April 16, 2018 Enrollment up over 10 years, but projected to be flat - PowerPoint PPT Presentation

April 16, 2018

• Enrollment up over 10 years, but projected to be flat year-over- year • State aid down over 10 years, but projected to increase year- over year • Health insurance costs continue to put pressure on the budget • Revenue is based almost entirely on 2% increase over prior year tax levy.

• Enrollment: • Has stabilized • CHS is growing • Health Insurance • District has moved to a self-insured group • Savings should result in FY 2020 • Revenue: • Based almost entirely on 2% increase over prior year tax levy • Increase in state aid

4400 4200 4000 3800 Enrollment 3600 3400 3200 3000

1400 1350 1300 1250 1200 1150 Enrollment 1100 1050 1000 950 900 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

• Double-digit increases in recent years • Entry into School Health Insurance Fund effective 1/1/18 • Deferred payment for entry (3% over current costs) • 9.92% increase for 2018/2019

• Local tax levy comprises 90% + of budget • 2% of prior-year tax levy = $1,238,440 • 2% is 2% is 2%; the school district does not receive additional revenue based on increases in the value of property in the Township or Borough • Banked Cap • Taxing authority available from prior years in which the Board did not utilize all of the 2% cap or waivers to the cap. • $150,000 • Health Insurance Adjustment • $854,888 • State Aid • 7.8% increase = $169,000

• Prior Year Tax Levy = $61,921,906 • Plus 2% = $1,238,440 • Health Waiver = $854,888 • Banked Cap = $150,000 Maximum Allowable Tax Levy = 3.62%

$3,500,000 4400 $3,000,000 4200 $2,500,000 4000 $2,000,000 3800 Direct State Aid Enrollment $1,500,000 3600 $1,000,000 3400 $500,000 3200 $0 3000 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

• Maintain all current programs and class sizes • Continue to invest in special education programs • Enhance offerings where possible: American Sign Language

• Addition of English teacher at CHS • Addition of Student Assistance Counselor K-12 • Licensed counselor to provide mental health support • Substance abuse expert

Budget Proposed Proposed Proposed 2016/2017 Budget at Budget at Budget at Tax Increase 2.98% 3.28% 3.62% Local Tax Levy $61,921,960 $63,769,788 $63,954,788 $64,165,288 Free Balance $793,667 $280,533 $280,533 $280,533 Capital Reserve WD $2,100,000 $1,400,000 $1,400,000 $1,400,000 Other Revenue $834,318 $551,310 $551,310 $551,310 State Aid/Extraordinary $350,000 $350,000 $350,000 $350,000 Additional State Aid $2,171,620 $2,340,774 $2,340,774 $2,340,774 Prior Year Encumbrances $0 $0 $0 $0 Total Operating Budget $68,171,565 $68,692,405 $68,877,405 $69,087,905 Federal & State Sources $871,000 $871,000 $871,000 $871,000 Local Grants $0 $0 $0 $0 Debt Repayment $2,863,958 $3,481,180 $3,481,180 $3,481,180 Total Revenue $71,906,523 $73,044,585 $73,229,585 $73,440,085 Expenditures as of 3/16/2017 $73,044,585 $73,229,585 $73,440,085 Revenue vs Expenditures $0 $0 $0 Revenue Adjustments Health Benefit Waiver (13.0% inc) $854,888 $854,888 $854,888 Enrollment Increase Waiver Banked Cap (expires in 2018/2019) $150,000 $150,000 $150,000 Total Possible Revenue Adjustments $1,004,888 $1,004,888 $1,004,888 Amount of Waiver & Banked Cap Used -$609,388 -$794,388 -$1,004,888 sub-total $395,500 $210,500 $0 Amount of Expired Banked Cap -$150,000 -$150,000 $0 Balance of Banked Cap $245,500 $60,500 $0

• Proposed budget at 3.28% includes: • Reduction of three elementary-level teachers • Addition of high school English teacher • Addition of special education staff 6-12 • Addition of teacher of American Sign Language • Withdrawal from capital reserve to: • Replace boys and girls restrooms at SBS • Repave parking lots at LAF and SBS • Replace portions of roof at CHS and SBS

• Proposed budget at 3.28% does NOT include: • Requested high school staff in Math and Social Studies • Additional athletic trainer • Funding for paddle or sailing clubs • Additional security personnel • Additional supervisor in special education • Additional mental health staff • Psychologist • School Counselor

• Additional Mental Health Staffing: • Psychologist at CHS ($105k) • School Counselor at LAF ($95k) • Additional Security Measures: • Police presence at schools • Class III Officer position, created by NJ public law in 2016 • Upgraded vestibules (man traps) at all schools ($320k - $600k) • Other

School Tax Levy Per-Pupil K-12 District Enrollment (Property Tax) Tax Levy Princeton 3681 $77,082,107 $20,941 Holmdel 3004 $55,724,371 $18,550 Livingston 5923 $109,855,712 $18,547 Tenafly 3615 $64,304,678 $17,788 Millburn 4881 $85,547,272 $17,527 Ridgewood 5643 $95,714,756 $16,962 Montgomery 4761 $79,224,719 $16,640 Bernards 5529 $88,123,762 $15,938 Madison 2604 $41,390,945 $15,895 Westfield 6321 $100,170,477 $15,847 Summit 4054 $63,061,441 $15,555 Berkeley Heights 2694 $41,382,086 $15,361 New Providence 2380 $36,452,412 $15,316 Chatham 4205 $63,735,548 $15,157 Tax levy amounts include tax levy for district operating budgets as well as debt repayments, according to the Department of Community Affairs NJDOE Enrollment Reports 2016-2017 NJDCA Property Tax Tables 2017

• Current funding law is called SFRA (School Funding Reform Act). • SFRA distributes over $8 billion in direct aid to school districts. • Aid to districts is based mainly on two areas of consideration: • The student composition of a school district. • The financial resources of the school district’s community.

• SFRA looks at: • The # of students in a district. • The grade levels of those students. • The # of L.E.P. (limited English proficiency) students • The # of S.E. (special education) students • The # of E.D. (economically disadvantaged) students • SFRA applies weights to the students based on the above characteristics. • SFRA then establishes an ADEQUACY BUDGET for the school district. • The ADEQUACY BUDGET is the minimum amount required to deliver a “thorough and efficient” education to the students in the district.

• SFRA takes into account the amount of wealth in each school district in New Jersey, based on • Equalized property value in the community. • Income earned in the community. • SFRA then establishes a community’s LOCAL FAIR SHARE. • The LOCAL FAIR SHARE is what the state believes the community can afford in local taxation to support its schools.

• SFRA is designed, in part, to bridge the gap between ADEQUACY and LOCAL FAIR SHARE. • SFRA is meant to provide more funding to districts who cannot afford to pay for adequacy on their own, for example. This is known as “Equalization Aid”. • SFRA is also meant to change from year to year in response to changing demographics throughout all districts. • SFRA has not been run/applied for about ten years.

• Chatham’s Adequacy Budget is: $57,313,635 • Chatham’s FY18 Tax Levy was: $61,921,960 • Chatham’s Local Fair Share is: $97,045,607 • Chatham is one of 101 districts in New Jersey with a K-12 enrollment of 3,500 or more students. • Chatham spends less per-pupil than 85 of the 101 districts.

• Chatham’s Adequacy Budget is: $57,313,635 • Chatham’s FY18 Tax Levy was: $61,921,960 • Chatham’s Local Fair Share is: $97,045,607 • The 16 districts that spend less than Chatham are: Hammonton Edison Willingboro North Brunswick Belleville Sayreville Bloomfield South Brunswick Monroe (Gloucester) Woodbridge Bayonne Lakewood Kearny Toms River Carteret Clifton • Chatham is the lowest spending “J” or Morris County district with a K-12 enrollment of 3,500 or more students

District Tax Levies in Relation to Their Adequacy Budgets Adequacy FY18 Tax Levy as K-12 District Enrollment Budget FY 18/19 Tax Levy % of Adequacy Holmdel 3004 $40,269,665 $53,241,290 132.21% Berkeley Heights 2694 $31,102,876 $40,283,522 129.52% Princeton 3681 $56,551,913 $73,055,295 129.18% Tenafly 3615 $51,263,500 $62,514,216 121.95% Livingston 5923 $85,656,678 $102,743,234 119.95% Millburn 4881 $68,516,860 $81,901,838 119.54% Ridgewood 5643 $79,105,338 $91,519,173 115.69% Madison 2604 $35,264,920 $39,515,574 112.05% Summit 4054 $57,051,362 $63,153,994 110.70% Montgomery 4761 $65,286,060 $71,724,123 109.86% Westfield 6321 $88,362,646 $96,710,506 109.45% Bernards 5529 $76,853,507 $83,751,501 108.98% New Providence 2380 $32,778,047 $35,448,844 108.15% $61,921,960 Chatham 4205 $57,313,635 108.04%

District Adequacy Budgets per Pupil versus State Aid per Pupil Per-Pupil State Aid State Aid as K-12 District Enrollment Adequacy Budget per Pupil % of Adequacy Princeton 3681 $15,363.19 $1,092.96 7.11% Livingston 5923 $14,461.70 $552.26 3.82% Tenafly 3615 $14,180.77 $467.10 3.29% Summit 4054 $14,072.86 $495.51 3.52% Millburn 4881 $14,037.46 $505.07 3.60% Ridgewood 5643 $14,018.31 $458.39 3.27% Westfield 6321 $13,979.22 $570.30 4.08% Bernards 5529 $13,900.07 $680.40 4.89% New Providence 2380 $13,772.29 $488.56 3.55% Montgomery 4761 $13,712.68 $927.30 6.76% Chatham 4205 $13,629.88 $556.66 4.08% Madison 2604 $13,542.60 $478.65 3.53% Holmdel 3004 $13,405.35 $747.91 5.58% Berkeley Heights 2694 $11,545.24 $547.01 4.74%