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 26th public meeting

• Identified initial reductions through comprehensive review

• Received 18-19 state aid on March 15th

• 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 19th

• 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

• Savings since start of

program in May 2007

•$6.3 million +

• 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

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(Source: NJDOE mid-year budget review)

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.

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

2010$3,686,976,888

2018$2,695,366,700

$2,500,000,000

$2,700,000,000

$2,900,000,000

$3,100,000,000

$3,300,000,000

$3,500,000,000

$3,700,000,000

$3,900,000,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

18-19 State Aid IncreaseNote: 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)

PersonnelSpecial 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

1st 16.4-18.8 17.6

2nd 18.0-20.3 19.1

3rd 19.0-20.7 19.4

4th 20.5-24.5 22

5th 22.3-25.5 24.3

6th 20.5-22.5 21.5Notes:

• 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 in-class 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 29th

• Prepare and submit budget to NJDOE County Office

• Public Budget Hearing on April 30th

• Review / address any items prior to this hearing

• Finalize budget at this meeting

FINAL THOUGHTS

QUESTIONS / COMMENTSPublic Comments

Governed by Board Policy 1120.00

Where Children and Learning Come First