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Fiscal Regulations December 2004-June 2005

This document outlines the fiscal regulations and efficiency measures for education funding in New Jersey from December 2004 to June 2005. It covers topics such as discretionary education opportunity aid governance, cost efficiency in budgets, and application procedures for mid-year awards.

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Fiscal Regulations December 2004-June 2005

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  1. Fiscal RegulationsDecember 2004-June 2005 N.J.A.C. 6A:10A-7 & 8

  2. 7.1 Discretionary Education Opportunity Aid Governance & Mid-year Awards • Fiscal and Program Standards for DEOA Disbursements • Mid-year Award Application Procedures No Significant Changes

  3. 6A:10A-7.2 Cost Efficiency in 2005-2006 Budgets • Department Efficiency Study (DES) • Review of Administrative Cost Limits • Presumptive Budget Calculation • Incremental Cost of Opening a New School Facility • Education Opportunity Aid (EOA) in 2005-2006

  4. Department Efficiency Study • Compares Median per Pupil Spending in 9 Cost Areas with Other School Districts • Compares Median per Pupil Spending in 6 Groups

  5. DES – Cost Reductions Applied in Priority Order • Spending for more effective instruction • Spending for greater efficiency • Funding for inflation • Reductions in the school district’s request for DEOA.

  6. Administrative Cost Limits Administrative costs may not increase by more than 2.5 % or the cost of living, whichever is greater.

  7. Presumptive Budget Calculation The Department will calculate the presumptive budget as the 2004-2005 base budget (including DEOA) increased by 2.5% or CPI, whichever is greater, plus the incremental new school facility costs approved by the Department.

  8. Incremental Cost of Opening a New School Facility • Requests were due to the Department by November 30, 2004. • Requests will be reviewed by the Department and a determination will be made on the amount necessary to meet the incremental new facility cost.

  9. Education Opportunity Aid (EOA) in 2005-2006 EOA will be calculated as the greater of: • EOA formula funding (parity) OR • EOA using the presumptive budget formula pursuant to N.J.A.C. 6A:10A-7.2(g).

  10. 6A:10A-7.3 Application for DEOA in 2005-2006 Abbott School Districts May Apply for DEOA in 2005-2006 through the process outlined in the code (N.J.A.C. 6A:10A-7) and summarized here.

  11. DEOA Eligibility Criteria School district must have met all the conditions for disbursement of DEOA in FY 05 and must continue to maintain minimal, customary and statutory standards for efficient financial management and business operations and continue to follow customary, basic and required instructional standards, policies and practices as set forth in N.J.A.C. 6A:10A-7.1.

  12. DEOA Eligibility Criteria • Foundational education program • Aligned preschool -12 curriculum • Documented use of a student-level database to evaluate student performance and to adjust instruction • A system of evaluation and assistance that is tied to the instructional priorities and curriculum and are reflected in the professional improvement plans • Provide a safe and clean school environment and ensure timely service and delivery to schools of instructional supplies and materials and other goods and services required to operate an efficient school system.

  13. DEOA – Consider All Available Resources, Reallocations & Potential Efficiencies • Consider the following before submitting a request for DEOA (only changes are highlighted here) • Costs in excess of the efficiency measures established by the DES • All expenditures not evaluated by the DES shall be reviewed for efficiency • Salary appropriations for vacant positions in excess of step one of the school district’s salary scale for position/title except for positions that are difficult to fill

  14. Requests for DEOA shall include: • Evidence of student instructional needs • Evidence that proposed intervention to address documented needs can be expected to be effective in improving instruction • Documentation that the findings of the DES have been applied • Demonstration that costs that exceed the midpoint average median in the DES are necessary and justifiable

  15. Requests for DEOA shall include: • Evidence that current programs, services, practices, materials or positions in the area funds for new programs, services, practices, materials or positions are requested are essential to student achievement or that they will be eliminated and the funds generated from their elimination will be available to support the new or expanded programs, services or positions • Evidence that continued implementation of current programs or services can be justified as efficient and effective

  16. Requests for DEOA shall include: • A detailed listing of all new or expanded programs, services, contracts and positions that are included in the 2005-2006 budget that were not part of the approved budget for 2004-2005, and the program or service it is designed to replace • A listing by program and associated cost of all ineffective or inefficient programs, services and contracts and positions that were included in the 2004-2005 budget that are not part of the proposed budget for 2005-2006 to demonstrate the elimination of all ineffective and inefficient programs

  17. Requests for DEOA shall include: • The school district’s certified payroll records submitted electronically • Detailed analysis of salary information including substitutes, overtime and stipends • All 2005-2006 school-based budgets

  18. 6A:10A-8.2 District and school-level transfers during the budget year The Abbott regulations mirror the Finance regulations for district-level transfers except the requests for approval of Abbott district-level transfers shall be submitted to and approved by the Assistant Commissioner for Abbott Implementation.

  19. Line-Item Transfers • Line-item transfers from any general fund appropriation account >10%, on a cumulative basis, require approval of the Assistant Commissioner of Abbott Implementation • Appropriation of surplus or other unbudgeted or underbudgeted revenue is restricted to April 1 thru June 30 and requires Commissioner approval • All require 2/3rds vote of authorized membership of the board

  20. Line-Item Transfers – General Fund Appropriation Account General fund appropriation account means the required advertised appropriation accounts* pursuant to N.J.S.A. 18A:22, except where consolidated as follows: 1. Basic skills, bilingual and special education instruction, including other related and extraordinary services; 2. Student activities, student athletics and other student instructional services; 3. Student support services, including, attendance, health, guidance, child study team, and media; 4. Improvement of instruction and staff training; and 5. Special programs (fund 13). * Includes rollover of prior year encumbrances.

  21. Line-Item Transfers (From) • 10 Department working day approval deadline or automatically approved • Districts need to keep documentation of Department receipt of transfer request if approved under “automatic” provision

  22. Line-Item Transfers (To) • Transfers “TO” Administration over 10% require approval • Transfers “TO” Capital Outlay are restricted pursuant to EFCFA

  23. Appropriation of Unbudgeted/ Underbudgeted Revenue • Regulations identify revenue sources that do not require Commissioner approval to increase spending above approved budget. (N.J.A.C. 6A:10A-8.2(c)) • 1. Additional state aid when approval is granted in the award letter (extraordinary aid, DEOA, EOA adjustments); • 2. Tuition revenue generated from a district-specific program, which is not part of a formal sending-receiving relationship pursuant to N.J.S.A. 18A:38-19 and 18A:46-21; • 3. Unrestricted federal revenue (Impact aid, SEMI); and • 4. Surplus generated from revenue allowed to be excluded from the excess surplus calculation in the pre-budget year (extraordinary aid).

  24. Appropriation of Unbudgeted/Underbudgeted Revenue – April 1 – June 30 • Requests allowed between April 1 and June 30 and approval authority delegated to the Assistant Commissioner for Abbott Implementation (8.2(a)) • Documentation of approval of 2/3s affirmative vote of the authorized membership of the board • Transfers to be approved for items necessary to achieve the efficiency and effectiveness standards for the current year • All districts must first transfer from available balances prior to requesting an increase in spending above approved budget. • Requests submitted to the Assistant Commissioner for Abbott Implementation must include the latest board secretary report as documentation that appropriation balances are or will be expended/appropriated.

  25. Appropriation of Unbudgeted/Underbudgeted Revenue – Prior to April 1 • Districts may petition the Commissioner prior to April 1 for an increase in spending for an “emergent circumstance” and include in such submission(8.2(b)) • Board certification necessary for “emergent circumstance” • Document additional revenue is necessary or circumstance will “render peril to health and safety to students and staff” or force the district into an “operating deficit as a result of the required implementation of the CCCS and the Abbott rules • Latest board secretary report as documentation no other line item balances are or will be available

  26. 6A:10A-8.2 District and school-level transfers during the budget year • Transfer the full amount on “Local Contribution – Transfer to Special Revenue” in the 2004-2005 approved budget to the special revenue fund • Any amount included in the approved 2004-2005 budget on that line that is not transferred to the special revenue fund as of December 31, 2004 will result in a direct reduction of the 2004-2005 DEOA

  27. Questions ??????

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