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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

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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)

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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

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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

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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

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• 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