B3 How has the calculation of banked cap changed?
Under S-1701, the amount of unused spending authority districts can “bank” for the two next budget years was reduced by 50%. S-1701 did not alter any amounts districts had previously banked and carried forward into 05-06. It only reduced the amount of additional authority generated, but not used in 2004-05. To assist districts in preparing their 2005-06 budgets under the new calculation, the department distributed the preliminary “banked cap” amounts to the county offices in December for early distribution to their districts. The final amounts will be included in the Part I download of the budget software scheduled on or about January 18, 2005. Reduction in Maximum Surplus (revision to N.J.S.A.
