HARDING TOWNSHIP SCHOOL DISTRICT

Public Hearing on the Budget 2014-2015

Dr. Alex Anemone, SuperintendentDr. Dennis Frohnapfel, Interim Business

AdministratorMay 5, 2014

BOARD OF EDUCATION

Mr. Dev Modi- PresidentMr. John Flynn - Vice

PresidentMr. Jim Novotny

Mrs. Kim MacaulayMr. Davor Gjivoje

Budget Process and Timeline

• Fall 2013 – Administrative meetings• Fall 2013 – Budget guidelines crafted• 12/2/13 – Preliminary budget presentation I• 1/20/14 – Preliminary budget presentation II• 2/25/14 – Gov. Christie budget address• 2/27/14 – State aid figures released• 3/3/14 – Tentative budget presentation• 3/7/14 – Tentative budget submitted to ECS.• 5/5/14 – Public hearing on the budget• 7/1/14 – Budget year begins

Public Hearing on the Budget

• Moved from late March to late April/early May, per NJDOE regulations.

• Presentation includes:– Budget highlights– Revenue history– Tax levy impact– Detailed revenues and expenses– Budget preview (2015-2018)

2014-2015 BUDGET•Maintains conservative fiscal practices.•Provides financial resources that support our district goal. •Strong focus on core academic mission while maintaining emphasis on social-emotional learning, co-curricular activities, technology integration as well as capital needs. •When actual financial figures are not available, estimates are used. (HTEA, MPS, OOD, etc.)

Budget Highlights• Total budget = +1.90%• Tax levy increase of +2.60%

• Includes banked cap of $54,523

• Maintains staffing configuration (two sections per grade) and all co-curricular activities.

• Administrative costs: • Regional limit = $2,035 per pupil• HTS = $1,620 per pupil

Budget Highlights (cont’d)

• Measures of Academic Progress: grades 2-8.• Otis Lennon School Ability Test: grade 3.• Technology upgrades including new

computers in LMC lab and multiple classrooms. (PARCC readiness)

• Math in Focus (Singapore Math) - grades K-5.• Money budgeted for staff professional

development and curriculum writing. • Unfunded mandates such as Achieve NJ,

TEACH-NJ, ABR, Janet’s Law, PARCC, CCSS.

REVENUE HISTORY•Tax Levy•1997-2011 (average) 6.01% increase•2011-2012 1.96% increase•2012-2013 1.78% increase•2013-2014 1.50% increase•2014-2015 2.60% increase

•State Aid•2009-2010 $364,473•2010-2011 $0•2011-2012 $181,191•2012-2013 $225,137•2013-2014 $225,137•2014-2015 $233,677

REVENUE HISTORYTax Levy % Increase

1997-2011 2011-2012 2012-2013 2013-2014 2014-20150.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%6.01%

1.96%

1.78%

1.50%

2.60%

REVENUE HISTORYState Aid

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000 $364,473

$0

$181,191$225,137

$225,137

$233,677

Categorical State Aid2009-2010 2014-2015

Categorical State Aid $364,473 $233,677

As a percentage of the budget

3.97% 2.15%

Categorical State Aid

4%

96%

2009-2010

Categorical State Aid All Other Revenue

Categorical State Aid

2%

98%

2014-2015

Categorical State Aid All Other Revenue

Distric

t 1

Distric

t 3

Distric

t 5

Distric

t 7

Distric

t 9

Distric

t 11

Distric

t 13

Distric

t 15

Distric

t 17

Distric

t 19

Distric

t 21

Distric

t 23

Distric

t 25

Distric

t 27

Distric

t 29

Distric

t 31

Distric

t 33

Distric

t 35

Distric

t 37

Distric

t 39

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

% Change in School Funding by Legislative District 2009/10 vs. 2014/15

Harding--District 27

Capital Projects

• Elementary School Windows and Unit-Ventilators. Under the ROD (Regular Operating District) Grant, the State will pay for 40% of this project. The BOE local share is 60%. (summer 2014)

• Additional security measures (tbd).

2014-2015 Budget$ Amount $ Change % Change

Operating Budget

$10,235,479 $213,467 2.10%

Total Budget $10,826,752 $194,352 1.90%

Budget Efficiencies• Budgeted fund balance of $274,561. This

represents an increase of $99,671 or 56.99%. • Slight increase in Categorical State Aid +$8,540.• High quality Integrated Pre-K Program (ongoing).• Legislated increases in staff members paying for

health benefit premiums (Tier IV - up to 35% of premium).

• Continued shared services with Harding Township.

• Supply accounts.• Tuition students (PK-8) included.

RevenuesREVENUES 2013-2014 $ Changes 2014-2015

Local Tax Levy (including banked cap of $54,523)

$9,019,961 $234,922 $9,254,883

Tuition $78,400 ($26,100) $52,300

Transportation Fees $10,000 None $10,000

Building Usage Fees $9,000 None $9,000

Misc. Revenue $60,500 ($45,500) $15,000

State Aid (Categorical) $225,137 $8,540 $233,677

Extraordinary Aid (Sp. Ed.)

$190,000 $10,000 $200,000

Budgeted Fund Balance $174,890 $99,671 $274,561

Withdrawal Capital Reserve

$254,124 ($68,066) $186,058

Special Revenue (Federal)

$75,788 ($12,240) $63,548

Local Tax Levy (Debt Svc.)

$496,428 ($6,385) $490,043

Debt Service Aid $38,172 ($490) $37,682

TOTAL $10,632,400 $194,352 $10,826,752

Expenses – Fund 11General Expenses 2013-2014 $ Changes 2014-2015

Gen. Education Instruction

$2,355,590 $76,573 $2,432,163

Sp. Ed. Instruction $956,201 $38,240 $994,441

Sp. Ed./Tuition $2,581,575 $133,718 $2,715,253

Attendance/Health/LMC $162,219 $28,273 $190,492

Improvement Instruction

$204,857 ($69,982) $134,875

Support Svc. Gen. Admin.

$304,926 $4,151 $309,077

Support Svc. School Admin.

$24,583 $12,792 $37,375

Central Svc./IT Admin $136,561 ($3,635) $132,926

Operation/Mt. Plant $866,880 $27,901 $894,781

Student Transportation $845,689 $32,935 $878,624

Health Benefits $1,213,802 $62,787 $1,276,589

TOTAL – FUND 11 $9,652,883 $343,753 $9,996,636

Expenses - Funds 11, 12, 20, 40

Expenses 2013-2014 $ Changes 2014-2015

Total – Fund 11 $9,652,883 $343,753 $9,996,636

Capital Outlay – Fund 12

$369,129 ($130,286) $238,847

Special Revenue – Fund 20

$75,788 ($12,240) $63,548

Debt Service – Fund 40 $534,600 ($6,875) $527,725

TOTAL $10,632,400

$194,352 $10,826,752

Tax InformationCurrent Tax Rate

Proposed Tax Rate

Difference Change

0.463 0.475 0.012 +2.59%

2013 Average Assessment

$1,202,902 2013 Tax Payment

$5,569

2014 Average Assessment

$1,196,735 2014 Tax Payment

$5,685

HTS EXCELS• 2013 NJASK Highlights:

• Median SGP ELA = 58• Median SGP Math = 59• 14 “Perfect 300” scores on the NJASK Math!

• Middle School Band and Chorus both judged “Superior” at the High Note Music Festival.

• TSA competing in state events.• Second place in statewide Go Green competition!

• Quest Program• First place in Brain Bowl competition for grades three

and four!

• Partnership with United Way and College of St. Elizabeth for three-year Culture and Climate Initiative.

AND WILL CONTINUE TO EXCEL…

• Continued emphasis on small class size and personalized learning.

• Technology and data rich environment complemented with cutting edge pedagogical strategies.

• Broad spectrum of co-curricular activities, including sports and clubs.

Budget Vote and Election• In 2012, Gov. Christie signed legislation that

eliminated the need for a public vote on the school budget if the budget remains at or below the two percent tax levy cap, including use of banked cap.

• On February 13, 2012, the Harding Township BOE adopted a resolution to move the annual school election from April to November beginning in 2012.

• Since the proposed 2014-2015 HTS budget is within the cap (including banked cap) it will not be on the ballot in November.

Budget Preview 2015-2018

• Review/preview of banked cap• Review of fund 11 expenses (2010-

2015)• Three year budget projections• Review of budgeted fund balance

(2010-2015)

Banked CapYear Saved $ Amount Year Expires

2012-2013 $82,496 2015-2016

2013-2014 $74,390 2016-2017

2014-2015 $0 2017-2018

Fund 11Budget Year $ Expenses

Fund 11$ Change % Change

2010-2011 $8,964,618 N/A N/A

2011-2012 $9,195,284 $230,666 2.57%

2012-2013 $9,442,385 $247,101 2.69%

2013-2014 $9,652,883 $183,496 1.94%

2014-2015 $9,996,636 $343,753 3.56%

Three Year Budget Projection

YEAR REVENUES tax levy +2.00%

EXPENSES +2.75%

NET

2014-2015 $10,826,752 $10,826,752 $0

2015-2016 $10,935,019 +1.00%

$11,124,487 ($189,468)

2016-2017 $11,126,381+1.75%

$11,430,410 ($304,029)

2017-2018 $11,321,092 +1.75%

$11,744,746 ($423,654)

Three Year Budget Projection

2014-2015 2015-2016 2016-2017 2017-2018

Pro-jected Rev-enues

10826752 10935019 11126381 11321092

Pro-jected Ex-penses

10826752 11124487 11430410 11744746

$10,300,000

$10,500,000

$10,700,000

$10,900,000

$11,100,000

$11,300,000

$11,500,000

$11,700,000

$11,900,000 Gap = $423,654

Gap = $189,468

Gap = $304,029

Budgeted Fund BalanceBudget Year Ending $ Amount Added to Budget

Year

June 30, 2010 $3,028 2011-2012

June 30, 2011 $320 2012-2013

June 30, 2012 $174,890 2013-2014

June 30, 2013 $274,561 2014-2015

June 30, 2014 ??? 2015-2016

Budgeted Fund Balance + State Aid

Budget Year Ending

$ Amount Added to Budget Year

State Aid for that Budget Year

June 30, 2010 $3,028 2011-2012 $181,191 (50% banked)

June 30, 2011 $320 2012-2013 $225,137

June 30, 2012 $174,890 2013-2014 $225,137

June 30, 2013 $274,561 2014-2015 $233,677

June 30, 2014 ??? 2015-2016 ???