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A 447

Requires telecommunications system contracts provide for emergency 911

2025 Regular Session Introduced by Phil Steck

New Jersey districts may create a charter school payment reserve to cover increases when department projections exceed the budgeted charter payments, boosting budget stability.

REFERRED TO LOCAL GOVERNMENTS
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Bill Summary · A 447

Summary — Assembly Bill A447 (2024)

Status: Introduced Jan 9, 2024; reported out of Assembly Education Committee with amendments May 6, 2024; referred to Local Governments Jan 8, 2025. Sponsor: Asm. Phil Steck. Amends: P.L.2007, c.62 (C.18A:7F-41). Companion: S4774. Prior-session: A10662.

Purpose

A447 authorizes New Jersey school districts to create a new dedicated reserve — a “charter school payment reserve account” — to manage year-to-year variability in payments owed to charter schools when a district budgets less than the Department of Education’s projected charter payment amount.

Key provisions

  • Adds a new reserve category (charter school payment reserve account) to the list of reserve accounts school districts may establish under C.18A:7F-41.
  • Use of funds: If the Department authorizes a district to budget an amount for charter school payments that is less than the department’s projected payment, and the district’s revised payment (based on charter schools’ average daily enrollment as of October 15) exceeds the budgeted amount, the district may use funds from this reserve to cover the increase.
  • Funding the reserve: A board of education may appropriate funds to establish or supplement the account either in the district’s annual budget or by year‑end transfer of unanticipated revenues or unexpended line‑item appropriations.
  • Accounting/audit rules: All reserve accounts must be established and held in accordance with GAAP and are subject to annual audit. A separate bank account is not required but each reserve must have a separate identity.
  • Interest treatment: Capital gains or interest generally become part of the reserve; however, for the charter school payment reserve a board may, by resolution, transfer interest earned on reserve investments to the district’s general fund annually or more frequently.
  • Effective date: The act takes effect immediately upon enactment.

Committee amendment of note

The committee removed a provision that would have capped the charter school payment reserve at 15% of the district’s total projected payments to charter schools. As reported, no percentage cap is included.

Who is affected / potential impact

  • Affected parties: local school districts that make payments to charter schools, charter schools that receive those payments, and the Department of Education (which authorizes certain budget amounts).
  • Impact: Provides districts with an additional fiscal tool to manage short‑term budget risk stemming from differences between department projections and actual charter enrollments. Removing the proposed 15% cap (per committee amendment) gives districts broader discretion to accumulate reserves, which may improve budget stability but could reduce near‑term general fund availability depending on local choices.

Procedural/timeline aspects

  • Introduced Jan 9, 2024; committee-reported with amendments May 6, 2024; referred to Local Governments Jan 8, 2025.
  • If enacted, the law would take immediate effect.

Compiled from official sources — confirm details with the bill’s official record.

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