PRINCETON REGIONAL SCHOOLS2012-2013

PROPOSED BUDGET

March 2012 1

MAINTAINING EXCELLENCE WITHIN A

CONSERVATIVE BUDGET

GOALS OF THE BUDGET2012-2013

Goals of the 2012-2013 budget are:

Work within a 2% tax levy cap Maintain focus on teaching and learning Support opportunities for our students’

intellectual, social and emotional growth Use every dollar wisely in order to maximize the

community’s investment in our schools and our children

Princeton Regional School District is synonymous with:

Excellence.

March 2012 2

March 2012 3

A quick look backward…

Of the over $2 million loss of state aid in 2010-2011 all but $440,000 has been returned to the district revenue lines as of the 2012-2013 state aid allocations.

As per state legislation the tax levy cap for 2011-2012 budget was 2%, and will remain at a 2% tax levy cap for the 2012-2013 budget.

THANK YOU to the many donors whose contributions continue to support programs that would not have been possible this year without your generosity.

“Adequacy” vs. Excellence

New Jersey’s most recent funding formula for public education is based on an “adequacy” formula.

Princeton is considered an “over-adequacy” district.

The State goal is to move all districts toward “median” spending levels.

This will be a battleground for Princeton for at least the foreseeable future.

March 2012 4

Where Did We Start?

The state reduced aid by 54% in February 2010 which greatly impacted the 2010-2011 budget negatively.

The state, in February 2011, returned $741,409 of that lost aid to support the 2011-2012 budget.

August 2011 the state released additional aid to districts to support budgets. Princeton received $741,409. This second release of aid replenished the district’s loss to all but $547,600 of the 2009-2010 aid level.

March 2012 5

Where Did We Start?

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January 2012 we were hopeful that the balance of lost aid would be returned to the district. We were disappointed to learn only $107,606 of aid would be returned.

The district is still operating with a $440,000 deficit below the 2009-2010 aid level.

On a positive note we were able to balance the budget with no layoffs or program deterioration.

CHARTER SCHOOLS’ COSTS We will continue to support the Princeton Charter school

in 2012-2013. Princeton Charter School expense is up 1.6% above prior year in order to cover an increase in tuition to that school.

Princeton Charter School costs = $4,777,482 in 2012-2013.

It is still not confirmed as to whether the new Princeton International Academy Charter School will open in September 2012.

If the PIACs charter school opens, our district budget could be drained of funds in excess of $400,000 and the drain will continue to grow each year.

The charter school tuition expense is budgeted in the tax levy question.

March 2012 7

Where are we now on March 27th?

No “planned” layoffs…but there are still some unknown factors

Budget funding levels set for a balanced budget

Plans for personnel and instructional programs for 2012-2013 are in progress

Implementation of new laws governing health benefit contributions

March 2012 8

PROPOSED BUDGET 2012-2013

School and department budgets remain at 2011-2012 levels

Efforts to stabilize utility bills through controls and efficiencies will continue

Decreases in out-of-district tuitions have been maximized

March 2012 9

BASIC BUDGET FACTS 2012-2013

The operating budget is heavily impacted by state mandates and contractual salaries and benefits.

The impact of these constraints on the operating expenses, combined with decreases in major categories, generates a budget which is 1.00% higher than the 2011-2012 general fund budget.

CONSERVATIVE is the label for this budget.

March 2012 10

BASIC BUDGET FACTS 2012-2013

The operating budget is supported primarily by local taxes.

The proposed general fund tax levy increase of 2.00%, will support the 2012-2013 budget without further program deteriorations, and will continue to address the over-crowding of core classes at the high school, expanded academics & co-curricular opportunities at JW, & low class sizes at the elementary schools.

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REVENUES: OPERATING BUDGET 2012-2013

Taxes to be requested $63,434,108*Fund Balance $ 3,145,119Tuition & Revenues (below PY) $ 4,416,465State aid ($1,589,000 returned) $ 3,337,049Extra-Ordinary Aid (budgeted) $ 350,000Other Revenues(budgeted) $ 574,365Capital Reserve transfer $ 350,000Total Operating Revenues $75,607,106

Total Operating Expenses $75,607,106*Tax excludes amount for debt payment.

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EXPENSES: OPERATING BUDGET 2012-2013

2012-2013 $Change %ChangeInstruction $31,567,330 $ 1,034,866

3.4%Tuitions S&R $ 4,005,969 $ (2,440) (.06%)Student Support

Services $ 9,036,565 $ 391,080 4.5%

Administration$ 4,406,237 $ 170,271 4.0%Operations $ 6,087,676 $ 7,143

0.1%Transportation$ 3,089,384 $ ( 69,015) (2.2%)

Continued:

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EXPENSES: OPERATING BUDGET 2012-2013

2012-2013 $Change %ChangeBenefits – ALL $11,929,787 $ (620,142)

(4.9%)Cap Reserve $ 350,000 $ ( 50,000) (12.5%)

WithdrawCapital Expenditure $ 356,676 $ (111,607)

(23.8%)Charter School $ 4,777,482 $ (6,099)

(.12%)Total Expenses $75,607,106 $ 744,057

2011-2012 $74,863,049Budget Increase .99%

March 2012 14

SCHOOL TAX 2012-2013 SHARE

2011-2012 2012-2013 Increase

Borough $20,719,499 $21,057,121 $ 337,622

Township $41,470,803 $42,376,987$ 906,184

Total TaxSchool Year $62,190,302 $63,434,108

$1,243,806

Growth of General Fund Tax as a percent: 2.00%March 2012 15

TAX IMPACT OF TAX YEAR 2012

Average 2012 assessed Borough home value:

$748,155.00

Average 2012 assessed Township home value:

$822,263.00

Average ‘estimated’ tax increase that the 2012-2013 budget generates is:

Borough $141Township $211

Ratable values in the Township decreased in 2012.

March 2012 16

MUNICIPALITIES’ TAX SHARE

Percentage Share of Local Tax Levy:

This is an imposed percentage share which is calculated in the Mercer County Division of Finance Office, using home sales data collected by the Tax Board. This is the last year there will be a split as the communities are consolidating.

2006-07 2007-08 2008-09 2009-2010 2010-11 2011-12 2012-13

Borough Share 30.5% 32% 32.8% 33.3% 33.6%

33.32% 33.20%

Township Share 69.5% 68% 67.2% 66.7% 66.4%

66.68% 66.80%

Total 100% 100% 100% 100% 100% 100% 100%

March 2012 17

Where should resources ( dollars and personnel) INCREASE in order to promote

growth in future years?

TECHNOLOGY, Technology, Technology Power Up Campaign ~ on going! Professional Learning Capital Projects: a separate referendum

question to address deferred capital projects will soon be necessary.

March 2012 18

PRINCETON PUBLIC SCHOOLS

Due to the consolidation of Princeton Borough and Township the school district will no longer be a ‘regional’ school district.

Effective July 1st 2012 the district that serves the children of Princeton will officially change it’s name to

Princeton Board of Education The Board of Education will also be known as the

Princeton Public Schools We will continue to enjoy our sending receiving

relationship with Cranbury.

March 2012 19

What can we project for 2013-2014?

Expect the continuation of a 2.0% cap on the 2013 tax levy question. This cap will greatly increase the need to restructure programs, seek additional revenue streams, and approach traditional systems differently as future budgets are developed.

Larger contributions towards health benefit costs from all staff will assist in balancing the budget

Possibly more outsourcing

March 2012 20

WHAT CAN COMMUNITY MEMBERS DO?

CONTACT LEGISLATORS, THE GOVERNOR AND THE COMMISSIONER OF EDUCATION TO MAKE YOUR VOICES HEARD IN SUPPORT OF REGULAR PUBLIC SCHOOL DISTRICTS

VOTE ON APRIL 17th (TUESDAY) OR VIA ABSENTEE BALLOT

SEEK PRIVATE FUNDING SOURCES AND SUPPORT PEF’S GREAT EFFORTS

VOLUNTEER

March 2012 21

SCHOOL BOARD ELECTION “LEADERSHIP MATTERS”

Borough – Two Seats OpenCandidates: Rebecca Cox (incumbent)

Martha Land Dudley Sipprelle

Township – One Seat OpenCandidate: Patrick Sullivan

Vote: Tuesday April 17st, 2012 * 12:00 PM – 9:00 PM*

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“AND HOW ARE THE CHILDREN?”

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Here in our district,by so many measures, our children are

excelling….Advanced Placement Exams, NJASK scores, SAT results, college and university admissions, performing arts, athletics….and the list goes on and on!

But our goals are for every child, and for every year. Your involvement and engagement in this, one of our nation’s best districts, is needed and invaluable.

March 2012 24

Public Forum: Questions & Comments

______________________________Website: www.prs.k12.nj.usfor budget information, links to our

legislators and voting information.

Follow the PRS Board of Education’s Facebook page!

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