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Note: GSCS continues to advocate for an increase in allowable surplus. The current 2% limit has been often specified by auditors as to restrictive and inflexible when critical stress on budgets - such as this delay - may occur.
GSCS Heads Up 5-14-09 State Aid Payment Delayed
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May 14, 2009
Garden State Coalition of Schools – GSCS Heads Up 5-14-09
GSCS was a participant in a late afternoon conference call with Lucille Davy, Commissioner of Education today, 5-14-09 re: Governor Corzine’s State Budget FY10 update 5-14-09.
Commissioner Davy and Deputy Commissioner Atwood reported as follows –
· Due to updated information on poor income tax revenue collections and to the State’s need to present a balanced budget by June 30 of this year, the next to last state aid payment will be delayed (not cut)
· Statewide this delay totals $383M
· Both the last and now ‘next to last’ state aid payments will be reimbursed to districts in early July at the same time, in one lump sum
· Anticipating that this delay will generate a need for borrowing in many districts, the DOE is addressing process needs as follows:
ü The deadline for submitting requests to borrow for DOE approval is being extended until May 28 (from 5/22) and will require local board approval; Districts should be able to borrow by June 8
ü Districts need to review their cash flow situation immediately to see if they will require borrowing; suggest districts use ‘cash flow summary’ sheet already posted on DOE website
ü Districts should remember that Special Education Extraordinary Aid payments are always made in July, and that this year’s payment will still occur in that time frame
ü The DOE will post information on the process Friday on its website
