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

Direct State Aid

$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

Enrollment, 2005/6 - Current

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

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

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 3.09%

Revenues

Tax Increase $1,202,943 $1,858,547 State Aid Increase $0 $0 sub-total Revenues $1,202,943 $1,858,547

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) $14,547 Major Expenses Impacting the Budget

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

• 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

Source: New Jersey Department of Education Enrollment Reports (http://www.state.nj.us/education/data/enr/)

Per-Pupil Spending, 2015/2016

(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

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/)

Expenditure Overview at 3.09% tax levy increase

Description Adjusted Budget 2016/2017 Proposed Budget 2017/2018 Adj Bud vs Prop Bud % Change Instruction -- General $22,692,971 $22,740,766 $47,795 0.21% 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 $2,336,766 ($12,958)

• 0.55%

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 $10,979,523 $1,263,053 13.00% Summer School $180,215 $184,700 $4,485 2.49% Subtotal General Expenditures $63,669,884 $65,236,966 $1,567,082 2.46% Capital Outlay $1,423,687 $2,852,469 $1,428,782 100.36% 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 $71,824,393 $2,739,664 3.97%

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 Incr 14.5% & 100% of Cap Funds Tax Increase 2.35% 2.00% 3.09% 3.20% Local Tax Levy 60,147,138 61,350,081 62,007,960 62,071,960 Free Balance 273,727 293,667 293,667 293,667 Capital Reserve WD 932,459 2,600,000 2,600,000 2,600,000 Other Revenue 777,618 834,318 834,318 834,318 State Aid/Extraordinary 400,000 350,000 350,000 350,000 Additional State Aid 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 68,089,435 68,153,435 Federal & State Sources 1,231,029 871,000 871,000 871,000 Local Grants 320,310 Debt Repayment 2,439,819 2,863,958 2,863,958 2,863,958 Total Revenue 69,084,729 71,166,514 71,824,393 71,888,393 Expenditures as of 3/3/2017 71,824,393 71,824,393 71,824,393 Revenue vs Expenditures (657,879) 64,000

Revenue Adjustments Health Benefit Waiver (projected 14.5% inc) 444,617 444,617 444,617 Enrollment Increase Waiver 56,989 56,989 56,989 Banked Cap (expires in 2018/2019) 220,273 220,273 220,273 Total Possible Revenue Adjustments 721,879 721,879 721,879

(657,879) (721,879) 721,879 64,000 Amount of Waivers & Banked Cap Used Balance of Banked Cap

Preliminary Estimated Tax Impact

Tax Increase 2.00% 3.09% 3.20% Local Tax Levy $61,350,080.76 $62,007,960.43 $62,071,959.76 Annual Taxes $8,162.79 $8,250.32 $8,258.83 Avg Monthly Tax Increase $17.06 $24.35 $25.06 Avg Annual Tax Increase $204.70 $292.23 $300.75 Annual Taxes $9,222.88 $9,321.78 $9,331.40 Avg Monthly Tax Increase $14.37 $22.61 $23.42 Avg Annual Tax Increase $172.46 $271.36 $280.98 Proposed Budget 2017/2018 Proposed Budget 2017/2018 Proposed Budget 2017/2018 Chatham Borough - Average House Assessment $670,694 Chatham Township - Average House Assessment $792,971 Scenarios

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 3.09%

Items Not Reflected in the Proposed Budget

• Potential staff reductions at MAS and WAS

– Kindergarten and First Grade

• Potential staff increase at SBS
• Potential staff increases at CHS (enrollment to

go up about 50 students)

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

• Additional extracurricular programs

– Sailing – Paddle

Items Included in Budget

• One counselor at CHS
• Additional security cameras at multiple

schools

Calendar

• March 6: Open Finance Committee meeting
• March 17: Submit preliminary budget to ECS
• March 20: Open Finance Committee meeting
• May 1: Public Budget Hearing & Board Budget

Approval