Budget 101/Workshop Introduction: How the Clinton Township School Budget Will Be Put Together

1. Budget 101/Workshop Introduction:How the Clinton Township School BudgetWill Be Put Together A presentation by Dr. Drucilla Clark, Superintendent Heather Spitzer, Business Administrator Clinton Township School District February 24, 2014

2. Just a reminder that… Clinton Township School District is PK-8 ONLY Patrick McGaheran 2-3 288 Students Built 1988 Clinton Township Middle School 7-8 425 Students Built 2007 Round Valley 4-6 536 Students Built 1965 Spruce Run PK-1 295 Students Built 1955 4 Schools – 1,544 Students (10-15-13)

3. Budget Calendar • January/February - Budget 101 and CSA & BA evaluate Principal/Department budget requests • February – BOE assembles preliminary budget • February – Budget Workshops begin; DOE releases State Aid figures • March/April - BOE adopts preliminary Budget, Budget sent to County for approval, Public Hearing • May– Meeting with Town Council & Mayor

4. What is a School Budget? CTSD’s Fiscal Year (July 1st - June 30th)It’s Developed December - March of the preceding year Needs & Priorities

5. How do we build your PK-8 Budget to begin the Zero-Based Budget Process?Step 1 - Review Required Spending • Contracted Salaries, (Negotiated, then fixed for 3 years) • Contracted Health Benefits (Negotiated, then the benefits are fixed for 3 years, however the costs are not.) • Mandated Special Education Spending • Mandated Professional Services: Lawyer, Auditor, Architect • Essential Building Maintenance: Custodial supplies & repairs • Transportation • Mandated Insurances • Fixed Equipment Costs • State Mandated Testing Services TOTAL REQUIRED SPENDING

6. How do we build your PK-8 Zero-Based Budget?Step 2 – Identify Variable Costs • Trends analysis to estimate any increases in current costs(done by Business Administrator) • Superintendent, Principals & District Administration review: • Curriculum needs • State mandates • Textbook review cycle • Professional development • Building equipment • Classroom supplies • Technology needs TOTAL VARIABLE COSTS

7. Required Spending made up 88.78% of total budget in 2013-14 11.22% $2,985,771 Variable Costs 88.78% $23,636,366 Fixed Costs and State Mandated Spending Total 13-14 CTSD Budget

8. Leaving 11.22 % variable costsfor things like… • Textbooks • Teacher Training/Professional Development (actually becoming a mandated cost-there are 19 current mandated regulations and at least 32 policies that require training or some type of additional cost to school districts) • General supplies for departments • Unexpected State mandatesthroughout the year (PARCC & Security) • Or other possible improvements to programs, instruction or facilities…….aligning the curriculum to the Common Core Standards, snow and storm damage repairs

9. How do we build your PK-8 Zero-Based Budget?Step 3 - Estimate Aid & Income(Revenue, other than Local Taxes) • State Aid: Given by Department of Ed, figures expected end of February (with NJ’s budget deficit, State Aid will probably decrease or remain the same) • Surplus: Calculated during prior year audit • Federal Aid: Calculated on trend analysis and projections • Tuition: Based on current/expected contracts and trend analysis • Other: Calculated on trend analysis and contractual commitments (includes investment income, building usage and shared services agreements) TOTAL REVENUE NOT FROM TAXES

10. How do we build your PK-8 Zero-Based Budget?Step 4 - Calculate Tax Levy TOTAL REQUIRED SPENDING + TOTAL VARIABLE COSTS - (TOTAL REVENUE NOT FROM TAXES) LOCAL TAXES NEEDED TO SUPPORT BUDGET

11. Step 4 - Continued Calculation of Your PK-8 Tax Levy Budget Cap: Legally, the local tax increase cannot exceed 2% per year without a cap over-ride referendum voted on by the taxpayers There is no vote on the annual school based budget within the 2% levy cap.

12. If the proposed budget increase is 2% or less, and all of the approvals are complete, then this is the final budget.

13. Where does your Clinton Township PK-8school budget revenue come from? $2,935,874 $234,663 $358,062 $415,300 $22,530,498 $147,740 Total 13-14 Budget

14. Where does the PK-8 money go? Out of District Tuition Professional Services Salaries Benefits Repairs & Maintenance Transportation & Equipment Utilities Supplies

15. How are Clinton Township Property Taxes Distributed? SOURCE 2013 TOWNSHIP OF CLINTON TAX COLLECTOR

16. Tax Trends in Clinton TownshipTotal Tax Levy in Clinton Township has increase .68% over the last 5 years, District School Tax has increased only 1.99% Assessed values have decreased $464,476,143 or 17.81% Source: Clinton Township Tax Administrator 2013 Tax Rate Detail

17. Good News! • Continuing A Coherent Vision for Curriculum & Programs • PARCC opportunities as a selected field test site • Source 4 Teachers-Opportunity to support instruction with a larger availability of qualified professionals and to manage the risk associated with implementing the Affordable Care Act • Ratables trending down, School tax rate remains at a slight increase over last five years • Solid Audit Report • Fiscally responsible long term planning • Successful increases to the capital & maintenance reserve accounts • Marketing our prescription plan resulting in savings for both district and staff • ROD grants

18. Next Meeting DatesClinton Township Middle School Auditorium • March 10, 2014 7:30 Budget Workshop • March 17, 2014 7:30 Preliminary Budget Meeting and Vote • March 24, 2014 7:30 Regular BOE Meeting • April 28, 2014 7:30 Budget Public Hearing

19. We want to hear from you! Thank you for reviewing this presentation with us! If you should have any questions, please do not hesitate to let us know. We are sharpening our pencils and working on the next steps. Please submit any questions to the Superintendent at dclark@ctsd.k12.nj.us so we can begin responding at the next board meeting.