Newark Public Schools Budget Presentation FY 20082009

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Newark Public Schools Budget PresentationFY
2008-2009

• March 19, 2008

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Changes for 2008-09

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School Funding in NJ

• CEIFA has not been run since 2001-02.
• Up until last year, state aid had been frozen for
  most districts at the 01-02 levels.
• States goal is to create a fair, equitable, and
  predictable funding formula for FY09 based on
  student characteristics, regardless of zip code.

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Prior Abbott Funding

• Under the New Jersey Supreme Court Abbott ruling
  districts were provided funding
• Parity with the spending for regular education by
  IJ districts
• For Supplemental Programs based upon the
  particularized needs of their students
• New Facilities

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School Funding Reform Act (SFRA) of 2008

• New K-12 State Aid Categories
• Expansion of Preschool
• Estimated Tuition Calculation
• Minimum Tax Rate Calculation
• Report on District Status Above or Below
  Adequacy
• Changes in Extraordinary Aid

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SFRA Aid Categories K-12

• Increase of School State Aid of 532 million in
  FY 2008-2009
• State aid increase ranged from 2 to 20 based
  upon an individual communities wealth, local fair
  share calculation and adequacy budget

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SFRA Aid Categories K-12

• Consolidates 26 existing aid categories into
• Equalization Aid (wealth based)
• Special Education Categorical Aid
• Security Categorical Aid
• Extraordinary Special Education Categorical Aid
• Transportation Categorical Aid
• Debt Service Aid
• Misc (choice aid, educational adequacy aid, fica,
  pensions)

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School Spending in NJ

• New Jersey per pupil spending is the highest in
  the nation (NCES, FY 2005)
• NJ school spending per pupil in FY05 - 14,117
• US Average in FY05 - 8,701
• New Jersey state aid per pupil in FY05 is the 5th
  highest in the nation
• Only higher are VT, HI, AK, and DE.

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Summary of Adequacy Budget Amounts
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FY09 Adequacy Budget Weights/Amounts
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SFRA Required Tax Levy Offset

• Use of State Aid Increase if Over Adequacy
• Impacts 120 districts
• Districts Spending above adequacy and their local
  fair share must use the increase in state aid
  over 2.89 to offset levy increase
• District may still apply for waiver or use
  separate proposal to increase levy
• In sum, every district subject to provision will
  receive full increase in state aid and be able to
  grow budget by same 4 plus adjustments, waivers
  and separate proposals. In addition, these
  district can grow budgets by increase in aid up
  to 2.89.

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Tax Levy Waiver Requests

• New for FY2008-2009 is the ability for districts
  to submit a tax levy cap waiver to exceed the
  allowable tax levy growth for extraordinary
  costs
• Extraordinary cost for a waiver is defined as
• Costs beyond customary and usual in the
  operation of a public school, beyond the control
  of the district, necessary to achieve TE as
  determined by the Commissioner, and the
  expenditure was not included in the original
  budget of the prebudget year or increased by more
  than 4 of the amount included in the original
  budget of the prebudget year

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Tax Levy Waiver Requests

• There are specific extraordinary cost waiver
  requests allowed in the law which include
• Energy cost increases in excess of 4
• Capital outlay increases in excess of 4
• Use of non-recurring revenue in current year
  budget
• Increases in insurance (excluding health) in
  excess of 4
• Increases in hazardous busing in excess of 4
• Increases in special ed costs over 40k/pupil in
  excess of 4
• Increases in tuition in excess of 4
• Incremental increases in costs for opening a new
  school in the budget year and
• Not meeting the CCCS defined for 08-09 as a DINI
  district

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Tax Levy Waiver Requests

• Waivers are NOT automatic
• Executive County Superintendent will review and
  approve waivers as part of budget approval and
  may make budgetary reallocations up to the total
  amount of the waiver request

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SO WHAT DOES THIS MEAN?
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Impact on District Budgets

• Districts spending over their adequacy budget
  amount and receiving only a 2 increase in state
  aid for 2008-09 may find it difficult next year
  and in future years preparing budgets.

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Impact on District Budgets

• Districts receiving only a 2 increase in 2008-09
  may find that their state aid will be flat funded
  for several years thereafter.
• Some Abbott Districts will either have to
  significantly raise their local taxes or cut
  positions and programs gained under the Abbott
  Ruling

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Impact on District Budgets

• What does SFRA mean for the Former Abbott
  Districts?
• Possible Flat Funding for 3 or more years
• State recalculated proposed Local Fair Share
  for all school districts. For most Abbott
  Districts, our Local Fair Share capacity amounts
  increase significantly, ranging from 4.9 to
  171.4 over their FY 2007-08 current tax levy.
• The State has determined that the City of
  Newarks Local Fair Share capacity is 139
  million or 43.6 million (45.2) over the FY
  2007-2008 levy
• The District for FY 2008-2009 proposed an
  increase of 3.8 million or 4 over FY 2007-2008

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OTHER DATA
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Chapter Law 53 requires

• Districts to post the User-friendly plain
  language budget forms on its internet site
  following public hearing and before election and
  
• Districts and department to post the
  user-friendly final budget forms following
  election and municipal review of defeated budgets
  

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Employee Contractual Info

• The Commissioner of Education shall require a
  school district to submit annually with the
  budget (either by Feb 15 or March 6), the
  following items as supporting documentation in
  regard to the superintendent of schools, the
  assistant superintendent of schools, the school
  business administrator and any employee with an
  annual salary that exceeds 75,000 who is not a
  member of a bargaining unit

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FY 2008-2009 BUDGET
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2008-2009 PROPOSED BUDGET

• 995,792,909

A net increase of 39 million over 2007-2008
original budget
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2008-2009 Budget Summary-Revenues

• Includes an increase in state aid of 25.5
  million (including Charter School Aid)
• Increases an increase of 3.8 million in local
  tax levy
• An appropriation from Fund Balance of 23.9
  million or an 8.4 million increase over FY
  2007-2008.

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2008-09 Budget Summary-Expenditures

• Includes increases for non discretionary mandated
  items such as
• Salaries
• Tuition
• Transportation
• Utilities
• Charter Schools etc.
• All non salaried discretionary costs remained
  flat
• Includes a net reduction of 32 instructional/suppo
  rt positions.

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NEWARK PUBLIC SCHOOLS

• Operating Budget 850,912,083
• Grants Entitlements 144,880,826
• Total District Budget 995,792,909

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Revenue Sources

• Fund Balance
  23,938,400
• Local Tax Levy
  100,213,266
• Miscellaneous
  6,898,018
• Semi Medicaid 950,000
• State Aids
  718,912,399
• Operating Budget
  850,912,083
• Grants Entitlements
  144,880,826
• Total Aid Awarded
  995,792,909

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995,792,909
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Newark Public Schools Three Year Comparison of
Revenue Awarded Where Does The Money Come From?
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State Aids

• Equalization Aid
  571,889,796
• Transportation Aid
  4,969,042
• Special Ed Categorical A
  24,894,683
• Security Aid 15,741,827
• Adjustment Aid 87,585,999
• Charter School Aid 11,589,312
• Extraordinary Aid 2,027,468
• Adult Education Aid 214,272
• Total Aid Awarded
  718,912,399

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Major Costs of Total Budget
Salaries 505,651,191 Health Employee
Benefits 109,049,859 Charter Schools
62,964,122 Tuition 66,013,109
Utilities 14,247,646 Pupil
Transportation 33,846,909 Other
59,139,247 Total Operating Budget
850,912,083
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Total Salaries
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850,912,083
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Major Cost Increases
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2008-09 Revenues to Balance the Budget
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Fund Balance Analysis
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Total District Enrollment(Excluding Charter
Schools)
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Per Pupil Cost

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Per Pupil Cost - 19,182
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Comparison of Per Pupil Costs
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Charter Schools

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CHARTER SCHOOLS COMPARISON FY 2007-2009
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District-Wide Positions Reductions 2008-09

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TOTAL STAFFING 08-09

• Current Employees District-wide 7,339.1
• 2008-09 School/Central Reductions
• Special Education/Categorical (12.0)
• Regular Education
  (9.0)
• Support-Inst/Non-Inst
  (11.0) (32.0)
• Total
  7,307.1

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SBB Positions Reductions2008-09
Special Education/Categorical 12.0

• 6.0 Teachers (6 Vac)
• 2.0 Bilingual (2 Vac)
• 1.0 ESL
• 1.0 Resource (1 Vac)

• 1.0 Special Ed Aides
• 1.0 Bilingual Aides (1 Vac)

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SBB Positions Reductions2008-09
Regular Education 9.0

• 6.0 Gr. 1-5 Teachers (6 Vac)
• 3.0 Gr. 6-8 Teachers (3 Vac)

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SBB/Central Office Positions Reductions2008-09
Instructional Support/Categorical 11.0

• 4.0 Class Room Aides
• 3.0 Coordinators (3 Vac)
• 1.0 Athletic Trainer (1 Vac)
• 1.0 Analyst (1 Vac)

• 1.0 Principal (1 Vac)
• 1.0 Nurse (1 Vac)

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VACANCIES BREAKAGE
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Tax Levy Analysis

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NEWARK PUBLIC SCHOOLPROPERTY TAXESTEN YEAR
ANALYSIS
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School Operating Cost To The Average Tax Payer
The new levy is based on a 3,854,356 increase
in the tax levy for the School
Districts 2008-09 budget.