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/)

$0.00 $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 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 Direct State Aid

State Aid Per-Pupil in Chatham

(Source: New Jersey Department of Education State Aid Summaries (http://www.state.nj.us/education/data/)

$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00

Morris County Direct State Aid Changes

2009/2010 versus 2017/2018

K- 12 District

2017/2018 Total Direct Aid 2016/2017 Total Direct Aid 2009/2010 Total Direct Aid % change 2009/2010 vs. 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

3000 3200 3400 3600 3800 4000 4200 4400 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Enrollment

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/)

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

Direct State Aid Enrollment

Ten-Year Enrollment Changes, Morris County K-12 Districts

Source: NJDOE Enrollment Reports (http://www.state.nj.us/education/data/enr/)

• 25%
• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 30%

2005/2006 2009/2010 2015/2016

Chatham

Madison Morris Dover Boonton Butler Parsippany-Troy Hills Mountain Lakes Mount Olive Montville Kinnelon Jefferson Randolph Pequannock Roxbury

Ten-Year Enrollment Changes, K-12 DFG “J” Districts

• 10%
• 5%

0% 5% 10% 15% 20% 25% 2005/2006 2009/2010 2015/2016

Chatham

Haddonfield Millburn Bernards WW-Plainsboro Ridgewood Glen Rock Montgomery Mountain Lakes Source: NJDOE Enrollment Reports (http://www.state.nj.us/education/data/enr/)

Population Changes over Time in Chatham

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1990 2000 2010 2015 SDOC Chatham Borough Chatham Township

Sources: U.S. Census Bureau (https://www.census.gov/quickfacts/table/PST045216/3402712130,3412100,00) Wikipedia (https://en.wikipedia.org/wiki/Main_Page)

2,169 2,955 3,988 4,154

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

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) Major Expenses Impacting the Budget

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 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 School District

Per-Pupil Budgetary Costs, % Increase prior 10 years

Chatham versus State Average for K-12 districts with 3500+ students

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% $10,000 $12,000 $14,000 $16,000 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Chatham State Chatham State

Solid Line = Per-Pupil Budgetary Cost Dotted Line = % Cumulative Change

Source: NJDOE Taxpayers’ Guide to Education Spending (http://www.state.nj.us/education/guide/2016/)

Comparative School Tax Levies

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

(10/2015)

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

Description Adjusted Budget 2016/2017 Proposed Budget 2017/2018 Adj Bud vs Prop Bud % Change 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%

Overview of Revenues/Expenditures

Adjusted Budget 2016/2017 Proposed Budget 2017/2018 Prop Budget 2017/2018 Health Benefit Increase 14.5% Prop Budget 2017/2018 Health Benefit Increase 14.5% Prop Budget 2017/2018 HB Incr 14.5% & 100% of Bank Cap Tax Increase 2.35% 2.00% 2.87% 3.09% 3.20% Local Tax Levy 60,147,138 61,350,081 61,873,960 62,007,960 62,071,960 Free Balance 273,727 293,667 293,667 293,667 293,667 Capital Reserve WD 932,459 2,600,000 2,600,000 2,600,000 2,600,000 Other Revenue 777,618 834,318 834,318 834,318 834,318 State Aid/Extraordinary 400,000 350,000 350,000 350,000 350,000 Additional State Aid 2,003,490 2,003,490 2,003,490 2,003,490 2,003,490 Prior Year Encumbrances 559,139 Total Operating Budget 65,093,571 67,431,556 67,955,435 68,089,435 68,153,435 Federal & State Sources 1,231,029 871,000 871,000 871,000 871,000 Local Grants 320,310 Debt Repayment 2,439,819 2,863,958 2,863,958 2,863,958 2,863,958 Total Revenue 69,084,729 71,166,514 71,690,393 71,824,393 71,888,393 Expenditures as of 3/3/2017 71,824,393 71,690,393 71,824,393 71,824,393 Revenue vs Expenditures (657,879) 64,000 Revenue Adjustments Health Benefit Waiver (projected 14.5% i 444,617 444,617 444,617 444,617 Enrollment Increase Waiver 56,989 56,989 56,989 56,989 Banked Cap (expires in 2018/2019) 220,273 220,273 220,273 220,273 Total Possible Revenue Adjustments 721,879 721,879 721,879 721,879 (523,879) (657,879) (721,879) 721,879 198,000 64,000 Amount of Waivers & Banked Cap Used Balance of Banked Cap

Preliminary Estimated Tax Impact

Proposed Budget 2017/2018 Proposed Budget 2017/2018 Proposed Budget 2017/2018 Proposed Budget 2017/2018

Tax Increase 2.00% 2.87% 3.09% 3.20% Local Tax Levy $61,350,081 $61,873,960 $62,007,960 $62,071,960 Chatham Borough - Average House Assessment $670,694 Annual Taxes $ 8,162.79 $ 8,232.49 $ 8,250.32 $ 8,258.83 Avg Monthly Tax Increase $ 17.06 $ 22.87 $ 24.35 $ 25.06 Avg Annual Tax Increase $ 204.70 $ 274.40 $ 292.23 $ 300.75 Chatham Township - Average House Assessment $792,971 Annual Taxes $ 9,222.88 $ 9,301.63 $ 9,321.78 $ 9,331.40 Avg Monthly Tax Increase $ 14.37 $ 20.93 $ 22.61 $ 23.42 Avg Annual Tax Increase $ 172.46 $ 251.20 $ 271.36 $ 280.98 . Chatham Borough - House Assessed at $100,000 Avg Monthly Tax Increase $ 2.54 $ 3.41 $ 3.63 $ 3.74 Avg Annual Tax Increase $ 30.52 $ 40.91 $ 43.57 $ 44.84 Chatham Township - House Assessed at $100,000 Avg Monthly Tax Increase $ 1.81 $ 2.64 $ 2.85 $ 2.95 Avg Annual Tax Increase $ 21.75 $ 31.68 $ 34.22 $ 35.43

Tax Levy Comparison

YEAR INCREASE 2007/2008 8.20% 2008/2009 7.60% 2009/2010 2.20% 2010/2011 7.40% 2011/2012 2.40% 2012/2013 2.30% 2013/2014 3.50% 2014/2015 3.30% 2015/2016 1.80% 2016/2017 2.35% PROPOSED 2017/2018 2.87%

Items Not Included in the Proposed Budget

• Potential staff increases at CHS (total

enrollment to go up about 50 students)

– English, Math, Science, Social Studies, World Language, HPE

• Funding for additional extracurricular

programs at CHS

– Sailing – Paddle

Items Included in Budget

• One counselor at CHS

Budget Calendar

• March 20: Open Finance Committee meeting
• May 1: Public Budget Hearing & Board Budget

Approval