1

South Orange-Maplewood School District

January 26, 2015

February 2, 2015

Budget development process

Enrollment Projections

Guiding budgeting principle: District Goal Four

Alignment of budget to district goals and strategy

Rein in spending: Major Cost Drivers

Comparative spending

Revenue assumptions and historical trends

Budget requests and considerations

Redirect resources to impact student achievement

Estimated tax impact

Next steps

November: Baseline Data for Budget Development

•Enrollment Projections

•Free and Reduced Lunch Eligibility

•Transported Student Data

•Salaries and Benefits

•School Facilities

Annual Comprehensive Maintenance Plan

•Comprehensive Annual Financial Report

•General Fund Free Balance Status

•Debt Service Status

•Budget Calendar and Priorities

December: Budget Development – Budget Analyses

•Technology Investment

•Enrollment Changes and Building Capacity

•Montrose School

•Summer Programming

•Gifted and Talented Program

•Healthcare

•Review of Alternative Options

•Statutory Employee Contributions

•Impact of Affordable Care Act

Projections Actuals Actuals/

Projections

Elementary enrollment 3,235 3,253 100.56%

Middle School Enrollment 1,597 1,587 99.37%

High School Enrollment 1,897 1,898 100.05%

Total General Classroom

Enrollment 6,729 6,738 100.13%

PK Enrollment 18 16 88.89%

Ungraded Enrollment 116 111 95.69%

Total District Enrollment 6,863 6,865 100.03%

0

500

1000

1500

2000

2500

3000

3500

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Grade 5

Grade 4

Grade 3

Grade 2

Grade 1

Kindergarten

3,253

2,978

1,587 1,662

0

200

400

600

800

1000

1200

1400

1600

1800

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Grade 8

Grade 7

Grade 6

1,898

2,127

0

500

1000

1500

2000

2500

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Grade 12

Grade 11

Grade 10

Grade 9

The attainment of district goals

Student proficiency – benchmarks, performance targets, increased

participation in AP courses

Rigorous curricula, differentiated instruction, and expanded learning

opportunities

CHS Strategic plan to be reconfigured around middle states/ online

learning opportunities

Implementation of gifted and talented strategy

Centralized Professional Development

Teacher Evaluations and Learning Walks

Cultural competency training

Implementation of ACHIEVE NJ regulations

Reins in spending on categories rising faster than the cost of living

Health benefits: Employee contributions (NJ Reform), Direct 15

Maintenance expenses: Year over year reductions. Facilities condition

assessment

Energy expenses: increased usage – additional space, additional air

conditioning, additional technology, colder winter; Direct Install, Energy

Audit, Facility Upgrades

Transportation: Increased efficiency (in-district and non-public schools)

Produced in an efficient and transparent manner

Communication with District Administrators

Community Engagement (Tentative: Budget Meeting: March 5, Community

Forum: March 12)

11

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

07-08 08-09 09-10 10-11 11-12 12-13 13-14

Health Cost Trend Analysis

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

07-0808-0909-1010-1111-1212-1313-14

Energy Cost Trend Analysis

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

07-08 08-09 09-10 10-11 11-12 12-13 13-14

Transportation Cost Trend

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

07-08 08-09 09-10 10-11 11-12 12-13 13-14

Tuition Cost Trend Analysis

Source: Dept. of Education Taxpayer’s Guide to Education Spending Budget 2013-14

$14,565

$8,589

$1,513 $1,859

0

2000

4000

6000

8000

10000

12000

14000

16000

Per pupil cost Classroom instruction Total administrative

costs

Maintenance &

Operations

South Orange Maplewood Per Pupil Costs

Comparative Spending

K-12 state average

SO-M

Livingston

Millburn

Montclair

West Orange

13

State aid for 15-16 remains at same level as 13-14

The amount of state aid will not be known until after the Governor’s budget address in February.

Federal grants remain at same level as 14-15

Excess surplus from 2013-14 audit: $2,471,003

Revenues dependent on local sources.

Banked cap is available. ◦ ($506,833 through 2014-15, $409,103 through 2015-16, $970,247

through 2016-17 = total $ 1,886,183 banked cap available)

Local taxes will increase no more than 2% for operating budget

These assumptions are subject to change given the uncertain economic climate.

Budget Year Adjustment

Enrollment Adjustment

Health Care Adjustment

Total Adjust/Cap Available

Banked Cap Expires with SY Budget

Banked Cap 2015-16 Budget

2011-2012 $346,441 $643,322 $989,763 2014-2015 $0

2012-2013 $506,833 $0 $506,833 2015-2016 $506,833

2013-2014 $0 $409,103* $409,103 2016-2017 $409,103

2014-2015 $544,210 $426,037 $970,247 2017-2018 $970,247

Total $2,875,946 $1,886,183

* $884,103 minus $475,000

Tax Levy at 2% of 2013-14

Enrollment Adjustment

Health Care Adjustment

Total Allowable Tax Levy

$106,563,115 $544,210

$426,037 $107,533,362

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Revenue Source Budgeted 2013-14

Budgeted 2014-15

Proposed 2015-16

Operating Budget Local Tax Levy

104,473,642 106,563,115 108,694,377

State Aid 4,075,898 4,216,218

4,075,898

Capital Reserve 589,000 0

0

Fund Balance 2,152,272 1,949,406 2,471,003

Miscellaneous 40,000 40,000 40,000

Debt Service 4,123,451 4,171,789 4,215,054

State/Federal 2,549,881 2,752,626 2,770,556

Total Revenue 118,004,144 119,693,154 122,266,888

TOTAL LOCAL SOURCES

91%

TOTAL STATE AID 3% TOTAL

STATE/FEDERAL PROGRAMS (FUND

20) 2%

TOTAL DEBT SERVICE

4%

Where does school budget revenue come

from?

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State Aid as a Percent of Revenue

7.02%

6.56%

6.26% 5.87%

6.16% 6.12%

5.89%

1.09%

2.80%

3.92%

3.45% 3.52% 3.33%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Multi-Year Impact

4.68%

3.64%

1.58%

-1.69%

3.29% 2.91%

1.59% 1.43%

2.15%

6086

6176

6404

6393

6514 6625 6760

6865 6881

Actual 2007-08

Actual 2008-09

Actual2009-10

Actual2010-11

Actual2011-12

Actual2012-13

Budgeted2013-14

Projected2014-15

Projected2015-16

revenue % increase over prior year enrollment

Staffing compared to enrollments

181.6 182.7 186.2 102.2 101.7 96.3 97.2 95.7

593.32 610.86 659.69 646.96 654.44 653.12 646.65 643.77

6086

6176

6404 6393

6514

6625

6760

6865

5600

5800

6000

6200

6400

6600

6800

7000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

Actual

2007-08

Actual

2008-09

Actual

2009-10

Actual

2010-11

Actual

2011-12

Actual

2012-13

Actual

2013-14

Estimated

2014-15

non-certificated staff certificated staff enrollment

20

• Enrollment Increases

• Middle School Schedules

• STEM initiatives

• Additional academic intervention

• Additional professional development

• Opening of Montrose Early Learning Center

• Seth Boyden enrollments (free/reduced lunch population)

• Gifted and Talented Program

• Increased technology – maintenance, replacement, support

• Middle states accreditation: excellence by design

• Supplies/textbooks for increased ap/accelerated enrollments

• Educational equity consultant/OCR agreement

Analyze every line to identify expenditure reductions

Reduce non-classroom expenses first Technology efficiencies: online progress reports, report cards,

attendance

Technology building support

Health insurance/employee benefits

Consolidate class sections within class size policy and review under-enrolled high school classes

General education scheduling efficiencies

Reduce cost of programs by altering delivery

Take advantage of personnel changes and retirements Organizational restructuring

Centralize programs to maximize efficiencies Centralized professional development

Efficacy of summer programming

Tax Levy CAP $108,694,377

Operating Budget

Tax Impact (est.) 2.00%

Debt Service $ 3,979,426

Local Tax $112,673,803

Operating and

Debt Service

Tax Impact (est.)

1.97%

Year over Year Tax Impact

7.16%

6.11%

4.76%

7.37%

5.07% 4.98%

3.98%

3.48%

1.89% 2.00%

2.93%

1.97% 1.97%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Tax Impact

Mon, Feb 2 BOE meeting (rescheduled): Budget Discussion

Mon, Feb 23 BOE meeting: Budget Discussion

Tues, Feb 24 Governor’s State Budget Message

Thurs, Feb 26 State Aid Notices

March 5 (tentative) BOE Budget Workshop

March 12 (tentative) Community Forum to discuss budget

Mon, Mar 16 BOE meeting: BOE consider/adopt

preliminary budget to send to Essex Co Supt for

approval to advertise

April XX Address Maplewood Township Committee and Village

of South Orange Board of Trustees

Mon, Apr 27 BOE meeting: Public Hearing/action to levy 2015-16

school tax