This bill authorizes school districts in New Jersey to establish a charter school payment reserve account, allowing them to manage payments to charter schools more effectively. Under current law, school districts must make payments to charter schools based on projected enrollments determined by the Department of Education, which are later adjusted according to actual enrollments as of October 15. If a district budgets an amount for charter school payments that is less than the projected payment, the bill permits the use of funds from the newly created reserve account to cover any increases in payments due to charter schools based on actual enrollment figures.

Additionally, the bill includes provisions for the management of the reserve account, stipulating that funds can be appropriated to establish or supplement the account through the district's annual budget or by transferring unanticipated revenue. It also allows for the transfer of interest earned on the reserve account to the district's general fund, similar to existing regulations for tuition reserves. This legislative change aims to provide school districts with greater financial flexibility in meeting their obligations to charter schools while ensuring compliance with generally accepted accounting principles (GAAP) and annual audits.

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