April 25, 2017 ~ 7:30 p.m.

Transcription

1 April 25, 2017 ~ 7:30 p.m.

2 Welcome to the Public Hearing on the Budget O Presenters: O Dr. Richard Noonan, ~ Interim Superintendent O Mr. Gary Lane, ~ Business Administrator Discussion Points: Budget Building Points of Pride Review of the Budget Basics Balancing a Budget - Revenues & Expenditures Funds (State Aid, Taxes) Cost Drivers Tentative Budget Overview Tax impact Reserve Accounts

3 Selective Points of Pride 18 MHS students currently recognized as 2016 National Merit Semi-Finalists and Commended Students Composite SAT Scores in top 10% for all NJ High schools Math PARCC results in top 10% for all NJ High Schools MHS Vocalists currently selected for All State Women's Chorus MHS Student is the 2017 Regional Winner in the State Poetry Out Loud Competition CAS recognized with a Sustainable Jersey for Schools Certification 4 consecutive years of national recognition as a Best Community for Music Education Award recipient

4 NUMBER OF STUDENTS 3,000 Anticipated prek-12 enrollment 2,719 (+ 89 students) High School enrollment: 880 (+42) Junior School enrollment: 666 (+27) Elementary enrollment: 1,133 (+13) Out of District Placements: 25 (+1 ) - Preschool Handicapped: 15 (+6 ) District Enrollment PreK ,750 2,500 2,250 2,273 2,275 2,363 2,398 2,458 2,503 2,524 2,565 2,626 2,719 2,705 2, /9 2009/102010/112011/122012/132013/142014/152015/162016/172017/182018/19

5 Budget Building

6 The school budget is broken out into three (3) primary Components: Current Expense/Capital Outlay Fund 11/12 This supports the day-to-day operations of the school district. Capital outlay funds current year purchases of items in excess of $2,000. This is the area of focus as this is what the budget is built upon. Federal/State/Local Grants Fund 20 These are grants provided to the district for specific purposes. The monies in this account zero out at year end. What we get in (which varies from year-to-year) is spent according to the grant. Debt Service Fund 40 This is the district s mortgage the bonds sold for prior building construction and renovation.

7 There are limited ways for a Board of Education to gain new monies for the ensuing budget year. Below are the general pockets available: Local Tax Levy Capped at 2% of the prior year s tax levy, unless the district qualifies for a waiver or has banked cap. State Aid This determined by the state. Tuition We have a negotiated agreement with the Harding Board of Education to educate their 9-12 students. In addition, we have some parent paid tuitions (people who do not live in Madison who pay to send their child(ren) to our schools) Miscellaneous - Interest income, refunds, fees, etc.

8 ~ The basics ~ Where does the NEW money for the budget come from? Tax Levy (2% CAP) $ 774,815 State Aid $ CAP Waivers $ Increase in Healthcare Increase in Enrollment Banked CAP Tuition $ 28,056 Misc. $ 33,350 TOTAL $ 836,221 (Current Expense Only)

9 State Aid: SFRA vs Actuals For , we received NO increase in State Aid Chart courtesy of the Educational Law Center (ELC)

10 Chart courtesy of the Educational Law Center ELC

11 Budget build ~ A Better Understanding & A Little Help ~ Two things that helped our Budget: Health benefits 1. Employee Health Benefit Contributions, in accordance with Chapter 78, are fully phased in at Tier 4 for all staff members 2. Costs were positively impacted by having the staff move to Direct 15 plan coverage Special Education Our Special Education costs were able to show a budget decrease.

12 Revenues Tuition Revenue, $1,724,556 State Aid Debt Service, $540,711 State Aid - Operating Budget, $1,017,107 Tax Levy Debt Service, $2,070,456 Grants - State & Federal, $825,273 Reserve Accounts, $7,571,150 Tax Levy - Operating Budget, $39,515,574 Other Revenue, $630,633

13 Major Cost Drivers Staff related costs are 3 of the budget s top major cost drivers. Major cost drivers : Salaries increased $ 810,000 Health Benefits increased $ 36,353 Pension & Social Security increased $ 19,384 TOTAL $ 865,737 Total New Revenue for $ 836,221 Under / (Over) Available Funds ($29,516) These three areas account for 83% of the Total Current Expense (Operating) budget.

14 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 Employee contributions HCB Total premiums Health Benefit Cost Summary $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $

15 Budget Overview ~ Some good News for a Change ~ Maintains current staffing levels * Provides for budget requests from Principals, Curriculum, Technology and Buildings & Grounds Sets aside Capital & Maintenance Reserve monies for projects Creates Banked CAP (for use in thru ) Tax impact Less than 2% * Staffing for is still being evaluated and will be adjusted based upon projected needs and enrollments. Final staffing determinations will be made by May 15 th as mandated by the State of NJ.

16 Expenses Salaries $ 27,942,417 Health Benefits 6,149,923 Special Education (non-salary) 2,480,112 Buildings & Grounds 1,340,450 Social Security/Pensions 1,121,698 Energy/Water/Sewer 638,371 Work Comp & Dist. Insurance 580,342 Transportation 480,804 Other General Fund 2,480,112 Sub-total General Fund $ 42,771,231 Fund 12 Projects 7,662,935 Fund 20 Grants 825,273 Fund 40 Debt Service 2,636,021 Grand Total $ 53,895,460

17 Expenses Fund 12 - Projects, $7,662,935 Fund 20, $825,273 Other - General Fund, $2,480,112 Debt Service, $2,636,021 Health Benefits, $6,149,923 SS/Pension, $1,121,698 Transportation, $480,804 Energy/Water/ Sewer, $638,371 Work Comp / Dist. Insurance, $580,342 Buildings & Grounds, $1,340,450 Special Education (non-salary), $2,037,114 Salaries, $27,942,417

18 Tax Impact Fiscal Year $ Incr. / Decr. % Incr. / Decr. General Fund $ 38,740,759 $ 39,515,574 $ 774, % Debt Service 2,302,922 2,070,456 $ (232,466) % $ 41,043,681 $ 41,586,030 $ 542, % Calendar Year Total CY 2016 $ 40,705,634 CY 2017 $ 41,390,945 $ Incr / (Decr) $ 685,311 % Incr / (Decr) 1.68%

19 Tax Impact.. fiscal year basis On the average home assessed at: $676,933 The increase will be 1.53% Which equates to. $10.08 per month / $ annually Reflects an increase of $3,882 in the average home assessment from 2016 to 2017

20 Capital & Maintenance Reserve Accounts The State provides Boards with the ability to set-aside monies for Capital & Maintenance projects. For the following projects are budgeted: Note: the numbers above are budgeted numbers. Actuals costs are anticipated to be less.

21 Green Village Road School In 2015 the Board sold the GVR School. The Net proceeds of the sale were $11,000,000. In addition, in the years prior the BOE was able to set-aside into their Reserve Accounts approximately $2,000,000. Below is a summary of how these funds have been or plan to be expended HS STEM $ 4,078, HS Stadium Bleachers $ 815, Jr School STEM $ 1,506, HS Courtyard Windows $ 261, CAS Boiler $ 285, HS Auditorium Sound $ 150,407 Jr School Auditorium KRS Roof $ 611, A/C $ 760, HS Roof $ 1,110,942 $ 1,986, Jr School Roof $ 372,956 $ 7,964, HS PE & Locker Rm Reno $ 3,000,000

22 Strengthening Our Schools Resources for implementing Next Generation Science Standards Materials and equipment to outfit renovated STEM facilities at MJS and MHS Additional STEM teaching positions at the elementary level Resources for ongoing curriculum review and development Sustaining reasonable class sizes and a comprehensive curriculum K-12

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