101 school budgets

8/7/2019 101 School Budgets

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Understanding Your

School Budget

An explanation of the rules, regulations and process

Patrick Fletcher, Superintendent

River Dell Regional School District



Brief History of School Funding

in New

Jersey

• Pre‐1976

• Robinson vs. Cahill

• Public Ed Act of 1975 (Chapter 212)

• Abbott vs. Burke

• QEA I (passed July 1990)

• QEA II (passed

March

1991)

• CEIFA (PL 1996, Chapter 138)



Brief History of School Funding

in New

Jersey

(cont.)

• CEIFA (PL

1996,

Chapter

138)

• School Funding Reform Act of 2008

(Chapter 260,

PL

2007

‐A500/S4000)

• 2% Property Tax CAP Law (S 29): Signed into

Law on July 13, 2010



2% Property

Tax

CAP

Law

• Important Points for schools under S29:

• Cap Banking – Included for schools, municipalities and counties – 3 years

• Exemptions for:

• Health benefits

• Pension liabilities (non‐certified, e.g.)

• Emergencies – certain, such as natural disasters

• Debt service

• Enrollment Growth per SFRA formula

• NO Exemptions for:

• Capital expenditures (pay as you go) are in the cap schools (but these expenses

outside the

cap

for

municipalities)

• Existing contracts ‐ the costs of these contracts will be included in the cap

• Effective date – immediate for the 2011 ‐ 2012 school budget



The First

Thing/The

Only

Thing

• In order for us to consider where we are in

developing school

district

budget

in

New

Jersey,

we

have to understand the system in which we now

operate.

• Our state

legislature

has

determined

that

we

should

have a REVENUE CAP

• The Legislature has reacted to the pressure of

property taxpayers,

their

own

perceptions

and

the

political climate to control school property taxes



0% Aided

District

2010-2011 2011-2012 Increase

LocalLevy 11,000,000 11,220,000 2.00%

State Aid 0 0 0.00%

Surplus 500,000 500,000 0.00%

Total 11,500,000 11,720,000 1.91%



50% Aided

District

2010-2011 2011-2012 Increase

LocalLevy 5,500,000 5,610,000 2.00%

State Aid 5,500,000 5,500,000 0.00%

Surplus 500,000 500,000 0.00%

Total 11,500,000 11,610,000 0.009%



75% Aided

District

2010‐2011 2011

‐2012 Increase

Local Levy 2,750,000 2,805,000 2.00%

State Aid 8,250,000 8,250,000 0.00%

Surplus 500,000 500,000 0.00%

Total 11,500,000 11,555,000 0.0049%



Where does

that

leave

us?

• Once again, all school districts will have their work

cut out

for

them

as

budgets

are

planned

for

2011

‐12

• The degree of difficulty for districts that have a

freeze or reduction in aid will be largely dependent

on the

district’s

reliance

on

state

aid

to

fund

basic

budgets

• What relief the state offers is likely to be meager, if

any, such

as

a PERS

or

SHBP

premium

delay

• It is unlikely that there will be any additional aid

provided to districts this year



A

budget

is

a

plan,

not

an

absolute• In presentation, it should be made clear that unlike a

municipal budget which is finalized during the fiscal

year, the

school

budget

is

finalized

15

months

in

advance of implementation.

• Therefore, although finite in its totality, a budget

must be

flexible

to

meet

changing

needs.

• Nevertheless, it is constrained by rules more than

ever before.

• The budget

can

be

justified

through

connection

to

other district planning tools and with the

involvement of the staff.



Developing Your

Budget

• The Superintendent and the school business official

are the

key

players

for

developing

the

budget

• The Board’s role is to set budget parameters, ensure

support of student achievement, hold a Public

Hearing and

post

a “User

‐friendly” version

of

the

budget to the district’s website

• There must be a strategy for collecting the

information you

need

and

how

you

will

involve

stake‐holders



Outcome of

Data

Collection

• Sources of revenue are identified and

confirmed

• Revenue is the anticipated money coming to

the district

• Appropriations are categorized

• Appropriations are where you plan to spend

the money



Areas of

Consideration

• Salaries and benefits

• Out of district tuition

• Educational

program

initiatives• Facilities

• Transportation

• Professional Services

• Professional Development/Travel

• Supplies and Materials

• Equipment

• Technology

• Textbook and

resource

replacement

• Athletic and co‐curricular activities

• Food services



The Final

Budget

Is:

• A reflection of the district’s educational goals

•A management tool that reflects revenues and

expenses

• A plan for controlling spending during the

year• A means to determine efficiency

•A consensus document between the Board,

the administration and the community

• A reflection of the community’s values



Annual School

Election

• To be held on Wednesday, April 27, 2011

• The date

was

changed

to

avoid

conflict

with

religious holidays

• If

the

budget

is

approved

by

the

voters

at

the

election, no further action is required by the

Board of Education or the municipality

• If the

budget

is

defeated,

a secondary

process

begins



Defeated Budget

– Board

Responsibilities

BOE prepares Defeated Budget Information packet

for transmittal

to

the

Mayor

and

Council

per

N.J.A.C.

6A:23A‐9.7(a) which includes copies of:

1. Proposed Budget for 10‐11

2. Separate proposals

passed

by

voters

3. Salary schedules for all employees (09‐10 & 10‐

11)

4. Pupil enrollment by grade as of 6/30/09, 10/15/09 & projected 10/15/10.



Defeated Budget

– Board

Responsibilities

9. Copies of BOE’s most recent annual report, annual audit,

comparative

spending

guide,

and

report

card10. Any other information deemed appropriate by Executive

County Superintendent for a specific BOE

11. As soon as possible, district administration should

establish meeting

date

with

municipal

officials

to

review

defeated budget information

12. Executive County Superintendent should be notified of

the date

13. Open Public Meetings Act applies if either BOE or

municipal governing body, or both, have majority

present



Defeated Budget

– Municipal

Responsibilities

1. The municipality must certify the General Fund Tax

Levy (not the entire general fund budget) to the

County Board

of

Taxation

2. The municipality CANNOT certify a tax levy below

minimum levy required by N.J.S.A. 18A:7F‐5

3. Certify Levy

by

resolution

for

the

sum

of

the

base

budget amount and any passed separate

proposal(s)

4. For defeated

separate

proposal(s):

restoration

by

municipality is no longer allowed. The decision of

the voters is final.



Defeated Budget

– Municipal

Responsibilities

5. The municipality has no authority to change debt service

levy6. If a decrease from the proposed base budget levy is

proposed,, the governing body must also provide the BOE

with:

l A statement

of

the

specific

line

‐item

reductions

and

revenue increases to offset the levy reduction; and a

l A certification attesting the revised budget is sufficient for

provision of a thorough and efficient (T&E) system of

education.



Defeated Budget

– Municipal

Responsibilities

If certifying a decrease from proposed levy below the

adequacy budget, the municipality MUST also

provide a specific written explanation and document

by clear and convincing evidence for each line‐item

reduced that

it

either

will

not

adversely

affect

T&E

or

the BOE’s overall operations given the need for long

term planning and budgeting.

The Burden of Proof is on the municipality that the reduced levy is sustainable for T&E .



Next Steps

1. BOE is NOT bound by municipal officials specific line‐item

reductions; BOE is ONLY bound by the total amount of the

reduction in

tax

levy

2. District MUST submit revised budget including all supporting

documentation items and SFRA calcs updated as appropriate

3. Districts

should

not change

projected

10

‐11

enrollment

in

the

revised budget

4. If BOE does not dispute reductions, the Executive County

Superintendent will

ascertain

whether

revised

budget

is

sufficient for T&E and maintain stability for final budget

approval.



Questions?

101 school budgets

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