HARDING TOWNSHIP SCHOOL DISTRICT

2014-2015 Tentative Budget

Dr. Alex Anemone, SuperintendentDr. Dennis Frohnapfel, Interim Business

AdministratorMarch 3, 2014

BOARD OF EDUCATION

Mr. Dev Modi- PresidentMr. John Flynn - Vice

PresidentMr. Jim Novotny

Mrs. Kim MacaulayMr. Davor Gjivoje

Budget Process and Timeline

• Fall 2013 – Administrative team identifies budgetary needs for 2014-2015 budget.

• Fall 2013 – Budget Guidelines crafted• 12/2/13 – Preliminary Budget Presentation I• 1/20/14 – Preliminary Budget Presentation II• 2/25/14 – Gov. Christie Budget Address• 2/27/14 – State Aid figures released• 3/3/14 – Tentative Budget• 3/20/14 – Tentative Budget submitted to ECS.• 5/5/14 – Public Hearing on the Budget

PROPOSED 2014-2015 BUDGET

•Maintains conservative fiscal practices, easing the burden on taxpayers.•Provides financial resources that support our district goal(s). •Strong focus on core academic mission while maintaining emphasis on social-emotional learning, co-curricular activities as well as capital needs. •When actual financial figures are not available, estimates are used. (HTEA, MPS, OOD, etc.)

2014-2015 BUDGET GUIDELINES

• Continue to fund all programs and services…working within the confines of the property tax levy cap.

• Protect free balance at a maximum level permitted by State law.

• Maintain staffing configuration.• Continue to be conservative in the

expenditures of public moneys.

2014-2015 BUDGET GUIDELINES

• Allocates funds for:• Technology Plan• Capital Improvements (LRFP)• Local Professional Development Plan

(LPDC)

• Develop a prudent budget that is aligned with the district’s instructional priorities, addresses the needs of all our students and allocates sufficient funds to ensure professional development for staff.

2014-2015 BUDGET GUIDELINES

• Continue to ensure that the financial planning process is integrated and aligned with the district priorities and includes planning objectives based on statewide assessments and the 2013-2018 Strategic Plan.

• Derive budget expenditures from supplier quotations, official data and actual expenditures from previous years.

Non-Discretionary Expenses

• Projected increases:• Salaries +1.5%• Health Benefits +22%

• Part of this increase is directly related to implementation of the Affordable Care Act (ACA).

• Prescription +5%• Special Education Out of District tuition

+6%• Transportation +2%• Utilities/Maintenance overtime

Budget Highlights• Maintains staffing configuration (two

sections per grade) and all co-curricular activities.

• Math in Focus (Singapore Math) - grades K-5.

• Money budgeted for staff professional development and curriculum writing.

• Ongoing costs associated with Achieve NJ, TEACH-NJ, ABR implementation, Janet’s Law, transition to PARCC and the Common Core State Standards. (unfunded mandates)

Budget Highlights (cont’d)

• Measures of Academic Progress: grades 2-8.

• Otis Lennon School Ability Test: grade 3.• Smartboard replacement cycle plus other

technology improvements including new computers in L/MC lab.

• Meets all 2014-2015 Budget Guidelines as crafted by the Facilities and Finance Committee and adopted by the Board of Education.

REVENUE HISTORY•Tax Levy•1997-2011 (average) 6.01% increase•2011-2012 1.96% increase•2012-2013 1.78% increase•2013-2014 1.50% increase•2014-2015 2.81% increase

•State Aid•2009-2010 ~$360,000•2010-2011 $0•2011-2012 $181,191•2012-2013 $225,137•2013-2014 $225,137•2014-2015 $233,677

REVENUE HISTORYTax Levy % Increase

1997-2011 2011-2012 2012-2013 2013-2014 2014-20150.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%6.01%

1.96%

1.78%

1.50%

2.81%

REVENUE HISTORYState Aid

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000 ~$360,000

$0

$181,191$225,137

$225,137

$233,677

Capital Projects

• Elementary School Windows and Unit-Ventilators. Under the ROD (Regular Operating District) Grant, the State will pay for 40% of this project. The BOE local share is 60%. (summer 2014)

• Additional security measures (tbd).

2014-2015 Budget

• Operating Budget = $10,254,751– Increase of $232,739 or 2.32%

• Total Budget = $10,846,024– Increase of $213,624 or 2.01%

• Tax Levy Increase = 2.81%– Includes Health Care Adjustment of

$18,226– Includes Banked Cap from 2011-2012 of

$54,523

Budget Efficiencies• Budgeted excess surplus of $274,561. This

represents an increase of $99,671 or 56.99%. • Slight increase in state aid +$8,540. This

represents an increase of 3.79% in Categorical State Aid.

• High quality Integrated Pre-K Program (ongoing).• Legislated increases in staff members paying for

health benefit premiums (Tier IV - up to 35% of premium).

• Continued shared services with Harding Township.• Supply accounts.• Tuition students (PK-8) included.

RevenuesREVENUES 2013-2014 $ Changes 2014-2015

Local Tax Levy (including banked cap of $54,523)

$9,019,961 $253,148 $9,273,109

Tuition $78,400 ($26,100) $52,300

Transportation Fees $10,000 None $10,000

Building Usage Fees $9,000 None $9,000

Misc. Revenue $60,500 ($44,454) $16,046

State Aid (Categorical) $225,137 $8,540 $233,677

Extraordinary Aid (Sp. Ed.)

$190,000 $10,000 $200,000

Budgeted Fund Balance $174,890 $99,671 $274,561

Withdrawal Capital Reserve

$254,124 ($68,066) $186,058

Special Revenue (Federal)

$75,788 ($12,240) $63,548

Local Tax Levy (Debt Svc.)

$496,428 ($6,385) $490,043

Debt Svc. Aid $38,172 ($490) $37,682

TOTAL $10,632,400 $213,624 $10,846,024

Expenses – Fund 11General Expenses 2013-2014 $ Changes 2014-2015

Gen. Education Instruction

$2,355,590 $76,573 $2,432,163

Sp. Ed. Instruction $956,201 $38,240 $994,441

Sp. Ed./Tuition $2,581,575 $131,209 $2,712,784

Attendance/Health/LMC $162,219 $4,273 $166,492

Improvement Instruction

$204,857 ($45,982) $158,875

Support Svc. Gen. Admin.

$304,926 $4,151 $309,077

Support Svc. School Admin.

$24,583 $12,792 $37,375

Central Svc./IT Admin $136,561 ($3,635) $132,926

Operation/Mt. Plant $866,880 $56,401 $923,281

Student Transportation $845,689 $32,935 $878,624

Health Benefits $1,213,802 $81,013 $1,294,815

TOTAL – FUND 11 $9,652,883 $387,970 $10,040,853

Expenses - Funds 11, 12, 20, 40

Expenses 2013-2014 $ Changes 2014-2015

Total – Fund 11 $9,652,883 $387,970 $10,040,853

Capital Outlay – Fund 12

$369,129 ($155,231) $213,898

Special Revenue – Fund 20

$75,788 ($12,240) $63,548

Debt Service – Fund 40 $534,600 ($6,875) $527,725

TOTAL $10,632,400

$213,624 $10,846,024

ESTIMATED Tax Information

• 2014 Total Taxable Assessment=$2,027,888,710.00

• 2014 Average Residential Assessment=$1,196,734.56

• Current Tax Rate = 0.463• Estimated Proposed Tax Rate =

0.475• Estimated Difference = 0.012

+2.53% increase

Budget Vote and Election• In 2012, Gov. Christie signed legislation that

eliminated the need for a public vote on the school budget if the budget remains at or below the two percent tax levy cap, including use of banked cap.

• On February 13, 2012, the Harding Township BOE adopted a resolution to move the annual school election from April to November beginning in 2012.

• Since the proposed 2014-2015 HTS budget is within the cap (including banked cap and health care adjustment) it will not be on the ballot in November.

• To comply with new NJDOE regulations, the Public Hearing on the budget has been moved to the May 5 BOE meeting. That meeting will begin at 7:30p.m. in the L/MC.