DEVELOPMENT OF A BUDGET PHILOSOPHY

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MONROE TOWNSHIP SCHOOL DISTRICT DEVELOPMENT OF A BUDGET PHILOSOPHY FOR FISCAL YEAR 2018-2019 Dr. Michael G. Kozak, Superintendent of Schools Mr. Michael C. Gorski, CPA, Business Administrator/Board Secretary Dr. Dori L. Alvich, Assistant Superintendent of Schools

MONROE TOWNSHIP BOARD OF EDUCATION Kathy Kolupanowich, Board President Marvin Braverman, Board Vice President Michele Arminio Ken Chiarella Jill DeMaio Patricia Lang Steven Riback Frank Russo Dawn Quarino Paul Rutsky, Finance Committee Chair (Jamesburg Representative)

WHAT IS A BUDGET PHILOSOPHY? The philosophy of establishing the annual school budget should entail the creation of a framework for a budget that supports a democratic plan of appropriate funding for the implementation of educational programs so that students may develop and learn from quality experiences based on educationally sound and fiscally prudent planning. A solid financial base is paramount to ensuring that the school district will be able to meet the responsibility of preparing our students for an increasingly competitive environment. The budget philosophy stage should be macro-focused rather than micro-focused, as much more refinement will be required and implemented in the future through the rigorous budget process.

BUDGET APPROPRIATION CONSIDERATIONS Budgets are driven by student enrollment 7500 *7466 7000 *7155 6500 6000 5500 5685 5893 6079 6143 6309 6470 6649 5000 + 1,781 students over the pass eight years. *Projected by Ross Haber Associates June 2016

BUDGET APPROPRIATION CONSIDERATIONS Salaries and Benefits Salaries and Benefits are approximately 75% of the General Fund Budget. For the 18/19 Budget Philosophy, the salary and benefit cost increases have to be conservatively estimated, as the largest collective negotiations unit (MTEA) is currently in negotiations. Thus, the MTEA and the non-affiliated staff currently have undefined salary and benefits, which are subject to change. Aggregate District Salaries are approximately $65,000.000.00. Health Benefits have been projected to increase 8.5% with the caveat that claims will have to be monitored at least through January 2018 to receive an accurate estimate. 2017-2018 Health Benefit premiums were $22,317,500.00 and were offset by contractual contributions of approximately $4,000,000.00 by District staff members.

Personnel BUDGET APPROPRIATION CONSIDERATIONS Assistant Principal 12-15 Additional Teachers MS Science, Social Studies, Math, Spanish, French, Italian, PE HS Science, Math, Italian, ELA, Social Studies ESL District Basic Skills Elementary Elementary Instrumental Music Special Education Staffing Teachers (9) Paraprofessionals (6) To support increased enrollment at elementary level. To support increased enrollment and programs across the district. To support our increased need for special education population and programs. $96,681 $780,450 $557,820 Additional custodians (2) For maintenance and upkeep for portable trailers. $90,192 Grounds person For grounds upkeep and growing student activities. $46,348

BUDGET APPROPRIATION CONSIDERATIONS Transportation Recommended fleet replacements for safety and enrollment growth: * 11-54 Passenger buses with cameras $1,078,000 * 6-25 Passenger vans with cameras $360,000 8 - Additional contracted Drivers with benefits $324,422 3 - Additional Transportation Aides $49,121 GPS System (Zonar) $31,680 * Six 54 passenger busses and five 25 passenger vans are recommended to be replaced due to age mileage restrictions. One van is required to be replaced. Five additional 54 passenger bus and five 25 passenger vans are needed to accommodate enrollment growth and to reduce contracted routes, including special education required van routes. These vehicles require construction of a Transportation Depot. (See Facilities)

BUDGET APPROPRIATION CONSIDERATIONS Technology Technology Upgrades and Replacements This aligns with our vision to continue to create 21st Century learning environments for our students. $80,000 Student/Classroom Devices Increased enrollment at the high school; upgrades to hardware needed for higher level graphic arts classrooms. $50,000 Projectors and Technology To provide parity in middle school classrooms. $48,000

Facility BUDGET APPROPRIATION CONSIDERATIONS 10 Portable Classrooms To accommodate increased enrollment at the middle school. $800,000 Development of Transportation Depot Necessary HVAC Equipment Replacements Replace Cage Turf Field Bleachers at the Cage Field Furniture for portable classrooms (student desks/chairs/teacher desks/chairs/shelving/cabinets/ security desk) High School Lockers Additional Student Furniture (desks/chairs/cafeteria tables) To accommodate growing fleet of buses on land donated by the township. Boilers, Controls and HVAC units, which are beyond their serviceable life. The turf field is thirteen years old with a life expectancy of about ten years. Only one set of bleachers is currently available. A second set would provide additional, separate seating for large events. To accommodate portable classroom space at the middle school. To accommodate increased enrollment at the high school. To accommodate increased enrollment at the high school. $1,200,000 $880,000 $555,000 $45,000 $75,000 $20,000 $40,000

BUDGET APPROPRIATION CONSIDERATIONS Textbooks Algebra I To align our resources to the curriculum $42,000 Geometry documents and NJSLS. $60,000 Algebra II $66,500 Dynamics of Trigonometry $15,400 AP Calculus $14,000 History $45,000 ELA kits $15,000

BUDGET APPROPRIATION CONSIDERATIONS Programs Marching Band Uniforms Girls and Boys Spring Track (MS) To replace marching band uniforms that have not been replaced in over 17 years. Currently we have only 2 teams at the MS for spring sports. Creating these two new sports would open up the possibilities and participation for more students. Continuation of the three year process for starting a HS team. $75,000 $19,630 Girls and Boys Volleyball (MS) $11,486 Boys Sub-varsity Volleyball (HS) Unified Sports (Soccer, Basketball, Track and Field) $14,000 To support ALL students in sports. $17,000

OUR ACCOMPLISHMENTS Graduation Rate 2016-2017 95% June 2016 Graduates: 90.4% Attended college 1.1% Attended Career/Technical Schools 1.2% Entered the Military 3.3% Entered the Workforce 3.9% Undecided or Non- Grads 84% of students taking the AP tests scored a 3 or above MTHS Average scores on SAT and ACT are higher than the state average #59 NJ #65 NJ

BUDGET RESOURCE CONSIDERATIONS General Fund State Aid - $3,290,000 awarded in 2017/2018. It is recommended to base preliminary budget on same level of funding as prior year. Proprietary Fund Considerations - Falcon Care/Early Childhood Enrichment Programs. $600,000 of retained earnings is to be transferred to General Fund to generally offset Instructional Trailer costs. Jamesburg - Tuition agreement mandates DOE calculated tuition rate multiplied by mutually agreed estimated number of Jamesburg students. The total tuition and transportation fees are approximately 3.7 % of general fund revenues.

PROJECTED SCHEDULE OF CAP FOR USE IN BUDGET YEAR 2018-2019 Pre-Budget Year General Fund Tax Levy $98,472,001 Automatic adjustment for enrollment *$1,109,493 Adjusted Pre-Budget Year General Fund Tax Levy $99,581,494 Adjusted Pre-Budget Year General Fund Tax Levy Inflated by 2% $101,573,124 Adjustment for Health Care costs *0 General Fund Tax Levy CAP prior to optional use of banked cap $101,573,124 Banked cap calculated by 12/13 DOE Budget software $600,000 General Fund Tax Levy Cap with use of banked cap $102,173,124 By going to cap the Budget can grow By going to cap with use of banked cap the Budget can grow * $3,101,123 * $3,701,123 *Estimated subject to change

ANTICIPATED EXCESS SURPLUS IN EXCESS OF PRIOR YEAR Excess Surplus is the aggregate difference between actual revenues and budgeted revenues plus the difference between actual expenditures and budgeted appropriations. It is required that the excess surplus from 06/30/17 be used as a revenue source in the 18/19 Budget N.J.S.A. 18A:7F-7. 2017/2018 Excess Surplus Applied $6,134,722 Estimate 2018/2019 Excess Surplus $6,055,371 2018/2019 Budget Revenue Source below the 2017/2018 Excess Surplus <$79,351>

TAX CONSIDERATIONS Ratables: Are the most significant variable in determining the tax rate. Preliminary reports are that ratable growth may be slightly higher than the preceding year which increased by 1.5%. This will favorably impact tax rates for 2018/2019.

High performance and Numerous best practices + Comparatively low taxation = Incredible value

ADMINISTRATION S RECOMMENDATION It is recommended that Administration prepare a budget that responsibly meets the demands of continuing, significant student growth and facility needs as well as program and service requirements without exceeding the Board s maximum spending authority, while prioritizing the following items, subject to the restrictions presented by Administration: Construction Projects, as presented; Curriculum Recommendations, as presented; Salary and Benefit Increases, at a conservative range due to their contingent status; Transportation Recommendations, as presented; and To transfer $600,000 from the retained earnings of the Falcon Care/Early Childhood Enrichment Proprietary Fund to generally offset new trailer costs for the 2018-2019 school year.