CEIFA

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CEIFA S-1701 The Big Squeeze
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• N.J.S.A. 18A 7F-15
• Spending Growth Limitation (Cap)
• 2003-2004 3 or CPI whichever is greater
• S-1701 2.5 or cost of living whichever is
  greater

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Cost of Living N.J.S.A. 18A7F-5

• Cost of Living means the CPI as defined in
  N.J.S.A. 18A7F-3
• CPI is the average annual increase, expressed
  as a decimal, in the consumer price index for the
  NYC and Phila. Areas during the fiscal year
  preceding the prebudget year as reported by the
  US Department of Labor.

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• Statutory Spending Growth Limitation Adjustments
  SGLAs
• Enrollment
• Capital Outlay
• Non-remote pupil transportation
• Special Education Costs gt 40,000
• Opening a New School Facility

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• Commissioner Spending Growth Limitation
  Adjustments SGLAs
• Early Childhood Program Aid (ECPA)
• Demonstrably Effective Program Aid (DEPA)
• Increase in Sending Receiving tuition

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• Temporary Spending Growth Limitation Adjustment
  SGLA
• Insurance and Domestic Security Preparedness

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• S-1701 Modifications to SGLAs
• ECPA and DEPA SGLAs eliminated
• Non-remote busing SGLA reduced to
  differential pre- budget year base indexed by
  2.5 or cost of living, whatever is greater
  previously full budget year costs

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• N.J.S.A. 18A 7F-5a Cap Banking
• School district that increases its net budget
  less than
• authorized, may include the difference between
  its
• actual and permitted net budget in either of
  the next
• two succeeding years
• S-1701 reduces cap banking - Beginning with the
  
• 2004-2005 difference, only 50 of the
  difference may
• be included in either of the next succeeding
  two years.
• S-1701 Starting 2005-2006, county supt. may
• disapprove cap banking if all potential
  administrative
• efficiencies are not implemented.

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• N.J.S.A. 18A 7F-7
• Undesignated General Fund Balance
• (Surplus) 2003-04
• Excess must be appropriated
• Budget lt 100 million - 6 or 75,000
  whichever is greater
• Budget gt 100 million 6 of first 100
  million and 3 of balance over
• 100 million

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• N.J.S.A. 18A 7F-7
• Undesignated General Fund Balance
• (Surplus) S-1701
• Excess must be appropriated
• 2004-05 - 3 or 100,000, whichever is greater
  
• 2005-06 2 or 100,000, whichever is
  greater

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• N.J.S.A. 18A 7F-7
• Undesignated General Fund Balance
• (Surplus) S-1701
• Excess shall be used to reduce property tax
  levy for the budget year
• County Vo Tech districts remain at
• pre-S-1701 levels (6)

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• N.J.S.A. 18A 7F-7
• Capital Reserve or Maintenance Reserve Accounts,
  Increased Spending S-1701
• Transfers from undesignated general fund
  balance 4/20/04 to 6/30/04 null and void
• District may demonstrate appropriation
  necessary to meet CEIFA thoroughness standards
  in 2003-04

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• N.J.S.A. 18A 22-8.1
• Transfers - S-1701
• Two-thirds affirmative vote of authorized
• membership of the board required
• CSA may still transfer between meetings of the
• board, if designated by the board, subject to
  
• ratification
• Transfers from general fund appropriation
• account that cumulatively exceed 10 of
• account, require Commissioner approval

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• N.J.S.A. 18A 22-8.1
• Transfers - S-1701
• Transfers of surplus, unbudgeted or
  underbudgeted revenue to line items or program
  categories - only from 4/1 to 6/30, only when
  necessary to meet CEIFA thoroughness standards
  and only with Commissioner approval
• Commissioner may grant emergency approval
  prior to 4/1 request requires two-thirds vote
  of authorized board

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• N.J.S.A. 18A 7F-5 c
• Administrative Costs S-1701
• 2005-06 Advertised Per Pupil Administrative Costs
  may not exceed the lower of
• Prior year (2003-04) Costs 2.5 or cost of
  living, whichever is greater, or
• Administrative Cost limits for
• districts region, based on audited 2003-04
  expenditures

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• N.J.S.A. 18A 7F-5 c
• Administrative Costs S-1701
• County Supt. may disapprove school districts
  2005-2006 proposed budget if all potential
  efficiencies in the administrative operations of
  the district have not been met
• County Supt. will work with each school district
  during 2004-2005 to identify administrative
  inefficiencies

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• N.J.S.A. 18A 7F-5 c
• Administrative Costs S-1701
• 2006-07 and thereafter Advertised Per Pupil
  Administrative Costs may not exceed the lower of
• Prior year Costs Commissioner
• approved district requests, not to exceed
• 2.5 or cost of living, or
• Prior year Administrative Cost limits for
• districts region 2.5 or cost of living

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• N.J.S.A. 18A 7F-5 c
• Administrative Costs S-1701
• Commissioner Approved Increases
• Increases in enrollment
• Administrative positions necessary due to
• mandated programs
• Administrative vacancies
• Non-discretionary fixed costs
• Items authorized by Commissioner regs

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• N.J.S.A. 18A 7F-5 d
• Second Ballot Questions S-1701
• Subject to county superintendent approval
• Must implement all potential administrative
• efficiencies
• May not include programs and services in
• districts pre-budget year net budget or new
• programs and services necessary to achieve
• the CEIFA thoroughness standards

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• N.J.S.A. 18A 7F-5 d
• Second Ballot Questions S-1701
• Commissioner may approve district requests
  for proposals included in prior year budget for
  sufficient reason
• Reductions to prior year budget programs and
  services may only be to programs and services
  deemed inefficient or ineffective or to
  excessive administration

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• How the Change Affects Boards
• And how NJSBA can help
• Policy modification to district policy on
  transfers of funds
• Field Service working with boards on budget
  development processes
• In Service/Business attendance at Workshop and
  training
• Labor Relations negotiations strategies
• Public Information/Publications/Legal- provide
  up-to-date operating information
• Governmental Relations provide up-to-date
  advocacy and legislative information

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• Where do we go from here?
• Identify the most significant impact of this
  legislation on your district.
• Discuss as a group these impacts and present
  the two priority areas you would like to focus
  on repealing.

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S-1701 Tool Kit

• News Release
• Survey
• Letter to School Board Presidents
• Legislators Voting Record
• Sample Resolution
• Sample Letter
• NJSBA Weighs Feasibility of S-1701 Lawsuit
• Analysis of S-1701 and the Budget
• S-1701 and Negotiations
• Talking Points

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