Where Does the Money Go? Programs Expenses Developmental Debt Service Regular Education 50.3% Admin 12.8% Plant 10.4% Debt Service 7.5% Developmental 0.4% Spec Ed 15.1% Cocurricular 1.0% Athletics 2.5% Benefits 10% Operations 4% Special Education 6% Textbooks & Supplies 1% Other 7% Salaries 72% sdfgsdfg

Operations & Maintenance Classroom Instruction How Do We Compare in Spending to Other Districts Our Size in New Jersey? 5908 1432 1129 1104 264 5441 1263 1022 1105 398 6249 1353 1198 1167 305 Per Pupil Costs, $ K-12 Our Size Haddonfield K-12 Our Size & DFG Haddonfield $9,257 K-12 Our Size $9,781 K-12 Our Size / Our DFG $10,308 (District Factor Group) Total Per Pupil Costs Extracurricular Operations & Maintenance Administration Support Services Classroom Instruction Data from 2003 Comparative Spending Guide http://www.state.nj.us/njded/guide/2003/

How Do We Compare in Number of Teachers & Administrators? DFG: District Factor Group I - Socioeconomic Grouping Our Size: K-12 District with 1801 to 3500 students Data from 2003 Comparative Spending Guide http://www.state.nj.us/njded/guide/2003/

Resident Enrollment is Increasing And Tuition Income is Decreasing

A “Status Quo” Budget Would Force a 7% School Tax Increase 0.48% Benefits 0.45% Operations 0.29% Special Education 0.01% Textbooks & Supplies 0.32% Other 4.69% Salaries Current programs are maintained and no new programs are added. Expense increase is driven by Salaries and Benefits - 80% of our budget. Tax Increase is higher than expenses (7% v 6.2%) due to lower revenues: Flat State Aid Lower Interest Income Lower Tuition Income “Status Quo” Is Not Proposed General Expense Increase Totaling 6.24%

Proposed Budget - 5.47% School Tax Increase How Did We Get There? Reductions to Tax Base Totaling $493,000 General Expense Cuts $248,000 New Revenues $145,000 Reduced Salary Costs through Severance Package $100,000 New “Initiatives” (Additions to Tax Base) $273,000 Two Budget Questions

General Expense Cuts - $248,000 High School Business Teacher $50,000 Keyboarding and Accounting Elementary Spanish $50,000 No World Language in Elementary Schools Developmental Kindergarten $25,000 No DK Program (low enrollment) Kindergarten and Local Preschools to fill gap 10% Cut in Supplies Budget $50,000 Postpone purchases Reading Recovery Training $43,000 Reading Recovery Program remains unchanged CST Secretary $30,000

New Revenues - $145,000 Middle School Tuition Program $100,000 ~154 students in 7th grade next year. Adding 12 tuition students would yield average class size of 20 to 21. ~173 students in 8th grade next year. Adding 5 tuition students would yield average class size of 22 to 23. Middle School Activity Fee $15,000 $50/yr and $75/year family cap High School Activity Fee $30,000 $100/yr and $150/year family cap

New Initiatives - $273,000 K-12 Curriculum Coordinator (English, SS, World Language) $50,000 Expansion of previous K-8 Language Arts Supervisor 3 High School Facilitator positions eliminated 0.5 English teacher to full time to address class size Elementary Class Size Reduction (3 Elementary Teachers) $150,000 Two - 1st Grade Teachers (class size below 20) 5th Grade Teacher (class size below 27) Middle School World Language Teacher Increased Hours $20,000 Reduction in French class size from 34 students Custodial Services $33,000 Support for New Square Footage Nursing Services $20,000 Support for Central/Middle School Nurse

2nd Question - What is it? State has established a formula to calculate the maximum General Fund expense increase allowed in the budget question on the ballot. This is called the “cap”. Any funds budgeted above the cap have to be put into additional question(s). Our cap for this year equates to a 4.06% school tax increase. We are recommending spending $336,000 above the cap. Therefore, we have a second question.

2nd Question - What’s in it?

Proposed Budget - 5.47% School Tax Increase Proposed Budget: $23,469,217 versus $22,184,984 in 2002. Average Assessment of $220,000: School Tax Increases from $4,856.57 to $5,122.18 ~$22/month increase Rule of thumb: $10/month increase for every $100,000 assessed

How does the BOE view two questions? Not two budgets Not one budget and a wish list Is one budget separated only by law!