Mountain Lakes Board of Education 2009 – 2010 Budget Hearing Not “Business as Usual” March 30, 2009

2 Respecting today’s reality: spending discipline, creativity and savings Tight control over on-going expenses Significant new sources of recurring savings Re-investment of savings/other in necessary roof repairs –$1,049,647 to be spent at High School & Wildwood (toward total cost of $1.8 million) –Roof repairs account for 150% of 2009/10 general fund tax increase (…and >70% of increase in expenses) 2 nd lowest overall tax increase in 10+ years –+3.66% / +$682,942 overall –+$338 for average home

3 Respecting today’s reality: spending discipline, creativity and savings Prior year savings of $407,897 carried forward to help offset 2009/10 expenses All 2009/10 school instructional budgets are flat or down versus 2008/09 Several new sources of recurring savings –Reduction of 1 administrator, 2 teachers, 1 custodian (-$324,556) In addition to 1 administrator eliminated in 2008/09 –Newly negotiated health benefits opt-out (-$33,240 savings to- date) Utilizing $225,000 Capital Reserve established in June 2008 to help fund roof replacements Implementing State mandated inclusive pre-school program at no incremental cost No reduction in current programs

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5 Entire tax increase is traceable to roof repairs: WHY NOW? High School & Wildwood roofs in need of repair –Sections to be replaced are years old –Included in Long Range 5-Year Facilities Plan Failure to address situation now threatens additional damage & even higher repair costs Expect meaningful “savings” due to current market conditions (bidding more competitive than usual) 40% state subsidy of $738,885 at risk if we wait –Cost to District only $1,049,647 out of $1.8 million total Represents an appropriate “investment” of the one-time $123,990 Boonton Township tuition recapture Utilizes the $225,000 Capital Reserve established last year Enables participation in solar energy project (& future savings) Addresses non-recurring cost within state cap and without taking on any additional debt

6 Budgetary Goals Maintain a Budget in Accordance with New Accountability Regulations Maintain Programs and Favorable Class Size Reduce Cost Where Appropriate (Staffing, Health Benefit Buyback, Hiring Practices and Cooperative Purchasing)

7 The Surplus and New Fiscal Accountability Surplus –Limited to 2% for New Fiscal Accountability –Tax Levy Cap –User Friendly Budget –Administrative Cost Limits

8 State Aid Aid Figures Released March 12, 2009 Same Allotment as State Entitlement Aid $951,058 Represents Less than 3% of Total Revenue

9 Enrollment Comparison

–10 Budget Analysis (Excluding Lake Drive School)

11 Budget Highlights All School Budgets (Instructional items) held at or below ‘08–’09 levels Reduction of two teaching positions, saving $140,846 Reduction of one administrator, saving $134,402 Reduction of one custodian, saving $49,308 All existing and new courses taught by existing staff Implement new inclusive State mandated pre-school program at zero incremental cost Major Roof Projects (Wildwood and High School) totaling $1,847,211; State funding in excess of $700,000 Second lowest tax increase in over a decade

12 Superintendent Highlights Maintain the Highest Quality of Education Goals of the Long Range Education Plan Continue Progress in Curriculum Development Continue Progress in Professional Development Maintain Favorable Class Sizes at All Levels Maintain All Current Course Offerings and Programs Implement a New Inclusive Pre-school in the District Repair Roof on High School and Wildwood School

Proposed Capital Projects

14 Proposed Budget

15 Revenue Source - 3 Yr. Period

16 Homeowner Tax Increase

Tax Impact Analysis

18 The Election Budget Public Hearing – March 30, 2009 Election: April 21, 2009 Polls Open from 7:00 am – 9:00 pm Mountain Lakes High School Board Member Election Three Year Term (vote for three [3]) –Petrina Dawson –Catherine Mitchell –Kim M. Sheppell Resolved, that there should be raised for the General Fund, $18,204,324 for the ensuing school year. ( )