Middletown Township Board of Education

Budget Workshop Meeting February 5, 2020

NJ Department of Education Budget Statement of Priorities

Each year, when the district’s budget is submitted to the state, it is accompanied by a “Statement of Priorities”. This statement includes the following categories for which the district is required to provide an explanation of the items related to each that are included in the budget:

Maintain Our School System ScienceRaising Standards and Expanding Opportunities English Language ArtsBuilding Professionalism Social Studies21st Century Life and Careers Visual and Performing ArtsPlanning for the Future Health and Physical EducationProtecting our Investment MathematicsWorld Languages Technology

As we prepare the budget for 2020-2021, we need to keep in mind the expectation that the district not only “maintain our school system” and “protect our investment” but also “raise standards and expand opportunities” as we “plan for the future” relative to all of the subject areas we teach. Elimination of items in the proposed budget has the potential to not only limit our ability to maintain and expand our existing programs but also to cause a reduction in the opportunities provided to our students.

Proposed Budgeted Revenue (2.74% tax levy increase) DRAFT 2/5/2020

2019-2020 2020-2021 Change $ Notes

Tax levy $143,618,246 $147,549,892 $3,931,646 2% increase plus banked cap of $1,059,281

State aid $16,614,673 $15,764,137 ($850,536) Estimated reduction

Extraordinary aid $1,500,000 $1,500,000 $0 2018-2019 award was $1,731,217

Fund balance $0 $0 $0 No excess surplus

Other local sources and interest $970,000 $1,000,000 $30,000 Based on 2018-2019 actual

Capital reserve $140,000 $728,911 $588,911 Based on cap. projects

Federal aid(SEMI) $210,042 $222,510 $12,468 Amt. determined by state

Transportation fees - other LEA’s $630,029 $800,000 $169,971 Based on anticipated jointures

Total $163,682,990 $167,565,450 $3,882,460

Summary of Proposed Budgeted Appropriations - DRAFT 2/5/2020

2019-2020 2020-2021 Change $ Change %

Regular Programs - Instruction $58,153,400 $60,720,239 $2,566,839 4.4%

Total Special Education - Instruction

$18,540,156 $20,051,016 $1,510,860 8.1%

Total Co-Curricular, Athletics, After School and Summer programs

$2,457,443 $2,522,564 $65,121 2.6%

Total Tuition $5,849,749 $5,514,515 ($335,234) (5.7%)

Attendance, Health, Related Services, and Guidance

$8,445,625 $8,720,117 $274,492 3.3%

Other Student Support Services - Special Education $6,197,694 $6,271,233 $73,539 1.2%

Improvement of Instruction, Staff Training, Media Services $1,370,854 $1,143,731 ($227,123) (12.9%)

Summary of Proposed Budgeted Appropriations (cont.) - DRAFT 2/5/2020

2019-2020 2020-2021 Change $ Change %

School, District, Central and IT Administrative Costs $11,097,869 $11,826,211 $728,342 6.6%

Operation and Maintenance of Plant $14,902,184 $14,589,646 ($312,538) (2.1%)

Student Transportation Services* $10,838,523 $11,535,006 $696,483 6.4%

Employee Benefits $24,795,945 $26,203,962 $1,408,017 5.7%

Capital Outlay $1,023,548 $1,025,306 $1,745 .2%

Estimated reserve interest $10,000 $5,000 ($5,000) (50%)

Total Budget $163,682,990 $170,122,145 $6,439,155 3.9%

*see transportation fee revenue from other LEA’s

Current budget status - 2/5/2020

Total Projected Revenue $167,565,450

Total Projected Appropriations $170,122,145

Budget shortfall $2,556,695 (1.5%)

Without utilizing the $1,059,281 of available banked cap, the budget shortfall increases to $3,615,976.

Revenue

Tax Levy increases since 2004-2005

Average tax levy increase since the implementation of the 2% cap in 2011 is 1.81%.

Banked tax levy capMiddletown’s banked tax levy cap history since 2011-2012 (year of implementation):

Total banked cap generated since 2011-2012 $8,086,724

Total expired banked cap $4,609,285

Total utilized banked cap $2,418,158

Total banked cap currently available $1,059,281

Cumulative effect of unused banked tax levy cap over last nine budget years is $45,290,764.

State AidState Aid - 2010-2011 to 2020-2021 (anticipated)

Capital and Maintenance Reserves

Allowable balances in capital and maintenance reserves are $104,631,989 and $7,768,252, respectively.

BalanceJune 30, 2019

Amount used during 2019-2020

year

Amount allocated to 2020-2021

budget

Remaining Balance

Capital $1,489,491 $140,000 $766,211 $583,280

Maintenance $555,533 TBD $0 $555,533

Total $2,045,024 $140,000 $766,211 $1,138,813

Projected ESSA Grant Awards (assuming 85% funding)

2019-2020 Projected 2020-21 Notes

Title I - Economically Disadvantaged

$541, 519 $460,291 ● Portion of RDT/Math Specialist Salaries (30-40%)

● Parent Engagement Events/Programs● Homeless and “Neglected” Supplies

Title I SIA - Bayshore

$19,400 N/A ● E-Gaming Initiative● Responsive Classroom Pilot● PD for Data Analysis

Title II - Staff PD $159,229 $135,345 ● Responsive Classroom Initiative Elementary ● Learning Design Team Initiative● Math Committee PD ● PD for Literacy Initiatives● PD for Data Analysis

2019-2020 Projected 2020-21 Notes

Title III - ELL $11,001 $9,351 ● SIOP Training● Materials/Supplies ELL Program ● PD ELL Staff Members

Title III - Immigrant $6,461 $5,492 ● Materials/Supplies Immigrant Students● PD ELL Staff Members

Title IV - Extraordinary Educational Opps

$34,003 $28,903 ● GT Program Materials/Supplies● Modules for Restorative Justice HS● Global Education ● Expansion of Summer AP program

Total - ESSA funds

$771, 613($19,400) SIA

$752,213 $639, 382

20-21 projected at 85% of 19-20 allocation, less Bayshore SIA $ (expires)

Projected ESSA Grant Awards (assuming 85% funding), continued

2020-2021 Significant Components by

Budget Area

Significant Components of Budget Areas - Salaries and Benefits 2019-2020 Projected

2020-2021Change $ Notes

Salaries $102,320,559 $104,765,839 $2,445,280 Represents a 2.4% increase; average bargaining unit raises approx. 3%; some reallocation of substitute costs to purchased services (ESS); currently does not include any staffing changes

Employee Benefits (health insurance, pension, workers comp, Social Security)

$24,795,945 $26,203,962 $1,408,017 Includes an increase of $1.4 million in health insurance (approximately 7.6%)

Total salaries and benefits $127,116,504 $130,969,801 $3,853,297

Total general fund budget $163,682,990 $170,122,145 $6,439,155

Salaries and benefits as a % of total

77.7% 77.0% 59.8% Salaries and benefits represent approximately 77% of the total budget and 60% of the increase for 2020-2021

Significant Components of Budget Areas - Personnel

Reductions in Personnel since July, 2018

Administration:Technology SupervisorHS Assistant Principal of GuidanceDirector Of HS Operations

3

Certificated Staff:K-12 classroom teachersEducational Technology SpecialistAlternate Education- Suspension teacher

27

Support Staff:Elementary secretariesCentral Office secretariesMaintenance Mechanic

5

Total 35Administration will continue to evaluate 2020-21 personnel requirements based on changes in student enrollment, MS and HS course registrations, new/revised IEP programs, and department/school needs.

Significant Components of Budget Areas - Curriculum & Instruction Materials, Programs, and Services (exclusive of regular salaries)

2019-2020 Projected 2020-2021

Change $ Notes

Curriculum Adoptions- textbooks, eBooks, small equipment, novels, etc.

$567,995 $1,604,785 $1,036,790 Comprehensive adoptions next year -Elem. Math, Calculus, Geometry, World Languages, HS History, and HS English III & IV (previously deferred due to loss of State Aid)*Still negotiating and considering payment plans

Curriculum writing - new courses and revisions aligned to NJSLS

$203,453 $184,309 ($19,144) Current District Curriculum Cycle ScheduleProposed State Implementation Schedule

Classroom Purchases - online subscriptions to databases, software, assessment-data warehouses, etc.

$431,457 $436,943 $5,486 Decreased costs - Gr. 6-8 iReady assessment in general education classes and HS Anatomy & Physiology resource subscription

New software - Code Monkey, K-5

Supplies - workbooks, misc. consumables (plants), staff eval/PD software, etc.

$339,981 $145,695 ($194,286) Decreased costs- STEMscopes “lab” consumables and classroom library purchases

Recurring costs - HS science lab equip, Frontline staff portal, and online lesson planning software

Significant Components of Budget Areas - Curriculum & Instruction Materials, Programs, and Services (exclusive of regular salaries)

2019-2020 Projected2020-2021

Change $ Notes

Staff Professional Development - workshop registration fees, presenter/facilitator fees for in-district training, paraprofessional workshop presenter stipends

$171,337 $223,471 $52,134 Deceased costs - consultants and out-of-district PD presenters

Recurring costs - Reading & Writing instruction, Brookdale Math/Science Network, TECHSPO, etc.

New expenses - Responsive Classroom ($88,000) and Elementary Health/PE PD ($8,100)

District Field Trips $45,000 $45,000 $0 Poricy Park, K-5 students

School Level Allocations (included in instructional expenses)

Significant Components of Budget Areas - Curricular Technology (exclusive of salaries)

2019-2020 Projected 2020-2021

Change $ Notes

Interactive flat panels $224,000 $448,000 $224,000 District-wide implementation of Interactive flat panel displays.

Chromebooks $487,521 $568,439 $80,918 Refresh of EoL 1:1 chromebooks

AR/VR kits and upgrades $0 $85,820 $85,820 New AR/VR kits in HS & MS.New AR/VR devices in elementary

Graphic Design lab upgrade $0 $85,920 $85,920 Replacement of EoL iMacs & equipment (HSN & HSS)

HS Arts lab upgrade $111,886 $0 ($111,886) Upgrade of PCs and equipment for Arts & Photography labs (HSN & HSS)

Technology lease payment $481,240 $310,456 ($170,784) Final year of tech lease payments. Reduced from 5 yearly rotating leases.

WAP & Infrastructure projects $307,621 $0 ($307,621) Wireless network and firewall upgrade

Significant Components of Budget Areas - Student Services/Special Education (exclusive of salaries)

2019-2020 Projected 2020-2021

Change $ Notes

Tuition $5,849,749 $5,514,515 ($335,234) Includes county vocational tuition, OOD placements, and tuition settlement agreements; change in IDEA

Speech, OT, PT and related services

$1,065,144 $1,468,000 $402,856 Change in IDEA funds

Health related services $1,070,500 $1,087,150 $16,650 Includes 1:1 nursing services, and nursing supplies

CST purchased services $1,161,000 $932,000 ($229,000) Decrease in CST outside services; funds for inclusion facilitation professional services; increase in ESS services for a high school level ESS Autism program; consideration was given to expanding ESS to the middle and elementary school levels.

Significant Components of Budget Areas - Facilities (exclusive of salaries)

2019-2020 Projected2020-2021

Change $ Notes

Cleaning, repair & maint. svcs. $1,359,490 $1,016,010 ($343,480)

Current budget included asbestos removal/flooring replace. at Ocean, Thompson, M. Village; girls’ locker room repairs at Thompson and Thorne; major sidewalk work at Navesink. Proposed budget includes primarily painting, floor replacement in OA pod, minor repairs.

Maintenance supplies $544,059 $526,559 ($17,500)

Custodial/building purchased svcs.

$441,769 $403,610 ($38,159) Includes garbage/recycling contract; copier contract

Custodial supplies $317,681 $356,782 $39,101

Grounds contracted svcs. and supplies $364,379 $412,350 $47,971

Increased allowance for seed purchases; powerwashing

Significant Components of Budget Areas - Facilities - Utilities

2019-2020 Projected2020-2021

Change $ Notes

Water and sewer $235,000 $250,000 $15,000 Increased water consumption - field maintenance

Gas $500,000 $500,000 $0

Electricity $1,500,000 $1,300,000 ($200,000) Additional savings from ESIP

Significant Components of Budget Areas - Transportation (exclusive of salaries)

2019-2020 Projected 2020-2021

Change $ Notes

Aid in Lieu $160,000 $160,000 $0

Contracted svcs - sp. ed. $5,785,999 $6,619,952 $833,953 Offset by $170k increase in revenue; includes $300k addtl. for students not in sending areas; also 2% CPI increase; less routes being done through MOESC

Contracted svcs. - H & S $3,622,508 $3,656,063 $33,555 2% CPI offset by changes in routes

Contracted svcs. - athletics $472,866 $693,000 $220,134 Working on ways to address this area

Contracted svcs. - MOESC $577,714 $150,000 ($427,714) Less routes through MOESC

Contracted svcs. - other $40,000 $40,000 $0 Community based, alternative and special ed trips

Contracted services - total $10,659,087 $11,369,015 $709,928

Significant Components of Budget Areas - Capital Outlay

Proposed Equipment:

Monitors for HSS media center $12,195Copier lease payment (2nd year) $115,000Additional water main at Thompson (irrigation) $30,000North storage shed $25,000Power washer $5,000Top dresser machine $28,000Custodial floor machines $60,000Personal lift for maintenance crew $12,000Special education equipment $25,000

Total equipment $312,195

Significant Components of Budget Areas - Capital Outlay (cont.)

Proposed Projects:

Roof repair/replacement - Fairview $170,000Gym divider replacement - HSN/HSS $36,000HSS media center improvements $79,956Replace bubble doors (2) - HSN/HSS $14,000Replace curb - Fairview $11,000Install fence - Bayview $11,000Replace clock system - Thompson $86,839Replace concrete by side entrance - Thorne $30,000Replace PA and clock systems - Thorne $99,316Extend sidewalk for walkers - Middletown Village $17,000Blind replacements - Thompson, M. Village, New Monmouth, HSN $49,300Carpet replacements - River Plaza(main office); Thompson(library) $37,000Ceiling replacement in team room - HSS $7,500Replace concrete by main entrance - HSN $12,400Various small projects $24,600

$685,911

Significant Components of Budget Areas - Athletics, Co-Curricular and Other Instructional Programs (includes stipends)

2019-2020 Projected 2020-2021

Change $ Notes

Co-Curricular Activities - HS and MS $581,483 $575,750 ($5,733)

Athletics $1,685,960 $1,756,814 $70,854 Band uniform purchase for HSN ($25,000); 1 additional coach for each MS

Other regular education instructional programs

$190,000 $190,000 $0 Before/After School & Summer Programs K-12 (SOAR, MS and AP Jump Start programs)

Total $2,457,443 $2,522,564 $65,121

What’s Next?

● The administrative team will continue to work to develop a plan to balance the 2020-2021 budget. All areas of the budget will remain under review and subject to change.

● The next Public Budget meeting is scheduled for Wednesday, March 4th. ● 2020-2021 tentative budget must be approved by the BOE and submitted to the NJ

Department of Education’s county office by Friday, March 20, 2020. The tentative budget is scheduled to be approved by the Board at its March 18, 2020 voting meeting.

● Public hearing and adoption of the final budget must be done between Friday, April 24 and Thursday, May 7, 2020.