

Administrative Change, 48 N.J.R. 1802(a).

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

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