Terminology

The account established by a district board of education pursuant to N.J.S.A. 18A:7G-31 and 18A:7F-41 into which monies are deposited to help finance a school district’s local share of its long- range facilities plan. 

The total amount of revenues from all sources allocated to K-12 education, divided by the number of students as determined, most often, by average daily attendance.

Adjustments granted by the State for student enrollment growth or health insurance premium increases that allow districts to go above the 2% cap without needing voter approval.  

Payment of cash or transfer of property or services for the purpose of acquiring an asset or service. School district expenditures include salaries, employee benefits, purchased services, supplies, and other costs. 

For students that have excessive special education costs associated with their services, districts can receive categorical aid to compensate. 

A fund balance is created when the school district has money left over at the end of its fiscal year from under spending the budget and/or taking in additional revenue. Part of the fund balance (appropriated fund balance) may be applied as revenues to the district's following year budget. A portion may also be set aside (unappropriated fund balance) to pay for emergencies or other unforeseen needs (as determined by the Board of Education) and, if not used, becomes a part of the following year’s fund balance as well. The Fund Balance is Assets (What a district owns) less Liabilities (What a district owes). It consists of cash, cash equivalents (i.e. investments), and non-cash components (i.e. taxes receivable, payables). 

The General Fund is the chief operating fund of the school district. It is used to account for all financial expenditures of the school district supported by the local tax levy, local revenues such as interest and rental income, and state aid.

Mandated expenditures such as employee salaries, benefits, transportation, special education costs mandated in Individualized Education Plans (IEPs), and other contractual costs.

An operating budget is a detailed projection of what a school district expects its revenue and expenses will be for the coming school year.  

Out-of-district placement is for students whose educational needs can’t be met by their local school district.  The school district pays for the out-of-district tuition for a student to attend an outside school.

Sources of income financing the operation of the school district. 

State Aid is the money that the state provides to districts through the application of numerous formulas to be used to support the general fund expenditures.  State Aid information is released to districts after the State budget is presented at the end of February.  Until that point, school districts estimate State Aid and cannot finalize their budgets.

Total sum to be raised by the school district after subtracting out all other revenues, including State Aid and appropriated Fund Balance and local revenues such as rentals and interest income. The tax levy is used to determine the tax rate for property owners in the district. 

The number used to calculate the taxes that each individual property owner will pay. This amount is usually outlined in $1,000 increments and based on the assessed value of property. 

Districts may only increase the local General Fund tax levy by 2%, plus any eligible adjustments (such as enrollment or health insurance).  If a District needs to exceed the 2% cap (plus adjustments), it must hold a public election to raise the funds.