School District of the Chathams 2017/2018 Preliminary Budget Three - PowerPoint PPT Presentation

School District of the Chathams 2017/2018 Preliminary Budget

Three Key Factors Affecting the 2017/2018 Budget • State Aid • Enrollment • Health Insurance Costs

State Aid • Direct State Aid to school districts is supposed to be allocated according to S.F.R.A. (School Funding Reform Act of 2008) • S.F.R.A. bases aid on student demographics and student enrollment • S.F.R.A. has not been applied since 2009/2010

State Aid • The decision to abandon S.F.R.A. disproportionately hurts districts with enrollment increases since 2009/2010

Direct State Aid to Chatham (Source: New Jersey Department of Education State Aid Summaries (http://www.state.nj.us/education/data/) $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 Direct State Aid $1,000,000.00 $500,000.00 $0.00 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

State Aid Per-Pupil in Chatham (Source: New Jersey Department of Education State Aid Summaries (http://www.state.nj.us/education/data/) $900.00 $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00

Morris County Direct State Aid Changes 2009/2010 versus 2017/2018 2017/2018 2016/2017 2009/2010 % change K- 12 District Total Direct Total Direct Total Direct 2009/2010 vs. Aid Aid Aid 2017/2018 DOVER TOWN $24,712,336 $24,712,336 $21,241,482 16.34% JEFFERSON TWP $15,852,125 $15,852,125 $16,696,701 -5.06% ROXBURY TWP $13,908,190 $13,851,560 $14,781,894 -5.91% MOUNT OLIVE TWP $15,282,286 $15,282,286 $16,527,769 -7.54% RANDOLPH TWP $12,819,909 $12,819,909 $14,164,607 -9.49% MOUNTAIN LAKES BORO $787,376 $787,376 $951,058 -17.21% BUTLER BORO $1,998,322 $1,998,142 $2,433,984 -17.90% MORRIS SCHOOL DISTRICT $6,800,887 $6,800,550 $8,440,276 -19.42% PEQUANNOCK TWP $2,247,383 $2,247,383 $2,937,094 -23.48% BOONTON TOWN $1,191,954 $1,190,814 $1,587,115 -24.90% KINNELON BORO $1,505,820 $1,505,820 $2,169,368 -30.59% SCH DIST OF THE CHATHAMS $2,003,490 $2,003,490 $2,990,648 -33.01% PARSIPPANY-TROY HILLS TWP $4,709,595 $4,709,595 $7,341,410 -35.85% MADISON BORO $1,017,107 $1,017,107 $1,588,290 -35.96% MONTVILLE TWP $1,880,323 $1,880,323 $3,221,015 -41.62% (Source: New Jersey Department of Education State Aid Summaries (http://www.state.nj.us/education/data/)

Chatham Enrollment 2005/06 - Present 4400 4200 4000 3800 Enrollment 3600 3400 3200 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

Chatham Direct State Aid versus Enrollment (Sources: New Jersey Department of Education State Aid Summaries and Enrollment Reports (http://www.state.nj.us/education/data/) $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

Ten-Year Enrollment Changes, Morris County K-12 Districts Source: NJDOE Enrollment Reports (http://www.state.nj.us/education/data/enr/) 30% Chatham 25% Madison 20% Morris Dover 15% Boonton 10% Butler Parsippany-Troy Hills 5% Mountain Lakes 0% Mount Olive 2005/2006 2009/2010 2015/2016 Montville -5% Kinnelon -10% Jefferson Randolph -15% Pequannock -20% Roxbury -25%

Ten-Year Enrollment Changes, K-12 DFG “J” Districts 25% 20% Chatham 15% Haddonfield Millburn 10% Bernards WW-Plainsboro Ridgewood 5% Glen Rock Montgomery 0% Mountain Lakes 2005/2006 2009/2010 2015/2016 -5% -10% Source: NJDOE Enrollment Reports (http://www.state.nj.us/education/data/enr/)

Population Changes over Time in Chatham Sources: U.S. Census Bureau (https://www.census.gov/quickfacts/table/PST045216/3402712130,3412100,00) Wikipedia (https://en.wikipedia.org/wiki/Main_Page) 100% 4,154 90% 3,988 80% 70% 60% SDOC 50% Chatham Borough Chatham Township 2,955 40% 30% 20% 10% 2,169 0% 1990 2000 2010 2015

Budget Status at March 6, 2017 • State Aid increase = $0 • Health Insurance Increase = 14.5% • The district qualifies for Health Benefit Waiver of $444,617 and an Enrollment Waiver of $56,989 • The district has $220,273 of Banked Capped from the 2016/2017 budget process • The maximum tax levy increase the Board could propose = 2% + $721,879 or 3.20%

Revenues & Expenses Impacting the Budget Major Expenses Impacting the Budget Tax Increase 2.0% Tax Increase of 2.87% Revenues Tax Increase $1,202,943 $1,726,822 State Aid Increase $0 $0 sub-total Revenues $1,202,943 $1,726,822 Expenses Health Benefit Increase 14.50% $909,000 $909,000 Salary Increase $935,000 $935,000 sub-total Expenses $1,844,000 $1,844,000 Revenue Increase less Major Expenses ($641,057) ($117,178)

Per-Pupil Spending, 2015/2016 K-12 Morris County Districts (Source: New Jersey Taxpayer Guide to Education Spending, http://www.state.nj.us/cgi-bin/education/csg/dist.pl) Per-Pupil School District Budgetary Cost Mountain Lakes NA Boonton $17,641 Butler $17,130 Parsippany-Troy Hills $16,771 Roxbury $16,642 Morris $16,138 Montville $16,104 Kinnelon $15,665 Jefferson $15,579 Randolph $15,421 COUNTY AVERAGE $15,530 Madison $15,153 Mount Olive $15,090 Pequannock $15,082 Chatham $13,657 Dover $11,352

Per-Pupil Budgetary Costs, % Increase prior 10 years Chatham versus State Average for K-12 districts with 3500+ students Source: NJDOE Taxpayers’ Guide to Education Spending (http://www.state.nj.us/education/guide/2016/) $16,000 30.00% Solid Line = Per-Pupil Budgetary Cost Dotted Line = % Cumulative Change 25.00% $14,000 20.00% Chatham State 15.00% Chatham State $12,000 10.00% 5.00% $10,000 0.00% 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

Comparative School Tax Levies School Tax Levy Per-Pupil Enrollment K-12 District (10/2015) (Property Tax) Tax Levy Princeton 3542 $74,504,606 $21,035 Holmdel 2965 $54,691,561 $18,446 Livingston 5902 $106,771,328 $18,091 Tenafly 3605 $62,722,401 $17,399 Millburn 4903 $82,966,075 $16,921 Ridgewood 5640 $93,030,172 $16,495 Summit 4091 $66,610,925 $16,282 Montgomery 4763 $77,038,683 $16,174 WWP 9608 $153,786,308 $16,006 Madison 2566 $40,705,634 $15,863 Westfield 6265 $96,878,790 $15,463 Bernards 5639 $86,555,824 $15,349 Berkeley Heights 2667 $40,495,210 $15,184 Chatham 4154 $61,719,108 $14,858 New Providence 2386 $35,057,647 $14,693 Sources: State of New Jersey Department of Community Affairs, CY 2016 (http://www.state.nj.us/dca/divisions/dlgs/resources/property_tax.html#1) New Jersey Department of Education 2015 Enrollment Report (http://www.state.nj.us/education/data/enr/)

Items Cut from First Budget Draft • Paraprofessional support, K-3 Library-Media Centers (-$30k) • One teacher at K-3 level, based on current enrollment (-$80k) • Additional security cameras (-$24k)

Expenditure Overview at 2.87% tax levy increase Adjusted Proposed Adj Bud vs Description Budget Budget % Change Prop Bud 2016/2017 2017/2018 Instruction -- General $22,692,971 $22,680,766 ($12,205) -0.05% Instruction -- Special Ed $10,921,125 $11,035,274 $114,149 1.05% Co-Curricular Activities & Athletics $1,217,473 $1,265,776 $48,303 3.97% Attendance/Nursing Services $657,207 $672,163 $14,956 2.28% Guidance $1,401,429 $1,498,068 $96,639 6.90% Curriculum/Instruction $2,349,724 $2,306,766 ($42,958) -1.83% General Administration $1,263,243 $1,077,105 ($186,138) -14.73% School Administration $2,857,072 $2,901,880 $44,808 1.57% Central Office & Admin Info Technology $1,552,437 $1,603,785 $51,348 3.31% Operation Maintenance $6,138,268 $6,191,243 $52,975 0.86% Transportation $2,722,250 $2,749,917 $27,667 1.02% Employee Benefits $9,716,470 $10,959,523 $1,243,053 12.79% Summer School $180,215 $184,700 $4,485 2.49% Subtotal General Expenditures $63,669,884 $65,126,966 $1,457,082 2.29% Capital Outlay $1,423,687 $2,828,469 $1,404,782 98.67% Grants & Entitlements $1,231,029 $871,000 ($360,029) -29.25% Donations $320,310 $0 ($320,310) -100.00% Debt Repayments $2,439,819 $2,863,958 $424,139 17.38% Total Expenditures $69,084,729 $71,690,393 $2,605,664 3.77%