STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Assemblyman PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblyman DAVID W. WOLFE
District 10 (Ocean)
Assemblyman JAMEL C. HOLLEY
District 20 (Union)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
Assemblywoman Pinkin, Assemblymen Chiaravalloti and Schaer
Authorizes use of emergency reserve fund or proceeds from bonds issued by EDA to finance school security improvements.
CURRENT VERSION OF TEXT
As reported by the Assembly Education Committee with technical review.
An Act concerning the funding of school security improvements, amending P.L.2007, c.62, and supplementing P.L.2000, c.72 (C.18A:7G-1 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.2007, c.62 (C.18A:7F-41) is amended to read as follows:
6. Notwithstanding the provisions of any law or regulation to the contrary:
a. A board of education or board of school estimate, as appropriate, may supplement a capital reserve account through a transfer by board resolution at year end of any unanticipated revenue or unexpended line-item appropriation amounts, or both, for withdrawal in subsequent school years.
b. A board of education or board of school estimate, as appropriate, may supplement a maintenance reserve account through a transfer by board resolution at year end of any unanticipated revenue or unexpended line-item appropriation amounts, or both, for withdrawal in subsequent school years.
c. A board of education or a board of school estimate, as appropriate, may through the adoption of a board resolution establish the following reserve accounts:
(1) Current expense emergency reserve account. The funds in the reserve shall be used to finance unanticipated general fund current expense costs required for a thorough and efficient education, or to finance school security improvements, including improvements to school facilities. The account shall not exceed $250,000 or one percent of the district's general fund budget up to a maximum of $1,000,000, whichever is greater. A board of education may appropriate funds to establish or supplement the reserve in the district's annual budget or through a transfer by board resolution at year end of any unanticipated revenue and unexpended line-item appropriation amounts. Withdrawals from the reserve shall require the approval of the commissioner unless the withdrawal is necessary to meet an increase in total health care costs in excess of four percent.
(2) Debt service reserve account in the debt service fund for proceeds from the sale of district property. The funds in the reserve shall be used to retire outstanding debt service obligations of the district. The reserve shall be liquidated within the lesser of five years from its inception or the remaining term on the obligations. Any remaining balance shall be used for tax relief.
d. All reserve accounts shall be established and held in accordance with GAAP and shall be subject to annual audit. Any capital gains or interest earned shall become part of the reserve account. A separate bank account is not required, however, a separate identity for each reserve account shall be maintained.
(cf: P.L.2007, c.62, s.6)
2. (New section) Notwithstanding the provisions of subsection a. of section 14 of P.L.2000, c.72 (C.18A:7G-14) to the contrary, the proceeds of bonds authorized to be issued to fund the State share of the costs of SDA district school facilities projects or the State share of the costs of school facilities projects in all other districts, including county vocational school districts, may be used to fund the cost of a school facilities project designed to improve school security.
3. This act shall take effect immediately.