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. The new provision enables districts that have budgeted less than the projected payment to utilize funds from the charter school payment reserve account to cover any increases in payments due to charter schools resulting from actual enrollment figures.

Additionally, the bill stipulates that interest earned on the charter school payment reserve account can be transferred to the district's general fund, similar to existing regulations for tuition reserves. This flexibility aims to help school districts better accommodate fluctuations in charter school payments while ensuring they can maintain financial stability. The bill takes effect immediately upon passage.

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