New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2943

Introduced
1/9/24  

Caption

Establishes certain requirements concerning charter school financial reporting and prohibits charter school from contracting with for-profit charter management organization.

Impact

In addition to the prohibition on for-profit management organizations, the bill imposes several requirements for charter schools related to financial reporting. Charter schools are mandated to submit their annual budgets to the Commissioner of Education for review. This budget must detail all revenues, including private and philanthropic sources, and outline expenses, thus promoting a higher level of transparency in how public funds are managed. Furthermore, budgets must be made accessible to the public in a format that is easy to understand, which is intended to foster public trust and accountability.

Summary

Assembly Bill A2943 aims to enhance the fiscal accountability and operational integrity of charter schools in New Jersey. A notable provision of the bill prohibits charter schools from contracting with for-profit charter management organizations, mandating that any organization providing management services be nonprofit. This regulation seeks to ensure that educational funds are used primarily for educational purposes rather than for profit, thereby aiming to preserve the integrity of the educational mission of charter schools.

Contention

The bill also introduces procedures for regular financial audits of charter schools, requiring an annual audit of their accounts and financial transactions by a public school accountant. The audit results must be filed with the Department of Education, which will publish a summary of these audits annually. While some stakeholders may view these measures as necessary for ensuring accountability, others may argue that they impose additional burdens on charter schools and could limit their operational flexibility. Furthermore, detractors of the bill may express concerns that strict requirements could deter qualified nonprofit organizations from engaging in charter management, potentially impacting the quality of education provided by these institutions.

Companion Bills

NJ A1175

Carry Over Establishes certain requirements concerning charter school financial reporting and prohibits charter school from contracting with for-profit charter management organization.

Previously Filed As

NJ A1175

Establishes certain requirements concerning charter school financial reporting and prohibits charter school from contracting with for-profit charter management organization.

NJ HB3643

Schools; virtual charter schools; modifying and establishing requirements for governing boards which contract with certain management organizations; effective date; emergency.

NJ SB466

Charter School & Chartering Authority Audits

NJ S07462

Provides additional requirements for approval of charter school applications; applies additional prohibitions to charter schools; requires certain financial disclosures by charter schools; requires charter schools to comply with provisions relating to construction, repair or demolition of school facilities; relates to admission of students.

NJ HB129

Prohibits a charter school from contracting with a for-profit organization to operate the charter school (OR NO IMPACT GF EX See Note)

NJ SB808

Charter schools: chartering authorities and approvals.

NJ A2944

Modifies various aspects of charter school program including student enrollment procedures, revocation of charter, monitoring of charter schools, and collaboration between school districts and charter schools.

NJ HB07206

An Act Concerning Charter Management Organizations.

NJ SB01096

An Act Concerning Charter Schools.

NJ SB665

Charter schools; prohibiting certain for-profit entities from applying for certain virtual charter school contract. Effective date.

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