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-
• ver 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

3000 3200 3400 3600 3800 4000 4200 4400

Enrollment

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

Enrollment

• 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%

3000 3200 3400 3600 3800 4000 4200 4400 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 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 Direct State Aid Enrollment

• 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 (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 K-12 District Enrollment

NJDOE Enrollment Reports 2016-2017 NJDCA Property Tax Tables 2017

Tax levy amounts include tax levy for district operating budgets as well as debt repayments, according to the Department

• f Community Affairs

• 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:
• Chatham is the lowest spending “J” or Morris County district

with a K-12 enrollment of 3,500 or more students

Hammonton Edison Willingboro North Brunswick Belleville Sayreville Bloomfield South Brunswick Monroe (Gloucester) Woodbridge Bayonne Lakewood Kearny Toms River Carteret Clifton

Adequacy FY18 Tax Levy as 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% Chatham 4205 $57,313,635 $61,921,960 108.04% K-12 District Enrollment

District Tax Levies in Relation to Their Adequacy Budgets

Per-Pupil State Aid State Aid as 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% K-12 District Enrollment

District Adequacy Budgets per Pupil versus State Aid per Pupil

Local FY18 Tax Levy as % "Fair Share" Tax Levy

• f "Fair Share"

Montgomery 4761 $80,477,521 $71,724,123 89.10% New Providence 2380 $40,219,454 $35,448,844 88.10% Tenafly 3615 $71,465,232 $62,514,216 87.50% Berkeley Heights 2694 $46,068,426 $40,283,522 87.40% Ridgewood 5643 $104,914,498 $91,519,173 87.20% Livingston 5923 $123,636,221 $102,743,234 83.10% Holmdel 3004 $66,562,574 $53,241,290 80.00% Westfield 6321 $123,303,629 $96,710,506 78.40% Bernards 5529 $114,977,656 $83,751,501 72.80% Madison 2604 $58,288,873 $39,515,574 67.80% Chatham 4205 $97,045,607 $61,921,960 63.80% Princeton 3681 $121,607,522 $73,055,295 60.10% Summit 4054 $118,206,492 $63,153,994 53.40% Millburn 4881 $172,416,872 $81,901,838 47.50% K-12 District Enrollment

District Tax Levies in Relation to Their “Local Fair Share”

Adequacy FY18 Tax Levy as State State Aid Budget FY 18/19 Tax Levy % of Adequacy Aid FY19 per Pupil Holmdel 3004 $40,269,665 $53,241,290 132.21% $2,246,720 $747.91 Berkeley Heights 2694 $31,102,876 $40,283,522 129.52% $1,473,639 $547.01 Princeton 3681 $56,551,913 $73,055,295 129.18% $4,023,203 $1,092.96 Tenafly 3615 $51,263,500 $62,514,216 121.95% $1,688,573 $467.10 Livingston 5923 $85,656,678 $102,743,234 119.95% $3,271,039 $552.26 Millburn 4881 $68,516,860 $81,901,838 119.54% $2,465,231 $505.07 Ridgewood 5643 $79,105,338 $91,519,173 115.69% $2,586,693 $458.39 Madison 2604 $35,264,920 $39,515,574 112.05% $1,246,395 $478.65 Summit 4054 $57,051,362 $63,153,994 110.70% $2,008,784 $495.51 Montgomery 4761 $65,286,060 $71,724,123 109.86% $4,414,873 $927.30 Westfield 6321 $88,362,646 $96,710,506 109.45% $3,604,871 $570.30 Bernards 5529 $76,853,507 $83,751,501 108.98% $3,761,904 $680.40 New Providence 2380 $32,778,047 $35,448,844 108.15% $1,162,779 $488.56 Chatham 4205 $57,313,635 $61,921,960 108.04% $2,340,774 $556.66 K-12 District Enrollment

District Tax Levies in Relation to Their Adequacy Budgets, plus State Aid

School Tax Levy Per-Pupil (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 K-12 District Enrollment

NJDOE Enrollment Reports 2016-2017 NJDCA Property Tax Tables 2017

Tax levy amounts include tax levy for district operating budgets as well as debt repayments, according to the Department

• f Community Affairs

• Governor Murphy’s proposed state aid distribution seeks to

initiate a four-year plan to bring school districts back to their 2009/2010 levels.

• This plan reverts to “capped” aid amounts.
• This plan does not redistribute or remove “Adjustment Aid.”
• Senator Sweeney and others do not think the plan does enough

to faithfully fund SFRA.

Proposed Proposed Proposed Proposed Budget at Budget at Budget at Budget at Tax Increase 2.00% 2.98% 3.28% 3.62% Local Tax Levy $63,160,400 $63,769,788 $63,954,788 $64,165,288 Annual Taxes $8,407.99 $8,489.12 $8,513.74 $8,541.76 Avg Monthly Tax Increase $14.10 $20.86 $22.91 $25.24 Avg Annual Tax Increase $169.15 $250.28 $274.90 $302.93 Annual Taxes $9,496.73 $9,588.36 $9,616.17 $9,647.82 Avg Monthly Tax Increase $15.66 $23.30 $25.61 $28.25 Avg Annual Tax Increase $187.92 $279.55 $307.37 $339.02 Chatham Township - Average House Assessment $804,055 Chatham Borough - Average House Assessment $672,936

Proposed Proposed Proposed Proposed Budget at Budget at Budget at Budget at Tax Levy Increase 2.00% 2.98% 3.28% 3.62% Avg Monthly Tax Increase 2.09 $ 3.10 $ 3.40 $ 3.75 $ Avg Annual Tax Increase 25.14 $ 37.19 $ 40.85 $ 45.02 $ Avg Monthly Tax Increase 1.95 $ 2.90 $ 3.19 $ 3.51 $ Avg Annual Tax Increase 23.37 $ 34.77 $ 38.23 $ 42.16 $ Chatham Borough - House Assessed at $100,000 Chatham Township - House Assessed at $100,000