How A 5205 changes current law

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This bill amends 1 section(s) of the New Jersey statutes: N.J.S.A. 18A:7F-41.

• N.J.S.A. 18A:7F-41

  (4) (a) Cost stabilization reserve account. The funds in the reserve account shall be used to finance general fund expenses, excluding staff salary costs, that during the school year cost significantly more than initially anticipated in the budget certified for taxes, including significant unanticipated increases in total health care costs to the extent that those costs are not supported by withdrawals made from the current expense emergency reserve account, student transportation expenses, special education and related services expenses, and other eligible categories of general fund expenses that may be established by rules and regulations promulgated pursuant to subparagraph (b) of this paragraph. A board of education may appropriate funds to establish or supplement the reserve in the district's annual budget. Notwithstanding the provisions of section 2 of P.L.1979, c.294 (C.18A:22-8.1) or any other law, rule, or regulation to the contrary, a board of education may also establish or supplement the reserve account through a transfer by board resolution of any unanticipated revenue and unexpended line-item appropriation amounts, which transfer resolution may be adopted at any point during the school year. A withdrawal from the reserve account may be made at any time and only after the adoption of a board resolution detailing the specific unanticipated cost increases to be supported by the withdrawal and justifying that the withdrawal is necessary for the provision of a thorough and efficient education; except that the withdrawal may require additional approval of the commissioner pursuant to rules and regulations promulgated pursuant to subparagraph (b) of this paragraph. (b) The commissioner shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary related to the establishment and maintenance of a cost stabilization reserve account. The rules and regulations shall include, but not be limited to: (i) limits on balances that may exist in the reserve account; (ii) the conditions under which a board of education is required to seek the additional approval of the commissioner prior to withdrawing funds from the reserve account; (iii) criteria for cost increases that would be considered significant and unanticipated and for which withdrawals from the reserve account may be used; (iv) the establishment of eligible categories of expenses for which withdrawals from the reserve account may be used, in addition to those expressly enumerated in subparagraph (a) of this paragraph. (5) (a) Leave liability reserve account. The funds in the reserve account shall only be used to finance the payment of accumulated unused sick leave, accumulated unused vacation leave, and any other liabilities for accumulated unused absences for which an employee may be compensated, upon the employee's retirement from a State-administered or locally-administered retirement system or upon separation from employment, as applicable. A board of education may appropriate funds to establish or supplement the reserve in the district's annual budget. Notwithstanding the provisions of section 2 of P.L.1979, c.294 (C.18A:22-8.1) or any other law, rule, or regulation to the contrary, a board of education may also establish or supplement the reserve account through a transfer by board resolution of any unanticipated revenue and unexpended line-item appropriation amounts, which transfer resolution may be adopted at any point during the school year. A withdrawal from the reserve account may be made at any time and only after the adoption of a board resolution detailing the specific costs to be supported by the withdrawal. (b) The commissioner shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary related to the establishment and maintenance of a leave liability reserve account. The rules and regulations shall, at

  amended