Patricia Scott
Office of Fiscal Policy and Planning
Division of Finance
http://www.nj.gov/education/finance/fp/dwb.shtml
Budget Statement Software
Budget Statement Manuals
Guidelines
Technical Manual
Budget Statement Other
Election Calendar
Defeated Budget Packet (coming April)
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P.L. 2010, c. 44 changed the tax levy cap to 2%
over prior year adjusted levy
Deleted All Commissioner Cap Waivers
$20,000,000 BUDGET
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District 1 – 2010-2011 Budget
90% state aid = $18,000,000
10% taxes =
2,000,000
A 2% tax increase on $2,000,000 = $40,000.
District can increase their budget by $40,000.
$20,000,000 BUDGET
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District 2 – 2010-2011 Budget
50% state aid = $10,000,000
50% taxes =
10,000,000
A 2% tax increase on $10,000,000 = $200,000.
District can increase their budget by $200,000.
$20,000,000 BUDGET
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District 3 – 2010-2011 Budget
10% state aid = $ 2,000,000
90% taxes =
18,000,000
A 2% tax increase on $18,000,000 = $360,000.
District can increase their budget by $360,000.
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All Automatic Adjustments – must request in
software
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Enrollment
Health Care Costs
Pension Costs – New
Responsibility transferred to/from another entity
CALCULATION SAME AS PREVIOUS
BUDGET YEARS.
Equals that portion of the actual increase in
total health care costs for the budget year, less
any withdrawals from the current expense
emergency reserve account that exceeds 2% of
total health care costs in the prebudget year
(original amount) and up to the SEHBP rate of
8.6% for a possible total of up to 6.6%
EXAMPLE #1
Non-SEHBP Plan
Local District Premium Increase for 2011-2012 = 12%
Local District will be eligible for a 6.6% cap adj.
Note: Calculation based upon original budget
Number 2010-2011 versus amount in 2011-2012
budget.
EXAMPLE #2
Non-SEHBP Plan
Local District Premium Increase for 2011-2012 = 4.6%
Local District will be eligible for a 2.6% cap adj.
Note: Calculation based upon original budget
Number 2010-2011 versus amount in 2011-2012
budget.
EXAMPLE #3
District in SEHBP
Automatic 6.6% cap adj.
Calculation based upon original budget number
2010-2011 versus amount in 2011-2012 budget.
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ONLY applicable to districts who deferred PERS
payment under P.L. 2009, c. 19
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Payment begins 2011-2012 budget
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New lines in benefits appropriations – object code 248
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“that portion of the actual increase in total normal
and accrued liability contributions for the budget
year that exceeds 2% of the total normal and accrued
liability pension contributions in the prebudget
year.”
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N.J.S.A. 18A:7F-38(f) allows the adjusted tax
levy to be increased accordingly whenever the
responsibility and associated cost of a school
district activity is transferred to another school
district or government entity.
New data entry screen and reports have been
added
Example: Transportation costs for students in
Resource Home.
DOES NOT APPLY TO THE 2% CAP LEVY
AS VOTERS HAD PREVIOUS APPROVED
THE TAX INCREASE BY PASSAGE OF
REFERENDUM
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Requires majority of affirmative votes
Changed from 60% affirmative requirement in
2010-2011
Decision of voters is still final
Do NOT have to go to cap to request a second
proposal
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“Bank” unused cap has been reinstated
Utilize banked cap from a budget year in any
of the next 3 budget years
Separate Proposal Implications
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If separate proposal passes and district is NOT at
cap, district may bank unused cap (difference
between unused cap less amount of separate
proposal)
If separate proposal is defeated and district is NOT
at cap, may bank unused cap.
EXAMPLE
2011-2012 – banked cap $ 60,000
2012-2013 – banked cap $ 40,000
2013-2014 – under cap by $50,000
Scenario 1 - separate proposal for $25,000 which is approved – can
bank $25,000 for the 2013-2014
Scenario 2 – no separate question – can bank $50,000.
Scenario 3 – Separate question fails – can bank $50,000.
2014-2015 – district has
Scenario 1 - $125,000 ($60,000 + $40,000 + $25,000)
Scenario 2 - $150,000 ($60,000 + $40,000 + $50,000)
Scenario 3 - $150,000 ($60,000 + $40,000 + $50,000)
2015-2016 – banked cap from 2011-2012 rolls off if not used in 2014-2015.
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New data entry screen
Collect amount of employee withholding for
health benefits
Software adds back in total amount of
employee health benefits to appropriations line
to disclose the total amount of employee
benefits on the Employee Benefits Summary
Comparison Report
ELIMINATED!
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Reimbursement Basis
For budgeting purposes, the amounts are
included with fund 10, but accounting and
reporting must be separate using fund 18
New revenue line 397
Revenue account 18-4522
www.nj.gov/education/finance/jobs
Software Enhancements
DISTRICT STATEMENT OF PRIORITIES
Five Categories
Maintaining our School System
Raising Standards and Expanding Opportunities
Building Professionalism
Protecting our Investments
1.
2.
3.
4.
1.
2.
5.
Capital & Maintenance Projects
Capital Reserves
Planning for the Future
BUDGETED FTEs
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Elimination of the separate columns for full
and part time
Rows are revised to be a list of salary accounts
REVISION
Selections appear in the order that
they must be submitted to the county office!
ADVERTISED FILE FOR NEWSPAPERS
Format changed
from text file to an html file
TPAF GRANT APPLICATIONS
AKA - WAGE FREEZE 2010-2011
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Final cash payment made in July 2011
Any funds not appropriated in 2010-2011 are
allowed to be used as an adjustment in excess
surplus calculation at June 30, 2011
May be appropriated without Commissioner
approval during 2011-2012
Recorded as Other State Aid – line 360 using
available account code 10-3XXX
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Proposed Update Administrative Code
Provides ECS with additional standards
to review and approve inclusion of
 Certain salary increments
 Bonus Provisions
www.state.nj.us/education/paycaps
QUESTIONS?