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Board Meeting
 Budget Presentation !1 MARCH 17, 2014


Goals of this Presentation !2

! ! ! â—? To discuss scenarios for finalization of budget on

March 27, 2014.


Morris County and SDOC !3 School*District 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Mountain*Lakes Morris Butler Parsippany$Troy*Hills Roxbury Madison* Mount*Olive Montville Pequannock Kinnelon Jefferson Randolph Chatham Dover*

Per$Pupil AP*Participation Post$Secondary Average Budgetary*Cost Rate Enrollment SAT 1/14 58.9% $19,882 87.0% 1/14 1699 2/14 84.0% $15,838 42.0% 1638 $16,055 18.4% 75.0% 1498 $14,784 28.0% 83.0% 1589 $14,068 16.3% 86.0% 1534 $13,731 53.6% 93.0% 1735 $14,303 24.0% 84.0% 1575 $14,269 35.1% 84.0% 1654 $14,371 37.5% 86.0% 1645 $14,424 41.2% 89.0% 1639 $13,913 18.4% 80.0% 1479 $13,802 29.9% 85.0% 1696 $12,416 67.3% 92.0% 1744 $12,159 31.4% 67.0% 1468

Notes: AP Participation Rate = the percentage of juniors and seniors who took at least one AP test during the 2012-2013 school year; Post-Secondary Enrollment = the percentage of the Class of 2012 enrolled in post-secondary education 16 months after graduation Sources: NJDOE Taxpayers’ Guide to Education Spending, 2013; NJDOE School Performance Reports, 2012-2013


K-12 Peer School Group and SDOC !4 School*District 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Park*Ridge Hopewell*Valley Ramsey Holmdel Millburn Pequannock Ridgewood Montville Livingston Monroe Sparta Caldwell$West*Caldwell New*Providence Rutherford West*Windsor*Plainsboro Cranford Montgomery Westfield Chatham Robbinsville

Per$Pupil AP*Participation Post$Secondary Average Budgetary*Cost Rate Enrollment SAT $17,412 40.2% 1588 T-1/20 86.0% $16,625 86.0% 1722 2/20 34.0% $15,638 28.6% 89.0% 1638 $15,173 40.3% 88.0% 1718 $14,571 60.9% 88.0% 1861 $14,371 37.5% 86.0% 6/201645 $14,369 52.5% 88.0% 1789 $14,269 35.1% 84.0% 1654 $14,131 56.4% 88.0% 1749 $13,875 30.1% 82.0% 1572 $13,707 37.0% 87.0% 1582 $13,460 30.3% 85.0% 1625 $13,430 45.6% 90.0% 1693 $13,380 22.0% 81.0% 1560 $13,301 60.3% 86.0% 1863 $13,276 71.2% 82.0% 1625 $13,017 58.7% 88.0% 1836 $12,804 49.6% 89.0% 1742 $12,416 67.3% 92.0% 1744 $10,680 32.9% 92.0% 1610

Sources: NJDOE Taxpayers’ Guide to Education Spending, 2013; NJDOE School Performance Reports, 2012-2013


Neighbors and SDOC !5

Per$Pupil AP*Participation Post$Secondary Average Budgetary*Cost Rate Enrollment SAT 1 Millburn $14,571 88.0% 1861 1/10 60.9% 2/10 89.0% 2 Somerset*Hills $14,412 52.9% 1646 3 Summit $14,133 64.7% 85.0% 3/10 1692 4 Livingston $14,131 56.4% 88.0% 1749 5 Berkeley*Heights $13,732 40.0% 86.0% 1654 6 Madison $13,731 53.6% 93.0% 1735 7 New*Providence $13,430 45.6% 90.0% 1693 8 Bernards $13,382 54.8% 87.0% 1738 9 Westfield $12,804 49.6% 89.0% 1742 10 Chatham $12,416 67.3% 92.0% 1744 School*District

Notes: AP Participation Rate = the percentage of juniors and seniors who took at least one AP test during the 2012-2013 school year; Post-Secondary Enrollment = the percentage of the Class of 2012 enrolled in post-secondary education 16 months after graduation Sources: NJDOE Taxpayers’ Guide to Education Spending, 2013; NJDOE School Performance Reports, 2012-2013


Funding and Taxing Authority !6

● +/- 90% of school district budget is funded by the

local tax levy. ! ● Tax levy increases are limited to 2%.

! ● Certain exemptions apply to the 2% cap.


Funding and Taxing Authority !7

● This year, SDOC does not qualify for any exemptions.

! ● SDOC has $517,409 of exemptions left from three

years ago, which will expire if not exercised this year. ! ● Exemptions = taxing authority, not state aid.


Funding and Additional State Aid !8

● The State has increased its direct state aid to SDOC

by 4% since last year. ! ● Direct state aid still stands 32% below the level of

funding in the 2009/10 school year. ! ● The total increase in direct state aid equates $81,200.


Funding and State Aid !9

State Aid,  2008/9  -­‐  2014/15 $3,000,000

$2,250,000

Difference = -32% $1,500,000

$750,000

$0 2008/9

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15


Tax Levy Allowances !10

● The Board of Education may consider a budgetary

increase equivalent to a 2% increase in the tax levy + $517,409 + $81,200. ! ○ ○ ○

2% increase in tax levy “Banked Cap” = Increase in state aid =

=$1,117,485 +$517,409 +$81,200

! ○

ALLOWABLE TAX LEVY INCREASE = $1,634,894

or 2.93%


Direction of Finance Committee to Date !11

● Primary Priority: Maintain and sustain all current

instructional programs. ○

A base budget resulting in a 2.52% tax levy increase would accomplish this and include: Staffing for changes to CMS and CHS Programs of Study. ○ 2.5 staff members for CMS STEM cycles. ○ 1 staff member for CHS technology electives. ÷ Additional second grade teacher at Milton Avenue School. ÷ Additional third grade teacher at Southern Boulevard School. ÷ Investments in technology infrastructure in preparation for PARCC. ÷


Additional Consideration of Finance Committee !12

â—? Consider including theatre arts in the electives

program at CMS; would be funded via breakage and not an increase in the tax levy.


Overview of Expenditures !13 Description Instruction -- Regular Instruction -- Special Ed Co-Curricular Activities & Athletics Attendance/Nursing Services Guidance Curriculum/Instruction General Administration School Administration Central Office & Admin Info Technology Operation Maintenance Transportation Employee Benefits Transfer to Charter School Summer School Subtotal General Expenditures Capital Outlay Grants & Entitlements Debt Repayments Prior Year Open Purchase Orders Total Expenditures

Adjusted Budget Proposed Budget 2013/2014 2014/2015 $21,228,877 $9,712,005 $1,109,704 $699,708 $1,299,686 $2,332,899 $1,131,903 $2,755,035 $1,387,062 $5,684,915 $2,491,315 $8,679,961 $20,618 $173,859 $58,707,547 $4,507,599 $1,172,965 $2,737,760 $465,868 $67,591,739

$21,543,286 $10,341,104 $1,107,454 $714,173 $1,323,289 $2,347,341 $1,145,945 $2,789,969 $1,399,618 $5,639,074 $2,438,641 $9,390,995 $10,500 $182,000 $60,373,389 $1,683,109 $884,500 $2,732,888 $0 $65,673,886

Adj Bud vs Prop Bud

% Change

$314,409 $629,099 ($2,250) $14,465 $23,603 $14,442 $14,042 $34,934 $12,556 ($45,841) ($52,674) $711,034 ($10,118) $8,141 $1,665,842 ($2,824,490) ($288,465) ($4,872) ($465,868) ($1,917,853)

1.48% 6.48% -0.20% 2.07% 1.82% 0.62% 1.24% 1.27% 0.91% -0.81% -2.11% 8.19% -49.07% 4.68% 2.84% -62.66% -24.59% -0.18% -100.00% -2.84%


Special Education Costs !14

● Special needs populations have inherently different

needs than the general education population and it is typically more expensive for a district to meet those needs. ● Tuition rates for State-approved out-of-district programs have gone up 9.7% next year. ● The types of needs of our students have become more diverse, including neurological, emotional, and psychiatric. ● It is an educational and ethical imperative to meet the needs of these children.


Efforts to Control Health Insurance Costs !15

● Implementation of Chapter 78. ○ 2014/2015 will be second year of implementation. ○ District staff contributions to health insurance will increase, on a sliding scale based on salary and type of coverage, with highest contributions equal to 35% of premium cost. ● Introduction of a Range of Plans ○ High-deductible plan carries a premium cost roughly 40% below that of the highest-priced plan. ○ Fewer than 4% of employees now carry highest-priced plan. ● Health Insurance Waiver Incentive ○ 13% of staff waive health insurance.


Further Considerations of Finance Committee !16

● Put forth a second question to enhance the

instructional program. ○

Enhance and augment the district technology education program: Add a K-5 technology and computer education program to the district, including a technology education teacher for MAS, SBS, WAS, and LAF (would not require space or scheduling conflicts). ÷ Acquire four additional Chromebook carts for the Library-Media Centers at CMS and CHS to provide greater flexibility during PARCC testing. ÷ Upgrade and modernize computer lab spaces at CMS and CHS. ÷

Estimated cost: $460,000.


Possible Budget Scenarios !17 Original Budget 2013/2014 Tax Increase 3.46% 55,874,234 Local Tax Levy Free Balance 289,471 Capital Reserve W D 3,000,000 Other Revenue 503,500 State Aid/Extraordinary 400,000 Additional State Aid 1,871,941 Total Operating Budget 61,939,146 Federal Sources 749,200 Other Grants 170,005 Debt Repayment 2,737,760 65,596,111 Total Revenue Estimated Expenditures as of 3/16/2014 2nd Question Estimated Expenditures as of 3/16/2014

Proposed Budget 2014/2015 2.52% 57,282,607 276,750 1,570,000 574,000 400,000 1,953,141 62,056,498 744,200 140,300 2,732,888 65,673,886 65,673,886 65,673,886

Base Budget

Proposed Budget 2014/2015 3.34% 57,742,607 276,750 1,570,000 574,000 400,000 1,953,141 62,516,498 744,200 140,300 2,732,888 66,133,886 65,673,886 460,000 66,133,886

Base Budget + 2nd Question


Capital Spending Items !18

2013/2014 ● High School Expansion,

$2.7 million original budget, $3.495 with wider project ! ● MAS Floor Upgrades, $135,000 ! ● WAS & CHS paving projects, $165,000

2014/2015 ● Hass and Cougar field

replacement, $1.1 million ● CMS Windows upgrade, $75,000* ● WAS and CMS Bathroom upgrades, $200,000* ● CMS Floor Upgrades, $80,000 (*Rod Grant approved)


Year over Year Comparison of Tax Levy Increases !19

2013/2014

2014/2015

● Base Budget = 2.6%

● Base Budget = 2.52%

! ● Base Budget + Second Questions = 3.46%

! ● Base Budget + Second Question = 3.34%


Impact to Tax Levy !20

Tax Increase Local Tax Levy

Original Budget Proposed Budget Proposed Budget 2013/2014 2014/2015 2014/2015 +"Second"Question 3.46% 2.52% 3.34% $55,874,234

$57,282,607

$57,742,607

Chatham Borough - Average House Assessment of $661,262 Avg Monthly Tax Increase $ 9.62 $ Avg Annual Tax Increase $ 115.42 $

14.21 170.57

Chatham Township - Average House Assessment of $762,196 Avg Monthly Tax Increase $ 25.47 $ Avg Annual Tax Increase $ 305.68 $

30.77 369.25


Tax Levy Fluctuation, Prior Two Years !21

Tax-Levy-Increase-on-Average-Assessed-House 2012/2013 2013/2014 Monthly Annual Monthly Annual Chatham-Borough $25.61 $307.34 $18.51 $222.09 Chatham-Township

$10.14

$121.71

$25.98

$311.75


Percentage Change in School Funding by Legislative District, 2009/2010 versus 2014/2015 22.5%

15.0%

7.5%

0.0%

-7.5%

-15.0%

-22.5%

-30.0% District 1

Chatham Township--District 21 Chatham Borough--District 27 District 5

District 9

District 13

District 17

District 21

!22

District 25

District 29

District 33

District 37


New Legislation and Regulations since 2010 !23

● Anti-Bullying Bill of Rights ○ 23-page law creating two new mandated positions in school districts. ○ 41 pages of “guidance” from the DOE. ○ Increased legal costs for all districts. ● PARCC (Common Core Tests) ○ All tests are administered via computer beginning in 2014-2015. ○ SIGNIFICANT infrastructure and device costs. ● TEACHNJ ○ 18-page law. ○ 43 pages of DOE-issued regulations. ○ $50 million cost, according to the Office of Legislative Services.


New Legislation and Regulations since 2010 !24

● AED Plans and Requirements ● Concussion Procedures and Training ● Dyslexia Diagnosis Training


Tax Increases over Ten Years !25

Year 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 AVERAGE PROPOSED-2014/2015

%&Tax&Levy&Increase 6.8 4.1 8.2 7.6 2.2 7.4 2.4 2.3 3.5 4.9 2.5/3.3


Calendar !26

● March 17: Board of Education Meeting and ● ● ● ● ●

and Budget Presentation March 27: Public Budget Hearing April 2: Deadline for voter registration April 16: Deadline to request vote-by-mail ballot April 23: Vote-by-mail ballots must be received by County Board of Elections April 23: Budget Vote and School Board Election ○

2:00 pm – 9:00 pm, CMS and CHS

SDOC BoE Budget review March 17, 2014  

School District of the Chathams Board of Education March 17, 2014 review of 2014-15 budget

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