F5 Can a district budget current year anticipated excess surplus into a capital reserve account?
Yes. Pursuant to N.J.S.A. 18A:7F-7(b) and N.J.A.C. 6A:23A-2.6(d), a district may include in its proposed budget up to 50% of current year anticipated excess surplus as a budgetary deposit into capital reserve. The anticipated excess surplus and proposed deposit must be included in the recap of balances and appropriate supporting documentation items. A new line 122 (“Budgeted Fund Balance – Capital Reserve Increase”) will be included in the 2005-06 budget software and it will be excluded from cap. The remaining anticipated excess surplus must be budgeted on line 121, budgeted fund balance, and is included in cap.
