2014-2015 Budget Public Hearing NEPTUNE CITY SCHOOL DISTRICT 2014 – 2015 Budget Facts • The School Budget supports not only the elementary school, but tuition for high school students and out-of-district special education placements. Transportation is also budgeted for Vocational High School and Special Education Students. 2014 – 2015 PROJ. ENROLLMENT N.C. Elementary School High School Students Mon Cty Vocational Schools Special Need Placement Charter School/St. Facility Total Students 407 180 10 18 3 618 2014 – 2015 Budget N.C. Elementary School • Maintains all current academic programs • Eliminates extra-curricular activities • Retains Integrated Preschool Program and Full Day Kindergarten • Average grade size is approx. 23. 2014 –2015 Revenues to Equal the Appropriations •Revenues come from four sources: •Fund Balance $ 609,556 •Tax Levy $5,566,358 •State Aid $2,159,028 •Miscellaneous revenues $ •TOTAL 34,500 $8,369,442 STATE AID •General State Aid was increased by 0.6% over last year. Over the last 10 years State Aid increased approximately $53,000 per year. •This year we were awarded $12,100 more than last year. •In addition, we will be applying for Extraordinary Aid and have anticipated receiving $120,000. Revenue Comparison • Total Revenues 2011-2012 $7,725,605 • Total Revenues 2014-2015 $8,369,442 • Increase $ 643,837 2014 – 2015 BUDGET HIGHLIGHTS • Increased cost of Special Needs Students sent to Out of District Placements; • Significant increase in High School tuition due to the # of HS students and the rate per student • Increase in Student Related Services • Increase in Health Insurance • Decrease in Administrative Expenses 2014 – 2015 Expenditures • High School Costs – Tuition – Public Schools - Tuition-Vocational HS – Transportation $2,371,605 60,000 89,000 • Special Education Out of District – Tuition & Services – Transportation • Total Out of District Expenses $1,431,406 142,000 $4,094,011 2011 – 2012 Expenditures • High School Costs – Tuition – Public Schools - Tuition-Vocational HS – Transportation $1,533,886 88,200 142,000 • Special Education Out of District – Tuition & Services – Transportation • Total Out of District Expenses $1,145,010 160,000 $3,069,096 2014 –2015 Expenditures •The Board has little control over 95% of the Budget: •Salaries ($2,611,900) and Benefits ($1,128,000) make up 45% of the budget; •Tuition and Transportation for students sent out of district make up 48% of the budget; •Utilities and Insurance account for almost 2% •Operational and Educational Expenses make up the remaining 5% Comparative Budgeting • In the most recent report prepared by the NJ Dept. of Education, the Neptune City School District ranked as second lowest in the State for 20122013 budgeted per pupil appropriations ($11,391.) for K-8 school districts. • The State average for all districts is $14,506. 2014 Tax Rate •The 2014-15 tax levy increase (excluding debt service payments) over 2013-14 is $211,658. •2013-2014 Tax Levy for School Purposes was $5,354,700; •2014-2015 Tax Levy is $5,566,358. •Minimum Required Tax Levy per NJ Dept. of Education is $5,354,700. Tax Levy CAP • For the 2014-2015 school year, the State of NJ has imposed a 2% CAP with minor adjustments, on the allowable tax levy increase. This CAP imposes a maximum tax levy of $5,558,858. Tax Rate Calendar Year Average Assessed Value of a Home in Neptune City is $210,000. The total assessed valuation of the Borough decreased from $434,764,100 in 2013 to $432,338,868 in 2014. The average homeowner will see a $117.32 annual increase in the school tax (exclusive of the debt service portion previously voted on and approved) How is the Tax Rate for School Purposes Calculated? The Borough Tax Rate is set on a calendar year; the School District operates on a fiscal year-July 1st – June 30th. • The Tax Rate for 2014 is made up of: – School Year 2013/2014 General Fund Tax Levy and the Debt Service Tax divided by( the Borough’s Total Assessed Valuation divided by 100) 2014 Tax Levy 14-15 budget Calendar Year 2014 Tax Rate Gen'l Fund Debt Service 5,566,358 535,261 1.287 .124 Future Implications • Fund Balance - it is becoming highly unlikely that we can replenish the amount required by law to be anticipated as revenue to offset appropriations. The increase permitted in the tax levy will not be sufficient to offset the decrease in available fund balance in future budgets. Questions??? •Will the community have an opportunity to speak at the Public Hearing? •Yes, the public can ask questions prior to final adoption •Will all Art, Music and Spanish classes be removed from the curriculum? •No, students will still receive Art, Music and Spanish. Teachers of these subjects will have non-instructional time removed from their schedules. •Are after school activities being cut? •Yes, all “non-essential programs” have been cut from the budget in order to keep the instructional program consistent. •If the district receives more Federal funds than anticipated can we use that to reinstate extracurricular programs? •No, Federal funding is expressly granted to provide services to special needs students. •How many students attend charter schools? •Currently two. Anticipate three in 2014-15 •How much is the tuition to Neptune HS and Red Bank Regional? •NHS $12,500 RBR $13,000 •Why is the Fund Balance declining? •The mandate of the State of NJ is for a school district to utilize all fund balance in excess of 2% of appropriations or $250,000 •Can we use more Fund Balance? •Yes, but that would cause the district to have a more serious budget problem in 2015-2016. •Why is the 2014-2015 budget causing issues? •The budget must be submitted balanced. Revenues must = Appropriations. Fund Balance accumulated from a prior year and anticipated in the current year is a revenue. The loss of Fund Balance cannot be made up by the allowable increase in tax levy. •Has “Pay-to-Play been considered for sports? •Yes, the cost to each player would be quite large. Almost 50% of our enrollment is considered “low income” and may not be able to afford the payment. •Why is the tax levy increasing by more than 2% if there is a “CAP”? •There are some allowable modifications such as adjustments for enrollment that we were eligible for and utilized. •Has the Board looked into grants? •Yes, we have applied for a few within the last couple years. We formed a consortium with our neighboring districts for a grant but were unsuccessful twice. We also have applied for a safety grant and just tonight approved the submission of another safety grant. •What does the future hold? •We can assure you that our efforts to see that the children of Neptune City are provided with a quality education will continue to be ongoing. Thank you for coming to the 2014-2015 Public Budget Hearing In accordance with the State Law, the budget is not required to be subject to a vote. Voting for Board of Education members will take place at the regular general election in November.