Ramapo Indian Hills Regional High School DistrictApril 27, 2020

2020 – 2021 Proposed Budget

WHAT IS A SCHOOL DISTRICT BUDGET?HOW IS IT DEVELOPED?

▪A plan that balances the educational needs of the students with the needs of the taxpayers.

▪Budget developed by review of program needs:❖ Administration❖ NJDOE❖ Board of Education❖ Staff

▪Develop a plan to manage surplus and reserves, and comply with 2% cap.

▪Restrictions on budget transfers and administrative costs.▪Requires long-range planning for RIH.

STUDENT PROGRAMS & SERVICES

Curriculum Renewal Plan

STUDENT PROGRAMS & SERVICES

Supporting a Digital Learning Environment

1:1 Six YearsRIH Future Ready Schools PlanServices and Tools for the DLEProfessional Development

BUDGET AT A GLANCE

● Proposed Budget reflects a 1.81% School Year tax increase

● $500,000 appropriated from Maintenance Reserve to Fund smaller building maintenance projects.

● The budget represents a decrease of ($1,671,707) million over the current budget but only due to the fact that the current budget includes a one-time appropriation of $3.1 million. The total 20-21 Net Budget has increased by $ 1,428,293 or 2.51%

● District has received additional State Aid of $297,090

● $480,000 will be provided to offset the local share of two capital projects.

HIGH SCHOOLS

RAMA

POINDIAN HILLS

Cost Saving Based on Per Pupil Cost = $4.75M Average District % Increase 20.42%Comparison is based on 46 Regional High School Districts RIH % Increase 17.15%

SOURCE-NJ TAXPAYERS GUIDE COMPARISON-2019 BUDGETARY COST PER PUPIL –TOTAL INDICATOR 1-State Median $18,070

2008-2009 2008-2009 2017-2018 2017-2018 $ Change % Change

District Per Pupil Cost Ranking Per Pupil Cost Ranking in Cost in Cost

Northern Highlands 15,005 34 18,289 29 $ 3,284 21.89%

Northern Valley 15,638 38 21,485 44 $ 5,847 37.39%

Pascack Valley 17,219 45 20,520 39 $ 3,301 19.17%

Ramapo Indian Hills 15,758 40 18,460 32 $ 2,702 17.15%

West Essex Regional 15,216 36 18,274 28 $ 3,058 20.10%

Hunterdon Central 14,741 31 16,639 20 $ 1,898 12.88%

No.Hunterdon -Voorhees 13,786 32 15,979 15 $ 2,193 15.91%

Monmouth Regional 16,758 44 20,544 40 $ 3,786 22.59%

West Morris Regional 13,861 20 15,857 13 $ 1,996 14.40%

Carlstadt-East Rutherford 17,424 46 21,388 43 $ 3,964 22.75%

PRUDENT FISCAL MANAGEMENT

● Legal Debt Margin only 4.67% - $345 Million in borrowing capacity.

● Assigned the highest possible AAA long term bond rating from S&P for strong financial position and balanced operations.

● Issued long term debt (bonds) only once in the last 40 plus years.

● Received over $25M of construction related grants on $90 million worth of projects - 28%.

● Repeated recipient of the ASBO International Certificate of Excellence in Financial Reporting

● In the 10 years since the 2% cap has been in effect, the district has only exceeded the maximum tax levy cap once, to take advantage of a capital project with a 40% state share grant.

● The district has not spent over $20.4 million in available taxation authority since the enactment of the 2% cap.

● Improved efficiency over the years as evidenced by lower comparative cost per pupil ranking among regional high school districts as per NJ Taxpayer Guide - 40th to 32nd.

19-20 Total Budget $ 60,030,863Less: Turf and Track Appropriation $ (3,100,000.0)19-20 “Net” Budget $ 56,930,863

Major Increases/Decreases (Rounded)Salaries- (Overall Increase 2.4%) $ 560,000

Instruction and Instructional Support Services $ 420,000Transportation $ 385,000Equipment $ 154,000

Facilities, Maintenance and Operations $ 141,000Employee Benefits $ (145,000)

Special Revenue/Entitlement Grants $ (66,000)Misc $ (21,000)Total Increases/(Decreases) $ 1,428,000

20-21 Proposed Budget $ 58,359,156

WHAT’S DRIVING THE BUDGET?-EXPENSES

DescriptionBudget

2010-2011

Portion ofTotal

Budget

Proposed Budget

2020-2021

Portion ofTotal

Budget

Instruction 27,426,751 57.45% 33,440,987 57.30%

Transportation 2,089,710 4.38% 2,962,634 5.08%

Administration 3,605,011 7.55% 4,350,112 7.45%Maintenance & Operations 4,813,271 10.08% 5,682,923 9.74%

Employee Benefits 7,091,668 14.86% 8,940,900 15.32%Equipment/Capital Reserve 474,476 .99% 1,048,090 1.80%

Special Programs 504,357 1.06% 374,460 .64%

Debt Service 1,731,015 3.63% 1,559,050 2.67%

Total Budget 47,736,259 100.00% 58,359,156 100.00%

APPROPRIATIONS COMPARISON

REVENUE - SOURCES OF FUNDS

Total Budget: $58,359,156

Balance Appropriated – $1,500,000

Federal Aid - $374,460

State Aid - $2,316,395

Tuition/Transportation - $172,183

Miscellaneous - $618,684

Local Taxes - $53,377,434

2010-2011 % of Total 2020-2021 % of Total

Fund Balance 944,000 1.97% 1,000,000 1.71%Appropriated Reserves -0- % 500,000 .86%Federal Aid 504,357 1.06% 374,460 .64%State Aid -0- % 2,316,395 3.97%Tuition/Transportation 68,000 .14% 172,183 .30%Miscellaneous 365,000 .77% 618,684 1.06%Local Taxes 45,854,902 96.06% 53,377,434 91.46%

Total Budget $47,736,259 100% $58,359,156 100%Value of State Aid if funded at 10-11 levels N/AState Aid Entitlement Under SFRAShort-changed by $1 million -

$3,311,006

PROJECTED REVENUES 10 YEAR COMPARISON

For 2020-2021, the District is continuing the need to invest in our facilities. $480,000 is budgeted for improvements pursuant to our Long Range Facilities Plan.

Total Est. Project Cost

IHHS Roof Recoat $ 350,000

IHHS/RHS Bathroom Upgrades $ 130,000

CAPITAL PROJECTS

SUMMARY-PROPOSEDTotal Budget Increase/ % $ 1,428,293/ 2.51%

Total Tax Increase $ 948,129

Total Tax Increase Percentage 1.81%

Total Tax Increase Percentage 1.89%

Annual Impact for an Average Homeowner:

Franklin Lakes $ -79.76 $ 1,063,510

Oakland $ 65.03 $ 414,224

Wyckoff $ 72.24 $ 793,800

(School Year Basis)

(School Year Basis)

(Calendar Year Basis)

Any Questions?

Email Address for budget questions:

budgetqa@rih.org

QUESTIONS?

mailto:fceurvels@rih.org

Current Proposal Revised Proposal

Total Budget $58,359,156 $57,869,809

Budget Increase(Net of 3.1M Approp) 2.51% 1.65%

Total Tax Increase $948,129 -0-

School Year Tax Increase 1.81% 0%

Calendar Year Tax Increase 1.89% .97%

Annual Increase-Franklin Lakes (based on $1,063,510 assessment) $-79.76 $-122.30

Annual Increase-Oakland (based on $414,224 assessment) $65.03 $43.49

Annual Increase-Wyckoff (based on $793,800 assessment) $72.24 $40.48

ZZero Tax Increase-Tax Impact

Salaries $559,519

Employee Benefits $ (144,800) Transportation $ 384,826

Curriculum Development $ 41,500

Textbooks Decrease -Transition to Digital Supplies $ (11,206)

Out of District Tuition and Related Services $ 392,746

Utilities/Cust./Maint. Contracted Svcs. $ 141,000

Equipment/Capital Projects $ (2,946,000) ( EXCLUDES PRIOR YEAR $ 3.1M FOR TURF & TRACK PROJECTS)Miscellaneous $ (14,749)

Debt Service $ (8,250)

Special Revenue-Entitlement Grants $ (66,293)

Total Expenditure Decrease $ (1,671,707)

Total Expenditure Inc. (Net of Turf & Track) $ 1,428,293

WHAT’S DRIVING THE BUDGET? EXPENSES

John K

COVID-19

▪ SCHOOLS SHUTTERED - TBD

▪ REMOTE LEARNING

▪ REMOTE OPERATIONS

▪ REDUCED OPERATING COSTS

In light of the anticipated economic impact this pandemic will have on our community, the following changes to the tentative budget are proposed -

BUDGETARY CHANGES

● Reduce Medical Insurance $489,347 ● Appropriate funds generated

in current year into 20-21 $458,782

● Net result in Tax Savings $(948,129)

ZERO TAX INCREASE

Renewal came in at 0%

2% CAP COMPLIANCE

▪The proposed budget reflects a spending increase of 2.51% and is $ 60,861 under cap. Prior year available banked cap is $1.194 million.

▪The District received an additional $297,090 in State Aid.▪The proposed budget is under the regional limit for administrative costs.

▪In the 10 years since the 2% cap has been in effect, the district has remained under the maximum tax levy cap 7 of those years and has only exceeded it once, to take advantage of a capital project with a 40% state share grant.

▪The district has not spent over 20.4 million in available taxation authority since the enactment of the 2% cap.

SUMMARY- ZERO TAX INCREASETotal Budget Increase/ % $ 938,946/ 1.65%

Total Tax Increase -0-

Total Tax Increase Percentage 0%

Total Tax Increase Percentage .97%

Annual Impact for an Average Homeowner:

Franklin Lakes $ -122.30 $ 1,063,510 42.54 sav

Oakland $ 43.49 $ 414,224 21.54 sav

Wyckoff $ 40.48 $ 793,800 31.76 sav

(School Year Basis)

(School Year Basis)

(Calendar Year Basis)

SAVINGS INITIATIVES

▪ Reverse auction for Electricity - savings of $15k.

▪ Reduction of one fte support staff member in ITC due to restructuring- $ 72,000

▪ Significant income - $ 365,000 from alternative revenue streams - Monopole. Automatic Annual Increases.

▪ Legal Debt Margin only 4.67% - $329 Million borrowing capacity.

▪ Pursuing Energy Savings Improvement Plan.(on hold)

DISTRICT GOALS INCLUDED IN BUDGET

▪ School Safety & Security

▪ Student Programs/Services

▪ Capital Projects

▪ Fiscal Responsibility

School Safety & Security

▪ FLOW Area Shared District Security Coordinator

▪ Upgrades to Door access and Camera System

▪ Implementation of Share911 Emergency Notification

▪ Student & Staff Training

▪ Table Top Drills

Student Programs & Services

2010-2011 % of Total 2020-2021 % of Total

Fund Balance % %Appropriated Reserves -0- % 0 %Federal Aid 513,528 % 3 %State Aid 2,202,944 % 5 %Tuition/Transportation 98,000 % 9 %Miscellaneous 312,350 % 8 %Local Taxes 43,950,671 % 55 %

Total Budget 48,588,935 100% 3 100%Value of State Aid if funded at 09-10 levels 3State Aid Entitlement Under SFRAShort-changed by $1.3 million -

5

PROJECTED REVENUES – POST CAPITAL10 YEAR COMPARISON

Description 2016-2017Budget

2017-2018Budget

2018-2019Budget

2019-2020 Budget

2020-2021 Budget

4 YearCumulative

Increase

Instruction 30,563,095 30,890,501 32,758,156 32,601,935 33,440,987 9.42%

APPROPRIATIONS CONTINUED

Transportation 2,122,924 2,152,792 2,356,847 2,577,808 2,962,634 39.55%

Administration

3,995,690 3,956,941 4,088,928 4,306,354 4,350,112 8.87%

Maintenance & Operations 5,297,362 5,565,947 5,687,960 5,555,923 5,682,923 7.28%

Employee Benefits 8,016,200 7,661,200 8,367,750 9,085,700 8,940,900 11.54%

Equipment/ Capital/Reserve 1,825,590 2,596,116 756,090 795,090 1,048,090 -42.59%

Special Programs 498,910 466,477 503,210 440,753 374,460 -24.94%

Debt Service 1,681,050 1,582,050 1,564,800 1,567,300 1,559,050 -7.26%

Total Budget 54,000,821 54,872,024 56,083,741 56,930,863 58,359,156 8.07%

Average Increase Per Year 1.96%

SHARED SERVICES THAT SAVE OUR DISTRICT MONEY

▪ NJACES – Purchase of Natural Gas

▪ Joint Insurance for Property/Worker’s Comp (NESBIG)

▪ Providing food services for Franklin Lakes K-8

▪ Purchase Fuel with Borough of Franklin Lakes

▪ Cooperative Purchasing (ESCNJ, Ed Data, PePPm)

▪ Transportation jointure agreements (Region I, HCESC)

▪ Security Coordinator Shared with FLOW Region

Student Programs/Services

▪ Wellness Initiative

▪ Curriculum Evaluation and Revisions

▪ Dual Enrollment

▪ FLOW K-8 Articulation

▪ Upcoming Projects