Harding Township School Preliminary Budget Report I Matthew A. Spelker-Superintendent Mark Kenney-Interim Business Administrator January 22, 2018

Board of Education Mr. Davor Gjivoje - President Mr. John Flynn –Vice-President Mrs. Kim Macaulay Mr. Abi Singh Mr. Richard Bruno

2017-2018 District Goals To measure the academic progress of our students through the administration of district-wide assessments in Reading, Math Facts and Writing. Begin the process of creating a five-year plan for the school district for 2019-2024 Continue to implement the iReady assessment program in grades 2-5 in ELA and 2-8 in Math The proposed 2018-2019 budget will support yet to be named goals for the 2018-2019 school year.

2018-2019 Operating Budget The operating budget is: A statement, in financial terms, of the district’s educational priorities. A reflection of the community’s values (small class size, technology, co-curricular activities, facilities maintenance, etc.) A management tool that projects and balances the district’s revenues and expenses. A consensus document – BOE, Administration, Parents, Staff, Community.

2018-2019 Operating Budget NOT developed by increasing each line by a certain percentage. Projections are made up to 17 months in the future. For example, budget (revenues and expenses) estimates made in January 2018 will have to remain accurate until June 30, 2019! Our budget has many line items that are increasing at a faster rate. These items include salaries, health benefits, and special education. These items “crowd out” other portions of the operating budget.

Budget Process Audit health benefits roster. (completed) Principal – curriculum items. (completed) Review CAFR, the 17/18 budget and plan ahead for 18/19 operating budget. (completed) Refine and update position control roster. (completed) Forecasting and budgeting for OOD placements for 2018-2019. (ongoing) Refine revenue (tuition, federal grants, state aid) estimates for 2018-2019. (ongoing)

Budget Process Factors affecting the operating budget: Maintaining small class size. Continued technology upgrades. Curriculum development and support. Ongoing maintenance needs. Student achievement. Increases in health benefits premiums. +10-12% (est.) Enrollment - predicted to be flat. Professional development and other unfunded mandates. HTEA salary increases. +2.60% (as per CBA)

Revenue State aid $238,834 n/c Tuition revenue $95,300 +5,300 Budgeted fund balance $300,000 (-20,000) Federal grants $136,974 +30,000 Misc. revenue $30,000 n/c Transportation fees $9,500 (-500) Extraordinary Aid $191,000 (-9,000) Building usage fees $9,000 n/c Tier IV/health benefits contribution n/c

State Aid 2009-2010 $364,473 2010-2011 $0 2011-2012 $181,191 2012-2013 $225,137 2013-2014 $225,137 2014-2015 $233,677 2015-2016 $233,677 2016-2017 $238,834 2017-2018 $270,110

Budgeted Fund Balance + State Aid

Expenses HTEA salary increase +2.6% (as per CBA) Health benefits premiums +10-12% (est.) Dental benefits premiums 5 % (est.) OOD special education tuition +3-5%, plus increase of 3 to 4 more OOD placements estimated cost $200,000-250,000 Facilities improvements – E.S. bathroom renovation – five year lease/purchase. Capital improvement HVAC project planned for 2018 spring and summer completion

The Preliminary 2018-2019 Budget Includes Funding Power School. Honeywell Instant Alert. T-Eval/Marshall Model. I-Ready assessment program Rubicon online curriculum tool My Learning Plan. My School Building/School Dude. AESOP (staff attendance and substitute procedures). Applitrack (human resources tool). School Wires (website management). Safe Schools (staff professional development). CDK (accounting software). Professional development and curriculum development. Technology upgrades. Capital improvements

2018-2019 Operating Budget Limited by a +2.0% cap (plus allowable exemptions) on the local tax levy – NOT the total budget. 2.0% increase to local tax levy will equal an increase of approximately 1.8% in the operating budget. This is due to the fact that approximately 90% of our budget funding derives from local property taxes.

Local Tax Levy 1997-2011 (average) +6.01% 2011-2012 +1.96% 2011-2012 +1.96% 2012-2013 +1.78% 2013-2014 +1.50% 2014-2015 +2.60% 2015-2016 +3.32% 2016-2017 +2.90% 2017-2018 + 1.48% 2018-2019 +2.51% (use of banked cap)

Banked Cap Year Saved $ Amount Year Expires 2012-2013 $82,496 (Used in 2015-16) 2013-2014 $74,390 (Used in 2016-17) 2014-2015 $0 N/A 2015-2016 2016-2017 2017-2018 $51,437 2020-2021 2018-2019

General Timeline Oct.-Dec. – Administrative meetings December 11 – Budget guidelines approved/BOE January 22 – Preliminary budget report I February – State aid figures released March 12 – Tentative budget presented to BOE Week of March 12th – Tentative budget submitted to ECS April 23 – Public hearing on the budget July 1 – New fiscal year begins