Transcript Preliminary Budget 2006-07

Preliminary Budget
for the 2007-08 School Year
Update
February 26, 2007
School District of South Orange and Maplewood
Important Dates in this year’s budget calendar – UPDATE
10/23/06
BOE meeting: Board receives QAAR, LRFP and Master Facilities Plan update,
adopts 2007-08 budget calendar
11/15/06
Public Workshop: Budget Forum for public comment and guest speakers Sarah
Kohl, NJSBA lobbyist and Steve Latz, Budget 101
11/20/06
BOE meeting: Admin. presents Budget Kickoff Refresher on Impact of S1701 on
2007-08 budget development and 3-year budget projections; Board receives
baseline data and adopts budget priorities and topics for analysis
12/18/06
BOE meeting: Board accepts 2006 CAFR and management report
1/22/07
BOE meeting: Supt. presents preliminary draft budget for 2007-08
2/5/07 & 2/26/07 (month of February): consideration of budget at all regular Board meetings
2/12/07
BOE Public Budget Workshop
2/26/07 3/5/07
BOE meeting: adoption of preliminary budget to send to County Supt.
3/7/07
Board of School Estimate Public Budget Workshop
3/14/07
3/14/07 3/21/07
Board of School Public Hearing and Action to Set the Tax Levy
3/19/07 4/9/07
BOE meeting: Accept 3/14/07 action of the BOSE
Our work on the 2007-08 budget has identified areas
that have been reduced to bring it under CAP.
Item
Est. Amount
Eliminate district-level administrative position (1 FTE + benefits)
--$182,400
Reduce district-level administrative support and secretarial positions
(4 FTEs + benefits)
--$288,000
Eliminate middle-school French (1 FTE + benefits)
--$84,000
Consolidation of services to reduce need for instructional aides
(7 FTEs + benefits)
--$416,000
Consolidation of bus routes to reduce number of drivers and buses
(2 FTEs + benefits & 1 bus)
--$187,800
Reduce CHS staff due to lower anticipated enrollment (10 FTEs +
benefits)
--$840,000
Subtotal (25 FTEs)
Increase professional development
TOTAL reductions to date:
--$1,998,200
+$200,000
--$1,798,200
3
February 26, 2007
The processes and procedures from S1701 for
developing and submitting the budget have not
changed except for the CAP calculation.





Limits on administrative costs
Limits on allowable free balance
Restrictions on use of free balance
Restrictions on transfers within budget accounts
Restrictions on use of Separate Proposal(s). The separate proposal
process is the same for 07-08 with one exception. If the district wants
an approved proposal to be built into the subsequent year’s tax levy
base, the question must include a “clear statement on whether approval
will affect only the current year or result in a permanent increase in the
levy.”
4
February 26, 2007
The key provisions under the pending Tax
Levy Cap law (A-1)


Applicable for school years 07-08-11-12
Sets 4% cap on general fund tax levy growth (plus allowable adjustments)





Enrollment adjustment (using ASSA projected weighted enrollment) NJDOE has
performed this calculation and we are not eligible for this adjustment because our
enrollment is not projected to increase)
Health increases (health care increases over 4% capped at the average increase in
SHBP-6.9%) We expect to be eligible for some adjustment in this area.
State aid reductions (reduction in total formula state aid over current year). We
won’t know if we are impacted by this until state aid is announced this week.
State aid, budgeted surplus and other revenues are NOT part of the levy cap
calculation (as they were when the cap was on revenues)
Supercedes CEIFA budget cap and SGLAs
5
February 26, 2007
SGLAs from S1701 are no longer available.

Application can be made to the Commissioner for additional
adjustments to the Tax Levy Cap for the following:




Increases in special education costs over $40,000 per pupil (same as
current adjustment)
Increases in capital outlay (same as current adjustment)
Incremental increases in costs for opening a new school facility in budget
year (same as current adjustment)
Increases in regular education tuition to another district (formal
sending/receiving) and to vocational district
6
February 26, 2007
Calculating the CAP will determine the actual
amount of expenditure cuts that will be necessary
to stay under the cap.




The amount of state aid will impact the cap calculation but is unknown
at this time.
The commissioner has said that there will be an across-the-board 3%
increase in state aid for non-abbott districts.
That would be an increase of about $150,000 for the district in aid.
Unlike in previous years, an increase in state aid would also be an
increase in spending authority because only the tax levy is capped.
7
February 26, 2007
The separate proposal process is generally
unchanged.





Not include any programs/services necessary to achieve the CCCS
(same as current process)
Existing programs and services cannot be submitted as a separate
proposal unless the district can demonstrate maintaining such
programs/services in the base budget forces a reduction in T&E
programs/services (S-1701)
County Superintendent cannot approve a separate proposal unless
district has achieved all administrative efficiencies (S-1701)
Include interpretive statements identifying the program purpose (same
as current process)
Defeated proposals cannot be appealed (same as current process)
8
February 26, 2007
2007-08 Budget Priorities
1.
Develop a 2007-08 budget that aligns spending with the
district’s five-year goals for narrowing the achievement
gap, in particular raising all meassured, aggregated gradelevel scores on state assessments to be equal to or higher
than the comparable average scores for districts in the
same socioeconomic class. Ensure a budgetary focus on
pathways to higher achievement:
 Strengthening the capacity of teachers and leaders
 Invigorating curriculum and assessment
 Improving communications to more effectively engage
parents in student learning
9
February 26, 2007
2007-08 Budget Priorities (cont.)
2.
3.
4.
Gain greater control over staff health-care costs.
Continue efforts to expand the breadth, depth and
quality of special services in the district, as a
means to improving the delivery and cost
effectiveness of special education.
Gain greater control over operations costs and
endeavor to reduce operations costs per pupil.
10
February 26, 2007