FINDING BALANCE 2010 – 2011 Mendham Schools Budget Dr. Janie Edmonds Mrs. Donna Palmiere Mendham Borough Board of Education March 26, 2010

This will take the whole village. Saving Our Schools.

is the financial plan to support the district’s The school budget is the financial plan to support the district’s educational goals.

A rushed timetable for big changes January & February: County warnings to prepare for the worst: a 5 to 15% reduction in state aid, as much as $56,000 here Tuesday, March 2: Commissioner’s assurance to stay close to prior state aid allotments Late Wednesday, March 17: Notification: Governor’s action removed 100% of state aid to MB, $373,000 Monday, March 22: Budget due to County Tuesday, March 23: Board of Education meeting to approve forwarding budget to county Friday, March 26: County returns budget with any required changes; Board of Education meets for final approval.

State-induced fiscal crisis March 17, 2010 Reduction of State Aid ($372,893) Programs, services and personnel must be reduced for the 2010-2011 school year

District response to fiscal crisis FOCUS ON: Maintaining small class sizes Retaining programs Reducing without removing Winning community participation Seeking LARGE voter turn-out Parents’ votes will determine the outcome.

REVENUE SOURCES 09-10 10-11 CHANGE LOCAL TAX LEVY $8,516,489 $8,857,149 $340,660 MISC REVENUES (Tuition, $72,000 $82,200 $10,200 Building Rentals, Interest, E-Rate) BUDGETED FUND BALANCE $169,000 $150,000 ($19,000) CAPITAL RESERVE $100,181 $100,000 ($181) STATE AID $372,893 0 ($372,893) EXTRAORDINARY AID $12,000 0 ($12,000) FEDERAL AID (ARRA, IDEA, NCLB) $357,118 $128,850 ($228,268) OTHER RESTRICTED AID $118,742 $64,188 ($54,554) DEBT SERVICE $914,513 $916,656 $2,143 TOTAL REVENUE $10,632,936 $10,299,043 ($333,893)

$100,000 BUDGETED CAPITAL RESERVE MAY ONLY BE USED TO IMPLEMENT CAPITAL PROJECTS IN THE SCHOOL DISTRICT’S LONG RANGE FACILITY PLAN AS REQUIRED PURSUANT TO N.J.S.A. 18A:7G-4(a) and N.J.A.C. 6A:26-2 A district board of education is prohibited from using the funds in such capital reserve account for current expenses, pursuant to N.J.S.A. 18A:22-8.2 NO EFFECT ON TAX LEVY

WHERE DOES THE MONEY COME FROM? 2010-2011 REVENUE 2009-2010 REVENUE

SUMMARY OF EXPENSES

CHANGE IN EXPENSES

2010-2011 SALARIES

WHAT MAKES UP ADMINISTRATIVE COSTS? Salaries & Benefits ( Sup’t, BA, Principals, Secretaries) Legal Fees, Auditor Fees, Architect/ Engineer Fees Communications & Postage Board of Education & Admin Staff Dues/Training/Fees Copier Leases Insurance (Liability & Bond) Advertising Training/Workshops Supplies Election Expense 2010-2011 MB ADMIN COST PER PUPIL $1819 REGIONAL LIMIT $1875

WHAT’S LEFT FOR EVERYTHING ELSE? 5% Textbooks/library books Staff Training Curriculum supplies Related Arts materials Administrative fees: phone system, auditor, legal fees Health supplies etc.

REDUCTIONS: Special Education All Special Education Aides become part-time $53,000 Child Study Team staff reductions $25,000 $78,000 Administration Admin/Supervisor TBD $21,000 2 Secretaries from full-time to part-time $50,300 2 Building Aides $18,900 $90,200

REDUCTIONS: continued Instruction 1.6 Full-Time Equivalent Teachers $92,300 No additional Mandarin students TBD Extracurricular Athletics, clubs, overnight field trips, musical $100,000

REDUCTIONS: continued Maintenance Part-time Custodian $10,000 General Professional Development $38,600 Supplies $93,000 Total Reductions $502,100

Cost Savings Pre-K program growing; tuition New Extended School Year – Pre-K & K Pre-K program growing; tuition Dean of Students will teach Geometry Increased student activity fees will offset some costs Fiber Optics will increase efficiency Fourth-year hardware lease cycle spreads costs Rental of buildings and grounds Use of maintenance reserve

Cost Savings (continued) Performing all possible maintenance in-house Locking in the best rates for services Finding heat and electrical efficiencies Participating in cooperative-bid purchase and service Getting competitive bids Investigating shared services Applying for more grants

GENERAL FUND BUDGET 2009/2010 BUDGET $9,242,563 DOLLAR DECREASE ($53,214) PERCENT DECREASE (.6%) REVENUES DECREASE AND FIXED EXPENSES CONTINUE TO INCREASE

TOTAL BUDGET 2009/2010 BUDGET $10,632,936 2010/2011 BUDGET $10,299,043 DOLLAR DECREASE ($333,893) PERCENT DECREASE (3.24%) REVENUES DECREASE AND FIXED EXPENSES CONTINUE TO INCREASE

HOME OWNER TAX INCREASE ASSESSED PROPERTY VALUE x .00741= TOTAL TAX FOR THE AVERAGE HOUSE VALUE OF $707,336 THE INCREASE WOULD BE $125 PER YEAR OR $10.42 PER MONTH

How can we fund extracurricular activities? Find short-term efficiencies for ‘10-11 Find long-term efficiencies for the future Earn more revenue Use pay-to-play to meet residual needs More revenue Revise building fees Consider tuition sources Gently remember surplus

YOU can help Please bring other voters with you when you vote (preK parents, new voters…). Please get an absentee ballot if you might be away. Please join us at meetings and stay informed. (www.mendhamboro.org) Please sign up for the weekly bulletin. Please call if you hear something that you want to talk about or that we should know. WATCH FOR: http://www.state.nj.us/njded/guide/2010/k-8.pdf for 2009 state comparative spending information

Please Vote: Tuesday, April 20 Mendham Borough Fire House 7:00 A.M. – 9:00 P.M. Please take time to vote. THANK YOU for all you do!