A P R I L 1 2 , 2 0 1 2

M I K E L A S U S A , A S S I S T A N T S U P E R I N T E N D E N T

P E T E R D A Q U I L A , B U S I N E S S A D M I N I S T R A T O R

PTO Budget Presentation

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Objectives

To apprise parents and members of the public of recent developments concerning the 2012-2013 School Year budget

To provide an opportunity for parents and members of the public to ask questions or give feedback about the proposed budget

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Context: Overall District Goal

To provide the best possible educational program for Chatham children while exercising the utmost diligence in the expenditure of public funds

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Context for Budget--Funding

Current NJ School Funding Law Tax levy increase is limited to 2%

There are limited adjustments to cap spending (e.g. enrollment growth, health insurance increases, pension-related costs)

Districts may utilize “banked” adjustments from previous school year

SDOC School Funding, 2012-2013 SDOC will receive $1,871,941, an increase of $429,210 over

2011-2012

SDOC has $675,387 in banked cap from last year (this is not funding, but taxing authority)

SDOC does not qualify for other adjustments this year

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Context for Budget

2011-2012 Budget = $60,943,789

2011-2012 Tax Levy = $52,791,296

2% of Current Tax Levy = $1,055,826

“Banked Cap” = $675,387

Max. Allowable Tax Levy Increase = $1,731,213 or 3.28%

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Context for Budget—Enrollment Growth

3.1%

3.9%

2.7%

3.7%

4.8%2.1%

1.9%

2,500

2,600

2,700

2,800

2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800

3,900

4,000

4,100

4,200

2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12

Y/o/Y Enrollment Growth, 2004-2012

Enrollment

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Context for Budget--SDOC versus J Districts

Per Pupil % to 4-yearCost ($) colleges

Montgomery 11,628 J 43 86.3SDOC 11,861 J 52.2 92.5

Haddonfield 12,471 J 40.9 89.7Bernards 12,487 J 54.9 87.8

W. Windsor-Plains. 13,045 J 51.5 86.1Ridgewood 13,096 J 48.2 87.3

STATE AVG K-12 13,860 NA 19.9 NAGlen Rock 14,538 J 42 89.4Millburn 14,910 J 48.5 93.9

Mountain Lakes 18,584 J 45.7 94.4

District DFG AP Rate

Data from 2009-2010 School Report Card

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Context for Budget-- SDOC vs Neighbors

Per Pupil % to 4-yearCost ($) colleges

SDOC 11,861 J 52.2 92.5New Providence 13,245 I 34.2 86.6

Livingston 13,712 I 36.5 87.9Madison 14,056 I 35.7 74.4Summit 14,411 I 46 84.8Millburn 14,910 J 48.5 93.9

District DFG AP Rate

Data from 2009-2010 School Report Card

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Context for Budget—Class of 2011

92% of graduates attend four-year colleges 31% attended “Most” competitive colleges

19% attended “Highly” competitive colleges

30% attended “Very” competitive colleges

Average SAT score was 1748 (national average was 1500)

Students benefitted from a range of extracurricular opportunities in the arts, athletics, and academics

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Overview of Expenditures10

DescriptionAdjusted Budget

2011/2012

Proposed Budget

2012/2013Net Change

Net Change

%Salary $34,444,828 $36,067,111 $1,622,283 4.71%

Health Benefits $5,954,466 $6,097,397 $142,931 2.40%Other Benefits $1,879,602 $1,910,235 $30,633 1.63%

Special Education $4,057,791 $3,915,482 -$142,309 -3.51%Utilities $1,649,301 $1,529,824 -$119,477 -7.24%

Building & Grounds $2,059,762 $2,202,156 $142,394 6.91%Instructional $1,796,586 $1,845,801 $49,215 2.74%

Transportation $1,267,315 $1,287,118 $19,803 1.56%Other $1,387,986 $1,503,293 $115,307 8.31%

Capital Outlay $2,636,883 $914,907 -$1,721,976 -65.30%General Expenditures $57,134,520 $57,273,324 $138,804 0.24%Grants & Entitlements $1,075,671 $893,379 -$182,292 -16.95%

Debt Repayments $2,733,598 $2,729,135 -$4,463 -0.16%Total Expenditures $60,943,789 $60,895,838 -$47,951 -0.08%

A Closer Look at Capital Outlay: $914,907

Equipment: $405,442

Construction: $242,459

Deposit to Capital Reserve: $267,006

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Capital Spending—Equipment 12

Cost:$6,250$2,200

$14,000$3,079$9,913

$100,000$270,000$405,442

Boost 28" Auto ScrubberCard Access System At All SchoolsSecurity Cameras - District WideTotal Equipment:

Equipment:Network SwitchesMobile Laptop CartBackup Server and SoftwareCarpet Extractor

Capital Spending—Construction 13

Construction: Cost:SBS - Carpet Removal & Tile Replacement $90,000WAS - Carpet Removal & Tile Replacement $40,000Debt Service SDA Funding $112,459

Total Construction: $242,459

Staffing Requests Included in Budget

School Position Cost ($)SBS 3rd Grade -76,000WAS Special Education -29,000LAF 4th Grade 76,000LAF 4th Grade 76,000 304,000LAF 5th Grade 76,000LAF Special Education 76,000LAF Spanish (.5) 29,000CHS HPE 76,000

Enrollment-Driven Requests

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Staffing Requests15

Why?We have cut overall special education costs by reducing Out-of-District placements and developing more programs to keep children in-district for as long as possible.

Staffing Requests16

Why?We believe we can improve the services we offer our students, particularly in the areas of early Basic Skills interventions and World Language programming at CMS.

Staffing Requests

Miscellaneous request: District-wide Information Systems Specialist, $64,000

Why? We reduced Central Office support staff two of last three years and we are facing increasing data management requirements from the Department of Education.

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Initial Budget Review

Initial budget with all requests totaled more than $61,300,000

Proposed budget is $60,895,838

Items eliminated from budget to get down to 2.3% include:

Paraprofessional Support

Special Education Teacher at LAF

School Counselor at WAS/MAS

Assistive Technology supplies

Instructional supplies

Request for World Language K-3

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2012-13 Budget: Proposed Expenditures and Tax Levy Increases

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Tax Increase 2.40% 2.16% 2.25% 2.30% 3.28%$ Amount $ Amount $ Amount $ Amount $ Amount

Local Tax Levy 52,791,296 53,929,100 53,979,100 54,005,100 54,522,509Free Balance 279,946 271,277 271,277 271,277 271,277Capital Reserve WD 2,006,335 0 0 0 0Other Revenue 379,000 458,000 458,000 458,000 458,000State Aid 925,725 1,871,941 1,871,941 1,871,941 1,871,941Extraordinary Aid 400,000 400,000 400,000 400,000 400,000Additional State Aid 250,000 267,006 267,006 267,006 267,006Ed Job Fund 102,218 0 0 0 0Federal Grants & Entitlements 1,075,671 893,379 893,379 893,379 893,379Debt Repayment 2,733,598 2,729,135 2,729,135 2,729,135 2,729,135

Total Revenue 60,943,789 60,819,838 60,869,838 60,895,838 61,413,247

Est. Expenditures, 4/11/2012 60,819,838 60,869,838 60,895,838 61,413,247

Proposed Tax Levy Increases20

Proposed 2012/2013

Proposed 2012/2013

Proposed 2012/2013

Proposed 2012/2013

Tax Increase 2.16% 2.25% 2.30% 3.28%Local Tax Levy ($) 53,929,100 53,979,100 54,005,100 54,522,509

Avg Monthly Tax Inc. $24.17 $24.74 $25.61 $30.87Avg Annual Tax Inc. $290.08 $296.85 $307.34 $370.42

Avg Monthly Tax Inc. $9.45 $10.06 $10.14 $16.61Avg Annual Tax Inc. $113.43 $120.67 $121.71 $199.33

Chatham Borough - Average House Assessment - $658,500

Chatham Township - Average House Assessment - $747,400

Context for Budget--Y/o/Y Tax Levy Increases, 2004-2012

Year Tax Levy Increase2004-5 8.22005-6 6.82006-7 4.12007-8 8.22008-9 7.6

2009-10 2.22010-11 7.42011-12 2.4

AVG 5.9

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From Here

April 10th: Deadline for receipt of mail-in ballots by mail

April 17th: Deadline for receipt of mail-in ballots by hand

April 17th: School Board Election and Budget Vote

PLEASE VOTE!

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