Budget Adoption2019-2020

JERSEY CITY PUBLIC SCHOOLS

Approved: May 13, 2019

N.J.S.A. 18A:22-32 Deadline to Adopt Budget Tuesday, May 14, 2019 (May 13, 2019)

• Introduction

• State Aid Trend

• SY2019-20 Proposed Budget

• Revenue• Appropriation

• Recommendations to Close Shortfall

• Appendix

Table of Contents

Introduction

Introduction

Dear Jersey City Board of Education Members and Citizens of Jersey City The following Adoption of the 2019-20 Fiscal Year, developed in accordance with the requirements established by the New Jersey Department of Education Uninform Chart of Accounts and GAAP, reflects the funding challenges faced by Jersey City Public Schools, particularly in the last year. The state aid cut propelled by S2 which cuts $ 175 million in state aid for Jersey City. On March 7, 2019 the state sent the Jersey City Board of Education the 2019-2020 state aid figures. The total state aid figures for the year, 2019-2020 was reduced by about $ 33 million which includes in part $ 27 million in state adjustment aid cut and $ 6 million on account of charter school enrollment.

On Monday, May 6, 2019 The Jersey City Board of Education convened its second and final public hearing on the 2019-2020 Budget Year. The Jersey City Board of Education voted to fully fund and restore the Sports & Athletic Programs, including Arts and Music. The Jersey City Board of Education, the Administration is committed to a staffing plan that will protect the classroom and a strategy that will protect instructional staff and minimize further overcrowding of classrooms. The Jersey City Board of Education will continue to look for opportunities to restore positions and programs that have enabled us to make significant progress in key areas, and catapulted us to the Return to Local Control. We know you share our commitment to not go backwards. We look forward to your collaboration as we move forward. Thank you.

Mr. Franklin WalkerChief School AdministratorJersey City Public Schools

Envision Excellence and Equity Everywhere

State Aid

Revenue (State Aid) $ Change

Note – This amount is net of projected Charter School payments.

Proposed Budget SY 2019-20

Revenue

Advertised Revenue Title Account 2017-2018

Actual 2018-19Revised

2019-2020Anticipated

ProposedRevised

Amount Diff

Local Tax Levy 10-1210 116,692,448 124,367,357 136,504,704 12,137,347 Tuition From Individuals 10-1310 95,377 78,039 71,499 (6,540)Total Tuition 10-1300 95,377 78,039 71,499 (6,540)Unrestricted Miscellaneous Revenues 10-1XXX 0 2,626,437 4,126,437 1,500,000 Interest Earned On Current Expense Emergency Res 10-1XXX 280,941 0 0 0 Other Restricted Miscellaneous Revenues 10-1XXX 2,614,851 0 0 0 SUBTOTAL - REVENUES FROM LOCAL SOURCES   119,683,617 127,071,833 140,702,640 13,630,807 Categorical Transportation Aid 10-3121 2,953,347 4,423,777 4,423,777 0 Extraordinary Aid 10-3131 2,611,013 1,785,679 1,785,679 0 Categorical Special Education Aid 10-3132 18,332,551 18,332,551 18,332,551 0 Educational Adequacy Aid 10-3175 125,411 125,411 125,411 0 Equalization Aid 10-3176 270,661,365 270,661,365 270,661,365 0 Categorical Security Aid 10-3177 11,334,316 12,648,342 12,648,342 0 Adjustment Aid 10-3178 106,076,562 100,712,846 73,520,213 (27,192,633)PARCC Readiness Aid 10-3181 306,070 0 0 0 Per Pupil Growth Aid 10-3182 306,070 0 0 0 Professional Learning Community Aid 10-3183 308,600 0 0 0 Aid for Adult and Post-Graduate Programs 10-3191 292,283 0 0 0 Other State Aids 10-3XXX 172,550 0 0 0 SUBTOTAL - Revenues from State Sources   413,480,138 408,689,971 381,497,338 (27,192,633)Medicaid Reimbursement 10-4200 1,195,337 1,011,191 941,945 (69,246)SUBTOTAL - Revenues from Federal Sources   1,195,337 1,011,191 941,945 (69,246)Budgeted Fund Balance - Operating Budget 10-303 0 16,160,804 11,950,000 (4,210,804)Adjustment for Prior Year Encumbrances   0 19,084,598 0 (19,084,598)Actual Revenues (Over)/Under Expenditures   15,470,049 0 0 0 TOTAL OPERATING BUDGET   549,829,141 572,018,397 535,091,923 (36,926,474)

Advertised Revenue Cont.Title Account 2017-2018

Actual 2018-19Revised

2019-2020Anticipated

ProposedRevised

Amount Diff

Total Revenues from Local Sources 20-1XXX 392,334 742,920 0 (742,920)

Preschool Education Aid - Pr Yr Carryover 20-3218 0 4,957,365 2,387,312 (2,570,053)

Preschool Education Aid 20-3218 69,444,962 67,611,454 69,323,643 1,712,189

Other Restricted Entitlements 20-32XX 1,952,719 2,369,381 2,013,974 (355,407)

TOTAL REVENUES FROM STATE SOURCES   71,397,681 74,938,200 73,724,929 (1,213,271)

Title I 20-4411-4416 15,422,127 16,298,544 13,853,762 (2,444,782)

Title II 20-4451-4455 1,712,934 1,819,170 1,546,295 (272,875)

Title III 20-4491-4494 756,512 1,004,951 854,208 (150,743)

Title IV 20-4471-4474 0 885,065 752,305 (132,760)

I.D.E.A. Part B (Handicapped) 20-4420-4429 8,010,223 9,157,679 7,784,027 (1,373,652)

Vocational Education 20-4430 313,482 327,850 278,673 (49,177)

Adult Basic Education 20-4440 422,156 474,700 403,495 (71,205)

Other 20-4XXX 849,183 3,697,363 3,142,758 (554,605)

TOTAL REVENUES FROM FEDERAL SOURCES   27,486,617 33,665,322 28,615,523 (5,049,799)

Transfers from Operating Budget-Prek (Special Education) 20-5200 1,050,020 2,932,699 615,846 (2,316,853)

TOTAL GRANTS AND ENTITLEMENTS   100,326,652 112,279,141 102,956,298 (9,322,843)

TOTAL REVENUES/SOURCES   650,155,793 684,297,538 638,048,221 (46,249,317)

Revenue - $638,048,221

Appropriation

Advertised Appropriation

Budget Category Account2017-18Actual

Expenditure

2018-19Rev.

Approp.

20-19-2020ProposedApprop

Proposed-RevisedAmount

DiffGENERAL CURRENT EXPENSEINSTRUCTIONRegular Programs 11-1XX-100-XXX 17,791,842 18,136,718 15,891,722 (2,244,996)Special Education 11-2XX-100-XXX 4,163,710 4,783,757 4,310,735 (473,022)Bilingual Education 11-240-100-XXX 521,002 520,647 1,637,844 1,117,197 School-Spon. Co/Extra-Curr. Activities 11-401-100-XXX 258,104 217,319 106,774 (110,545)School Sponsored Athletics 11-402-100-XXX 3,024,764 2,264,279 3,091,311 827,032 SUPPORT SERVICES:Tuition 11-000-100-XXX 19,176,796 21,890,018 20,126,473 (1,763,545)Attendance and Social Work Services 11-000-211-XXX 162,851 216,285 132,238 (84,047)Health Services 11-000-213-XXX 2,071,227 2,241,623 3,546,246 1,304,623 Undist. Expend.-Speech, OT, PT And Related Svcs 11-000-216-XXX 5,369,410 4,605,700 4,977,241 371,541 Undist Expend-Oth Supp Serv Std-Extra Serv 11-000-217-XXX 2,059,381 2,237,154 2,344,010 106,856 Guidance 11-000-218-XXX 75,276 103,011 98,513 (4,498)Child Study Teams 11-000-219-XXX 13,491,208 14,516,881 13,827,589 (689,292)Improvement of Instructional Services 11-000-221-XXX 7,282,212 7,454,160 1,675,327 (5,778,833)Educational Media Services - School Library 11-000-222-XXX 1,359,163 1,158,903 1,147,650 (11,253)Instructional Staff Training Services 11-000-223-XXX 452,138 180,389 13,070 (167,319)General Administration 11-000-230-XXX 8,492,665 10,127,686 9,580,021 (547,665)School Administration 11-000-240-XXX 265,598 435,253 383,546 (51,707)Undist. Expend. - Central Services 11-000-25X-XXX 6,105,967 6,690,002 5,171,411 (1,518,591)Undist. Expend. - Admin. Info Technology 11-000-25X-XXX 2,901,086 3,150,803 2,851,433 (299,370)Operation and Maintenance of Plant Services 11-000-26X-XXX 47,631,954 46,565,399 40,421,145 (6,144,254)Student Transportation Services 11-000-270-XXX 17,132,245 18,541,207 17,119,827 (1,421,380)Personal Services - Employee Benefits 11-XXX-XXX-2XX 39,257,594 41,432,210 45,014,414 3,582,204 TOTAL UNDISTRIBUTED EXPENDITURES 173,286,771 181,546,684 168,430,154 (13,116,530)TOTAL GENERAL CURRENT EXPENSE 199,046,193 207,469,404 193,468,540 (14,000,864)

Advertised Appropriation cont.

Budget Category Account2017-18Actual

Expenditure

2018-19Rev.

Approp.

20-19-2020ProposedApprop

Proposed-RevisedAmount

DiffCAPITAL EXPENDITURESEquipment 12-XXX-XXX-73X 904,299 695,131 259,436 (435,695)Facilities Acquisition and Construction Services 12-000-4XX-XXX 15,157 159,255 2,000,000 1,840,745 TOTAL CAPITAL EXPENDITURES 919,456 854,386 2,259,436 1,405,050

SPECIAL SCHOOLSSummer School:Instruction 13-422-100-XXX 473,642 479,157 479,405 248 Support Services 13-422-200-XXX 90,168 105,920 105,672 (248)Total Summer School 563,810 585,077 585,077 0Accredited Evening/Adult High School/Post-Graduate:Instruction 13-601-100-XXX 0 0 0 0 Support Services 13-601-200-XXX 0 0 0 0 Total Accredited Evening/Adult HS/Post-Grad. 0 0 0 0Adult Education - Local:Instruction 13-602-100-XXX 0 0 0 0 Support Services 13-602-200-XXX 0 0 0 0 Total Adult Education - Local 0 0 0 0Vocational Evening - Local:Instruction 13-629-100-XXX 0 0 0 0 Support Services 13-629-200-XXX 0 0 0 0 Total Vocational Evening - Local 0 0 0 0Evening School for the Foreign Born - Local:Instruction 13-631-100-XXX 165,514 214,264 214,264 0 Support Services 13-631-200-XXX 17,020 28,983 28,983 0 Total Evening School for Foreign-Born - Local 182,534 243,247 243,247 0TOTAL SPECIAL SCHOOLS 746,344 828,324 828,324 0Transfer of Funds to Charter Schools 10-000-100-56X 58,734,584 70,247,512 71,585,164 1,337,652 General Fund Contribution to SBB 10-000-520-930 290,382,564 292,618,771 266,950,459 (25,668,312)OPERATING BUDGET GRAND TOTAL 549,829,141 572,018,397 535,091,923 (36,926,474)

Advertised Appropriation Cont.Budget Category Account

2017-18Actual

Expenditure

2018-19Rev.

Approp.

20-19-2020ProposedApprop.

Proposed-RevisedAmount

DiffGRANTS AND ENTITLEMENTSLocal Projects 20-XXX-XXX-XXX 392,334 742,920 0 (742,920)Preschool Education Aid:Instruction 20-218-100-XXX 23,496,843 24,207,612 23,810,408 (397,204)Support Services 20-218-200-XXX 46,989,293 49,965,746 47,247,083 (2,718,663)Facilities Acquisition and Construction Services 20-218-400-XXX 8,846 120,000 40,000 (80,000)Contribution to Charter Schools 20-218-100-56X 0 1,208,160 1,229,310 21,150 TOTAL PRESCHOOL EDUCATION AID 70,494,982 75,501,518 72,326,801 (3,174,717)Other State Projects:Nonpublic Textbooks 20-XXX-XXX-XXX 210,221 223,211 189,729 (33,482)Nonpublic Auxiliary Services 20-XXX-XXX-XXX 736,475 583,182 495,705 (87,477)Nonpublic Handicapped Services 20-XXX-XXX-XXX 240,197 372,638 316,742 (55,896)Nonpublic Nursing Services 20-XXX-XXX-XXX 362,158 408,370 347,115 (61,255)Nonpublic Technology 20-XXX-XXX-XXX 129,869 150,480 127,908 (22,572)Nonpublic Security Aid 20-XXX-XXX-XXX 273,799 631,500 536,775 (94,725)Total Other State Projects 20-XXX-XXX-XXX 1,952,719 2,369,381 2,013,974 (355,407)Total State Projects 72,447,701 77,870,899 74,340,775 (3,530,124)Federal Projects:Title I 20-XXX-XXX-XXX 8,730,949 7,368,562 2,923,780 (4,444,782)Title II 20-XXX-XXX-XXX 1,712,934 1,819,170 1,546,295 (272,875)Title III 20-XXX-XXX-XXX 756,512 1,004,951 854,208 (150,743)Title IV 20-XXX-XXX-XXX 0 885,065 752,305 (132,760)Title V 20-XXX-XXX-XXX 0 0 0 0 Title VI 20-XXX-XXX-XXX 0 0 0 0 I.D.E.A. Part B (Handicapped) 20-XXX-XXX-XXX 8,010,223 9,157,679 7,784,027 (1,373,652)Vocational Education 20-XXX-XXX-XXX 313,482 327,850 278,673 (49,177)Adult Basic Education 20-XXX-XXX-XXX 422,156 474,700 403,495 (71,205)Private Industry Council (JTPA) 20-XXX-XXX-XXX 0 0 0 0 Other Special Projects 20-XXX-XXX-XXX 849,183 3,697,363 3,142,758 (554,605)Contribution To SBB - Other Federal Projects 20-XXX-520-930 6,691,178 8,929,982 10,929,982 2,000,000 Total Federal Projects 27,486,617 33,665,322 28,615,523 (5,049,799)TOTAL GRANTS AND ENTITLEMENTS 100,326,652 112,279,141 102,956,298 (9,322,843)TOTAL APPROPRIATION 650,155,793 684,297,538 638,048,221 (46,249,317)

Advertised Appropriation - $638,048,221

Local Tax

School Tax Increase Per Household2015-2016 2016-2017 2017-2018 2018-2019 2019-20

Tax levy 112,161,139 114,404,362 116,692,448 124,367,357 136,504,704

Tax Levy Increases 2,199,238 2,243,223 2,288,086 7,674,909 12,137,347

% Of Increase 2% 2% 2% 6% 10%

Ratables 6,093,045,338 6,229,997,658 6,229,997,658 16,041,947,110 16,659,648,010

Average Assessed Value of Residential Property 90,400 90,400 91,000 433,320 439,789

Tax Rate (Tax Levy Inc/Ratables) 0.03609% 0.03601% 0.03673% 0.04784% 0.07285%

Average School Tax Per Household (Ass. Value*Tax Rate) $33 $33 $33 $207 $320

Recommendations to Close Shortfall

Revenue Generators Amounts

Tax Levy 2% City Wide Property Tax Increase 9,650,000

Sponsorships/Advertisements 1,000,000

Excess Fund Balance 4,838,871

Fund Balance Reserve 7,111,129

ECC Reduction Of General Fund Contribution 2,316,853

Parking Revenue 500,000

Total Revenue Generators 25,416,853

Recommendations to Close ShortfallAppropriations Decreases FTE Amount

StaffingInstructional Staffs 209 15,723,048 Central Office and Schools Non Instructional 434 19,895,906 Employee Benefits 2,992,874

Per Diem Excluding Teachers/Teacher Aides 570,279 Extra pay Reduction of 25% 3,220,165 Retirements 6,080,000 Health Care - Roman Valentin 22,729,268 Building Consolidation 119 10,422,370 Facilities Efficiencies 1,560,000 Workers Compensation/Central Office Efficiencies 4,700,000 Educational Program 2,000,000

Total Appropriations Decreases 89,893,910

Total Shortfall $115,310,763

General Fund Appropriation By CategoryCategory FTE 2017-2018 FTE 2018-2019 FTE 2019-2020 Increases/ (Decreases)

Contracted Salaries 4,165 307,127,208 4,090 305,837,698 3341 260,807,958 (45,029,740)Part-time 1,238,853 1,626,607 4,471,443 2,844,836 Per Diem Substitutes 4,135,308 4,082,000 4,791,721 709,721 Fifths 307,250 420,000 315,000 (105,000)Sick/Retirement Pay 1,909,750 1,909,754 1,582,315 (327,439)Lunch Duty/Extra Pay/Stipend/Athletics 13,354,849 9,757,268 7,986,183 (1,771,085)Perfect Attendance 58,600 70,000 70,000 0 Saturday Detention 56,077 44,376 44,376 0 Medical Benefits 73,925,320 68,870,042 60,026,978 (8,843,064)Medical Reimbursement (19,829,926) (18,688,685) (11,966,488) 6,722,197 Vision 783,718 789,926 757,037 (32,889)Prescription 20,445,350 16,929,455 17,349,061 419,606 Dental 2,433,850 3,061,978 4,046,434 984,456 Opt Out Health Benefits 1,262,730 0 0 0 FICA 6,580,135 6,812,642 5,482,481 (1,330,161)Workers Compensation 4,425,165 4,220,937 0 (4,220,937)PERS 10,647,994 11,119,232 11,575,971 456,739 Tuition Reimbursement 510,000 510,000 510,000 0 Other Employee Benefits 1,009,093 1,460,087 10,934,694 9,474,607 Charter Schools 64,644,062 65,355,995 71,585,164 6,229,169 Capital Outlay 0 0 0 0 Contracted Services 59,553,090 51,699,212 69,977,237 18,278,025 Supplies & Equipment 11,767,569 8,665,284 13,417,434 4,752,150 Utilities, Leases, Insurances 16,666,547 14,377,274 11,641,060 (2,736,214)General Fund Contribution to ECPA 1,050,020 2,932,699 615,846 (2,316,853)TOTAL APPROPRIATION 4,165 584,062,612 4,090 561,863,781 3341 546,021,905 (15,841,876)

REVENUES 584,062,612 561,863,781 546,021,905 (15,841,876)

PROJECTED SHORTFALL (0) (0) 0 0

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