Newark Public Schools
Budget Presentation
FY 2008-2009
March 19, 2008
Changes for 2008-09
2
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.
 State’s goal is to create a fair, equitable, and
predictable funding formula for FY09 based
on student characteristics, regardless of zip
code.
3
Prior Abbott Funding
 Under the New Jersey Supreme Court Abbott
ruling districts were provided funding:



Parity with the spending for regular education
by I&J districts
For Supplemental Programs based upon the
particularized needs of their students
New Facilities
4
“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
5
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
6
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)
7
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.
8
Summary of Adequacy Budget Amounts
Elementary
Middle
High
$9,649
$10,035
$11,289
$14,184-$15,149
$14,751-$15,755
$16,595-$17,724
$14,474
$15,052
$16,934
$15,390-$16,355
$16,006-$17,009
$18,006-$19,135
Spec. Ed.
$20,546
$20,932
$22,186
Speech
$10,731
$11,117
$12,371
Voc. Ed.
n/a
n/a
$14,789
Regular Ed
At-Risk
LEP
At-Risk/LEP
9
FY09 Adequacy Budget – Weights/Amounts
Elementary School
Weight = 1.0
Amount = $9,649
Weight = 1.04
Middle School
Amount = $10,035
Weight = 0.50
Limited English Proficiency
Weight
At-Risk/LEP combined
students
Amount = $4,825 ES to $5,645
HS
Weight = at-risk weight plus 1/4
LEP weight
Amount = $5,741 ES/low % to
$7,846 HS/high %
Weight = 1.17
High School
Amount = $11,289
Vocational Education
Amount = $14,789
At-Risk Weight
Assume 14.69% classification
rate, pay $10,897 average excess
cost of special ed students
Weight = 1.31 plus high school
weight
Special Education Census
Two-thirds included in the
adequacy budget, remainder paid
through categorical aid (aid
independent of wealth)
Weight = sliding scale from 0.47 to
0.57, based on free and reduced
lunch percentage;
Amount = range from $4,535 for
ES/low % to $6,435 for HS/ high %
Speech
Assume 1.9% of students require
services, pay $1,082 per student
10
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%.
11
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 T&E 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”
12
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 district13
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
14
SO WHAT DOES THIS MEAN?
15
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.
16
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
17
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 Newark’s
“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
18
OTHER DATA
19
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 “userfriendly” final budget forms following election and
municipal review of defeated budgets
20
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
21
FY 2008-2009 BUDGET
22
2008-2009 PROPOSED BUDGET
$995,792,909
A net increase of $39 million over
2007-2008 original budget
23
2008-2009 Budget SummaryRevenues
 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.
24
2008-09 Budget SummaryExpenditures
 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/support
positions.
25
NEWARK PUBLIC SCHOOLS
Operating Budget
$ 850,912,083
Grants & Entitlements
144,880,826
Total District Budget
$ 995,792,909
26
Revenue Sources
Fund Balance
Local Tax Levy
Miscellaneous
Semi Medicaid
State Aids
Operating Budget
Grants & Entitlements
$
Total Aid Awarded
$
$
23,938,400
100,213,266
6,898,018
950,000
718,912,399
850,912,083
144,880,826
995,792,909
27
2008-09 Revenue Sources
Federal
14.5%
Medi cai d
0.1%
Fund Bal ance
2.4%
Tax Levy
Mi scel l aneous
10.1%
0.7%
St at e
72.2%
$ 995,792,909
28
Newark Public Schools
Three Year Comparison of Revenue Awarded
Where Does The Money Come From?
REVENUE SOURCE
2006-07
2007-08
2008-09
Fund Balance
24,000,000
15,500,000
23,938,400
8,438,400
54%
Local Tax levy
88,215,449
96,358,910
100,213,266
3,854,356
4%
6,898,018
6,898,018
6,898,018
634,128,831
656,267,051
718,912,399
200,000
950,000
950,000
TOTAL - OPERATING BUDGET
753,442,298
775,973,979
850,912,083
Other Local Sources
State Aid
Impact Aid/Medicaid
2.90%
8.81%
Incr/(Decr) % of +(-)
62,645,348
74,938,104
0%
10%
5.9%
182,728,553
180,255,648
144,880,826
(35,374,822)
TOTAL BUDGET
936,170,851
956,229,627
995,792,909
39,563,282
3.97%
10%
-
Special Revenue
2.10%
0%
-20%
4%
1.88%
29
State Aids
Equalization Aid
Transportation Aid
Special Ed Categorical A
Security Aid
Adjustment Aid
Charter School Aid
Extraordinary Aid
Adult Education Aid
Total Aid Awarded
$ 571,889,796
4,969,042
24,894,683
15,741,827
87,585,999
11,589,312
2,027,468
214,272
$ 718,912,399
30
Major Costs of Total Budget
Salaries
Health & Employee Benefits
$ 505,651,191
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
31
Total Salaries
School-Based
$ 344,702,938
69%
Central Office
150,818,257
30%
10,129,996
1%
$ 505,651,191
100%
Special Schools/Programs
TOTAL
32
Major Costs of Total Budget
Utilities
1.7%
Tuition
7.8%
Pupil Trans
4.0%
Charter S
7.4%
Other
7.0%
Salaries
59.6%
Benefits
12.8%
$ 850,912,083
33
Major Cost Increases
Salaries
$ 26,687,312
Salary Breakage 08-09 vs 07-08 budget to budget
Salaries (Net of Breakage)
Benefits (Net)
(18,394,670)
8,292,642
(2,016,813)
Pupil Transportation
2,000,000
Tuition
2,694,774
Utilities
1,000,000
Charter Schools
22,279,793
New First Avenue Cost transferred to fund 11 from
fund 20
Reduction in ECPA Aid
2,259,743
(2,458,579)
Food Services
3,000,000
Other Programs
2,511,722
TOTAL
$ 39,563,282
34
2008-09 Revenues to Balance the Budget
Tax Levy
3,854,356
Fund Balance
8,438,400
State Aid
13,852,582
Additional State Aid (Charter
Schools)
11,589,312
Extraordinary Aid
Reduction in Special Revenue (Net)
TOTAL
2,027,468
(198,836)
$ 39,563,282
35
Fund Balance Analysis
05-06
06-07
07-08
08-09
Beg Bal
10,751,088
15,228,663
13,196,395
14,410,924
Anticipated
11,477,375
21,967,732
16,714,529
17,000,000
Used to
balance the
budget
7,000,000
24,000,000
15,500,000
23,938,400
Ending Bal
15,228,663
13,196,395
14,410,924
7,472,524
36
Total District Enrollment
(Excluding Charter Schools)
05-06
06-07
07-08
Elementary
19,794
20,570
19,278
Middle
10,130
8,768
9,951
Secondary
11,949
11,928
11,274
Total
41,873
41,266
40,503
(607)
(763)
Change from
Prior Year
37
Per Pupil Cost
38
Per Pupil Cost - $19,182
Total Classroom Cost
$10,050
Total Support Services
4,354
Total Administrative Cost
1,616
Total Operations & Plant Maint
2,699
Total Food Services Costs
149
Total Extracurricular Costs
228
Total Equipment Costs
12
Total Other Costs
74
Grand Total
$19,182
39
Comparison of Per Pupil
Costs
Operations & Plant
14%
Food Services
1%
Extracurricular
1%
Equipment
0%
Other
0%
Total Admin
8%
Classroom
53%
Support Services
23%
40
Charter Schools
41
CHARTER SCHOOLS COMPARISON
FY 2007-2009
CHARTER SCHOOLS
2008-09
Adelaide L. Sanford
2,146,427
Pride Academy
1,854,318
Central Jersey
17,303
Hoboken Charter
43,505
East Orange Community
574,881
Elysian Charter of Hoboken
17,303
University Heights
2,846,205
Enlgewood Palisades
New Horizons Comm.
6,183,590
Gray Charter School
3,996,772
Marion P. Thomas
6,126,212
Robert Treat Academy
5,414,479
No. Star Academy
10,151,104
Greater Newark CS
2,601,450
Lady Liberty Academy
5,735,351
Team Academy
11,627,837
Jersey City Comm.
43,505
Maria L. Varisco-Rogers
2,523,657
Schomburg
Unity Charter School
25,428
Liberty Academy Charter School
34,678
Discovery
1000117
Total Charter Schools
62,964,122
2007-08
1,359,345
406,271
9,720
19,813
252,235
9,273
2,308,685
9,720
4,655,477
3,212,515
3,429,440
4,346,806
6,366,038
1,698,007
4,275,966
6,148,038
29,498
1,400,404
19,440
727,638
40,684,329
Diff +(-)
787,082
1,448,047
7,583
23,692
322,646
8,030
537,520
(9,720)
1,528,113
784,257
2,696,772
1,067,673
3,785,066
903,443
1,459,385
5,479,799
14,007
1,123,253
(19,440)
25,428
34,678
272,479
22,279,793
2008-09
Proj
Enroll
178
176
1
3
45
1
225
498
323
480
450
793
198
423
884
3
207
3
3
75
4,969
2007-08
Enrolled
Diff +(-)
144
34
40
136
1
0
2
1
25
20
1
0
240
-15
1
-1
504
-6
340
-17
359
121
450
0
630
163
176
22
440
-17
629
255
3
0
144
63
2
-2
3
3
75
0 42
763
4,206
District-Wide Positions
Reductions 2008-09
43
TOTAL STAFFING 08-09
Current Employees District-wide
7,339.1
2008-09 School/Central Reductions:
Special Education/Categorical
Regular Education
Support-Inst/Non-Inst
Total
(12.0)
(9.0)
(11.0)
(32.0)
7,307.1
44
SBB Positions Reductions
2008-09
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)
45
SBB Positions Reductions
2008-09
Regular Education
9.0
• 6.0 Gr. 1-5 Teachers
(6 Vac)
• 3.0 Gr. 6-8 Teachers
(3 Vac)
46
SBB/Central Office Positions Reductions
2008-09
Instructional
Support/Categorical
11.0
•
•
•
•
4.0
3.0
1.0
1.0
Class Room Aides
Coordinators
(3 Vac)
Athletic Trainer
(1 Vac)
Analyst
(1 Vac)
•
•
1.0 Principal
1.0 Nurse
(1 Vac)
(1 Vac)
47
VACANCIES BREAKAGE
VACANCIES HELD
($ in Millions)
2005-06
2006-07
2007-08
% OF
TOTAL
SALARIES
2008-09
SCHOOLBASED
$5.5
$10.5
$11.4
$11.1
3%
CENTRAL
OFFICE
4.9
6.5
8.5
8.9
6%
TOTAL
$10.4
$17.0
$19.9
$20.0
4%
48
Tax Levy Analysis
49
NEWARK PUBLIC SCHOOL
PROPERTY TAXES
TEN YEAR ANALYSIS
YEAR
PROPERTY TAXES
2000
80,000,000
2001
80,000,000
2002
80,000,000
2003
80,000,000
2004
80,000,000
2005
80,000,000
2006
80,000,000
2007
88,215,449
2008
96,358,910
2009
100,213,266
TOTAL INCREASE
INCREASE
AMT.
8,215,449
8,143,461
3,854,356
20,213,266
50
School Operating Cost
To The Average Tax Payer
Average
Property
Assessed Value
Current School
Tax Levy
New School Tax
Levy *
Average Annual
Net Increase
$175,000
$200,000
$1,533
$1,752
$ 1,594
$1,822
$
$
61
70
*The new levy is based on a $3,854,356 increase in the tax
levy for the School District’s 2008-09 budget.
51