Harding Township SchoolPreliminary Budget Report I

Alex Anemone, Superintendent of SchoolsBob Brown, Interim Business Administrator

December 15, 2014

Board of EducationKim Macaulay - President*John Flynn –Vice-President*Jim NovotnyDavor Gjivoje

* Members, Facilities and Finance Committee

2014-2015 District GoalsMath Facts Assessments for all K-5 students.District Writing Assessment for all K-8

students.PARCC preparation and communication.Data Dashboard.

The proposed 2015-2016 budget will support yet to be named goals for the 2015-2016 school year.

2015-2016 Operating BudgetThe operating budget is:

A statement, in financial terms, of the district’s educational priorities.

A management tool that projects and balances the district’s revenues and expenses

A process that gauges efficiency.A consensus document – BOE, Administration,

Parents, Staff, Community.A reflection of the community’s values (small

class size, technology, co-curricular activities, facilities maintenance, etc.)

2015-2016 Operating BudgetNot developed by increasing each line by a

certain percentage. Rather, the budget development is a process that involves considerable time and effort.

Current (FY14-15) spending patterns are collected and analyzed for trends.

Projections are made up to 18 months in the future. For example, budget estimates made in December 2014 (for 15/16 budget) will have to remain accurate until that particular budget year ends – June 30, 2016!

General TimelineOct.-Dec. – Administrative meetingsNovember 3 – Budget guidelines approved by BOEDecember 15 – Preliminary budget report IFebruary 2 – Preliminary budget report II~February 27 – State aid figures released~March 16 – Tentative budget presented to BOE~March 23 – Tentative budget submitted to

Executive County Superintendent~April 20 – Public hearing on the budgetJuly 1 – New fiscal year begins

Budget ProcessMeet with new Interim B.A. to review CAFR,

current 2014-2015 budget and plan ahead for 2015-2016 operating budget. (ongoing)

Refine and update position control roster. (completed)

Audit health benefits roster. (completed)Principal/DC – major curriculum items. (ongoing)Forecasting and budgeting for Out of District

placements for 2015-2016. (ongoing)Refine revenue (tuition, federal grants, state aid)

estimates for 2015-2016. (ongoing)

Budget Process (cont’d)Factors affecting operating budget:

Student achievementIncreases in health benefits premiums. +10-12%Enrollment (predicted to be flat)Curriculum development and support (NGSS)Professional development and other unfunded

mandates.Maintaining small class sizeContinued technology upgradesOngoing maintenance needsHTEA salary increases +2.60% (as per CBA)

Budget Assumptions - RevenuesState aid = $233,677 n/cTuition revenue = $52,300 n/cBudgeted fund balance =$274,680 +$119Federal grants = $55,000 ($8,548)Misc. revenue = $33,225 n/cTransportation fees = $10,000 n/cExtraordinary Aid = $190,000

($10,000)Building usage fees = $9,000 n/cTier IV of health benefits contributionn/c

Budget Assumptions - ExpensesHTEA salary increase +2.6% (as per CBA)Health benefits premiums +10-12% (est.)Dental benefits premiums +5%Out of district special education tuition +4-

6% (est.)Facilities improvements – elementary school

bathrooms renovation.

Budget AssumptionsAssumes *no change to staffing configuration, based

on October 15, 2014 ASSA student enrollment. If tax levy is at +2.00%, banked cap is available;

$82,493 expires after this year; $74,390 expires in the 2016-2017 budget cycle. Total banked cap available to the Board for this budget is $156,883.

I do not anticipate any banked cap being generated nor made available after 2016-2017. Moreover, I anticipate State Aid remaining flat.

*Pending kindergarten enrollment (Feb. 2015).

State Aid•State Aid•2009-2010 $364,473•2010-2011 $0•2011-2012 $181,191•2012-2013 $225,137•2013-2014 $225,137•2014-2015 $233,677

•2015-2016 $233,677 (estimate)

Revenue HistoryLocal Tax Levy

1997-2011 (average) +6.01%2011–2012 +1.96%2012-2013 +1.78%2013–2014 +1.50%2014–2015 +2.60%

2015 – 2016 +2.89% (est.)

Next StepsContinue to refine revenue estimates.Continue to refine expense estimates.Continue to refine out of district special

education costs.Preliminary budget II presentation. (Feb.) Governor’s budget address and state aid

figures. (Feb.)Tentative budget approved by BOE and sent

to ECS. (March)Public hearing on the budget. (April)

Budget Scenarios and ComparisonsTOTAL BUDGET

TAX LEVY

TAX LEVY +2.0%

TOTAL NEW BUDGET

BUDGET CHANGE

District R $11,000,000

$10,000,000~90%

$200,000 $11,200,000

+1.82%

District M $11,000,000

$6,600,000~60%

$132,000 $11,132,000

+1.20%

District P $11,000,000

$2,200,000~20%

$44,000 $11,044,00

+0.40%

Budget Scenarios and Comparisons TOTAL BUDGET

TAX LEVY

TAX LEVY +2.0%

TOTAL NEW BUDGET

2 YEAR BUDGET CHANGE

District R $11,200,000

$10,200,000

$204,000 $11,404,000

+3.67%

District M $11,132,000

$6,732,000

$134,640 $11,266,640

+2.42%

District P $11,044,000

$2,244,000

$44,880 $11,088,880

+0.81%

Budget Scenarios and Comparisons TOTAL BUDGET

TAX LEVY

TAX LEVY +2.0%

TOTAL NEW BUDGET

3 YEAR BUDGET CHANGE

District R $11,404,000

$10,404,000

$208,080 $11,612,080

+5.56%

District M $11,266,640

$6,866,640

$137,333 $11,403,973

+3.67%

District P $11,088,880

$2,288,880

$45,778 $11,134,658

+1.22%

Budget Scenarios and Comparisons Tax Increase Year I

Tax Increase Year II

Tax Increase Year III

TOTAL

District R $200,000 $204,000 $208,080 $612,080

District M $132,000 $134,640 $137,333 $403,973

District P $44,000 $44,880 $45,778 $134,658