20092010 Budget

1
2009-2010 Budget

• Status Report

2
Budget Development Steps

• O Zero program growth guideline communicated to
  all administrators in December
• -2008-2009 spending freeze enacted
• O Principals and Departments submit proposed
  budgets early January
• O Meetings with Finance Committee to review tax
  levy cap, state aid status, other revenue sources
• O Identification of possible cuts/reductions to
  get within cap
• O Presentation of tentative budget March 10
• O Budget hearing March 31
• O Budget vote April 21

3
New Jersey Financial Outlook

• State budget deficit of 5 billion
• DOE budget reduction of 20 (17million)
• State aid (1.6 million) likely to be flat or
  reduced, but could be compensated for by pension
  contribution deferral
• DOE taking an oppositional stance on any district
  proposals to waive the 4 tax levy cap

4
Enrollment Outlook

• High School 780 (797 this year)-112 from Harding
• Junior School 543 (510 this year)
• Elementary 958 (949 this year)
• Total 2,281 (2,250 this year)
• Notes Doesnt include Preschool Handicapped, out
  of district placements, or any possible influx of
  private/parochial students beyond current pattern

5
On the expenditure side

• 4 tax levy growth cap provides enough revenue to
  fund general fund expenditure increase of
  1.1million
• Honoring existent staff contractual increases is
  approximately 900,000 in added dollars
• Health insurance increase for existent staff is
  approximately 248,000 in added dollars
• Utility cost increase for expanded facilities is
  approximately 50,000 in added dollars
• Mandated special education programs/services will
  require 300,000 in added dollars

6
On the expenditure side

• Getting within the 4 tax levy growth cap
  requires cutting approximately 674,000-774,000
  from the proposed school and department budgets
• 384,000 in reductions to areas have already been
  identified, including voluntary salary freezing,
  maintenance projects, utilities, legal and other
  professional services, printing, et.al.
• Additional 290,000-390,000 in cuts to be made.
  Taking an across the board approach, rather
  than focusing on one or two areas
• Utilities
• Special education
• Teaching positions
• Supervisory positions
• Support staff positions and overtime
• Extra-curricular costs
• Final cuts to be made by March 10

7
On the revenue side

• Need to fix Harding high school tuition number
• Need to fix final state aid figure
• Potential for receipt of additional 0-300,000
  in IDEA (special education funding) through
  federal stimulus package
• Application of excess surplus (over 2) of
  643,502 ( 68,000 less than last year)

8
On the debt service side

• Required debt service payment will be 3,093,493,
  which is 1,602,307 less than last years
  4,695,800
• However, debt service aid declines by 1,379,149
• So, total debt service tax levy is reduced by
  223,158 (an 8.67 reduction)

9
Comparative Spending

• Madisons per pupil cost has grown 4.8 over two
  years, the second lowest K-12 district growth
  rate in Morris County
• Total cost per pupil is 98 below state average
• Comparative cost per pupil is 13,122 versus
  state average of 12,776

10
Continued Cost-Cutting Steps

• Cooperative purchasing through Morris County
  Cooperative Purchasing Council, Morris/Essex
  Insurance Group, Ed Data Services, Morris and
  Hunterdon County Ed Services Commissions
• Shared services projects with the municipality
  (Rosenet, Project Community Pride,
  maintenance/public works, School Resource
  Officer, recreational facilities use and
  improvements)
• Pursuit and utilization of grant funding
  opportunities (outside foundations and MHSEF)