Provides that salary and other costs associated with Commissioner of Education's appointment of State monitor and other staff under "School District Fiscal Accountability Act," will be paid by State.

S3240

SENATE, No. 3240

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 2, 2026

Sponsored by:

tSenator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Provides that salary and other costs associated with
Commissioner of Education�s appointment of State monitor and other staff under
�School District Fiscal Accountability Act,� will be paid by State.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning a school district State monitor and amending
P.L.2006, c.15.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 2 of P.L.2006,
c.15 (C.18A:7A-55) is amended to read as follows:

���� 2.��� a.���� In addition to
the powers provided pursuant to P.L.2005, c.235, P.L.1996, c.138 (C.18A:7F-1 et
al.), and P.L.2007, c.260 (C.18A:7F-43 et al.) or any other law, the
Commissioner of Education shall have the authority to appoint a State monitor
and additional staff, as necessary, to provide direct oversight of a board of
education's business operations and personnel matters if: the school district
receives an adverse or a disclaimer of opinion by its independent auditor in
the annual audit required pursuant to N.J.S.18A:23-1; or any two or more of the
following circumstances apply to the school district:

���� (1)�� the school district ends
the fiscal year with a deficit balance as calculated for budgetary purposes in
the general fund, special revenue fund, or capital projects fund, with the
exception of a capital projects fund deficit caused by the issuance of bond
anticipation notes;

���� (2)�� the school district
receives a qualified opinion by its independent auditor in the annual audit
required pursuant to N.J.S.18A:23-1;

���� (3)�� the school district
receives an adverse, disclaimer, or qualified opinion by its independent
auditor under the single audit section for State or federal awards in the
annual audit required pursuant to N.J.S.18A:23-1;

���� (4)�� the school district
receives any audit findings by its independent auditor identified as material
weaknesses in internal controls;

���� (5)�� the school district
fails to develop and implement a plan acceptable to the commissioner or his
designee to address a potential or actual deficit balance in the general fund,
special revenue fund, or capital projects fund, with the exception of a capital
projects fund deficit caused by the issuance of bond anticipation notes;

���� (6)�� the school district
fails to implement a plan from the prior year which causes any findings from
the independent auditor to be repeated;

���� (7)�� the school district is
required to return federal funds once it is determined that the school
district's expenditures are not in compliance with the grant requirements; or

���� (8)�� the school district
submits the annual audit after the submission date required pursuant to
N.J.S.18A:23-1.

���� b.��� The State monitor shall:

���� (1)�� oversee the fiscal
management and expenditures of school district funds, including, but not
limited to, budget reallocations and reductions, approvals of purchase orders,
budget transfers, and payment of bills and claims;

���� (2)�� oversee the operation
and fiscal management of school district facilities, including the development
and implementation of recommendations for redistricting and restructuring of
schools;

���� (3)�� ensure development and
implementation of an acceptable plan to address the circumstances set forth in
subsection a. of this section which resulted in the appointment of the State
monitor.� The plan shall include measurable benchmarks and specific activities
to address the deficiencies of the school district;

���� (4)�� oversee all district
staffing, including the ability to hire, promote, and terminate employees;

���� (5)�� have authority to
override a chief school administrator's action and a vote by the board of
education on any of the matters set forth in this subsection, except that all
actions of the State monitor shall be subject to the education, labor, and
employment laws and regulations, including the "New Jersey
Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.),
and collective bargaining agreements entered into by the school district;

���� (6)�� attend all meetings of
the board of education, including closed sessions; and

���� (7)�� meet with the board of
education on at least a quarterly basis to discuss with the members of the
board the past actions of the board which led to the appointment of the State
monitor and to provide board members with education and training that address the
deficiencies identified in board actions.

���� c.���� The Commissioner of
Education shall notify the State Board of Education following the appointment
of a State monitor pursuant to subsection a. of this section.� The State
monitor shall report directly to the commissioner or his designee on a weekly
basis.� The State monitor shall also report monthly to the board of education
and members of the public at the regularly scheduled board of education
meeting.

���� d.��� For purposes of the
"New Jersey Tort Claims Act," N.J.S.59:1-1 et seq., the State monitor
shall be considered a State officer, but for all other purposes the State
monitor shall be considered an employee of the district.

���� e.���� The State monitor shall
provide oversight in the school district until the commissioner determines that
all remedial actions required under the plan have been implemented and the
necessary local capacity and fiscal controls have been restored to school district
operations.

���� f.���� The salary of the State
monitor shall be fixed by the commissioner and adjusted from time to time as
the commissioner deems appropriate.� The
[
school
district
]

State
shall assume the total cost of the State monitor and necessary
additional staff appointed pursuant to subsection a. of this section.� The
State monitor shall have the authority to appoint legal counsel if legal action
is taken against him while acting in his official duties as a State monitor or
as needed upon approval of the commissioner.

(cf: P.L.2007, c.260, s.24)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill provides that the
salary and other costs associated with a State monitor and any additional staff
appointed by the Commissioner of Education under the provisions of the �School
District Fiscal Accountability Act,� P.L.2006, c.15 (C.18A:7A-54 et seq.), to
provide direct oversight of a board of education�s business operations and
personnel matters will be paid by the State.� Under current law, these costs
are assumed by the school district.