This bill authorizes school districts in New Jersey to establish a charter school payment reserve account to manage payments to charter schools. Under current law, school districts must make payments to charter schools based on projected enrollment figures provided by the Department of Education, which are later adjusted according to actual enrollment as of October 15. The new provision allows districts that have budgeted less than the projected payment to utilize funds from the charter school payment reserve account to cover any shortfall if the actual payment exceeds the budgeted amount. The reserve account is capped at 15 percent of the total projected payments to charter schools for the school year.

Additionally, the bill includes provisions for the management of the reserve account, stipulating that it must be established in accordance with Generally Accepted Accounting Principles (GAAP) and subject to annual audits. It allows for the transfer of interest earned on the reserve account to the district's general fund, providing greater financial flexibility for school districts. This measure aims to ensure that school districts can meet their financial obligations to charter schools while maintaining budgetary control.

Statutes affected:
Introduced: 18A:7F-41