Dr. Alex Anemone, Superintendent of Schools Mr. Bob Brown, Interim Business Administrator March 16, 2015

Board of Education Mr. Davor Gjivoje - President Mr. John Flynn –Vice-President Mrs. Kim Macaulay *Dr. Howard Kotkin *Mr. Abi Singh * Members, Facilities and Finance Committee

Tentative Budget $ Amount$ Change% Change Funds 11, 12 (operating budget, capital outlay) $10,492,717$237, % Total Budget$11,065,630$219, % Local Tax Levy (includes banked cap, health benefits exemption) $10,068,785$323, %

District Goals Math Facts Assessments/K-5 students. District Writing Assessment/K-8 students. PARCC preparation and communication. Continue data dashboard. The tentative budget will support yet to be named goals for the school year.

Budget Process and Timeline Fall 2014:F/F Committee and admin. meetings. 11/3/14:15/16 budget guidelines approved. 12/15/14:Preliminary budget report I. 2/2/15:Preliminary budget report II. 2/27/15:State aid data released. 3/16/15:Tentative budget report. 3/20/15:Tentative budget submitted to ECS. 4/27/15:Public hearing on the budget. 7/1/15:Fiscal year begins.

Budget Highlights Meets all 15/16 budget guidelines as crafted by the F/F Committee and adopted by the BOE. Maintains staffing configuration and all co-curricular activities (clubs, athletics, etc.) Money budgeted for professional development and curriculum writing. Money budgeted for facility maintenance and capital projects – Elementary School bathrooms. Continued integration of technology at all grade levels and in all subjects.

Budget Highlights Maintains conservative fiscal practices. Provides financial resources that support district goals. Strong focus on core academic mission, in particular small class size. When actual financial figures are not available, estimates are used.

Expenses – Fund $ Changes Gen. Ed. Instruction$2,399,826($60,401)$2,339,425 Sp. Ed. Instruction$994,441$139,000$1,133,441 Sp. Ed./Tuition$2,715,293$64,200$2,779,493 Attendance/Health/LMC$190,492$17,886$208,378 Imp. Instruction$159,875$12,823$172,698 Supp. Svc. Gen. Admin.$309,077($11,423)$297,654 Supp. Svc. Sch. Admin.$94,712$12,480$107,192 Central Svc./IT$132,926$21,874$154,800 Operation/Plant$894,781($25,722)$869,059 Transportation$878,624$77,386$956,010 Employee Benefits$1,276,589$111,834$1,388,423 TOTAL$10,046,636$359,937$10,406,573

Expenses – Funds 11, 12, 20, $ Changes Total – Fund 11 Operating Budget $10,046,636$359,937$10,406,573 Total – Fund 12 Capital Outlay $208,380($122,236)$86,144 Total – Fund 20 Special Revenue $82,481($12,368)$70,113 Total – Fund 40 Debt Service $527,725($24,925)$502,800 TOTAL$10,865,222$200,408$11,065,630

State Aid $ State Aid$ Change% Change $364,473N/A $0($364,473)(100%) $181,191 N/A $225,137$43, % $225,137$00% $233,677$8,5403.8% $233,677$00%

State Aid

Local Tax Levy Tax Levy Increase (average)6.01% % % % % (includes banked cap and health benefits exemption) % (includes banked cap and health benefits exemption)

Local Tax Levy

Revenues $ Changes Local Tax Levy$9,254,883$347,003$9,601,886 Tuition PK-8$52,300$7,700$60,000 Transportation Feed$10,000($1,000)$9,000 Building Usage Fees$9,000($1,500)$7,500 Misc. Revenue$15,000$17,614$32,614 State Aid (categorical)$233,677None$233,677 Extraordinary Aid (SE)$200,000($10,000)$190,000 Budgeted Fund Balance$274,561$119$274,680 Capital Reserve$205,595($122,235)$83,360 Special Revenue$82,481($12,368)$70,113 Local Tax Levy (Debt Sv.)$490,043($23,144)$466,899 Debt Svc. Aid$37,682($1,781)$35,901 TOTAL$10,865,222$200,408$11,065,630

Budgeted Fund Balance + State Aid Budget Year Ending $ AmountAdded to Budget Year State Aid for that Budget Year June 30, 2010$3, $181,191 (50% banked) June 30, 2011$ $225,137 June 30, 2012$174, $225,137 June 30, 2013$274, $233,677 June 30, 2014$274, $233,677

Budgeted Fund Balance + State Aid

Banked Cap Year Saved$ AmountYear Expires $82,496 Added to proposed 15/16 budget $74, $0N/A $0N/A

Capped Revenues vs. Uncapped Expenses Medical Benefits + RxState Aid (categorical) $821,511$225, $1,055,321 (rates not official until 5/1/15) $233,677 Variance+$233, % +$8, %

Capped Revenues vs. Uncapped Expenses

ESTIMATED Tax Information Total Taxable Assessment$2,027,888,710$2,019,860,930 Average Residential Assessment $1,196,734$1,194,558 Current Tax Rate0.465 ESTIMATED Proposed Tax Rate.481 ESTIMATED Difference % $191/year/average house

Budget Vote and Election In 2012, Gov. Christie signed legislation that eliminated the need for a public vote on the school budget if it remains at or below the 2% tax levy cap, including specific exemptions such as banked cap or health benefits waiver. On 2/13/12, the BOE adopted a resolution to move the annual school election to November. Since the proposed 15/16 budget is within the cap (including exemptions) it will not be on the ballot in November.