When any municipality, whose territory is included in a school district composed of two or more municipalities, shall have on hand surplus revenue unappropriated or anticipated receipts unappropriated for municipal purposes, the governing body may, in its discretion, by resolution adopted at a regular or special meeting thereof, authorize the transfer of and cause to be transferred all or any such part of unappropriated surplus revenue or unappropriated anticipated receipts, as the governing body shall deem advisable, to the board of education of such school district and the governing body may, as a condition upon such transfer, require the board of education of such school district to give credit to such municipality on account of the amount of school tax due or to become due from such municipality in any year; provided, however, no transfer of surplus revenue or anticipated receipts by a governing body to the board of education of such school district, under the authority conferred by this section, shall be made unless and until such proposed transfer or appropriation shall have been included in the local municipal budget for the year in which it is intended to make such transfer available from a prior year’s appropriation reserve and shall have been regularly approved, advertised and adopted as a part of such local municipal budget.

L.1942, c. 221, p. 599, s. 1, eff. May 14, 1942.