Newark Public Schools Budget Presentation FY 2009-2010 March 26, 2009

State Funding Reform Act (SFRA) Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Summary of Adequacy Budget Amounts Elementary Middle High Regular Ed $9,971 $10,370 $ 11,666 At-Risk + $5,683 LEP + $3,916 + $3,916 At-Risk/LEP + $6,930 + $6,930 Spec. Ed. +$11,749 + $11,749 Speech +$ 1,166 $ 1,166

Total District Enrollment –Oct 15 (Excluding Charter Schools) 06-07 07-08 08-09 Elementary 20,570 19,278 18,768 Middle 8,768 9,951 9,751 Secondary 11,928 11,274 11,473 Total 41,266 40,503 39,992 Change from Prior Year (763) (511)

State Aid Equalization Aid $ 633,652,423 Transportation Aid 5,905,964 Special Ed Categorical A 25,823,243 Security Aid 19,457,862 Adjustment Aid 30,151,202 Extraordinary Aid 2,027,468 Total Aid Awarded $ 717,018,162 Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Revenue Sources Fund Balance $ 23,938,400 Local Tax Levy 100,213,266 Miscellaneous 6,898,018 Semi Medicaid 1,448,522 State Aid 717,018,162 Operating Budget $ 849,516,368 Grants & Entitlements 142,436,331 Total Aid Awarded $ 991,952,699 Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Newark Public Schools Three Year Comparison of Revenues

FY 2009-2010 REVENUES 8 $ 991,952,699

2009-10 Budget Summary- General/Special Revenue Fund Changes Operating Budget ($2.3M) Central High School Facilities Aid not provided ($1.7 )Reduction in Additional Charter School Aid in 08-09 ($214,272 )Adult Education not provided $498,522 increase in Semi-Medicaid No increase in the Tax Levy No increase in Fund Balance Special Revenues (Grants) ($3.8M) in Pre-School handicap Program transfer not required in 09-10 $5.6M Increase in Early Childhood Program $1.0M increase in Early Childhood Carryover

FY 2009-10 Revenue Summary During this difficult economic climate, the decline in the revenues coupled with increasing costs, required that the district make tough choices to insure the efficacy of resources and programs toward increasing student achievement and maintaining the quality and fidelity of its programs.

WHAT DOES THIS MEAN?

FY 2009-10 BUDGET

$991,952,699 2009-2010 PROPOSED BUDGET A net decrease of $909,143 over

NEWARK PUBLIC SCHOOLS Total District Budget $ 991,952,699 Operating Budget $ 849,516,368 Grants & Entitlements 142,436,331 Total District Budget $ 991,952,699

Impact on District Budget With decreases in State Aid and rising costs, the district had to consider the following: Reductions in positions and programs gained under the Abbott Ruling Reallocation of Funds to cover increases in non-discretionary costs i.e., Tuition, Utilities, etc. Closing/Consolidation of Schools Reallocation and Reduction of Staff Fund Staff/Programs with Grant Dollars

2009-10 Budget Summary-Expenditures Includes increases for non discretionary mandated items such as: Salaries Tuition Transportation Utilities Charter Schools New Park School All non salaried discretionary costs were reduced to balance the budget

Summary of Anticipated Major Cost Increases and Revenue Reductions 17 Categories FTE Amounts Salaries $ 14,969,392 New Park School 66.0 6,462,424 Charter Schools 13,934,135 New Initiatives/Educational Programs 2,750,000 Upgrade of Student Information System 1,000,000 Employees no longer funded by Grant 13.0 998,221 General Fund Revenue Reductions 3,732,475 TOTAL 79.0 $ 43,846,647

Major Costs of Total Budget Salaries $ 507,689,285 Health & Employee Benefits 106,869,708 Charter Schools 74,914,336 Tuition 62,545,613 Utilities 16,906,547 Pupil Transportation 34,147,878 Other 46,443,001 Total Operating Budget $ 849,516,368

Major Costs of Total Budget 17 $ 849,516,368

Total Salaries School-Based $ 341,627,318 67% 20 School-Based $ 341,627,318 67% Instructional Support & Central Office 160,423,768 32% Summer School & Adult Education 5,638,199 1% TOTAL $ 507,689,285 100%

2009-10 Reductions to Balance The Budget 21 Reductions FTE Amounts Reassignment of Certificated Non-Classroom Staff – To address classroom vacancies in hard to fill areas (50.0) ($4,692,018) Consolidation of School-Based Staff as a result of Reconciliations and Budget Reviews (94.5) ($4,144,559) Consolidation of an SLT- District proposes a reduction to 4 K-12 SLTs (7.0) ($594,076) Reduction in Vice Principals- New district model developed to address equity and allocate VPs based upon student enrollment and need (6.0) ($687,950)

2009-10 Reductions to Balance The Budget 22 Reductions FTE Amounts Central Office Positions- Reduction in support cost (61.0) (3,648,208) Reduction and Reassignment of Elementary Tech Coordinators – Elementary Schools with smaller enrollments will share a position. Staff to be reassigned to classrooms (20.0) (1,181,129) Closing of Vailsburg - Final stage of the restructuring plan for West Ward Schools (22.0) $ (1,611,997)

2009-10 Reductions to Balance The Budget 23 Reductions FTE Amounts Consolidation of William Brown – Based upon criteria for closing/consolidating schools (36.0) (3,595,526) Reductions in Non-Salary Costs - Budget for FY 2009-10 provided based upon historical expenditures (12,303,817) Non-Mandated Aides – Reductions to comply with state regulations. Individuals will be Grant Funded and be reassigned to address Special Education Needs. (76.0) (2,174,940) Reductions in After School Program –Reduction in number of weeks and hours of program (1,067,163)

2009-10 Reductions to Balance The Budget 24 Reductions FTE Amounts Reduction in Consultants – As a result of those services proven to be ineffective and inefficient (916,757) Food Service Reduction – Improved Lunch Application Collection , Processing and Accountability (3,000,000) Reduction in Benefits – As a result of reduced FTEs (3,109,507)

2009-10 Other Expenditure Reductions to Balance The Budget 25 Reductions FTE Amounts State Facilities Tuition (500,000) Equipment (50,000) Instructional Imp – Science (150,000) Leases (419,000) TOTAL (376.5) $ (43,846,647)

Criteria for Closing/Consolidating Schools Academic Performance - Failure to make Adequate Yearly Progress (AYP) Enrollment of Failing School and Capacity of Performing Receiving School(s) Physical Conditions of Facilities Proximity to Performing Receiving Schools

Extended Day/After School Program There are no changes in the Summer Program All sites with Extended Day/After School Programs operating in FY 2008-09 will continue to operate in FY 2009-10 Reductions in the Extended Day/After School Program were realized as follows: Over-staffing based upon enrollment Number of weeks Number of hours

Extended Day/After School Program Description # of Locations Staff FTEs Weeks Total Hours Comments 3-6 pm Program Current 58 186 33 480 FY 2009-10 169 26 390 Split Session Oct-Feb May-June 6-9 pm Program 37 44 396 41 28 252 Change Hours M-W 6-8pm Th 6-9pm

Per Pupil Cost Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

FY 2009-10 Per Pupil Cost per State DOENET - $16,911 30 Total Classroom Cost $8,967 Total Support Services 3,813 Total Administrative Cost 1,294 Total Operations & Plant Maint 2,515 Total Food Services Costs 65 Total Extracurricular Costs 190 Total Equipment Costs 15 Total Other Costs 52 Grand Total $16,911 $10,050 – Total Classroom Costs includes the following: $8,072 – Classroom Salaries $362 – Classroom Supplies and Textbooks $1,616 – Classroom Purchased Services and Other

Comparison of Per Pupil Costs 31

Charter Schools Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

RESIDENT STUDENTS ATTENDING CHARTER SCHOOLS FY 2009-2010

Charter School Students Re-entering NPS 2006, 2007 &2008 Total Pupils Re-entering: 757 Month of Re-entry Number of Students % July 27 0.1 Aug 66 8.7 Sep 428 56.5 Oct 38 5.0 Nov 23 3.0 Dec 33 4.4 Jan 49 6.5 Feb 41 5.4 Mar 13 1.7 Apr 24 3.2 May 12 1.6 Jun 3 0.4

Charter School Students Re-entering NPS 2006, 2007 &2008 Number of Students % New Horizon 122 16.1 Lady Liberty 117 15.5 North Star 75 9.9 Greater Newark 72 9.5 Marion P. Thomas Maria Varisco Rogers 69 9.1 Gray Charter 54 7.1 Team Academy 48 6.3 University Heights 41 5.4 Robert Treat 31 4.1 Adelaide Sanford 21 2.8 Discovery 19 2.5 Pride (East Orange) 8 1.0 East Orange Charter 3 0.4 Englewood 2 0.2 Schomburg (Jersey City) 1 0.1 Calla Charter Unknown

Charter School Students Re-entering NPS 2006, 2007 &2008 Gender Number of Students % Male 334 44.1 Female 423 55.9   Ethnicity Black 685 90.5 Hispanic 68 9.0 American Indian 1 0.1 Asian 3 0.4

Fund Balance Analysis Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Fund Balance Analysis 06-07 07-08 08-09 09-10 Beg Bal 37,196,395 29,910,924 41,326,430 27,388,030 Additional 4,361,521 11,415,506 10,000,000 Used to balance the budget -24,000,000 -15,500,000 -23,938,400 Adjustment to Actual 12,353,008 15,500,000 Ending Bal 3,449,630

Fund Balance Analysis Recommended Fund Balance @ 2% $17,064,977 Fund Balance Projected in FY 2009-10 3,449,630 Anticipated Shortfall of 2% (13,153,347)

Tax Levy Analysis Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

NEWARK PUBLIC SCHOOL PROPERTY TAXES TEN YEAR ANALYSIS

Tax Levy Increase Comparison

School Operating Cost To The Average Tax Payer Average Property Assessed Value $175,000 $200,000 Current School Tax Levy $1,594 $1,822 New School Tax Levy * $ 0 $ 0 Average Annual Net Increase

Looking Forward Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Anticipated Budget Shortfall for FY 2010-2011 Fund Balance needed at FY 2009-10 Levels $23,938,400 Projected Balance Available at end of FY 2009-10 3,449,630 Fund Balance Shortfall $20,488,770 Anticipated increased 2010-2011 costs 42,000,000 Anticipated State Aid increases Anticipated Budget Shortfall for FY 2010-2011 $62,488,770

Next Steps Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000

Next Steps Hold Community Meetings Develop Redistricting Plan Develop Transportation Routes Coordinate a Moving Plan Reorganize Central Office and SLTs Reassignment of Staff Prepare RIF List for Affected Employees Establish a District Budget Task Force for FY 2009-10 and 2010-11

Questions and Answers Miscellaneous Revenue consists of the following: Tuition $1,007,844, Investments $2M, E-Rate $1M Internal Audit $300,000 Miscellaneous $1,590,574 Medicaid $200,000