Transcript 2011-2012 Preliminary Budget Update

South Orange-Maplewood
School District
January 27, 2014
1

Budget development process

Comparative spending

Guiding budgeting principle: District Goal Four
◦ Alignment of budget to district goals and strategy
◦ Rein in spending: Major Cost Drivers

Revenue assumptions and historical trends

Redirect resources to impact student achievement

Estimated tax impact

Next steps
November: Baseline Data for Budget Development
•Enrollment Projections
•Free and Reduced Lunch Eligibility
•Transported Student Data
•Salaries and Benefits
•School Facilities
Annual Comprehensive Maintenance
Plan
•Comprehensive Annual Financial Report
•General Fund Free Balance Status
•Budget Calendar and Priorities
December: Budget Development – Budget Analyses
•Technology Investment:
•Online Learning Experience to Date
•PARCC Readiness
•1:1 Computing Pilots
•District Management Council
•Montrose School
•Enrollment Changes and Building Capacity
•Charter School Tuition
•Choice District Program
•Energy Usage
South Orange Maplewood
Per Pupil Costs
Comparative Spending
$14,234
16000
K-12 state average
14000
$8,520
SO-M
12000
10000
Livingston
8000
$1,483
6000
$1,743
Millburn
4000
2000
Montclair
0
Per pupil cost
Classroom instruction
Total administrative
costs
Maintenance &
Operations
West Orange
Source: Dept. of Education Taxpayer’s Guide to Education Spending
Budget 2012-13
 The attainment of district goals
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Alignment with Core Curriculum and PARCC Assessment
Special Education Programming
Online Learning Opportunities
Centralized Professional Development
Teacher Evaluations and Learning Walks
 Reins in spending on categories rising faster than the cost of living
 Health benefits: Employee contributions (NJ Reform), Direct 15
 Special Education Costs: Opportunities Review, In-district programming
 Maintenance expenses: Year over year reductions. Facilities condition
assessment
 Energy expenses: increased usage – additional space, additional air
conditioning, additional technology, colder winter; Direct Install, Energy Audit,
Facility Upgrades
 Transportation: Increased efficiency (in-district and non-public schools)
 Produced in an efficient and transparent manner
 Communication with District Administrators
 Community Forum
Health Cost Trend Analysis
Tuition Cost Trend Analysis
$20,000,000
15000000
$15,000,000
10000000
$10,000,000
5000000
$5,000,000
0
14-15
13-14
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
$0
Energy Cost Trend Analysis
Transportation Cost Trend
6000000
5000000
4000000
3000000
2000000
1000000
0
3000000
2500000
2000000
1500000
1000000
500000
0
7
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State aid for 14-15 remains at same level as 13-14
The amount of state aid will not be known until after the
Governor’s budget address in February.
Federal grants remain at same level as 13-14
Excess surplus from 2012-13 audit: $1,949,406 ($200,000 less
than 11-12 audit)
Revenues dependent on local sources.
Banked cap is available.
◦ ($989,763 through 2013-14 budget, 506,833 through 2014-15, $409,103
through 2015-16 = total $1,905,699 banked cap available)


Local taxes will increase no more than 2% for operating
budget
These assumptions are subject to change given the uncertain
economic climate.
8
Where does school budget revenue
come from?
State Aid as a Percent of Revenue
8.00%
7.00%
7.02%
6.56%
6.26%
6.00%
6.16%
5.87%
6.12%
5.89%
5.00%
4.00%
3.92%
2.80%
3.45%
3.41%
3.00%
2.00%
1.09%
1.00%
0.00%
10
Revenue Source
Operating Budget
Local Tax Levy
Budgeted
2013-14
Proposed
2014-15
104,473,642
106,563,115
4,075,898
4,075,898
589,000
0
2,152,272
1,949,406
40,000
40,000
Debt Service
4,123,451
4,235,179
State/Federal
2,549,881
2,899,802
118,004,144
119,763,400
State Aid
Capital Reserve
Fund Balance
Miscellaneous
Total Revenue
11
Multi-Year Impact
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Special Education efficiencies (District Mgmt Council)
General education scheduling efficiencies
Support staff efficiencies
Transportation efficiencies
Centralized Professional Development
Centralized Summer Programming
Continued Initiatives to Conserve Energy
13
Tax Levy CAP
Operating Budget
Tax Impact (est.)
Debt Service
Local Tax
Operating and
Debt Service
Tax Impact (est.)
$106,563,115
2.00%
$ 3,999,551*
$110,562,666
2.03%
* Estimated March 2014 bond sale
Year over Year Tax Impact
8.00%
7.37%
7.16%
7.00%
6.11%
6.00%
5.07%
5.00%
4.76%
4.98%
3.98%
4.00%
3.48%
2.93%
3.00%
2.00%
1.89%
2.00%
2.03%
1.00%
0.00%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Mon, Jan 27
BOE meeting: Budget Discussion

Mon, Feb 24
BOE meeting: Budget Discussion

Tues, Feb 25
Governor’s State Budget Message

Thurs, Feb 27
State Aid Notices

Mon, Mar 17
BOE meeting: BOE consider/adopt
preliminary budget to send to Essex Co Supt for
approval to advertise

April XX
Community Forum and address Maplewood Township
Committee and Village of South Orange Board of
Trustees

Mon, Apr 28
BOE meeting: Public Hearing/action to levy 2014-15
school tax