MIDDLE TOWNSHIP PUBLIC SCHOOLS Good Evening, on behalf of our entire educational community, I welcome everyone to our 2017-2018 School Budget Hearing.

MIDDLE TOWNSHIP PUBLIC SCHOOLS BOARD OF EDUCATION Dennis Roberts, President George DeLollis, Vice President Calvin Back Robert Bakley, II Edward Dagney Burgess Hamer Gloria Hodges Patricia Taylor Stephanie Thomas Renee Pettit, Dennis Township Representative I would like to thank all of our Board of Education members for their continued support of our staff and students. Thank you to our Board President - Mr. Roberts ,Vice President & Finance Committee Chairperson Mr. DeLollis , Mr. Dagney and Mrs. Taylor for their service on the Finance Committee. Also thank you to our remaining board members for their input regarding this budget. Of course a special thank you to Mrs. Fox and our Administrators for their tireless efforts all year long in managing and developing the budget.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET The primary issue in the development of the 2017-2018 budget was striking a balance between providing high quality educational programs for our students and the effect of the proposed budget on the taxpayers of Middle Township. Read slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET These are some of the issues faced in the development of the 2017-2018 budget. Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET Issues: Maintaining and enhancing academic programs Increased enrollment at the elementary level Increase in health care costs Contractual obligations Continuing maintenance on school facilities Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET DENNIS TOWNSHIP TUITION 2016-2017 2017-2018 $1,452,996 $1,484,045 INCREASE: $31,048.51 In taking a closer look at our sending-receiving enrollment you can see there is a slight increase in tuition revenue from Dennis Township which sends students to our high school. We have been anticipating less students from Dennis Township in previous year budgets and are finally close to the actual number of students attending, so this number should remain relatively close in future budgets. Anticipated students 17-18 and the current year are 120 FT and 20 ST Actual students per ASSA 103FT and 20 ST.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET STONE HARBOR DISTRICT TUITION 2016-2017 2017-2018 $ 85,909 $ 55,218 DECREASE: ($ 30,691) We see a decrease in tuition revenue from the Stone Harbor School District. Anticipated students 5 down 3 from the current year.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET AVALON SCHOOL DISTRICT TUITION 2016-2017 2017-2018 $74,711 $ 96,566 INCREASE: $21,855 We will see an increase in tuition revenue from Avalon of $21,855. The decrease in the tuition adjustment from the current budget year makes this closer to the actual tuition due for the anticipated 8 students next year. this year budget 9

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET WOODBINE DISTRICT TUITION 2016-2017 2017-2018 $ 775,611 $ 751,674 DECREASE: ($ 23,937) This is the fifth year of our sending/receiving relationship with the Woodbine School District, which sends students to the high school. The tuition revenue shows a slight decrease due to a decrease in the tuition adjustment and the resource room adjustment. We are anticipating the same number of students in both budgets 48FT 8ST. The actual number of students attending is 46FT and 11ST.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET Compared to the current year budget the district is realizing a decrease in tuition revenue of $ 1,724 Our total sending/receiving tuition revenue saw a decrease of $1,724 for this budget, as compared to last year, mainly due to tuition adjustment decreases as we are closer in estimating the budgeted number of students to actual.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET STATE AID ALLOCATIONS 2016-2017 2017-2018 $13,590,070 $13,590,070 FLAT Funding The state contribution for next year’s budget is FLAT.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET To maintain the educational programs that will permit our students to be college and career ready, the proposed budget calls for a 2.6% tax increase. Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET A 2% tax increase allows the district to raise the budget by $ 500,227 Additional Banked CAP would allow another 0.6% or $154,182 Even with this increase and the slight increase in tuition revenue the district had to cut $1,301,412 from the proposed budget. The 2% tax increase on the local tax levy of approximately $25,011,366 is $500,227 plus a .6% increase with the use of Banked CAP or $154,182. the district is permitted to go above the 2% CAP based on increases in health care costs. Even with the $654,409 in local tax revenue , we had to cut $1,301,412 from the proposed budget to get to a Balanced the budget.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET Current tax rate is $0.979 Proposed 2% increase will raise taxes by $0.019 Proposed use of Banked CAP will raise taxes by $0.006 Total over all increase in taxes proposed are $0.025 Proposed tax rate will be $1.003 How will this impact your tax rate? Our proposed school tax rate for the 2017-18 school year will be $1.003 and increase of 2.7 cents The average home assessed in Middle Township is 250,000 dollars. This property would see a 62 dollar school tax increase with a 2.6% tax. 300,000 - $ 75 350,000 - $ 87 400,000 - $ 100 Refer to last page of their budget exhibit handout.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET A summary of the proposed budget reductions include: Staffing Out of district placement tuition Professional development Field Trips Athletic supplies and personnel Read slide.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET The following are included in the budget: New Science textbooks K-5 Sustainable Technology budgets for all schools Additional support for the academies at the high school All of which are goals in the district strategic plan In keeping with our strategic plan, this budget supports the implementation of a new science curriculum for grades K-5, a technology budget for each school to provide for replacements on a continuing rotating basis, and additional textbooks and supplies for the third year implementation of our academy classes at the high school. Additionally, we will continue to support the Gifted and Talented program that was established last year as well as continuing our AP and college level programs at the high school.

MIDDLE TOWNSHIP PUBLIC SCHOOLS The Board of Education will continue to participate in programs to reduce operating expenses and increase revenues. Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS SHARED SERVICES & INTERLOCAL AGREEMENTS Middle Township School District provides Child Study Team services to Avalon and Stone Harbor Boards of Education Middle Township School District provides Technology and HVAC services to the Middle Township Fire Department Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS SHARED SERVICES & INTERLOCAL AGREEMENTS Middle Township School District minimizes costs by participating in the following: Atlantic/Cape May Business Officials Joint Insurance Fund – for all insurance Cape May County – for purchase of gasoline and diesel fuels Read Slide

MIDDLE TOWNSHIP PUBLIC SCHOOLS SHARED SERVICES & INTERLOCAL AGREEMENTS Middle Township School District minimizes costs by participating in the following: Cooperative pricing agreement for electrical services with CMC Special Services, CMC Technical School, Cape May, Upper Township Boards of Education, Wildwood, and West Cape May Alliance for Competitive Telecommunications (E-RATE) Alliance for Competitive Energy Services (ACES) Read Slide

WHERE DOES THE MONEY COME FROM? Read Slide

COMPARISON OF STATE AID MIDDLE TOWNSHIP PUBLIC SCHOOLS COMPARISON OF STATE AID 3 Year Funding 2015-2016 2016-2017 2017-2018 13,485,581 13,590,070 As I mentioned earlier, we received flat funding from the state in this budget year.

2017/2018 MIDDLE TOWNSHIP PUBLIC SCHOOLS Total Revenue $42,930,105 In looking at our revenue sources 59.8 % of our revenue comes from the local tax levy. State aid accounts for about 31.6% of our revenue And you can see the other revenue sources which total about 8.6%

WHERE DOES THE MONEY GO? Read Slide

2017/2018 MIDDLE TOWNSHIP PUBLIC SCHOOLS Total Revenue $42,930,105

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET The district spends $3,293,972 below adequacy The State defines “adequacy” as the amount of money a district must spend to provide its students with a “thorough & efficient” education as mandate by the NJ Constitution According to the New Jersey Department of Education, the district spends $3 million dollars less than what they consider to be adequate spending for a district our size. Compliments to our board of education, administrators and staff for doing an outstanding job with the available resources given to them.

MIDDLE TOWNSHIP PUBLIC SCHOOLS 2017/2018 BUDGET Questions? Read Slide I would to close by thanking the Finance Committee , Mrs. Fox , administrators and staff for their efforts in the development of this budget.