West New York Board of Education Work Session/Business Meeting Minutes April 28, 2016, 6:00 p.m.

Transcription

1 West New York Board of Education Work Session/Business Meeting Minutes April 28, 2016, 6:00 p.m. The Work Session/Business Meeting of the West New York Board of Education was held in the Auditorium of the West New York Middle School, th Street, West New York, New Jersey. The order of business and agenda for the meeting was: I. CALL TO ORDER At 6:10 P.M. the meeting was called to order. At 6:10 pm. The auditorium was called to order and the meeting officially began with the Board President leading the flag salute and Pledge of Allegiance. II. FLAG SALUTE The Pledge of Allegiance to the Flag of the United States of America was recited. III. ROLL CALL Absent Absent Also : Ms. Clara Brito Herrera, Superintendent of Schools Ms. Anastasia Olivero, Assistant Superintendent for Curriculum & Instruction Mr. Robert Sanchez, Assistant Superintendent of Administrative Services Mr. Sixto Cardenas, Director of Human Resources Ms. Beverly Lazzara, Director of Special Services Mr. Jorge Acosta, Administrative Supervisor of Educational Programs Mr. Dean Austin, School Business Administrator Board Secretary Mr. Lester Taylor, Esq., Florio Perrucci Steinhardt & Fader, Board Attorney Mr. Allan Roth, Esq., Administrative Assistant

2 2 IV. OPEN PUBLIC MEETING STATEMENT The New Jersey Open Public Meetings Law was enacted to ensure the right of the Public to have advance notice of and to attend the meetings of any public bodies at which any business affecting their interest is discussed and acted upon. In accordance with the provisions of the act, the School Business Administrator/Board Secretary has caused notice of this meeting to be sent to the following, announcing time and place thereof, agenda, etc. Roll Call to Open Public Hearing the Jersey Journal the Administration Bulletin Board the District Website Trustee Absent Trustee Portillo V. PUBLIC HEARING PRESENTATION OF THE REVISED WNY DISTRICT BUDGET Mr. Austin West New York School District Business Administrator delivered the District School Budget presentation in which the District Administration: - proposed an additional $850,000 Tax Levy over the amount initially proposed in its tentative budget which received affirmative vote from the Board for submission to, and approval by the NJDOE (County Executive Superintendent s Office) - (equivalent to $24 incremental tax payments on average West New York property assessed at $100,392)

3 3 Highlights: Public comments: 1. No cuts in Programs 2. No mass lay-offs or Reductions in Force (RIF) 3. $850,000 additional Tax Levy increase proceeds to fund: a. terminal leave pay-out, and b. unemployment benefit accounts 4. Total Tax Levy $16.1 million, increase of $1.2 million or 8.1% 5. West New York Tax Levy in historical context: a. 3 year average Tax Levy as % of Budget lower than Hudson County and former Abbott District average b. 3 year average Tax Levy $ per student lower than Hudson County and former Abbott District Average 6. Assessed Property values at same level as in 1998, while market value expanded ~3x during same 16 year period 7. Historically favorable revenue source dynamics (predictable state and federal aid increases) have ceased, district state aid (84% of Revenues) flat-funded last 3 years with potential for significant underfunding in future years 8. Fund Balance at historical low levels (beyond the maximum allowed 2% of adjusted operating budget) a. Of the year end fund balance of $5.1 million: i. Over $3 million budgeted in for support of school year budget ii. Leaving only ~$2 million for support of school budget 9. District taking measures designed to avert a situation where the operating deficit acquires more permanent structural characteristics a. Tax Levy increase should be used strategically and on consistent basis going forward b. Union salary guides must be restructured and re-aligned district s near and long-term financial capacity to settle contractual obligations without jeopardizing operational continuity and fiscal sustainability In accordance with West New York Board of Education Bylaw #0167 (Public participation in board meetings Adopted November 14, 2012) each participant shall be limited to three minutes duration. The central focus of the public comments revolved around settling of union contract. stated that the tax levy increase requested came as a surprise to him and asked why increased tax levy was being allocated to unemployment benefits and what plan the Administration had for settling the union contract. Board Attorney cautioned trustees not to engage in union contract negotiations during meeting. Mr. Austin responded, stating that the Administration was committed to settling the union contract without resorting to program cuts or mass lay-offs and that it is engaged in continuous discussion with the NJDOE (with the most recent discussion held two hours prior to the Budget Hearing), jointly exploring practical budget funding solutions which would facilitate addressing stalemate with union while at the same time ensuring integrity of the district s operational continuity in delivering educational services to the students of West New York. Mr. Austin further stated that the fact that the Board settled contracts with two unions (Administrators union and Supervisors union) is a practical demonstration of the Board s desire and ability to conclude contract negotiations with unions. He added that the fact that the teachers union contract is still outstanding has more to do with the strain on financial resources at the district s disposal to commit to a multi-year contract involving a 6%+ expansion of a significant ~80% element of the district s cost structure. : Directed comments at committee members, urging them to meet, review and understand budget and

4 its impact on operations and unions. asked Mr. Austin why revenues are increasing while the teachers union is not seeing any of the money flow to them. Mr. Austin responded by pointing out that although revenues from state aid increased by ~$800,000, these funds are expected to be allocated in support of the district s total operations and not just for salaries, and that while it appears to be a significant amount of funds, it is lower than what the union requires to settle the contract and represents less than 1% growth in state funds which are approximately ~85 million. Mr. Austin further stated that increases in state aid funding have been flat (near 0%) the last few years with expectations of flat to under-funding in future years being a realistic one at this time. Mr. Austin further stated that so far discussion points focused on what was happening with revenues and since there are two sides to a balanced budget (revenues and appropriations), Mr. Austin would like to balance out the discussion by addressing some key developments occurring on the cost-side as well that impact the union. He went on to explain that the current handicapped financial health of the district, was exacerbated not only by weak revenue dynamics but also by significant cost increases in areas it has little control over, but which, nevertheless are financially material in the context of the budget. Mr. Austin cited tuitions for out-of-district student placements which increased over $3 million in the last few years alone, health care premium costs (13% increase last year only, with district paying majority of the premiums on employees behalf) and ageing facilities and transportation infrastructure driving up maintenance and repair expenditures. Mr. Austin concluded by stating that the district is providing for the unions by ensuring that the district remains financially viable to a degree that it can afford not to cut any programs which the teachers are teaching and being compensated for and by not engaging in mass-lay-offs which, he stressed, is an option that is a realistic one, all things considered, but one which the district has not yet fully examined opting to find other solutions for compromise. Approximately one dozen audience members took turns addressing the board with several speakers urging the board to raise taxes, citing the large expenses associated with the necessary provision of high quality educational services. Mr. Jack Steffens (Associate Business Administrator) briefly discussed terminal leave pay-outs, pointing out as an example in support of the Administration s recommendation to allocate the tax levy proceeds to the terminal leave pay-out accounts, stating that these expenses were not budgeted in for the (or current school year) and in same year came it has grown to represent over a $1.5 million current liability to the district, eating into the district s financial capacity to settle the union contract. He supported the district administration s tax levy increase, reminding the Board that every year that the tax levy did not increase, it reduced the available tax levy dollar capacity each of the following years the levy is not being raised summing up by stating that the Tax levy increases should have been enacted over the last few years each year s tax levy cannot be lower than the prior years. 4

5 VI. RESOLUTION 5 Approval of the District Budget - MOTION DEFEATED WHEREAS, the New Jersey Department of Education requires school districts to submit their District Budgets and all Supporting Documentation to the Hudson County Executive Superintendent of Schools by March 21, 2016, and WHEREAS, the Superintendent of Schools has presented the following synopsis of the Revised District Budget to this Board of Education with the additional inclusion of a banked cap $850,000 to the budget approved by the County Executive Superintendent on April 22, Proceeds are planned to be appropriated under Unemployment Benefits ($150,000) and Terminal Leave Pay-outs ($700,000). SOURCES OF FUNDS BUDGET Operating Budget (USD) General Fund Balance 2,187,023 Local Tax Levy 16,061,559 Other Restricted Miscellaneous Revenue - Unrestricted Miscellaneouus 100,000 Revenue from State Sources 94,465,988 Revenue from Federal Sources (SEMI) 292,781 Subtotal: Operating Budget 113,107,351 Federal and State Grants and Entitlements State Sources 16,801,265 Federal Sources 5,836,381 Transfers from Operating Budget Pre-K 930,808 Subotal: Grants and Entitlements 23,568,454 TOTAL REVENUE SOURCES 136,675,805 (Deduct) Transfers from operating Budget (930,808) TOTAL REVENUE SOURCES NET OF TRANSFER 135,744,997 USES OF FUNDS BUDGET Operating Budget (USD) General Current Expenditures (1) 48,268,776 Total Capital Outlay 685,000 Transfer of Funds to Charter Schools 53,038 General Fund Contribution to SBB 64,100,537 Subtotal: Opearting Budget 113,107,351 Federal and State Grants and Entitlements Pre-school Education 17,582,550 Other State Projects 149,523 Federal Projects 2,386,242 Grants and Entitlement Contributions to SBB 3,450,139 Subtotal: Grants and Entitlements 23,568,454 TOTAL EXPENDITURES 136,675,805 (Deduct) Transfers from operating Budget (930,808) TOTAL EXPENDITURES NET OF TRANSFER 135,744,997

6 6 WHEREAS, this Board has reviewed the Revised School District Budget as presented, BE IT RESOLVED, that this Board approves the West New York School District Revised Budget for the 2016/2017 School Year with the inclusion of a banked cap ($850,000), permitting the tax levy to increase above 2%, in the amount of $850,724 for a total tax levy of $16,061,559, as well as the supporting documentation containing an itemization of certain expenditures as required under Chapter 23A Fiscal Accountability, Efficiency and Budgeting Procedures, and in accordance with N.J.A.C. 6A: 23A-7.3, the Board establish the maximum travel amount for the school district budget at $8,500 and the amount spent to date in the school year for travel has been $7,467. NOW THEREFORE, BE IT RESOLVED, that this Board authorizes the Superintendent of Schools, or his designees to submit this Budget to the Hudson County Executive Superintendent of Schools and the NJ State DOE Fiscal Monitor Manager. 6A:23A-7.3 Maximum travel budget (a) Annually in the prebudget year, each board shall establish by board resolution, a maximum travel expenditure amount for the budget year, which the school district shall not exceed. The board resolution shall also include the maximum amount established for the prebudget year and the amount spent to date. 1. The maximum school district travel expenditure amount shall include all travel supported by local and State funds. 2. A board may elect to exclude travel expenditures supported by Federal funds from the maximum travel expenditure amount. If Federal funds are excluded from the established maximum amount, the board shall include in the resolution the total amount of travel supported by Federal funds from the prior year, prebudget year, and projected for the budget year. 3. Exclusion of Federal funds from the annual maximum travel budget does not exempt such travel from the requirements applicable to State and local funds. (b) A board may authorize in its travel policy an annual maximum amount per employee for regular business travel only for which board approval is not required. 1. The annual maximum shall not exceed $ 1,500 and shall be subject to the approval requirements in N.J.S.A. 18A: Regular school district business travel as defined in N.J.A.C. 6A:23A-1.2 includes attendance at regularly scheduled in- State county meetings and Department sponsored or association sponsored events provided free of charge. It also includes regularly scheduled in-state professional development activities for which the registration fee does not exceed $ per employee or board member. 3. Regular school district business travel as authorized in the board s travel policy requires approval of the superintendent prior to obligating the district to pay related expenses and prior to attendance at the travel event. i. The superintendent shall designate an alternate approval authority to approve travel requests in his or her absence when necessary to obtain timely board approval. ii. The superintendent shall establish in writing the internal levels of approval required prior to his or her approval of the travel event, as applicable. VI. Motion and Resolutions accept the Budget as ed Board Secretary: Motion to approve Item #5.1 removed from the agenda as presented Motion made by: SA JC MC DG DM JP LP SR AP Seconded by: SA JC MC DG DM JP LP SR AP Trustee Portillo Trustee Ayes Nays Abstain Absent

7 7 VIII. BOARD OF EDUCATION COMMENTS A. Board Member Comments B. President s Comments IX. ADJOURNMENT President: Asks the Board Secretary to request a motion to adjourn Board Secretary: Motion to Adjourn the Meeting Motion made by: SA JC MC DG DM JP LP SR AP Seconded by: SA JC MC DG DM JP LP SR AP Trustee Portillo Meeting adjourned at 8:33 p.m. Trustee Ayes Nays Abstain Absent Respectfully submitted, Dean Austin School Business Administrator Board Secretary