New Jersey-2016-S3356-Introduced

An Act concerning the establishment of citizen budget oversight committees in Type I school districts and charter schools and supplementing chapters 22 and 36A of Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The board of education of a Type I school district shall establish a citizen budget oversight committee. The committee shall act as an advisor to the board of education and work with the board to monitor the financial position of the school district. The committee shall have access to financial documents and financial information of the school district that are relevant to the financial position of the school district, subject to redaction of information deemed to be confidential for the purposes of P.L.1963, c.73 (C.47:1A-1 et seq.).

The committee's responsibilities shall include, but need not be limited to:

(1) Reviewing the school district's revenues and expenditures on a monthly basis with the school business administrator and reporting monthly to the entire board of education on the financial status of the district and the committee's activities;

(2) At the discretion of the committee or at the request of a majority of the board of education, providing a review, analysis, and recommendations regarding special district initiatives or the school district budget;

(3) Reviewing the school district's recommended school tax levy; and

(4) Making information requests to the board of education through a person designated by the board to be its committee liaison.

b. The citizen budget oversight committee shall consist of at least five members, including parents with students enrolled in the school district, educators residing in the school district, and taxpayers residing in the school district. To the extent feasible, at least two of the members shall have the educational or vocational expertise to review financial statements.

The board of education shall post membership openings for the citizen budget oversight committee on the school district's website and in a prominent location in each school building at least 15 working days prior to the start of the selection process. The board of education shall designate a selection committee comprised of two educators from the school district, one of whom shall be a teacher, a member of the board of education, and at least two parents or community members who are not school district employees or members of the board of education. The selection committee shall evaluate applications submitted by individuals seeking appointment to the citizen budget oversight committee and, using a rubric designated by the Department of Education, identify individuals for the citizen budget oversight committee. The individuals identified by the selection committee shall be presented to the board of education for approval at a regular meeting of the board.

The Department of Education shall develop a model application form for membership on the citizen budget oversight committee, which shall be made available to all Type I school districts. The model membership application form shall include, but need not be limited to, the following information: name and address; identification of any potential conflicts of interest; educational background; experience; and a statement of interest for participation on the committee. The school district may include on its application form requests for additional information that it deems appropriate for evaluating individuals interested in becoming members of the committee.

c. A member of the citizen budget oversight committee shall serve for a term of two years and until his successor is appointed, except that the members first appointed shall serve for staggered terms determined by the board of education. An individual's appointment to the committee may be terminated by the board of education for an identified conflict of interest, a lack of participation, or any other act deemed by the board of education as detrimental to the successful support of the district.

d. The citizen budget oversight committee shall select, by a majority vote of the members of the committee, a chairperson, co-chairperson, and recording secretary from among its members.

e. Members of the citizen budget oversight committee shall serve without compensation, but shall be eligible for reimbursement for necessary and reasonable expenses incurred in the performance of their official duties, within the limits of funds appropriated or otherwise made available to the committee for its purposes.

f. Each new member of the citizen budget oversight committee shall complete a training program developed by the Department of Education within the first two months of the member's first term. The training program shall, at a minimum, consist of two hours and cover the following topics: an overview of the school district budget process and timelines; instruction in the basic rules of budgeting, including State funds, local funds, and federal funds; and reporting requirements.

2. a. The board of trustees of a charter school shall establish a citizen budget oversight committee. The committee shall act as an advisor to the board of trustees and work with the board to monitor the financial position of the charter school. The committee shall have access to financial documents and financial information of the charter school that are relevant to the financial position of the charter school, subject to redaction of information deemed to be confidential for the purposes of P.L.1963, c.73 (C.47:1A-1 et seq.).

The committee's responsibilities shall include, but need not be limited to:

(1) Reviewing the charter school's revenues and expenditures on a monthly basis with the school business administrator and reporting monthly to the entire board of trustees on the financial status of the charter school and the committee's activities;

(2) At the discretion of the committee or at the request of a majority of the board of trustees, providing a review, analysis, and recommendations regarding special charter school initiatives or the charter school budget; and

(3) Making information requests to the board of trustees through a person designated by the board to be its committee liaison.

b. The citizen budget oversight committee shall consist of at least five members, including parents with students enrolled in the charter school, educators residing in the charter school district of residence, and a representative from the Department of Education. To the extent feasible, at least two of the members shall have the educational or vocational expertise to review financial statements.

The board of trustees shall post membership openings for the citizen budget oversight committee on the charter school's website and in a prominent location in each school building at least 15 working days prior to the start of the selection process. The board of trustees shall designate a selection committee comprised of two educators from the charter school, one of whom shall be a teacher, a member of the board of trustees, and at least two parents or community members who are not charter school employees or members of the board of trustees. The selection committee shall evaluate applications submitted by individuals seeking appointment to the citizen budget oversight committee and, using a rubric designated by the Department of Education, identify individuals for the citizen budget oversight committee. The individuals identified by the selection committee shall be presented to the board of trustees for approval at a regular meeting of the board.

The Department of Education shall develop a model application form for membership on the citizen budget oversight committee, which shall be made available to all charter schools. The model membership application form shall include, but need not be limited to, the following information: name and address; identification of any potential conflicts of interest; educational background; experience; and a statement of interest for participation on the committee. The charter school may include on its application form requests for additional information that it deems appropriate for evaluating individuals interested in becoming members of the committee.

c. A member of the citizen budget oversight committee shall serve for a term of two years and until his successor is appointed, except that the members first appointed shall serve for staggered terms determined by the board of trustees. An individual's appointment to the committee may be terminated by the board of trustees for an identified conflict of interest, a lack of participation, or any other act deemed by the board of trustees as detrimental to the successful support of the charter school.

d. The citizen budget oversight committee shall select, by a majority vote of the members of the committee, a chairperson, co-chairperson, and recording secretary from among its members.

f. Each new member of the citizen budget oversight committee shall complete a training program developed by the Department of Education within the first two months of the member's first term. The training program shall, at a minimum, consist of two hours and cover the following topics: an overview of the charter school budget process and timelines; instruction in the basic rules of budgeting, including State funds, local funds, and federal funds; and reporting requirements.

3. This act shall take effect immediately and shall first apply to the first full school year following the date of enactment.

STATEMENT

This bill requires that the board of education of a Type I school district and the board of trustees of a charter school establish a citizen budget oversight committee. The committee would act as an advisor to the board and work with the board to monitor the financial position of the school district or charter school. The committee's responsibilities would include, but need not be limited to:

(1) Reviewing the school district's or charter school's revenues and expenditures on a monthly basis with the school business administrator and reporting monthly to the entire board on the financial status of the district or charter school and the committee's activities;

(2) At the discretion of the committee or at the request of a majority of the board, providing a review, analysis, and recommendations regarding special school district or charter school initiatives or the school district or charter school budget; and

(3) Making information requests to the board through a person designated by the board to be its committee liaison.

In the case of a committee established in a Type I school district, the committee will also review the school district's recommended school tax levy.

The citizen budget oversight committee would consist of at least five members with, to the extent feasible, at least two of the members having the educational or vocational expertise to review financial statements. For a Type I school district, the committee will consist of parents, educators, and taxpayers residing in the school district. For a charter school, the committee will consist of parents with students in the charter school, educators residing in the charter school district of residence, and a representative of the Department of Education. A selection committee designated by the board will evaluate applications submitted by individuals seeking appointment to the citizen budget oversight committee and present the candidates it has identified to the board of education or board of trustees for approval at a regular meeting of the board.

Each new member of the citizen budget oversight committee will be required to complete a training program developed by the Department of Education within the first two months of the member's first term. The training program will consist, at a minimum, of two hours and cover the following topics: an overview of the school district or charter school budget process and timelines; instruction in the basic rules of budgeting; and reporting requirements.