2014-2015 Budget hearing presentation

2014-2015 Budget
Public Hearing
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
N.C. Elementary School
High School Students
Mon Cty Vocational Schools
Special Need Placement
Charter School/St. Facility
Total Students
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
•State Aid
•Miscellaneous revenues
•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
• Total Revenues 2014-2015
• Increase
$ 643,837
2014 – 2015
• 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
• Special Education Out of District
– Tuition & Services
– Transportation
• Total Out of District Expenses
2011 – 2012 Expenditures
• High School Costs
– Tuition – Public Schools
- Tuition-Vocational HS
– Transportation
• Special Education Out of District
– Tuition & Services
– Transportation
• Total Out of District Expenses
2014 –2015 Expenditures
•The Board has little control over 95% of the
•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
•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
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.
•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
•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.