2019 2020 PUBLIC BUDGET HEARING Board of Education Meeting April - - PowerPoint PPT Presentation

2019 – 2020 PUBLIC BUDGET HEARING

Board of Education Meeting April 29, 2019

What Guides Budget Development?

Respect | H Hard Wor

• rk | In

Integrity | D Diversity y | C Com

• mmu

munication | E Excellence

Thre hree-Year D Distri rict G Goals ls

■ To continue to provide a safe, healthy environment for students and staff ■ To continue to enhance instructional practice and increase student achievement in accordance with research and experience in best practices and in alignment with the New Jersey Student Learning Standards ■ To continue to upgrade infrastructure and equipment to

• perate efficiently and effectively

■ To continue to enhance school district – stakeholder relationships ■ To complete a detailed study of the current school configuration, attendance zones, and facility use (no impact on the 2019-2020 school year or budget)

Asses essment ments a and I Input uts

■ Student Academic, Social/Emotional, Behavioral, and Physical Needs ■ Instructional and Non-instruction Assessment and Evaluation ■ Federal and State Mandates ■ Budget Review and Analysis ■ Stakeholder Input:

– Voices of voters

■ Two failed bond referendums for roofing projects ■ Message was “save the money” and / or “use State funds”

– We listened!

■ Maintenance Reserve ■ Capital Reserve ■ Emergency Reserve ■ SDA grants

Where Children and Learning Come First

NJDOE Budget Efficiencies Matrix

(Source: NJDOE mid-year budget review)

Efficiency Standards: On a per student basis, the district spends:

■ Administrative Costs – $354 less than state average ■ Operations of Plant and Maintenance – $335 less than state average ■ Legal services – $35 less than state average ■ Support Services – $390 less than state average Note: Less than the state average on these standards is a favorable rating.

Efficiency Standards: Staff ratios compared to state average:

■ Education Support staff to students – Above ve by 4.9 students ■ Administrative personnel to students – Above ve by 51.1 students ■ Administrative personnel to faculty – Above ve by 5 faculty members Note: Above the state average on these standards is a favorable rating.

Atlantic - Galloway Twp Advertised Appropriations

Budget Category Account 2017-18 Actual 2018-19 Revised 2019-20 Proposed General Current Expense: Instruction: Regular Programs - Instruction 11-1XX-100-XXX 15,933,709 16,585,753 16,427,824 Special Education - Instruction 11-2XX-100-XXX 7,467,473 7,568,837 8,233,953 Basic Skills/Remedial - Instruction 11-230-100-XXX 848,031 1,247,424 1,067,935 Bilingual Education - Instruction 11-240-100-XXX 680,476 688,361 737,969 School-Spon. Co/Extra Curr. Actvts. - Inst 11-401-100-XXX 48,269 58,348 62,903 School-Sponsored Athletics - Instruction 11-402-100-XXX 45,844 53,900 53,900 Support Services: Undistributed Expenditures - Instruction (Tuition) 11-000-100-XXX 1,419,143 1,284,143 1,158,145

• Undist. Expend.-Attendance And Social Work

11-000-211-XXX 17,237 29,720 33,033

• Undist. Expenditures - Health Services

11-000-213-XXX 422,813 465,933 533,139

• Undist. Expend.-Speech, OT, PT And Related Svcs

11-000-216-XXX 754,352 761,866 771,540 Undist Expend-Oth Supp Serv Std-Extra Serv 11-000-217-XXX 540,220 747,509 809,873

• Undist. Expenditures - Guidance

11-000-218-XXX 620,683 610,098 571,796

• Undist. Expenditures - Child Study Teams

11-000-219-XXX 1,653,560 1,816,001 1,868,582

• Undist. Expend.-Improv. Of Inst. Serv.

11-000-221-XXX 712,712 695,150 767,488

• Undist. Expend.-Edu. Media Serv./Library

11-000-222-XXX 468,556 463,101 459,392

• Undist. Expend.-Instr. Staff Training Serv.

11-000-223-XXX 72,319 121,997 112,513

• Undist. Expend.-Support Serv.-Gen. Admin.

11-000-230-XXX 690,605 926,745 933,734

• Undist. Expend.-Support Serv.-School Admin.

11-000-240-XXX 1,870,319 2,201,587 1,959,070

• Undist. Expend. - Central Services

11-000-251-XXX 502,059 520,917 535,146

• Undist. Expend. - Admin. Info Technology

11-000-252-XXX 464,429 589,022 493,884

• Undist. Expend.-Oper. And Maint. Of Plant Serv.

11-000-26X-XXX 4,724,508 4,967,382 4,579,346

• Undist. Expend.-Student Transportation Serv.

11-000-270-XXX 3,850,184 4,589,226 4,498,286 Personal Services - Employee Benefits 11-XXX-XXX-2XX 12,037,510 13,972,528 15,106,563 Total Undistributed Expenditures 30,821,209 34,762,925 35,191,530 Interest Earned On Maintenance Reserve 10-606 185 185 Interest Earned On Current Expense Emergency Res 10-607 15 15 Total General Current Expense 55,845,011 60,965,748 61,776,214 Capital Expenditures: Equipment 12-XXX-XXX-730 31,703 Facilities Acquisition And Const. Serv. 12-000-400-XXX 44,186 44,186 44,186 Capital Reserve - Transfer To Capital Projects 12-000-400-931 2,845,000 521,000 296,415 Interest Deposit To Capital Reserve 10-604 300 300 Total Capital Outlay 2,889,186 565,486 372,604 Transfer Of Funds To Charter Schools 10-000-100-56X 389,261 571,601 386,678 General Fund Grand Total 59,123,458 62,102,835 62,535,496 Special Grants and Entitlements: Local Projects 20-XXX-XXX-XXX 34,464 Preschool Education Aid: PEA Instruction 20-218-100-XXX 102,577 153,830 386,541 Support Services 20-218-200-XXX 20,435 572,458 1,836,379 Total Preschool Education Aid 20-218-XXX-XXX 123,012 726,288 2,222,920 Other State Projects: Nonpublic Textbooks 20-XXX-XXX-XXX 21,166 25,000 25,000 Nonpublic Auxiliary Services 20-XXX-XXX-XXX 85,158 75,000 75,000 Nonpublic Handicapped Services 20-XXX-XXX-XXX 105,521 125,000 125,000 Nonpublic Nursing Services 20-XXX-XXX-XXX 49,198 25,000 25,000 Nonpublic Technology Initiative 20-XXX-XXX-XXX 15,787 10,000 10,000 Nonpublic Security Aid 20-XXX-XXX-XXX 45,141 15,000 15,000 Total Other State Projects 321,971 275,000 275,000 Total State Projects 20-XXX-XXX-XXX 444,983 1,001,288 2,497,920 Preschool Expansion Grant Instruction 20-220-100-XXX 467,782 487,483 Preschool Expansion Grant Support Services 20-220-200-XXX 740,591 651,803 Preschool Expansion Grant 20-220-XXX-XXX 1,208,373 1,139,286 Federal Projects: Title I 20-XXX-XXX-XXX 568,920 692,838 588,912 Title II 20-XXX-XXX-XXX 76,042 154,479 131,307 Title III 20-XXX-XXX-XXX 29,822 25,276 21,485 Title IV 20-XXX-XXX-XXX 8,380 39,087 33,224 I.D.E.A. Part B (Handicapped) 20-XXX-XXX-XXX 1,035,351 989,008 840,657 Total Federal Projects 20-XXX-XXX-XXX 2,926,888 3,039,974 1,615,585 Total Special Revenue Funds 3,406,335 4,041,262 4,113,505 Repayment of Debt: Total Regular Debt Service 40-701-510-XXX 225,193 217,165 209,138 Total Debt Service Funds 225,193 217,165 209,138 Total Expenditures/Appropriations 62,754,986 66,361,262 66,858,139 Total Expenditures Net of Transfers 62,754,986 66,361,262 66,858,139

Atlantic - Galloway Twp Advertised Revenues

Budget Category Account 2017-18 Actual 2018-19 Revised 2019-20 Proposed Operating Budget: Revenues from Local Sources: Local Tax Levy 10-1210 32,076,050 32,557,191 33,208,335 Total Tuition 10-1300 903,764 400,000 450,000 Unrestricted Miscellaneous Revenues 10-1XXX 940,452 160,000 200,000 Interest Earned On Current Expense Emergency Res 10-1XXX 137 15 15 Interest Earned On Maintenance Reserve 10-1XXX 3,450 185 185 Interest Earned On Capital Reserve Funds 10-1XXX 3,172 300 300 Subtotal - Revenues From Local Sources 33,927,025 33,117,691 33,858,835 Revenues from State Sources: Categorical Transportation Aid 10-3121 389,818 1,088,704 1,088,704 Extraordinary Aid 10-3131 504,142 250,000 250,000 Categorical Special Education Aid 10-3132 1,996,732 1,996,732 1,996,732 Equalization Aid 10-3176 20,783,756 20,783,756 21,535,033 Categorical Security Aid 10-3177 739,882 739,882 739,882 PARCC Readiness Aid 10-3181 33,240 Per Pupil Growth Aid 10-3182 33,240 Professional Learning Community Aid 10-3183 32,185 Other State Aids 10-3XXX 109,988 Subtotal - Revenues From State Sources 24,622,983 24,859,074 25,610,351 Revenues from Federal Sources: Medicaid Reimbursement 10-4200 211,790 119,525 233,606 Subtotal - Revenues From Federal Sources 211,790 119,525 233,606 Budgeted Fund Balance - Operating Budget 10-303 3,054,269 2,536,289 Withdrawal From Cap Res-For Local Share 10-307 521,000 196,415 Withdrawal From Maint. Reserve 10-310 170,850 Withdrawal From Current Expense Emergency Rsv 10-312 100,000 Adjustment For Prior Year Encumbrances 260,426 Actual Revenues (Over)/Under Expenditures 361,660 Total Operating Budget 59,123,458 62,102,835 62,535,496 Grants and Entitlements: Other Revenue From Local Sources 20-1XXX 34,464 Total Revenues From Local Sources 20-1XXX 34,464 Revenues from State Sources: Preschool Education Aid - Pr Yr Carryover 20-3218 20,712 Preschool Education Aid 20-3218 102,300 726,288 2,222,920 Other Restricted Entitlements 20-32XX 321,971 275,000 275,000 Total Revenues From State Sources 444,983 1,001,288 2,497,920 Revenues from Federal Sources: Title I 20-4411-4416 568,920 692,838 588,912 Title II 20-4451-4455 76,043 154,479 131,307 Title III 20-4491-4494 29,822 25,276 21,485 Title IV 20-4471-4474 8,380 39,087 33,224 I.D.E.A. Part B (Handicapped) 20-4420-4429 1,035,350 989,008 840,657 Preschool Development Expansion Grant 20-4527 1,208,373 1,034,286 Preschool Development Expansion Grant-Pr Yr C/O 20-4527 105,000 Total Revenues From Federal Sources 2,926,888 3,039,974 1,615,585 Total Grants And Entitlements 3,406,335 4,041,262 4,113,505 Repayment of Debt: Revenues from Local Sources: Local Tax Levy 40-1210 72,956 132,398 127,504 Total Revenues From Local Sources 72,956 132,398 127,504 Revenues from State Sources: Debt Service Aid Type II 40-3160 87,900 84,767 81,634 Total Local Repayment Of Debt 160,856 217,165 209,138 Actual Revenues (Over)/Under Expenditures 64,337 Total Repayment Of Debt 225,193 217,165 209,138 Total Revenues/Sources 62,754,986 66,361,262 66,858,139 Total Revenues/Sources Net of Transfers 62,754,986 66,361,262 66,858,139

Advertised Budget

Budget Basics

■ Enrollment remained stable ■ Ratables (net valuation taxable) increased by approximately $18,453,100

– 2010 3.7 billion – 2019 2.7 billion

■ State Aid increased from 18-19 to 19-20 “equalization aid”

– $751, 277* – *Note that this increase affects the state aid percentage of revenue less than 1%

■ Total tax levy 2% cap = $32,557,191 ■ General fund budgetary increase at 2% = $651,144*

– *=1.06% of General Operating Budget

■ Banked cap available = $324,940

– Last year $276,455 expired

■ Health care cost adjustment available = $485,350

■ Total Tax Levy Increase Available = $1,461,434 – 4.9% of general fund ■ Less: Actual Levy Increase Used $651,144 ■ Equa uals: $ $810,290 Unus Unused Availa lable L le Levy

FY 19 FY 20 State Aid at Fully Funded 29,119,506.00 $ 30,388,126.00 $ Underfunded Total (4,510,432.00) $ (5,027,775.00) $

A look at 19-20 Equalization Aid “increase”…

■ The State recognized that it cost $566 more per pupil to provide NJ public school children an adequate public education for 19-20 ■ NJ has approx. 1.375 million children enrolled in public schools ■ Estimating the increase cost of educating NJ public school children:

– $566 per pupil increase x 1.375 million = $778 million – FY 20 Governor’s Budget Address reported an additional $206 million to public school funding – That means the State shifted $572 million of the increased cost to local school districts

■ Adequacy Budget =

– State Aid + Levy/Local Fair Share

■ Total Equalization aid at Chapter 67 “fully funded” = $24,371,748 ■ Equalization aid received = $21,535,033 ■ Underfunded equalization aid = $2,836,715 ■ In addition…

– The multiplier rate for Equalized Valuations increased on the local fair share side – This increase shifts the burden of adequacy cost from the State to the taxpayer significantly reducing eligibility for equalization aid. – $1,861,680 is the additional increase we would have received in 19-20 if the rates remained unchanged.

What th this m means ns i in n Galloway f y for 19-20? 20? Increase in costs to provide an adequate education per DOE: $566pp x 3,490 pupils = $1,975,340 Increase to budget: $751,277 state aid + $651,144 tax levy = $1,402,421

Cost Savings Measures

■ In-House Work: – Maintenance, Technical Services, Printing ■ Professional Development ■ Administrators serve multiple roles ■ Shared Services – Cafeteria ■ Closing / razing of schools ■ Purchasing cooperatives ■ Eliminated the majority of courtesy busing ■ Reduced activity buses ■ Utilized grant funds where allowable and available ■ Reductions-in-Force (positions never returned): – 1 less PE/Health teacher, 2 fewer world language teachers, 1 less art and 1 less music teacher, 5 fewer counselors, 4 fewer TLFs, 4 fewer secretaries, 2 fewer nurses, No Assistant Superintendent, Elementary Library secretaries reduced to part-time, Some intervention teachers are part-time, Changed one facilities manager position to an assistant manager ■ Energy Management Savings Since May 2007=$6.3million+

■ Joined the ACCASBOJIF for significant savings to general and liability insurances ■ Re-negotiated printing contract ■ Implemented secured printing to copiers ■ Used reserves for facility needs and required maintenance projects ■ Used lease purchase for technology and facilities equipment ■ Negotiated change in benefits package for all employees ■ Assessed and re-designed aspects of special education ■ Added or expanded programs ■ Decreased full-time LLD classes and added pull-out resource ■ Decreased number of out-of-district tuition students ■ Increased number of tuition-in students ■ Further reduced secretaries ■ eliminated part-time library secretary positions at elementary schools ■ reduced 1 MS secretary position to part-time ■ Reviewed (annually) number of classroom teachers ■ 9 fewer classroom teachers starting in 2015-2016 ■ 2016-2017 returned 2 elementary teacher positions ■ 2017-2018 reduced 3 elementary teacher positions ■ 2018-2019 projection – reduce 1 elementary teacher position ■ 2019-2020 – same number of elementary teachers ■ Net result: 11 fewer positions in 19-20 than 14-15

Government Mandates

■ Continue to provide resources for meeting the existing DOE mandates in all content areas ■ Maintain technological readiness, provide student support and teacher training for all required State testing: – ELA/Math (grades 3 – 8 new test is the Student Learning Assessment) – Science (grades 5 and 8) – ESL (Access for ELLs 2.0) – Alternate assessment for identified special education students (DLM - Dynamic Learning Maps)

■ Changes to the NJ Student Learning Standards and/or State Assessments that often require curriculum planning, new materials, and/or professional development ■ Legislation that requires new instructional and/or non- instructional programs, materials/equipment and/or practices

What’s in the Budget?

Highlights of Programs and Services for Students and Staff

■ Maintain virtually all existing programs & services ■ Continue priority on class size ■ Maintain and expand tools and training to address varying student needs ■ Implement the writing workshop model across all grade levels ■ Continue emphasis on STEM (science, technology, engineering, and mathematics) and STEAM (A=arts) ■ Expand intervention and support services to students ■ Furnish in-district ongoing professional development across grades, content areas, and departments

Personnel

■ Student Services ■ TLF for special education (position eliminated several years ago) ■ CST member for PO (one at the present time) ■ Floating Nurse (position eliminated several years ago) ■ Intervention ■ GTMS: add two intervention teachers – English Language Arts (none at the present time) ■ Arthur Rann: increase a part-time to full-time ■ Roland: returned a part time

Highlights of Non-Instructional Needs

■ Enhance school safety/security – Install lockdown alert devices and additional equipment (capital project with some costs in the local budget) ■ Continue general cleaning, repairs, and maintenance…including inclement weather clean-up – For specific projects either maintenance reserve or capital reserve is used ■ Support and upgrade technological infrastructure – Including needs related to increased cyber-security and training ■ Provide required daily transportation to and from school – Continuing same level of service in current budget with possible routes reductions based on review in cooperation with GEHRSD ■ Meet all Federal and State requirements

Requests Not Included in and/ or Reductions Made to the Budget to reach the 2% cap Level

■ Prioritization of facilities projects: – moved to Maintenance Reserve or

• r

– eliminated from budget ■ Review of various supply accounts based on current year status and anticipated needs: – reductions made in virtually every instructional and non-instructional account ■ Review of personnel and professional development. – Reductions in:

■ various salary accounts based on review of retirees (breakage or not replacing) ■ total number of teachers/special education (does not result in a reduction-in- force due to retirements) ■ every category of professional development (relying on Title IIA Federal funding)

– Not Included

■ GTMS: two teachers for alternative program ■ Reeds Road: part-time intervention and part-time ESL

■ Adjustments made by Business Administrator based on educated projections including: – health benefits – liability insurance/workers comp – transportation

Instructional and Non-Instructional totaling

$2,382,237

Tax Impact

2.0% 2018-2019 2019-2020 2019-2020 Budget Budget Tax Impact GTPS Tax Levy General Fund Tax Levy 32,557,191.00 $ 33,208,335.00 $ 651,144.00 $ Debt Service Tax Levy 132,398.00 $ 127,504.00 $ (4,894.00) $ Total Tax Levy 32,689,589.00 $ 33,335,839.00 $ 646,250.00 $ Net Valuation Taxable 2,695,366,700.00 $ 2,713,819,800.00 $ 18,453,100.00 $ General Fund Tax Rate 1.199 $ 1.212 0.01271 Debt Service Tax Rate 0.004 $ 0.005 0.00098 Total School Tax Rate 1.203 1.216 0.01369 Home Assessment $200,000 Total Taxes 2,405.56 $ 2,432.93 $ 27.38 $ $100,000 Total Taxes 1,202.78 $ 1,216.47 $ 13.69 $

200,000.00 $ 18-19 2% Levy Increase Effect 19-20 Difference Local 2,408.00 27.38 2,435.38 27.38 Regional 1,388.00 (69.40) 1,318.60 (69.40) 3,796.00 (42.02) 3,753.98 (42.02)

The Budget Process to Date:

■ Presented information at three previous public meetings ■ Received board and public input ■ Held board small group Committee meetings ■ Conducted administrative budget meetings ■ Identified requests that were appropriate yet needed to be reduced due to budget constraints ■ Presented and received Board approval for proposed budget in March ■ Obtained NJDOE approval of budget ■ Advertised budget in Press

Next Steps…

■ Public Budget Hearing following this presentation ■ Board resolution voted on tonight to set budget and tax levy

■ Note new approval process: Per DOE only specific/material changes approved by the Board at the Public Hearing are allowed

■ User Friendly Budget posted on the district website within 48 hours of board approval

FINAL THOUGHTS QUESTIONS / COMMENTS

Public Comments Governed by Board Policy 1120.00 Where Children and Learning Come First