2018 2019 BUDGET UPDATE PART II Board of Education Meeting March 26, 2018
BUILDING A RESPONSIBLE SCHOOL DISTRICT BUDGET
What Guides Budget Development? Respect Hard Work Integrity Diversity Communication Excellence Three-Year District Goals Student Academic, Social/Emotional, Behavioral, and Physical Needs Instructional and Non-instructional Assessment and Evaluation Federal and State Mandates including NJ QSAC (monitoring) Budget Review and Analysis Stakeholder Input Where Children and Learning Come First
Stakeholder Input and Reserve Accounts Voices of voters Two failed bond referendums for roofing projects Message was save the money and / or use State funds We listened! Maintenance Reserve Capital Reserve Emergency Reserve SDA grants
The Budget Process Review and Updates Prior to March 19th Created initial memos and held meetings with administration Reviewed / updated of salary, benefits, insurance costs, etc. Presented information at February 26 th public meeting Identified initial reductions through comprehensive review Received 18-19 state aid on March 15 th Made contacts with County Office and other business officials Worked in the DOE Budget Software Some revenues and appropriations are set by the State Since March 19 th Held Small Group Board Budget Committee Meetings then Completed additional review of revenue and made possible adjustments Reviewed reductions and made revisions Continued work in the DOE Budget Software
Cost Savings Measures Previously Presented and Continued In-House Work Maintenance Technical Services Printing Professional Development Administrators serve multiple roles Shared Services Cafeteria Closing / razing of schools Purchasing cooperatives Eliminated the majority of courtesy busing Reduced activity buses Utilized grant funds where allowable and available Reductions-in-Force (positions never returned): 1 less PE/Health teacher 2 fewer world language teachers 1 less art and 1 less music teacher 5 fewer counselors 5 fewer TLFs 4 fewer secretaries 2 fewer nurses No Assistant Superintendent Elementary Library secretaries reduced to part-time Portion of intervention teachers are part-time Changed one facilities manager position to an assistant manager
Cost Savings Measures Three-Year Period FY15 through FY19 Re-negotiated printing contract Implemented secured printing to copiers Used reserves for facility needs and required maintenance projects Used lease purchase for technology and facilities equipment Negotiated change in benefits package for all employees Assessed and re-designed aspects of special education Added or expanded programs Decreased full-time LLD classes and added pull-out resource Decreased number of out-of-district tuition students Increased number of tuition-in students Further reduced secretaries eliminated part-time library secretary positions at elementary schools reduced 1 MS secretary position to part-time Reviewed (annually) number of classroom teachers 9 fewer classroom teachers starting in 2015-2016 2016-2017 returned 2 elementary teacher positions based on enrollment 2017-2018 reduced 3 elementary teacher positions - returned 2 due to enrollment 2018-2019 projection reduce 1 elementary teacher position Net result: 9 fewer positions in 18-19 than 14-15
Energy Management Savings 41.7% cost avoidance Carbon footprint shows an energy reduction impact of: 190,816 MMBTU s 2,447 Passenger cars not being driven for one year 301,205 Tree seedlings grown for 10 years Savings since start of program in May 2007 $6.3 million +
BUDGET BASICS / KEY FISCAL INFORMATION
Budget Basics Enrollment remained stable Ratables (net valuation taxable) increased by approximately $1,738,900 State Aid increased from 17-18 to 18-19 Total tax levy 2% cap = $32,717,571 General fund budgetary increase at 2% = $641,521* *=1.09% of General Operating Budget Banked cap available = $276,455** **Set to expire
Budget Basics continued Three key revenue sources: Local Tax Levy 54% State Aide 41% Fund Balance 4% Three main expenditures: Salaries 58% Benefits 18% Transportation 8%
NJDOE Budget Efficiencies Matrix Efficiency Standards: On a per student basis, the district spends: Administrative Costs $368 less than state average Operations of Plant and Maintenance $245 less than state average Legal services $32 less than state average Support Services $147 less than state average Note: Less than the state average on these standards is a favorable rating. *Amounts are even more favorable than the prior year. (Source: NJDOE mid-year budget review) Efficiency Standards: Staff ratios compared to state average: Education Support staff to students Above by 3.0 students Administrative personnel to students Above by 33.0 students Administrative personnel to faculty Above by 4.2 faculty members Note: Above the state average on these standards is a favorable rating.
History of Ratables 2010-Present $3,900,000,000 2010 $3,686,976,888 $3,700,000,000 $3,500,000,000 $3,300,000,000 $3,100,000,000 $2,900,000,000 2018 $2,695,366,700 $2,700,000,000 $2,500,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018
18-19 State Aid Increase Note: The 2018-19 allocation increase affects the State aid percentage of revenue by less than 1%. FY 18 FY 18 July Adj. FY 19 Change Fund 10 Equalization Aid $ 20,531,501.00 $ 252,255.00 $ 20,783,756.00 $ - Special Ed Aid $ 1,996,732.00 $ - $ 1,996,732.00 $ - Security Aid $ 739,882.00 $ - $ 739,882.00 $ - Transportation Aid $ 389,818.00 $ - $ 1,088,704.00 $ 698,886.00 PARCC Readiness $ 33,240.00 $ - $ - $ (33,240.00) Per Pupil Growth Aid $ 33,240.00 $ - $ - $ (33,240.00) Professional Learning Community Aid $ 32,185.00 $ - $ - $ (32,185.00) Total $ 23,756,598.00 $ 252,255.00 $ 24,609,074.00 $ 600,221.00 Fund 20 PEA $ 102,300.00 $ - $ 102,300.00 $ - Total $ 102,300.00 $ - $ 102,300.00 $ - Fund 40 Debt Service Aid $ 87,900.00 $ - $ 84,767.00 $ (3,133.00) Total $ 87,900.00 $ - $ 84,767.00 $ (3,133.00) Grand Total $ 23,946,798.00 $ 252,255.00 $ 24,796,141.00 $ 597,088.00 Note: Due to recalculations to state aid, Charter School tuition per student also increased by over $100,000 in total per original 18-19 budget estimate.
A LOOK AT THE PROPOSED 2018-2019 BUDGET
Highlights of Programs and Services for Students and Staff Across Grade Levels, Content Areas, & Roles Maintain virtually all existing programs & services Continue priority on class size Maintain and expand tools and training to address varying student needs Continue emphasis on STEM (science, technology, engineering, and mathematics) and STEAM (A=arts) Complete action plan based on Causes and Cures Implement the Second Step social skills programs grades K-4 Furnish in-district ongoing professional development across grades, content areas, and departments (extent depends, in part, upon Federal Title IIA funds) New Jersey Student Learning Standards/Assessment Continue to provide resources for meeting the DOE mandates in all content areas Maintain technological readiness, provide student support and teacher training for all required State testing: ELA/Math (grades 3 8 currently PARCC) Science (grades 5 and 8) ESL (Access for ELLs 2.0) Alternate assessment for identified special education students (DLM - Dynamic Learning Maps)
Personnel Special Education Related Services Add 1 full-time OT to replace 2 part-time COTAs (OT assistant) itinerant services contract (increases student contact time and meets IEP requirements with minimal increase in costs) Student Services and School Safety / Security Hire a licensed mental health specialist as a full-time staff member Increase the number of School Resource Officers Note: The administrative team made other reductions in order to include the safety / security positions.
Projected Elementary Class Size Grade Range Average Kindergarten 16.4-18.8 17.6 1 st 16.4-18.8 17.6 2 nd 18.0-20.3 19.1 3 rd 19.0-20.7 19.4 4 th 20.5-24.5 22 5 th 22.3-25.5 24.3 6 th 20.5-22.5 21.5 Notes: Figures are based on enrollment as of February 2018 rolled-up one year with no adjustments (except K current year numbers used). Not shown is student-teacher ratio for grade level homerooms this number includes inclass resource with two teacher classroom. Enrollment is monitored throughout kindergarten registration and the summer. Preschool class size varies based on program; maximum class size as per NJ code is 15 students/class. Middle School class size varies due to the nature of scheduling.
Highlights of Non-Instructional Needs Enhance school safety/security Replacement of existing video surveillance system (capital project with some costs in the local budget) Continue general cleaning, repairs, and maintenance including inclement weather clean-up for specific projects either maintenance reserve or capital reserve is used Support and upgrade technological infrastructure Including needs related to video surveillance system project Provide required daily transportation to and from school Continuing same level of service in current budget with possible routes reductions based on review in cooperation with GEHRSD Meet all Federal and State requirements
BUDGET STATUS AND NEXT STEPS
Tax Levy Levels and Necessary Budget Reductions Tax Levy % Levy Increase Necessary Cuts General Fund: Tax Impact for the Year - Home Assessed at $200,000 due to Split-Year Levy Debt Service Fund: Tax Impact for the Year - Home Assessed at $200,000 Total General Fund: Tax Impact for the Year - Home Assessed at $200,000 due to Levy Increase Grand Total: Tax Impact for the Year - Home Assessed at $200,000 0% $ - $ (2,780,956.00) $ 21.81 $ 4.91 $ 26.72 $ - $ 26.72 1% $ 320,761.00 $ (2,460,195.00) $ 21.81 $ 4.91 $ 26.72 $ 11.90 $ 38.62 1.5% $ 481,141.00 $ (2,299,816.00) $ 21.81 $ 4.91 $ 26.72 $ 17.85 $ 44.57 2% $ 641,521.00 $ (2,139,435.00) $ 21.81 $ 4.91 $ 26.72 $ 23.80 $ 50.52 2% plus all bank $ 917,976.00 $ (1,862,980.00) $ 21.81 $ 4.91 $ 26.72 $ 34.06 $ 60.78
Reductions of $2.29 million based on the 1.5% tax levy level Adjustments made by Business Administrator based on educated projections (e.g. health benefits, liability insurance/workers comp, transportation, unemployment) Prioritization of facilities projects which were moved to Maintenance Reserve or eliminated from budget Review of various supply accounts based on current year status and anticipated needs reductions made in both instructional and non-instructional accounts Review of personnel and professional development Only replacing 1 of 2 retiring elementary classroom teachers Decrease in certain categories of substitutes Reductions in / elimination of various categories of professional development
Tax Impact 1.5% 2017-2018 2018-2019 2018-2019 Budget Budget Tax Impact GTPS Tax Levy General Fund Tax Levy $ 32,076,050.00 $ 32,557,191.00 $ 481,141.00 Debt Service Tax Levy $ 72,956.00 $ 132,398.00 $ 59,442.00 Total Tax Levy $ 32,149,006.00 $ 32,689,589.00 $ 540,583.00 Net Valuation Taxable $ 2,693,627,800.00 $ 2,695,366,700.00 $ 1,738,900.00 General Fund Tax Rate 1.179 1.199 0.020 Debt Service Tax Rate 0.001 0.004 0.002 Total School Tax Rate 1.180 1.203 0.022 Home Assessment $200,000 Total Taxes $ 2,360.98 $ 2,405.56 $ 44.57 $100,000 Total Taxes $ 1,180.49 $ 1,202.78 $ 22.29
Budget Steps to be Completed Tonight Respond to Board and Public questions / comments Set total budget dollars for submission to NJDOE County Office By March 29 th Prepare and submit budget to NJDOE County Office Public Budget Hearing on April 30 th Review / address any items prior to this hearing Finalize budget at this meeting
Where Children and Learning Come First FINAL THOUGHTS QUESTIONS / COMMENTS Public Comments Governed by Board Policy 1120.00