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Verona Board of Verona Board of EducationEducation

Final Budget and Financial Final Budget and Financial FrameworkFramework

March 2009March 2009

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OverviewOverview

Budget Development ProcessBudget Development Process What’s In the BudgetWhat’s In the Budget Priorities Not MetPriorities Not Met Drivers of the BudgetDrivers of the Budget Efficiencies We’ve SoughtEfficiencies We’ve Sought Verona Property TaxesVerona Property Taxes SummarySummary

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Budget Development Budget Development ProcessProcess Nov – Teachers/Staff Identify NeedsNov – Teachers/Staff Identify Needs Dec – Principals Prioritize Building NeedsDec – Principals Prioritize Building Needs Jan – Board Reviews District NeedsJan – Board Reviews District Needs Feb – Board Prioritizes District NeedsFeb – Board Prioritizes District Needs Feb – State Releases Cap FiguresFeb – State Releases Cap Figures Mar- State Releases Aid FiguresMar- State Releases Aid Figures Mar – State Approves Waivers & BudgetMar – State Approves Waivers & Budget Apr – Voters Approve BudgetApr – Voters Approve Budget

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Strategic GoalsStrategic Goals Improve Teaching and LearningImprove Teaching and Learning

Curriculum RenewalCurriculum Renewal Learning Framework/Teaching StandardsLearning Framework/Teaching Standards Co-Curricular and CharacterCo-Curricular and Character Community PartnershipsCommunity Partnerships Professional DevelopmentProfessional Development Integrate TechnologyIntegrate Technology

Safe and Inviting Learning EnvironmentsSafe and Inviting Learning Environments

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What This Budget BuysWhat This Budget BuysAdditional StaffAdditional Staff Maintain reasonable 1Maintain reasonable 1stst grade grade

class sizes for FOR, LAN, and FN class sizes for FOR, LAN, and FN Brown: add .77 teachersBrown: add .77 teachers

Meet staffing needs at HBW: add Meet staffing needs at HBW: add 0.2 Mandarin, 0.2 French0.2 Mandarin, 0.2 French

Custodial services for after-hours Custodial services for after-hours and weekend recreation gym & and weekend recreation gym & field usefield use

Instructional Supplies & Co-Instructional Supplies & Co-Curricular ActivitiesCurricular Activities

Maintain textbook program for K-Maintain textbook program for K-4, all elementary schools4, all elementary schools

New textbooks and novels for New textbooks and novels for VHS English, World Language. VHS English, World Language. HBW novelsHBW novels

Maintain full range of musical, Maintain full range of musical, athletic, scholastic eventsathletic, scholastic events

Neighborhood SchoolsNeighborhood Schools Comfort of principals and nurses Comfort of principals and nurses

in every buildingin every building Specialized instruction in music, Specialized instruction in music,

art, technology, media and world art, technology, media and world languageslanguages

Innovative Programs/ Innovative Programs/ Implementation Five Year Implementation Five Year Strategic PlanStrategic Plan

Curriculum renewalCurriculum renewal Professional Development all Professional Development all

teaching staffteaching staff Technology integration strategyTechnology integration strategy Expansive Math InitiativeExpansive Math Initiative New Math Program K-4New Math Program K-4

Program SupportProgram Support Guidance counselor availability Guidance counselor availability

over the summerover the summer Maintenance of facilitiesMaintenance of facilities

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Priorities Not MetPriorities Not MetStaffing NeedsStaffing Needs HBW Physical HBW Physical

Education TeacherEducation Teacher Phased Expansion Phased Expansion

of Supervisory of Supervisory Model (behind Model (behind schedule)schedule)

Science Instructor Science Instructor VHSVHS

ProgramsPrograms Educational Educational

SoftwareSoftware Technology SupportTechnology Support External Curriculum External Curriculum

AuditAudit ComputersComputers VSEA FundingVSEA Funding

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Budget DriversBudget Drivers Budget is driven largely by mandatesBudget is driven largely by mandates

State standards and regulationsState standards and regulations Special education: IEP-driven aidesSpecial education: IEP-driven aides

Personnel costs are two-thirds of budgetPersonnel costs are two-thirds of budget Salaries increased only 3.7%Salaries increased only 3.7% Increase includes enrollment-driven staff Increase includes enrollment-driven staff

additionsadditions Benefits are being re-bid as part of budgetBenefits are being re-bid as part of budget

Enrollment is another major driverEnrollment is another major driver Enrollment up 3.5% over five yearsEnrollment up 3.5% over five years Enrollment projected to rise 10% by 2010Enrollment projected to rise 10% by 2010

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Budget ConstraintsBudget Constraints

State Cap on Budget IncreasesState Cap on Budget Increases 4.0% increase allowed on tax 4.0% increase allowed on tax

levylevy Cap Waivers for Capital Outlay, Cap Waivers for Capital Outlay,

Special Education, Energy CostsSpecial Education, Energy Costs

State & Federal Aid Virtually Flat State & Federal Aid Virtually Flat Over Over 6 Years6 Years

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Five-Year SummaryFive-Year Summary 

2004/2005ACTUAL

2008/2009ACTUAL

2009/2010ADOPTED

1-YEAR CHANGEAverage5 YEAR CHANGE

SALARIES $11,909,705 $ 14,426,436 $14,919,542 3.7% 5.1%

BENEFITS $ 2,623,000 $ 3,849,108 $ 4,097,863 6.5% 11.2%

SPECIAL EDUCATION $ 5,091,295 $ 5,561, 107 $ 5,507,949 -1.0% 1.6%

NON-DISCRETIONARY

$ 1,388,000 $ 1,710,253 $ 1,905,694 11.4% 7.5%

DISCRETIONARY (class supplies, staff development, co-curricular)

$ 1,044,000 $ 1,149,425 $ 1,086,118 -5.5% .8%

TOTAL $22,056,000 $26,696,329 $27,517,166 3.07% 4.9%

Benefits 1-yr increase is an estimate; bidding for more favorable ratesBenefits 1-yr increase is an estimate; bidding for more favorable rates Improved service delivery has resulted in an average annual increase of Improved service delivery has resulted in an average annual increase of

1.6% in Special Education over the past five years1.6% in Special Education over the past five years

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2009-2010 PROPOSED EXPENDITURES - 2009-2010 PROPOSED EXPENDITURES - $27,517,166$27,517,166

2009-2010 PROPOSED EXPENDITURES - $27,560,4392009-2010 PROPOSED EXPENDITURES - $27,560,439

4%

Discretionary

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ENROLLMENTENROLLMENTVERONA PUBLIC SCHOOLS

ENROLLMENT

2034

2065

2039

2012

2041

2085

2048

Since 06-07, growth of approximately 70 students (3.5%) while state aid has remained virtually flat

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Annual ReviewsAnnual Reviews Course Offerings Based on Student Course Offerings Based on Student

InterestInterest Essentialness of Non-Mandated Essentialness of Non-Mandated

Programs and ServicesPrograms and Services Effectiveness of Intervention ProgramsEffectiveness of Intervention Programs Effectiveness of Staff TrainingEffectiveness of Staff Training Health Plan SavingsHealth Plan Savings Maximizing Capacity and RevenuesMaximizing Capacity and Revenues

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Our Taxes 2008Our Taxes 2008 Average Verona Property Tax = $8,806Average Verona Property Tax = $8,806

17.2% Below Comp Group Average17.2% Below Comp Group Average

Most Efficient Among Comp DistrictsMost Efficient Among Comp Districts Five Year Average: Lowest Cost Per PupilFive Year Average: Lowest Cost Per Pupil Spending prioritized for most direct impact Spending prioritized for most direct impact

onon classroom instructionclassroom instruction

Source: http://www.state.nj.us/dca/lgs/taxes/taxmenu.shtmlSource: http://www.state.nj.us/dca/lgs/taxes/taxmenu.shtml

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Tax ImpactTax Impact

3.08% increase in spending3.08% increase in spending Maintains existing programsMaintains existing programs Funds curricular enhancementsFunds curricular enhancements Funds focus on teaching and Funds focus on teaching and learninglearning

$210 increase on average home$210 increase on average home $17.50/mo$17.50/mo

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In SummaryIn Summary

Budget process is sound and openBudget process is sound and open Budget delivers great value (Appendix Budget delivers great value (Appendix

3)3) Budget supports strategic goalsBudget supports strategic goals If the budget is defeated, two effects:If the budget is defeated, two effects:

Program and staff cutsProgram and staff cuts Compounding negative impact on the Compounding negative impact on the

budgetbudget

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Appendix 1: Cost Per Appendix 1: Cost Per PupilPupil  2004-05 2005-06 2006-07 2007-08 2008-09

PARK RIDGE BORO $ 11,059

$ 11,880

$ 12,252

$ 13,069

$ 14,053

MADISON BORO $ 12,135

$ 12,043

$ 12,636

$ 13,122

$ 13,711

BERKELEY HEIGHTS TWP $ 11,026

$ 11,240

$ 11,612

$ 12,389

$ 13,112

NEW PROVIDENCE BORO $ 10,323

$ 10,883

$ 11,759

$ 12,192

$ 12,960

KINNELON BORO $ 10,528

$ 10,779

$ 11,316

$ 12,158

$ 12,736

CALDWELL-W. CALDWELL

$ 10,903

$ 11,299

$ 11,770

$ 12,070

$ 12,713

GLEN RIDGE BORO $ 10,229

$ 10,762

$ 11,438

$ 12,030

$ 12,455

CEDAR GROVE TWP. $ 10,909

$ 11,847

$ 12,447

$ 12,224

$ 12,446

VERONA BORO $ 9,907

$ 10,303

$ 10,931

$ 11,375

$ 11,919

CRESSKILL BORO $ 10,428

$ 10,493

$ 11,024

$ 11,241

$ 11,708

Verona: Five Year Average: Lowest Cost Per Pupil Among Comparative GroupsVerona: Five Year Average: Lowest Cost Per Pupil Among Comparative Groups

http://www.state.nj.us/njded/guide/2009/http://www.state.nj.us/njded/guide/2009/

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Appendix 2: Classroom Appendix 2: Classroom Spending Spending per per PupilPupil   2004-05 2005-06 2006-07 2007-08 2008-09

GLEN RIDGE BORO $ 304

$ 377

$ 304

$ 270

$ 363

VERONA BORO $ 249

$ 320

$ 249

$ 351

$ 355

NEW PROVIDENCE BORO $ 196

$ 207

$ 197

$ 250

$ 337

PARK RIDGE BORO $ 204

$ 263

$ 204

$ 331

$ 318

CEDAR GROVE TWP $ 243

$ 321

$ 243

$ 248

$ 316

BERKELEY HEIGHTS TWP $ 254

$ 278

$ 254

$ 318

$ 310

KINNELON BORO $ 399

$ 329

$ 400

$ 313

$ 275

MADISON BORO $ 184

$ 248

$ 184

$ 224

$ 210

CALDWELL-W. CALDWELL $ 289

$ 149

$ 289

$ 247

$ 208

CRESSKILL BORO $ 243

$ 177

$ 243

$ 257

$ 179

http://www.state.nj.us/njded/guide/2009/http://www.state.nj.us/njded/guide/2009/

Budget managed in a way to assure that classroom spending per pupil is a major priority and initiative

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Appendix 3: Tax on Appendix 3: Tax on Average Average Home Home 20082008Cedar Grove $ 8,063

Verona $ 8,806

Berkeley Heights $ 9,447

Caldwell Township $ 9,452

Park Ridge $ 9,586

Madison $ 10,075

New Providence $ 10, 601

Kinnelon $ 12,040

Cresskill $ 12,547

Glen Ridge $ 15,826

Average $ 10,644