Legislative Update

A bill to make the position of treasurer of school monies optional for a school district was approved by both the Assembly and the Senate, and now goes to the governor for his signature. S-1287/ A-2573 passed both houses unanimously on May 20.

The position of treasurer of school monies is one which served as a check on the board secretary, however it pre-dates the adoption of modern accounting standards and is now considered to be an unnecessary expense for boards. It has been estimated that districts pay between $2,500 and $12,000 a year for the services of a treasurer of school monies.

Under current law, the custodian of monies of a municipality serves as the treasurer of school monies of a school district, unless the board of education designates the tax collector as the treasurer. If the municipal custodian or the tax collector does not wish to serve as treasurer, the board appoints another person who is not a member or employee of the board.

The new legislation makes the position of treasurer of school monies optional for a district. If the district does decide to have a treasurer, it may appoint anyone to the position who is not a member of or an employee of the board. The person doesn’t have to be the municipal custodian or the tax collector.

NJSBA supports this legislation.