F2 Can a district transfer available balances or surplus into capital outlay during the year?
S-1701 did not change the requirement that capital projects require voter or board of school estimate approval. As required under N.J.A.C. 6A:26-3.7 and 3.12 (and cross-referenced in the business services regulations at N.J.A.C. 6A:23-8.4), a district may seek this approval either by referendum or through the annual budget approved by the voters. A district may also withdrawal funds from capital reserve to fund the local share of eligible projects. Under N.J.A.C. 6A:23A-2.3(g), a provision was included to enable County Superintendents the ability to approve a transfer into capital outlay for an “emergent circumstance” (defined in N.J.A.C. 6A:23A-1.1). The district must submit with such request documentation that the funds transferred will supplement a capital project previously approved under N.J.A.C. 6A:23-8.4 and documentation that the funds to be transferred are necessary to support the emergent circumstance. In addition, the district will be subject to an on-site inspection by the
