2016-2017 Budget Discussion

Board of Education Meeting

Monday, February 22, 2016

• State Aid = $9,844,020 (up $100,770)

• Tax Levy = $11,054,967 Enrollment Adjustment $69,476 (calculated by state)

Health Insurance Tax Levy Waiver $206,640

2% Tax Levy Increase $212,712 (after enrollment adjustment)

Banked cap was exhausted in the current year

• Move from $6.2 million to $9.5 million under adequacy – more on that later.

Revenue

Tax Base Issues

• Borough responsible for assessing and collecting taxes.

• Tax Base (Ratables) have been on a steady decline in Freehold Borough.

• Even if tax levy unchanged: - The tax rate would be higher - The base would be smaller

Ratables in Freehold Borough 2014 2015 Difference

Vacant Land 10,235,100$ 10,120,100$ (115,000)$

Residential 755,357,200 741,225,500 (14,131,700)

Commercial 237,225,100 230,456,500 (6,768,600)

Industrial 25,345,900 25,345,900 -

Apartment 22,388,400 22,065,400 (323,000)

1,050,551,700$ 1,029,213,400$ (21,338,300)$

0.98%

72.02%

22.39%

2.46% 2.14%

Vacant Land

Residential

Commercial

Industrial

Apartment

Major Expenditure Categories

• Salaries

• Benefits

• Curriculum/Instruction

• Pupil Services

• Technology/Testing

• Transportation

Salaries • Currently in Negotiations with FBEA representing

210 employees: Teachers, Paraprofessionals, Secretaries, Maintenance, and Custodial Staff

• Principals & Supervisors contract settled at 2.1% for 16/17

• Non-aligned under review – 16 employees

• Increase in state aid allows district to maintain current staffing levels pending results of negotiations.

Ben

efit

s

Benefit Rates Horizon Direct 10 Current Projected

Single $9,847 $11,324-$11,521

Parent/Child $17,234 $19,819-$20,164

2 Adult $19,696 $22,650-$23,044

Family $27,082 $31,144-$31,686

Horizon Direct 15 Current Projected

Single $9,700 $11,155-$11,349

Parent/Child $16,975 $19,521-$19,861

2 Adult $19,401 $22,311-$22,699

Family $26,676 $30,677-$31,211

Curriculum & Instruction

• Review/Revise Math, Science, ELA, & Social Studies Curriculum K-8

• New grade 6-8 Social Studies Textbook Adoption

– Integrate use of Chromebooks

• Math Workbooks

– Grades K-8

• Leveled Readers Grades K-5

• Science Teacher Resource Kits

Pupil Services

• 17 Out of District Placement

– 13 at private schools for the disabled

• Tuition cost per student ranges from $47,633 to $102,701

• Overall state appropriation for extraordinary aid increased. Actual number not known until July.

Technology/Testing

• Study Island – Grade 3-8 web based

supplemental support for Math & LAL

• STEM Classroom Update – nComputing Classroom – 8 iPads – Document Camera

• Mindstorm Lego Robotics Kits for students

• Testing - ACCESS, OLSAT, Gr. 8 Tech Literacy Assessment

Transportation

• Current year increase in special education costs with Freehold Township of $100k – Average Driver Salary $31.38/hr

– Average Aide Salary $16.55/hr

– Cost of Benefits 28%

– Daily overhead (gas, maintenance) $253

• Last year OOD Student Transportation Cost $220k which was $60k more than original budget

Projected Basic Expense Breakdown

57.90% 23.60%

6.30%

3.40% 3.70%

1.90% 1.00%

0.80% 0.50%

0.20%

0.20%

0.10% 0.10%

0.10% Salaries

Benefits

Pupil Services

Facilities

Transportation

Central Office

Cirriculum & Instruction

Technology

FIS

PAE

FLC

ESL

SDA Assessment

Gifted & Talented

History of State Aid & Tax Levy

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

FY12

FY13

FY14

FY15

FY16

FY17

State Aid

SFRA Funding

T&E Aid

Tax Levy

State Aid = Actual State Aid Received. SFRA Funding = Funding by court order that district should receive.

T&E Aid = Amount of funding constitutionally necessary to provide a thorough and efficient education.

Enrollment Growth

130013251350137514001425145014751500152515501575160016251650167517001725

2010 2011 2012 2013 2014 2015 2016*

Pupils

* - Projected (Using state weighted average)

Geographic Cost Adjustment 0.9953

STEP 1 Projected Weighted Base Enrollment 1709

$11,009 per pupil x Pupils x GCA 18,758,825$

STEP 2 Projected Weighted At Risk Enrollment 460

$11,009 per pupil x Pupils x GCA 5,040,339$

STEP 3 Projected Weighted LEP Only Enrollment 5

$11009 per pupil x Pupils x GCA 54,786$

STEP 4 Projected Weighted combined LEP & Low Income 186

$11,009 per pupil x Pupils x GCA 2,038,050$

STEP 5 Special Education Enrollment 252

$17,034 per pupil x pupils x GCA x 2/3 2,848,262$

STEP 6 Speech Only Enrollment 28

$1,159 per pupil x pupils x GCA 32,299$

28,772,561$

ADEQUACY BUDGET CALCULATION

ADEQUACY BUDGET Total Step 1 to 6

Under-Adequacy

Report of District Status from State

2016-17 General Fund Tax Levy $11,054,967

Equalization Aid Received + $8,149,685

Total Budged Adequacy Spending $19,204,652

District Adequacy Budget - $28,772,561

TOTAL UNDER ADEQUACY ($9,567,909)

• All calculations performed pursuant to NJSA 18A:7F-51

FY 17 State Aid Distribution

• All districts received an increase of at least $10 per pupil. This is contrary to code and the spirit of the School Funding Reform Act. To circumvent regulations new aid categories are formed.

• NJSA 18A:7F-52 codified in 2007 predicted that not enough money would exist to fully fund the School Funding Reform Act and states in pertinent part, “In the event that these rates, when used in accordance with the provisions of this section and assuming that each district's general fund levy is equal to its local share, do not result in equalization aid for all districts equal to the Statewide available equalization aid, the commissioner shall adjust these rates appropriately, giving equal weight to each.”

State Aid Per Pupil

Pupils State Aid State Aid Per Pupil

FY 11 1393 $8,733,131 $6,269

FY 12 1445 $8,703,074 $6,022

FY 13 1480 $9,176,188 $6,200

FY 14 1540 $9,611,330 $6,241

FY 15 1599 $9,643,250 $6,031

FY 16 1636 $9,643,250 $5,894

FY 17 1692 (projected) $9,744,020 $5,759

15/16 Proposed 15/16 Revised 16/17 Proposed $ Change % Change

Salaries 12,235,805$ 12,336,007$ 12,499,022$ 163,015$ 1.32%

Benefits 4,798,511 4,624,270 5,101,550 477,280$ 10.32%

Central Office 394,647 430,014 413,775 (16,239)$ -3.78%

Cirriculum & Instruction 220,362 219,331 214,678 (4,653)$ -2.12%

Pupil Services 1,364,530 1,343,345 1,365,547 22,202$ 1.65%

Facilities 804,730 964,438 740,183 (224,255)$ -23.25%

Gifted & Talented 18,000 18,000 18,000 -$ 0.00%

Technology/Testing 165,070 162,970 168,098 5,128$ 3.15%

FLC 43,165 43,580 46,620 3,040$ 6.98%

FIS 85,510 78,942 113,359 34,417$ 43.60%

PAE 46,050 46,150 50,000 3,850$ 8.34%

ESL 23,493 23,883 22,848 (1,035)$ -4.33%

Transportation 601,594 700,908 800,983 100,075$ 14.28%

SDA Assessment 22,899 22,899 22,899 -$ 0.00%

Capital Projects 50,000 434,221 - (434,221)$ -100.00%

Total Operating Budget 20,874,366$ 21,448,958$ 21,577,562$ 128,604$ 0.60%

Recap of Balances Original Budget 20,874,366$

Reserve for Prior Year

Encumbrances 137,730

W/D From Cap 400,732

Maint 36,130

15/16 Revised Budget 21,448,958$

Tentative FY 17 Operating Budget Summary

This presentation is meant to start a discussion on the 2016/2017 budget. All of the information contained herein is a projection.

Title 2015-16 2016-17 $ Difference % Change

Local Tax Levy 10,566,139$ 11,054,967$ 488,828$ 4.63%

Unrestricted Miscellaneous Revenues 55,000 40,000 (15,000) -27.27%

Other Restricted Miscellaneous Revenues - - - 0.00%

SUBTOTAL - REVENUES FROM LOCAL SOURCES 10,621,139$ 11,094,967$ 473,828$ 4.46%

Categorical Transportation Aid 44,314 54,775 10,461 23.61%

Extraordinary Aid 100,000 100,000 - 0.00%

Categorical Special Education Aid 821,499 842,591 21,092 2.57%

Equalization Aid 8,115,888 8,149,685 33,797 0.42%

Categorical Security Aid 194,487 212,987 18,500 9.51%

Adjustment Aid - - - 0.00%

Professional Learning Community Aid - 16,920 16,920 0.00%

Other State Aids 467,062 467,062 - 0.00%

SUBTOTAL - Revenues from State Sources 9,743,250$ 9,844,020$ 100,770$ 1.03%

Medicaid Reimbursement 45,015 84,541 39,526 87.81%

SUBTOTAL - Revenues from Federal Sources 45,015$ 84,541$ 39,526$ 87.81%

Budgeted Fund Balance - Operating Budget 414,962 554,034 139,072 33.51%

Withdrawal from Cap Res-for Local Share - - 0.00%

Withdrawal from Maint. Reserve 50,000 - (50,000) -100.00%

Adjustment for Prior Year Encumbrances - 0.00%

Actual Revenues (Over)/Under Expenditures - - 0.00%

TOTAL OPERATING BUDGET 20,874,366$ 21,577,562$ 703,196$ 3.37%

Projected Revenue Plan

Tax Levy History

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

13-14 14-15 15-16 16-17

Tax Levy Increase

Tax Levy Increase

Next Steps

• Tentative Budget Adoption by the Board March 7th

• Budget goes to Executive County Superintendent of Schools for review/adjustment

• After approval from county, budget advertised in Asbury Park Press

• Public Hearing to be held April 25th

• Final Approval and Adoption by Board

• User Friendly Budget posted to website

Questions