This bill establishes new mechanisms for valuing and reporting school district liabilities related to accumulated unused leave, specifically addressing compensated absences such as sick and vacation leave. It mandates that school districts calculate and report the total value of these accrued liabilities during their annual audits, ensuring compliance with generally accepted accounting principles. Additionally, districts must maintain a detailed schedule of these liabilities, including year-over-year changes and projected future payments based on various factors like employee retirement schedules. The superintendent or a designee is required to provide regular financial reports to the board of education, while the Commissioner of Education will review the districts' preparedness for the fiscal impact of these liabilities.

Furthermore, the bill allows school boards to create a leave liability reserve account specifically for financing payments related to accumulated unused leave. The funds in this account can be established or supplemented through board resolutions and must be used solely for the designated purpose. The bill also requires collective bargaining agreements to clearly outline the district's obligations regarding these payments and to analyze their fiscal impact at the time of contract approval. The Commissioner is tasked with developing regulations for the maintenance of the leave liability reserve account, including limits on the account's balance.

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