Little Egg Harbor Township School District March 1, 2011 Dr.
Frank Kasyan, Superintendent Mrs. Lynn Coates, School Business
Administrator Board of Education Finance Committee Ms. Gina Frasca
Mr. August Daleo Dr. Richard Newman Mr. Robert Wood (alternate)
Public Budget Meeting III
Slide 2
Agenda Adequacy State Budget Information for 2011-2012 Review
Public Input Questions Comments
Slide 3
4 th Public Budget Meeting March 21, 2011, 6:15 pm (please note
date change from March 22 nd ) Review Public Input Questions
Comments BOE Public Budget Hearing March 28, 2011, 6:30 pm
Slide 4
What is it? How is it determined for LEH? How does it affect
our budget? Adequacy
Slide 5
What is Adequacy? Its About Equity Adequacy is a calculation
developed as the basis of the 2008 School Funding Reform Act to
ensure adequacy and equity in education Adequacy represents what
each district should be spending to allow each student to attain
NJs educational standards The formula is based on expenditures
needed to provide a thorough and efficient education, as well as
enrollment factors such as special education, at-risk, and low
income students It was developed, in part, to ensure that local
taxpayers only pay their fair share (Many districts had very high
tax levies) Adequacy can be used as a basis of comparison between
districts The adequacy amount is not determined on what the State
can afford, but is an accurate measure of the true costs of meeting
the States standards
Slide 6
How is Adequacy Utilized? 1. The adequacy budget is used to
help determine State Aid to districts 2. Wealth Equalized Aid:
allocated according to each districts ability to raise enough local
revenue to support their adequacy budget utilizes both property
wealth and aggregate income 3. Categorical Aid Does not account for
districts ability to raise local revenue
Slide 7
How is Adequacy Determined in LEH for 2011-2012? Adequacy in
LEH School District District Adequacy Spending 2011-12 General Fund
Levy $ 10,387,738 A Equalization Aid $ 6,037,820 B Total Budgeted
Adequacy Spending = A+B $ 16,425,558 C District Adequacy Budget
(determined by State) $ 19,006,390 D Excess Amount = C-D $
(2,580,832) E A + B = C and then D C = E If E is a positive number,
then budget exceeds Local Levy If E is zero or a negative number,
then budget is below expected local levy In Theory: According to
this calculation, the district should be raising an additional
$2,580,832 in local tax dollars to meet adequacy. With a 2% tax
levy cap, this is not possible.
Slide 8
How does Adequacy effect our budget? The district is not
allowed to raise the local tax levy more than 2% per year The
district is not required by the State to meet adequacy budget
deficit The districts state aid is not increased to make up the
difference between the tax levy and the adequacy deficit The
adequacy deficit should be considered by the voters and the
township when asking for additional cuts to spending by the
district
Slide 9
State Aid 2011 2012 What the District will receive The impact
of last years cuts on this budget
Slide 10
State Aid Figures for 2011 - 2012 General State Aid Increased
by $218,689 in the adjustment aid category Debt Service Aid
Decreased by $124, 761 This cut can only be made up through a tax
levy Preschool Aid 100% funded at the 2010-11 level Plus the
additional 2 classrooms requested in our 5 year plan 2 classes x 15
students = 30 additional students 30 students x $11,205 = $336,150
increase
Slide 11
The Big Picture on State Aid - General Fund Amount of Aid Lost
in 2010-2011 $ (1,092,134) Amount of Aid Returned for 2011-2012 $
218,689 Net Loss for 2011-2012 $ (873,445)
Slide 12
Contractual Issues Budget Scenarios Tax Levy Review
Slide 13
Contracted raises for 11-12 = $681,000 Anticipated health
insurance increases with current plan $1 million - $1,230,000
Budget short fall of $1.7 $1.9 million Contractual Issues
2011-2012
Slide 14
Help From the Staff with Health Benefits All Staff Voted to
Change Health Plans District Saves $618,000 for next year Switch to
State Health Benefit Program (SEHBP) Higher co-pays for doctor
visits Some reduction in health services RX plan is included Over
the past several years, staff has made concessions on
Benefits.
Slide 15
HEALTH BENEFIT SAVINGS TOTAL COSTSSAVINGS 2004-2005 PLAN SWITCH
$ 561,175.00 2009-2010 EMPLOYEES WAIVING $ 541,591.92 $ 270,795.96
2010-2011 EMPLOYEES WAIVING $ 592,746.20 $ 296,373.10 SWITCH TO ALL
DIRECT ACCESS AUGUST 2009 $ 204,832.00 SWITCH TO DELTA DENTAL
AUGUST 2010 $ 22,176.39 $ 1,355,352.45 2011-2012 SWITCH TO SEHBP
$618,000.00 TOTAL $ 1,973,352.45
Slide 16
Budget Scenario 1 Raise tax levy maximum 2% = $200,000 How can
we make up $1.7 - $1.9 million shortfall ? Reduce Professional
Staff by 22 positions Dont replace 3 retirees = approx. $250,000
Eliminate 1 administrator = approx. $100,000 Eliminate 6 special
area teachers = approx. $460,000 (for example: 2 PE, 2 Instrumental
Music, 2 Media Specialists) Reduce grade level sections in gr. 1 6
by 2 sections + an additional 3 sections (move staff to BSI &
SE) (thus eliminating 12 classroom teachers) = approx. $840,000
Utilize $300,000 Federal Job Relief we saved from this year (we
were advised not to spend it in current year)
Slide 17
Budget Scenario 2 No tax increase Reduce Professional Staff by
24 positions Dont replace 3 retirees = approx. $250,000 Eliminate 1
administrator = approx. $100,000 Eliminate 8 special area teachers
= approx. $600,000 ( example:2 PE, 2 Instrumental Music, 2 Media
Specialists, 2 Computer,) Reduce grade level sections in gr. 1 6 by
2 per grade level and 2 additional sections + move 3 to BSI &
SE (thus eliminating 12 classroom teachers) = approx. $840,000 Make
2 building secretaries part-time = approx. $60,000 Utilize $300,000
Federal Job Relief we saved from this year (we were advised not to
spend it in current year)
Slide 18
Budget Scenario 3 Cut tax levy by $200,000 Reduce Professional
Staff by 25 positions Dont replace 3 retirees = approx. $250,000
Eliminate 1 administrator = approx. $100,000 Eliminate 9 special
area teachers = approx. $670,000 ( example:2 PE, 2 Instrumental
Music, 2 Media Specialists, 2 Computer, 1Foreign Lang.) Reduce
grade level sections in gr. 1 6 by 2 per grade level and 2
additional sections + move 3 to BSI & SE (thus eliminating 12
classroom teachers) = approx. $840,000 Eliminate 2 School Resource
Officers = approx. $93,000 Make 3 building secretaries part-time =
approx. $97,000 Utilize $300,000 Federal Job Relief we saved from
this year (we were advised not to spend it in current year)
Slide 19
Slide 20
PROPOSED TAX RATE CALCULATION COMPARISON LEVY DIVIDED BY
RATABLES EQUALS RATE 2010-2011 ACTUAL LEVYRATABLESPER ABSTRACT OF
RATABLES FUND BALANCE $ 699,309.00 $ 2,967,533,131.00 0.000236
LOCAL $10,184,057.00 $ 2,967,533,131.00 0.003432 DEBT SERVICE $
1,349,781.00 $ 2,967,533,131.00 0.000455 TOTAL $11,533,838.00 $
2,967,533,131.00 0.003887 PROPOSED 2011-2012 TAX RATE - OPTION 1-
$200,000 INCREASE (2%) LEVY INCREASERATABLESPER ABSTRACT OF
RATABLES LOCAL $10,384,057.00 $ 2,955,844,831.00 0.003513 DEBT
SERVICE $ 1,199,777.00 $ 2,955,844,831.00 0.000406 TOTAL
$11,583,834.00 $ 2,955,844,831.00 0.003919 PROPOSED 2011-2012 TAX
RATE - OPTION 2 - NO LEVY INCREASE LEVY FLATRATABLESPER ABSTRACT OF
RATABLES LOCAL $10,184,057.00 $ 2,955,844,831.00 0.003445 DEBT
SERVICE $ 1,199,777.00 $ 2,955,844,831.00 0.000406 TOTAL
$11,383,834.00 $ 2,955,844,831.00 0.003851 PROPOSED 2011-2012 TAX
RATE - OPTION 3 - $200,000 DECREASE LEVY DECREASERATABLESPER
ABSTRACT OF RATABLES LOCAL $ 9,984,057.00 $ 2,955,844,831.00
0.003378 DEBT SERVICE $ 1,199,777.00 $ 2,955,844,831.00 0.000406
TOTAL $11,183,834.00 $ 2,955,844,831.00 0.003784 2010-2011 TAX LEVY
ON 2011 AVERAGE EVALUATION Value of HomeLocal RateDebt ServiceTotal
TaxDistrict Tax $ 263,258.000.0034320.0004550.003887 $ 1,023.28
PROJECTED TAX LEVY OPTIONSValue of HomeLocal RateDebt ServiceTotal
Tax District TaxDifference *1 $ 263,258.000.0035130.0004060.003919
$ 1,031.71 $ 8.42 2 $ 263,258.000.0034450.0004060.003851 $ 1,013.81
$ (9.48) 3 $ 263,258.000.0033780.0004060.003784 $ 996.17 $ (27.12)
*2011 Average Township Evaluation This chart is based on the
assumption of all state aid being flat-funded from 2010-11 to
2011-12. This information was reported at the last budget meeting,
which was prior to receiving State Aid Notification.
Slide 21
PROPOSED TAX RATE CALCULATION COMPARISON LEVY DIVIDED BY
RATABLES EQUALS RATE 2010-2011 ACTUAL LEVYRATABLESPER ABSTRACT OF
RATABLES FUND BALANCE $ 699,309.00 $ 2,967,533,131.00 0.000236
LOCAL $ 10,184,057.00 $ 2,967,533,131.00 0.003432 DEBT SERVICE $
1,349,781.00 $ 2,967,533,131.00 0.000455 TOTAL $ 11,533,838.00 $
2,967,533,131.00 0.003887 PROPOSED 2011-2012 TAX RATE - OPTION 1-
2% INCREASE LEVY INCREASERATABLESPER ABSTRACT OF RATABLES LOCAL $
10,387,738.00 $ 2,955,844,831.00 0.003514 DEBT SERVICE $
1,324,548.00 $ 2,955,844,831.00 0.000448 TOTAL $ 11,712,286.00 $
2,955,844,831.00 0.003962 PROPOSED 2011-2012 TAX RATE - OPTION 2 -
NO LEVY INCREASE LEVY FLATRATABLESPER ABSTRACT OF RATABLES LOCAL $
10,184,057.00 $ 2,955,844,831.00 0.003445 DEBT SERVICE $
1,324,548.00 $ 2,955,844,831.00 0.000448 TOTAL $ 11,508,605.00 $
2,955,844,831.00 0.003894 PROPOSED 2011-2012 TAX RATE - OPTION 3 -
$200,000 DECREASE LEVY DECREASERATABLESPER ABSTRACT OF RATABLES
LOCAL $ 9,984,057.00 $ 2,955,844,831.00 0.003378 DEBT SERVICE $
1,324,548.00 $ 2,955,844,831.00 0.000448 TOTAL $ 11,308,605.00 $
2,955,844,831.00 0.003826 2010-2011 TAX LEVY ON 2011 AVERAGE
EVALUATION Value of HomeLocal RateDebt ServiceTotal TaxDistrict Tax
$ 263,258.000.0034320.0004550.003887 $ 1,023.28 PROJECTED TAX LEVY
OPTIONSValue of HomeLocal RateDebt ServiceTotal Tax District
TaxDifference *1 $ 263,258.000.0035140.0004480.003962 $ 1,043.14 $
19.85 2 $ 263,258.000.0034450.0004480.003894 $ 1,025.00 $ 1.71 3 $
263,258.000.0033780.0004480.003826 $ 1,007.18 $ (16.10) *2011
Average Township Evaluation This chart utilizes actual State Aid
increase and Debt Service Aid cuts This is the updated information
after receiving State Aid Notification.
Slide 22
Public Input
Slide 23
Next Public Budget Meeting: Tuesday, March 21, 2011 6:15 pm
Frog Pond Elementary School Multipurpose Room Please note date
change from March 22 nd.