This bill authorizes school districts in New Jersey to establish a charter school payment reserve account to manage payments to charter schools. Currently, school districts must make payments based on projected charter school enrollment, which can be adjusted after the actual enrollment is determined on October 15. If a district budgets an amount for charter school payments that is less than the revised payment, the bill allows the district to utilize funds from the charter school payment reserve account to cover the difference. This provision aims to provide financial flexibility for districts facing unexpected increases in charter school payments.

Additionally, the bill includes provisions for the management of the charter school payment reserve account, allowing school districts to appropriate funds to establish or supplement the account through their annual budget or by transferring unanticipated revenue. It also permits districts to transfer any interest earned on the reserve account to their general fund, similar to existing regulations for tuition reserves. The bill is designed to ensure that school districts can meet their financial obligations to charter schools while maintaining fiscal responsibility.

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