New Jersey § 18a:7f-5

§ 18a:7f-5.

As used in this section, “ cost of living ” means the CPI as defined in section 3 of P.L.2007, c. 260 ( C.18A:7F-45 ). a. Within 30 days following the approval of the Educational Adequacy Report, the commissioner

shall notify each district of the base per pupil amount, the per pupil amounts for

full-day preschool, the weights for grade level, county vocational school districts,

at-risk pupils, bilingual pupils, and combination pupils, the cost coefficients for

security aid and for transportation aid, the State average classification rate and

the excess cost for general special education services pupils, the State average classification

rate and the excess cost for speech-only pupils, and the geographic cost adjustment

for each of the school years to which the report is applicable. Annually, within two days following the transmittal of the State budget message to

the Legislature by the Governor pursuant to section 11 of P.L.1944, c. 112 ( C.52:27B-20 ), the commissioner shall notify each district of the maximum amount of aid payable

to the district in the succeeding school year pursuant to the provisions of P.L.2007, c. 260 ( C.18A:7F-43 et al.), and shall notify each district of the district's adequacy budget for the

succeeding school year. For the 2008-2009 school year and thereafter, unless otherwise specified within P.L.2007, c. 260 ( C.18A:7F-43 et al.), aid amounts payable for the budget year shall be based on budget year pupil

counts, which shall be projected by the commissioner using data from prior years. Adjustments for the actual pupil counts of the budget year shall be made to State

aid amounts payable during the school year succeeding the budget year. Additional amounts payable shall be reflected as revenue and an account receivable

for the budget year. Notwithstanding any other provision of this act to the contrary, each district's State

aid payable for the 2008-2009 school year, with the exception of aid for school facilities

projects, shall be based on simulations employing the various formulas and State aid

amounts contained in P.L.2007, c. 260 ( C.18A:7F-43 et al.). The commissioner shall prepare a report dated December 12, 2007 reflecting the State

aid amounts payable by category for each district and shall submit the report to the

Legislature prior to the adoption of P.L.2007, c. 260 ( C.18A:7F-43 et al.). Except as otherwise provided pursuant to this subsection and paragraph (3) of subsection

d. of section 5 of P.L.2007, c. 260 ( C.18A:7F-47 ), the amounts contained in the commissioner's report shall be the final amounts payable

and shall not be subsequently adjusted other than to reflect the phase-in of the required

general fund local levy pursuant to paragraph (4) of subsection b. of section 16 of P.L.2007, c. 260 ( C.18A:7F-58 ) and to reflect school choice aid to which a district may be entitled pursuant to

section 20 of that act. The projected pupil counts and equalized valuations used for the calculation of

State aid shall also be used for the calculation of adequacy budget, local share,

and required local share. For 2008-2009, extraordinary special education State aid shall be included as a

projected amount in the commissioner's report dated December 12, 2007 pending the

final approval of applications for the aid. If the actual award of extraordinary special education State aid is greater than

the projected amount, the district shall receive the increase in the aid payable in

the subsequent school year pursuant to the provisions of subsection c. of section

13 of P.L.2007, c. 260 ( C.18A:7F-55 ). If the actual award of extraordinary special education State aid is less than the

projected amount, other State aid categories shall be adjusted accordingly so that

the district shall not receive less State aid than as provided in accordance with

the provisions of sections 5 and 16 of P.L.2007, c. 260 ( C.18A:7F-47 and C.18A:7F-58 ). In the event that the commissioner determines, following the enactment of P.L.2007, c. 260 ( C.18A:7F-43 et al.) but prior to the issuance of State aid notices for the 2008-2009 school year,

that a significant district-specific change in data warrants an increase in State

aid for that district, the commissioner may adjust the State aid amount provided for

the district in the December 12, 2007 report to reflect the increase. b. Each district shall have a required local share. For districts that receive educational adequacy aid pursuant to subsection b. of

section 16 of P.L.2007, c. 260 ( C.18A:7F-58 ), the required local share shall be calculated in accordance with the provisions

of that subsection. For all other districts, the required local share shall equal the lesser of the local

share calculated at the district's adequacy budget pursuant to section 9 of P.L.2007, c. 260 ( C.18A:7F-51 ), or the district's budgeted local share for the prebudget year. In order to meet this requirement, each district shall raise a general fund tax levy

which equals its required local share. No municipal governing body or bodies or board of school estimate, as appropriate,

shall certify a general fund tax levy which does not meet the required local share

provisions of this section. c. Annually, on or before March 4, or on or before March 20 in the case of a school

district with an annual school election in November, each district board of education

shall adopt, and submit to the commissioner for approval, together with such supporting

documentation as the commissioner may prescribe, a budget that provides for a thorough

and efficient education. Notwithstanding the provisions of this subsection to the contrary, the commissioner

may adjust the date for the submission of district budgets if the commissioner determines

that the availability of preliminary aid numbers for the subsequent school year warrants

such adjustment. Notwithstanding any provision of this section to the contrary, for the 2005-2006 school

year each district board of education shall submit a proposed budget in which the

advertised per pupil administrative costs do not exceed the lower of the following: (1) the district's advertised per pupil administrative costs for the 2004-2005 school

year inflated by the cost of living or 2.5 percent, whichever is greater; or (2) the per pupil administrative cost limits for the district's region as determined

by the commissioner based on audited expenditures for the 2003-2004 school year. The executive county superintendent of schools may disapprove the school district's

2005-2006 proposed budget if he determines that the district has not implemented all

potential efficiencies in the administrative operations of the district. The executive county superintendent shall work with each school district in the

county during the 2004-2005 school year to identify administrative inefficiencies

in the operations of the district that might cause the superintendent to reject the

district's proposed 2005-2006 school year budget. For the 2006-2007 school year and each school year thereafter, each district board

of education shall submit a proposed budget in which the advertised per pupil administrative

costs do not exceed the lower of the following: (1) the district's prior year per pupil administrative costs; except that the district

may submit a request to the commissioner for approval to exceed the district's prior

year per pupil administrative costs due to increases in enrollment, administrative

positions necessary as a result of mandated programs, administrative vacancies, nondiscretionary

fixed costs, and such other items as defined in accordance with regulations adopted

pursuant to section 7 of P.L.2004, c. 73 . In the event that the commissioner approves a district's request to exceed its prior

year per pupil administrative costs, the increase authorized by the commissioner shall

not exceed the cost of living or 2.5 percent, whichever is greater; or (2) the prior year per pupil administrative cost limits for the district's region

inflated by the cost of living or 2.5 percent, whichever is greater. d. (1) A district's general fund tax levy shall not exceed the district's adjusted

tax levy as calculated pursuant to sections 3 and 4 of P.L.2007, c. 62 ( C.18A:7F-38 and 18A:7F-39 ). (2) (Deleted by amendment, P.L.2007, c. 260 ). (3) (Deleted by amendment, P.L.2007, c. 260 ). (4) Any debt service payment made by a school district during the budget year shall

not be included in the calculation of the district's adjusted tax levy. (5) (Deleted by amendment, P.L.2007, c. 260 ). (6) (Deleted by amendment, P.L.2007, c. 260 ). (7) (Deleted by amendment, P.L.2004, c. 73 ). (8) (Deleted by amendment, P.L.2010, c. 44 ) (9) Any district may submit at the annual school budget election, in accordance with

subsection c. of section 4 of P.L.2007, c. 62 ( C.18A:7F-39 ), a separate proposal or proposals for additional funds, including interpretive statements,

specifically identifying the program purposes for which the proposed funds shall be

used, to the voters, who may, by voter approval, authorize the raising of an additional

general fund tax levy for such purposes. In the case of a district with a board of school estimate, one proposal for the

additional spending shall be submitted to the board of school estimate. Any proposal or proposals submitted to the voters or the board of school estimate

shall not: include any programs and services that were included in the district's

prebudget year net budget unless the proposal is approved by the commissioner upon

submission by the district of sufficient reason for an exemption to this requirement;

or include any new programs and services necessary for students to achieve the thoroughness

standards established pursuant to subsection a. of section 4 of P.L.2007, c. 260 ( C.18A:7F-46 ). The executive county superintendent of schools may prohibit the submission of a separate

proposal or proposals to the voters or board of school estimate if he determines that

the district has not implemented all potential efficiencies in the administrative

operations of the district, which efficiencies would eliminate the need for the raising

of an additional general fund tax levy. (10) Notwithstanding any provision of law to the contrary, if a district proposes

a budget with a general fund tax levy and equalization aid which exceed the adequacy

budget, the following statement shall be published in the legal notice of public hearing

on the budget pursuant to N.J.S.18A:22-28 , and posted at the public hearing held on the budget pursuant to N.J.S.18A:22-29 : “Your school district has proposed programs and services in addition to the core curriculum

content standards adopted by the State Board of Education. Information on this budget and the programs and services it provides is available

from your local school district.” (11) Any reduction that may be required to be made to programs and services included

in a district's prebudget year net budget in order for the district to limit the growth

in its budget between the prebudget and budget years by its tax levy growth limitation

as calculated pursuant to sections 3 and 4 of P.L.2007, c. 62 ( C.18A:7F-38 and 18A:7F-39 ), shall only include reductions to excessive administration or programs and services

that are inefficient or ineffective. e. (1) In the case of a district having a board of school estimate, other than a Type II

district with a board of school estimate , which has a proposed budget that includes a general fund tax levy and equalization

aid in excess of the adequacy budget, the general fund tax levy shall be submitted to the board for determination of the

amount that should be expended. If the board of school estimate reduces the district's proposed budget, the district may appeal any of the reductions to

the commissioner on the grounds that the reductions will negatively impact on the

stability of the district given the need for long-term planning and budgeting. In considering the appeal, the commissioner shall consider enrollment increases

or decreases within the district; the impact on the local levy; and whether the reductions will impact on the ability

of the district to fulfill its contractual obligations. A district may not appeal any reductions on the grounds that the amount is necessary

for a thorough and efficient education. (2) In the case of a district having a board of school estimate, other than a Type II

district with a board of school estimate , which has a proposed budget that includes a general fund tax levy and equalization

aid at or below the adequacy budget, the general fund tax levy shall be submitted to the board for determination. Any reductions may be appealed to the commissioner on the grounds that the amount

is necessary for a thorough and efficient education or that the reductions will negatively

impact on the stability of the district given the need for long-term planning and

budgeting. In considering the appeal, the commissioner shall also consider the factors outlined

in paragraph (1) of this subsection. In addition, the board of school estimate shall be required to demonstrate clearly to the commissioner

that the proposed budget reductions shall not adversely affect the ability of the

school district to provide a thorough and efficient education or the stability of

the district given the need for long-term planning and budgeting. (3) In lieu of any budget reduction appeal provided for pursuant to paragraphs (1)

and (2) of this subsection, the State board may establish pursuant to the “Administrative

Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), an expedited budget review process based on a district's application to the commissioner

for an order to restore a budget reduction. (4) When the board of education or the board of school estimate authorize the general fund tax levy, the district

shall submit the resulting budget to the commissioner within 15 days of the authorization. f. (Deleted by amendment, P.L.2007, c. 260 ). g. (Deleted by amendment, P.L.2007, c. 260 ).