New Jersey § 40a:4-40

§ 40a:4-40.

There shall be included in each budget an appropriation for “reserve for uncollected

taxes” sufficient in amount so that the anticipated cash receipts for the fiscal year

shall at least equal the sum of the following items, each of which is hereinafter

referred to as a “lawful yearly expenditure”: a. The total of all current budget appropriations (except for reserve for uncollected

taxes); b. The amounts due or to become due for school, county, State, local and special district

taxes prior to the end of the fiscal year; and c. The amounts of any other anticipated current expenditures for the fiscal year. In the event that the exact amount of any such lawful yearly expenditure shall not

be known at the time of the adoption of the budget, the amount thereof shall be estimated,

but no such estimate shall be less than the amount of such lawful yearly expenditure

for the next preceding fiscal year; provided, however, that in the case of a Type

II school district, the lawful yearly expenditure for the amount due or to become

due for school taxes prior to the end of the fiscal year shall be based upon the proposed

budget submitted by the local board of education to the commissioner pursuant to section

28 of P.L.1975, c. 212 ( C. 18A:7A-28 ). 1 1

Repealed. See, now, N.J.S.A. § 18A:7D-1 et seq.