MARCH 26, 2009 Newark Public Schools Budget Presentation FY

State Funding Reform Act (SFRA) 2

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

Total District Enrollment –Oct 15 (Excluding Charter Schools) Elementary20,57019,27818,768 Middle 8,768 9,951 9,751 Secondary11,92811,27411,473 Total41,26640,50339,992 Change from Prior Year (763)(511)

State Aid 5 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

Revenue Sources 6 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

Newark Public Schools Three Year Comparison of Revenues 7

8 $ 991,952,699 FY REVENUES 8

Budget Summary- General/Special Revenue Fund Changes 9 Operating Budget ($2.3M) Central High School Facilities Aid not provided ($1.7 )Reduction in Additional Charter School Aid in ($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 $5.6M Increase in Early Childhood Program $1.0M increase in Early Childhood Carryover

FY Revenue Summary 10 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? 11

12 FY BUDGET

PROPOSED BUDGET 13 $991,952,699 A net decrease of $909,143 over budget

NEWARK PUBLIC SCHOOLS 14 Operating Budget $ 849,516,368 Grants & Entitlements 142,436,331 Total District Budget $ 991,952,699

Impact on District Budget 15 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

Budget Summary-Expenditures 16 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 CategoriesFTEAmounts Salaries$ 14,969,392 New Park School66.0 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 ,221 General Fund Revenue Reductions 3,732,475 TOTAL79.0$ 43,846,647 17

Major Costs of Total Budget 18 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

19 $ 849,516,368 Major Costs of Total Budget 17

Total Salaries 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, % 20

Reductions to Balance The Budget ReductionsFTEAmounts 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) 21

Reductions to Balance The Budget ReductionsFTEAmounts 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) 22

Reductions to Balance The Budget ReductionsFTEAmounts Consolidation of William Brown – Based upon criteria for closing/consolidating schools (36.0) (3,595,526) Reductions in Non-Salary Costs - Budget for FY 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) 23

Reductions to Balance The Budget ReductionsFTEAmounts 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) 24

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

Criteria for Closing/Consolidating Schools 26 1.Academic Performance - Failure to make Adequate Yearly Progress (AYP) 2.Enrollment of Failing School and Capacity of Performing Receiving School(s) 3.Physical Conditions of Facilities 4.Proximity to Performing Receiving Schools

Extended Day/After School Program 27 There are no changes in the Summer Program All sites with Extended Day/After School Programs operating in FY will continue to operate in FY 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 WeeksTotal Hours Comments 3-6 pm Program Current FY Split Session Oct-Feb May-June 6-9 pm Program Current FY Change Hours M-W 6-8pm Th 6-9pm 28

Per Pupil Cost 29

FY Per Pupil Cost per State DOENET - $16,911 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 30

31 Comparison of Per Pupil Costs 31

Charter Schools 32

RESIDENT STUDENTS ATTENDING CHARTER SCHOOLS FY

Charter School Students Re-entering NPS 2006, 2007 & Month of Re-entry Number of Students% July270.1 Aug668.7 Sep Oct385.0 Nov233.0 Dec334.4 Jan496.5 Feb415.4 Mar131.7 Apr243.2 May121.6 Jun30.4 Total Pupils Re-entering: 757

Charter School Students Re-entering NPS 2006, 2007 & Charter School Number of Students% New Horizon Lady Liberty North Star759.9 Greater Newark729.5 Marion P. Thomas729.5 Maria Varisco Rogers699.1 Gray Charter547.1 Team Academy486.3 University Heights415.4 Robert Treat314.1 Adelaide Sanford212.8 Discovery192.5 Pride (East Orange)81.0 East Orange Charter30.4 Englewood20.2 Schomburg (Jersey City)10.1 Calla Charter10.1 Unknown10.1

Charter School Students Re-entering NPS 2006, 2007 & Gender Number of Students% Male Female Ethnicity Number of Students% Black Hispanic689.0 American Indian10.1 Asian30.4

Fund Balance Analysis 37

Fund Balance Analysis 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, ,500, ,938, ,938,400 Adjustment to Actual 12,353,008 15,500,000 Ending Bal 29,910,924 41,326,430 27,388,030 3,449,630

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

Tax Levy Analysis Tax Levy Analysis 40

NEWARK PUBLIC SCHOOL PROPERTY TAXES TEN YEAR ANALYSIS 41

Tax Levy Increase Comparison 42

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 Average Annual Net Increase $ 0 43

Looking Forward 44

Anticipated Budget Shortfall for FY Fund Balance needed at FY Levels $23,938,400 Projected Balance Available at end of FY ,449,630 Fund Balance Shortfall$20,488,770 Anticipated increased costs 42,000,000 Anticipated State Aid increases 0 Anticipated Budget Shortfall for FY $62,488,770 45

Next Steps 46

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 and Next Steps

Questions and Answers 48