1 South Orange-Maplewood School District January 25, 2016
1
South Orange-Maplewood
School District
January 25, 2016
Budget development process
Revenue Assumptions
Estimated Tax Impact
Enrollment Projections
Historical Trends
Comparative Spending
Guiding budgeting principle: District Goal Four
Budget requests and considerations
Budget Projections
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
•Debt Service Status
•Budget Process, Calendar, and Priorities
December: Budget Development – Budget Analyses
Board requested:
Special Education – Internal Review
Prior Year Updates and other Considerations:
Technology Investment
Enrollment Changes and Building Capacity
Summer Programming
Access and Equity Policy
Legal Expenses
Transportation Update
Additional areas being considered, including, but not limited to:
Energy Consumption
Paper/copying expenses
Contracted Services
5
State aid for 16-17 remains at same level as 15-16
◦ The amount of state aid will not be known until after the Governor’s
budget address in February.
Federal grants budgeted slightly less than 15-16
Excess surplus from 2014-15 audit: $2,275,894
Revenues dependent on local sources.
Banked cap is available.
◦ ($409,103 through 2016-17, $970,247 through 2017-18, $147,754
through 2018-19 = total $1,527,104 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.
Where does school budget revenue come
from?
94%
3% 3%
0%
Local taxes (operating
budget and debt service)
State aid
Federal and State
Programs
Debt Service aid
Miscellaneous (incl tuition)
7
Revenue Source Budgeted 2015-16
Assumptions 2016-17
Operating Budget Local Tax Levy
109,134,877 111,317,575 (at 2% tax increase)
State Aid 4,216,218
4,216,218
Capital Reserve 338.530
0
Fund Balance 2,471,003 2,275,894
Miscellaneous (incl. tuition)
275,000 275,000
Debt Service 4,119,440 4,152,635
State/Federal 3,039,712 3,011,086
Total Revenue 123,594,780 125,248,408
8
7.02%
6.56%
6.26% 5.87%
6.16% 6.12%
5.89%
1.09%
2.80%
3.92%
3.45% 3.52% 3.41% 3.37%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
State Aid as a Percent of Revenue
Tax Levy CAP $111,317,575
Operating Budget
Tax Impact (est.) 2.00%
Debt Service $ 3,830,933
Local Tax $115,148,508
Operating and
Debt Service
Tax Impact (est.)
2.09%
Year over Year Tax Impact
7.37%
5.07% 4.98%
3.98%
3.48%
1.89% 2.00%
2.93%
1.97% 2.10% 2.09%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Budget Year Adjustment
Enrollment Adjustment
Health Care Adjustment
Total Adjust/Cap Available
Banked Cap Expires with SY Budget
Banked Cap 2016-17 Budget
2012-2013 $506,833 $0 $506,833 2015-2016 $0
2013-2014 $0 $884,103 $409,103* 2016-2017 $409,103
2014-2015 $544,210 $426,037 $970,247 2017-2018 $970,247
2015-2016 $588,254 $0 $147,754# 2018-2019 $147,754
Total $2,033,937 $1,527,104
Tax Levy at 2% of 2015-16
Enrollment Adjustment
Health Care Adjustment
Total Allowable Tax Levy
$111,317,574 $0
unknown at this time
$111,317,574
* $884,103 minus $475,000 # $588,254 minus $440,500
Multi-Year Impact
4.68%
3.64%
1.58%
-1.69%
3.29% 2.91%
1.59% 1.43%
3.26%
1.34%
6086
6176
6404
6393
6514 6609 6751
6858 6880 6939
Actual
2007-08
Actual
2008-09
Actual
2009-10
Actual
2010-11
Actual
2011-12
Actual
2012-13
Actual
2013-14
Actual
2014-15
Budgeted
2015-16
Projected
2016-17
revenue % increase over prior year enrollment
6,880 6,910
0
1000
2000
3000
4000
5000
6000
7000
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
3252 3320 3310 3267 3192 3099 3001
1587 1560 1578 1587 1650 1683 1716
1892 1877 1929 2007 2003 2056 2075 Ungraded
(incl PK)
High School
Middle
Elementary
6,982
Staffing compared to enrollments
102.2 101.7 96.3 97.2 95.7 94.7
646.96 654.44 653.12 646.65 643.77 642.87
6393
6514
6609
6751
6858 6880
6100
6200
6300
6400
6500
6600
6700
6800
6900
7000
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
non-certificated staff certificated staff enrollment
Analyses, past and present, represent areas identified for resource management, such as:
Health insurance and employee benefits
Maintenance Expenses
Energy Expenses
Transportation
Out of District Tuition
Legal Expenses
17
Source: Dept. of Education Taxpayer’s Guide to Education Spending Budget 2014-15
$14,418
$8,533
$1,574 $1,815
0
2000
4000
6000
8000
10000
12000
14000
16000
Per pupil cost Classroom instruction Total administrative
costs
Maintenance &
Operations
South Orange Maplewood Per Pupil Costs
Comparative Spending
K-12 state average
SO-M
Livingston
Millburn
Montclair
West Orange
• Access and Equity Policy
• Strategic Plan:
The goal of the Strategic Plan is to create a new
system which prepares students for a future that we
have yet to imagine.
This plan will be a collaborative effort so that the
plan ultimately represents the values of our
community and the needs of our students.
GOAL ONE: Student Learning: Promote the intellectual growth of all students
Access and Equity Policy
Summer School Programming
Academic Intervention
Enrollment and Class Size Considerations
GOAL TWO: Professional Staff: Consistently and collaboratively lead students of diverse backgrounds and learning styles to learn at or above the appropriate grade-level standards
Learning Walks
Cultural Competency
Restorative Justice
Differentiated Instruction
Technology Infusion
GOAL THREE: Engagement and Outreach: Communicate effectively with
parents, students and the South Orange Maplewood community.
Let’s Talk
Website Re-design
Education Summit/Strategic Plan Development
21
• Staffing and supply requests for Enrollment Increases
• Enrollment Plan: Redistricting Considerations
• Access and Equity
•Staffing requests for Academic Support
•Supplies/textbooks for AP/accelerated enrollments
•Additional Professional Development
• STEAM initiatives
• Second Year Expansion - Montrose Early Learning Center
• Seth Boyden enrollments (free/reduced lunch population)
• Increased technology – maintenance, replacement, support
• Increasing Tuition expenses and 504 Accommodations
• Increased Paraprofessional Staffing needs
• Security Enhancements
5-Year Budget Projection (2% Operating Tax Levy Cap Projected Years)
$10.4 Million
$15.0Million
$6.5 Million $3.1
Million
$20.6 Million
$125,023,039 $127,459,296
$129,686,355
$131,988,506
$134,348,911
$123,484,280
$128,175,135
$133,956,920
$140,085,944
$146,966,521
$154,913,236
$110,000,000
$115,000,000
$120,000,000
$125,000,000
$130,000,000
$135,000,000
$140,000,000
$145,000,000
$150,000,000
$155,000,000
$160,000,000
Projected Revenues Projected Expenses
Mon, Feb 22 BOE meeting: Budget Discussion
Tues, Feb 23 Governor’s State Budget Message
Thurs, Feb 25 State Aid Notices
Mon, Mar 7 (tentative) BOE Budget Workshop
Mon, Mar 14 (tentative) Community Forum to discuss budget
Mon, Mar 21 BOE meeting: BOE consider/adopt
preliminary budget to send to Essex Co Supt for
approval to advertise
Tues, Mar 22 Last day to submit 2016-17 Budget to County
Mon, Apr 18 BOE meeting
Mon, Apr 25 Public Hearing/action to levy 2016-17 school tax