HARDING TOWNSHIP SCHOOL DISTRICT Tentative Budget Dr. Alex Anemone, Superintendent Dr. Dennis Frohnapfel, Interim Business Administrator March 3, 2014

BOARD OF EDUCATION Mr. Dev Modi- President Mr. John Flynn - Vice President Mr. Jim Novotny Mrs. Kim Macaulay Mr. Davor Gjivoje

Budget Process and Timeline Fall 2013 – Administrative team identifies budgetary needs for budget. Fall 2013 – Budget Guidelines crafted 12/2/13 – Preliminary Budget Presentation I 1/20/14 – Preliminary Budget Presentation II 2/25/14 – Gov. Christie Budget Address 2/27/14 – State Aid figures released 3/3/14 – Tentative Budget 3/20/14 – Tentative Budget submitted to ECS. 5/5/14 – Public Hearing on the Budget

PROPOSED BUDGET Maintains conservative fiscal practices, easing the burden on taxpayers. Provides financial resources that support our district goal(s). Strong focus on core academic mission while maintaining emphasis on social-emotional learning, co-curricular activities as well as capital needs. When actual financial figures are not available, estimates are used. (HTEA, MPS, OOD, etc.)

BUDGET GUIDELINES Continue to fund all programs and services…working within the confines of the property tax levy cap. Protect free balance at a maximum level permitted by State law. Maintain staffing configuration. Continue to be conservative in the expenditures of public moneys.

BUDGET GUIDELINES Allocates funds for: Technology Plan Capital Improvements (LRFP) Local Professional Development Plan (LPDC) Develop a prudent budget that is aligned with the district’s instructional priorities, addresses the needs of all our students and allocates sufficient funds to ensure professional development for staff.

BUDGET GUIDELINES Continue to ensure that the financial planning process is integrated and aligned with the district priorities and includes planning objectives based on statewide assessments and the Strategic Plan. Derive budget expenditures from supplier quotations, official data and actual expenditures from previous years.

Non-Discretionary Expenses Projected increases: Salaries +1.5% Health Benefits +22% Part of this increase is directly related to implementation of the Affordable Care Act (ACA). Prescription +5% Special Education Out of District tuition +6% Transportation +2% Utilities/Maintenance overtime

Budget Highlights Maintains staffing configuration (two sections per grade) and all co-curricular activities. Math in Focus (Singapore Math) - grades K-5. Money budgeted for staff professional development and curriculum writing. Ongoing costs associated with Achieve NJ, TEACH-NJ, ABR implementation, Janet’s Law, transition to PARCC and the Common Core State Standards. (unfunded mandates)

Budget Highlights (cont’d) Measures of Academic Progress: grades 2-8. Otis Lennon School Ability Test: grade 3. Smartboard replacement cycle plus other technology improvements including new computers in L/MC lab. Meets all Budget Guidelines as crafted by the Facilities and Finance Committee and adopted by the Board of Education.

REVENUE HISTORY Tax Levy (average)6.01% increase % increase % increase % increase % increase State Aid ~$360, $ $181, $225, $225, $233,677

REVENUE HISTORY Tax Levy % Increase

REVENUE HISTORY State Aid

Capital Projects Elementary School Windows and Unit- Ventilators. Under the ROD (Regular Operating District) Grant, the State will pay for 40% of this project. The BOE local share is 60%. (summer 2014) Additional security measures (tbd).

Budget Operating Budget = $10,254,751 – Increase of $232,739 or 2.32% Total Budget = $10,846,024 – Increase of $213,624 or 2.01% Tax Levy Increase = 2.81% – Includes Health Care Adjustment of $18,226 – Includes Banked Cap from of $54,523

Budget Efficiencies Budgeted excess surplus of $274,561. This represents an increase of $99,671 or 56.99%. Slight increase in state aid +$8,540. This represents an increase of 3.79% in Categorical State Aid. High quality Integrated Pre-K Program (ongoing). Legislated increases in staff members paying for health benefit premiums (Tier IV - up to 35% of premium). Continued shared services with Harding Township. Supply accounts. Tuition students (PK-8) included.

Revenues REVENUES $ Changes Local Tax Levy (including banked cap of $54,523) $9,019,961$253,148$9,273,109 Tuition$78,400($26,100)$52,300 Transportation Fees$10,000None$10,000 Building Usage Fees$9,000None$9,000 Misc. Revenue$60,500($44,454)$16,046 State Aid (Categorical)$225,137$8,540$233,677 Extraordinary Aid (Sp. Ed.)$190,000$10,000$200,000 Budgeted Fund Balance$174,890$99,671$274,561 Withdrawal Capital Reserve$254,124($68,066)$186,058 Special Revenue (Federal)$75,788($12,240)$63,548 Local Tax Levy (Debt Svc.)$496,428($6,385)$490,043 Debt Svc. Aid$38,172($490)$37,682 TOTAL$10,632,400$213,624$10,846,024

Expenses – Fund 11 General Expenses $ Changes Gen. Education Instruction$2,355,590$76,573$2,432,163 Sp. Ed. Instruction$956,201$38,240$994,441 Sp. Ed./Tuition$2,581,575$131,209$2,712,784 Attendance/Health/LMC$162,219$4,273$166,492 Improvement Instruction$204,857($45,982)$158,875 Support Svc. Gen. Admin.$304,926$4,151$309,077 Support Svc. School Admin.$24,583$12,792$37,375 Central Svc./IT Admin$136,561($3,635)$132,926 Operation/Mt. Plant$866,880$56,401$923,281 Student Transportation$845,689$32,935$878,624 Health Benefits$1,213,802$81,013$1,294,815 TOTAL – FUND 11$9,652,883$387,970$10,040,853

Expenses - Funds 11, 12, 20, 40 Expenses $ Changes Total – Fund 11$9,652,883$387,970$10,040,853 Capital Outlay – Fund 12$369,129($155,231)$213,898 Special Revenue – Fund 20$75,788($12,240)$63,548 Debt Service – Fund 40$534,600($6,875)$527,725 TOTAL$10,632,400$213,624$10,846,024

ESTIMATED Tax Information 2014 Total Taxable Assessment =$2,027,888, Average Residential Assessment =$1,196, Current Tax Rate = Estimated Proposed Tax Rate = Estimated Difference = % increase

Budget Vote and Election In 2012, Gov. Christie signed legislation that eliminated the need for a public vote on the school budget if the budget remains at or below the two percent tax levy cap, including use of banked cap. On February 13, 2012, the Harding Township BOE adopted a resolution to move the annual school election from April to November beginning in Since the proposed HTS budget is within the cap (including banked cap and health care adjustment) it will not be on the ballot in November. To comply with new NJDOE regulations, the Public Hearing on the budget has been moved to the May 5 BOE meeting. That meeting will begin at 7:30p.m. in the L/MC.