Hoboken Board of Education HHO

BOKE

N BOARD OF EDUCATIO

N

ESTABLISHED 1850

The Proposed2013–2014 School Budget Over the past several weeks, the Hoboken Board of Education and the school administration have been working diligently to develop a budget that strikes a di!cult balance—one that provides adequately for e"ective student learning while taking into account the legitimate concerns of taxpayers in a state with the highest property taxes in the country. The Board of Education is proud to have provided the community with a slight decrease in the school tax levy for the past three years despite rising costs. But this year we are presented with several challenges, the biggest of which are:

• An unexpected loss of $450,000 in Federal funds as a result of sequestration, • A requirement to pay down a deficit that built up over many years in the

district’s Food Service program, and• An increase of $553,000 in charter funding due to the addition of a new grade

level at one of the charter schools.

In light of this, we must increase revenues by $1.86 million. Although the budget is adequate to the educational needs of our children, I must emphasize that this budget does require considerable sacrifice, including reductions in new educational programs, personnel, and planned capital improvements. As a member of the Hoboken Board of Education, I’ve listened to the parents and residents who not only expect more from the district, but that we increase student achievement in a disciplined, cost-e"ective manner. The board and the administration could not agree more and I hope that, upon careful review of the budget, you, in turn, will agree that we have balanced educational needs with financial prudence.

Sincerely,

Leon Gold, Ph.D.President, Hoboken Board of Education

The HobokenBoard of Education

Leon Gold, Ph.D.President

Ruth McAllisterVice President

Peter BiancamanoCarmelo GarciaThomas KluepfelRose Marie MarkleJean Marie MitchellFrances Rhodes-KearnsIrene Sobolov

Superintendent of Schools

Dr. Mark Toback

March 2013

Total Revenue

$64.30 $7.81 $7.25$9.62

Hoboken District Public Schools

$46.30

Student InstructionSalaries, Textbooks and Supplies

Some Pre-K, All K–12

$12.00

$11.2

Bilingual Education

$0.24

$16.51

Co- and Extra-CurricularActivities

$0.51

$0.37

Special Education

$3.91

$3.73

Summer and At-Risk Programs

$0.10

$0.09

Athletics

$0.76

$0.83

$0.29

Student Services

Maintenance & Facilities Salaries, Supplies

Custodians, Cleaning Services,Supplies

$3.39

Pupil Transportation

$1.29

Insurance

$0.18

Heat, Electricity, Water, Sewer, Gasoline

$1.36

Security (Salaries and Equipment)

$0.37

Care of Grounds

$0.11

$1.43$3.65

$1.28

$0.17

$0.35

$0.13

$7.01

Local Tax Levy$37.95$36.48

State Aid$21.67$20.20

Fed’lAid

$1.81

$2.26

FundBalanceApplied

$1.68

$0.00

Misc.

$1.19

$2.98

$62.44

$45.57

Salary Costs

Social Security

$0.85

$1.01

Health Benefits

$5.04

$4.96

Placements for Students with Special Needs

$2.18

$1.71

$6.53

School Nurses and Medical Supplies

$0.40

$0.44

Speech, OT &One-to-One Aids

$1.00

$0.98

Guidance Counsellors

$0.51

$0.71

Child StudyTeams

$1.48

$1.42

Tuition Reimbursement

$0.05

$0.05

Other Benefits

$0.89

$0.89

Unemployment Compensation & Workers Comp.

$0.48

$0.42

$7.92

Retirement

$0.64

$0.59

$1.27

Curriculum Supervisors

$1.29

$17.52 $6.86

Capital Outlay & Equipment

$0.13 $0.86

$0.99

Instructional Equipment (e.g., Textbooks)

$0.13

Construction Services, School Bus, etc.

$0.97

$1.10

Miscellaneous Costs

Library and Media Services

$0.77

$0.74

$1.64

$0.43

AfterschoolPrograms/Local Grants

$0.03

Food Service Deficit

$0.15

Debt Service

$0.27Attendance Officers

$0.33

$1.55

Administrative CostsSalaries, Supplies, Legal, Phones

Superintendent’s Office

$0.79

Principal’s Offices

$1.25

Business Office

$0.68

Technology

$0.17

$0.81

$1.32

$0.66

$0.17

$2.89

$6.70 $7.95

Wallace Elementary School

Thomas G. Connors Elementary School

Joseph F. BrandtPrimary School

Salvatore R. Calabro School

HobokenHigh School

Federal & Non-Pre-KState Programs

State: Youth Services, Family Centers

$0.77

$0.76

$1.71

Federal: No Child Left Behind Title I, Title II...

$0.94

$1.23

$1.99

* All dollars amounts are rounded up and expressed as millions of dollars. For example, $1,476,406 is expressed as $1.48; $328,847 is expressed as $0.33.** This amount is based on actual expenses from July 1, 2013 through January 31, 2013 plus estimated amounts for the balance of the fiscal year.

Description of Expense

Budgeted for 2013–2014*

2012–2013 Amount**

How to read the chart:

The 2013-2014 Hoboken Board of Education budget is a multi-page spreadsheet containing hundreds of line items.

The chart at right presents the budget in an accessible, less daunting way; it is meant to engage, inform and empower the public.

The arrows at the top show the revenue sources. Then, the budget’s many line items are grouped into logical categories, each with subcategories and the amounts budgeted. (For the sake of comparison and accountability, the 2012–2013 dollar amounts are also included.)

Although the dollar amounts are rounded, this chart accurately presents the entire budget.

2013–2014 Budget in millions of dollars

Although Hoboken’s three public charter schools are independent of the Hoboken Board of Education, they are funded through a single tax levy for which the district has responsibility. It is for this reason that the Hoboken Board of Education budget includes funding for the charter schools.

Elysian Charter SchoolHoboken Charter SchoolHoLa Charter School

State-Mandated and Funded Pre-K

$10.19

2

$0.15 $0.00 $0.28

$2.96

What impact will the budget have on residents?

The impact of the budget on the average residence currently assessed at $145,000 is $34.42 per year. (Source: City of Hoboken Tax Assessor Office)

How is it possible that we have a budget in excess of $64,000,000?

The school funding in this budget supports what is essentially four school districts within our mile-square city. In addition to the Hoboken Public Schools, there are three independent public charter schools: Elysian Charter School, Hoboken Charter School, and the Hoboken Dual Language Charter School (HoLa). Also, the preschool program serving 700 young children is funded almost entirely by the state—it is essentially “flow through” funding that allows three approved providers to provide educational services. The charter school allocation and the preschool funding amounts to $18.0 million. The actual budget for the Hoboken Public Schools (Grades K–12) is $46.3 million.

Why are you reducing staff positions?

The administration determined that under difficult financial circumstances, certain positions can be eliminated to reduce the burden on taxpayers. Some positions may be eliminated through scheduling, re-assignment, and unfilled retirements. The number of positions may be reduced without terminating employees.

What has been done by the school district to reduce my property tax burden?

Over the past three years, the district has not increased the tax levy and the budget has been slightly reduced

despite increasing costs in many areas. During the past few years, the Hoboken Board of Education also under-took a number of projects and initiatives to reduce costs in consideration of the taxpayers. Some examples include:

• Budgeting approximately $1,500,000 of surplus as budget revenue to reduce the impact on taxpayers;

• Reduction of a number of positions and not replacing some employees who retired;

• Allowing for increased school choice enrollment of students outside of Hoboken;

• Increased vigilance for issues of residency;

• Participation in various purchasing co-ops to obtain the best value;

• Installation of energy efficient lighting systems and other energy efficiency projects;

• Technology initiatives that allow for increased operational efficiency throughout the district;

• Identification of areas of high cost and a development of plans and goals to reduce costs;

• Insourcing certain aspects of the preschool education program;

• Ongoing efforts to share services with the city; and

• Continued efforts to share services with other school districts for educational services.

Explain the tax cap, please.

New Jersey legislation imposes a 2% cap on the tax levy for schools. However, the state allows waivers for certain non-discretionary expenses.In addition, districts have the ability to use what is known as “banked cap.” Banked cap means that the district is

permitted to utilize spending authority it has accumulated in prior years when its budgeting fell below the 2% cap.

What are the major cost factors in the development of the 2013–2014 budget?

Important cost factors this year include:

• Sequestration of federal funds used to support our students in greatest need;

• Increased costs for insurance;

• Increased requirements for funding to charter schools due to enrollment increases;

• Increased enrollment at lower grade levels require some staffing changes;

• Requirements to reduce a long-time deficit for our food service operations, and

• Increased costs for tuition to schools for the disabled.

How was a deficit created in food service?

Over many years, the district lost millions of dollars in its food service business. Many of those losses were covered over the years with transfers from other accounts. Even with those past transfers, the district has accumulated losses approaching $1,000,000. Some of the losses were due to loss of perishable food items and equipment, but much of it has to do with payment for school lunch. Recently, the district took steps to rectify the problems with our food service operations and is expecting to stop the losses and at least break even this year. However, the district must now pay down the deficit in order to comply with directives from the school district auditor and the New Jersey Department of Education.

2013–2014 Budget Q&A

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$47.04 $45.35 $45.44 $45.57 $46.30

Budg

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HBoE Budget and Student Enrollment2009–2014Enrollment numbers are those submitted to the NJ Department of Education Application for School State Aid, minus Pre-K and charter school students.Enrollment for 2013–2014 is estimated.

HBoE Student Enrollm

ent

’09–’10 ’10–’11 ’11–’12 ’12–’13 ’13–’14

Budget for HBoE Students(in millions of dollars) Student Enrollment

Hoboken Board Of Education158 Fourth StreetHoboken, NJ 07030

HO

BOKE

N BOARD OF EDUCATIO

N

ESTABLISHED 1850

How has the district used the budget to support teaching and learning?

The district took a number of steps to improve the teaching and learning process in Hoboken and has made a significant investment in instructional materials, technology, and curriculum. For example: The district has, for the past two budget cycles, focused on replacing out-of-date instructional materials; students in the elementary school have new science materials and new math textbooks. The 2013–2014 budget includes funding to purchase language arts textbooks for students in the elementary schools. The new textbooks will help the district to make a required transition to the new Common Core State Standards.

In addition to textbooks for students in the elementary schools, a significant investment has been made to replace out-of-date textbooks at Hoboken High School. The budget includes funding to support new online learning opportunities to allow students to pursue coursework that may not be possible due to low class enrollment. In other cases, advanced classes may be offered to students online. The 2013–2014 budget supports the continuation of the AIM Program at Hoboken High School. The AIM program is an alternative high school program for at- risk youth and is one of the first blended learning environments in Hudson County. Students are able to retrieve lost credit, receive remedial instruction, and position themselves for high school

graduation. The program works well for the students and costs hundreds of thousands of dollars less than the alternative high school program once housed at A.J. Demarest School. Improving educational technology is an important part of our school improvement efforts and also necessary to support the new learning standards. Approximately $100,000 is included in the budget to enhance technology in the classrooms. The district also took a huge step forward with new Smartboards in the elementary classrooms. Almost all district curricula has been aligned to the new standards and we are in compliance with all curricular changes required by the New Jersey Department of Education.

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