The Perth Amboy school district went to Appeals Court today, charging that Gov. Christie’s executive order forcing schools to use surplus money to compensate for $475 million in state aid cuts was unconstitutional.

Nope, replied the Court. Christie’s order “does not require that the excess surplus be used.” From the Star-Ledger: “A school district may have sufficient resources without transferring excess surplus to support its current operating budget. If not, other reserve funds may be considered, and the district may review its budget for potential efficiencies.”

Apparently all remaining surplus is up for grabs during the 2011-2012 school year.