initial 2011-12 budget presentation january 10, 2011 · 2012-08-16 · eventually, at the end of...
TRANSCRIPT
Initial 2011-12 Budget Presentation
January 10, 2011 January 10, 2011 BOE Meeting
1
What’s happening tonight (1/10/11)? • Initial Public Discussion of 2011-12 Budget • Broad overview of revenues and expenditures • Nothing cut from initial budget requests
What happens next? • Every BOE meeting through March—continue
deliberations and refine budget to close the gap • Other meetings/venues
January 10, 2011 BOE Meeting 2
Eventually, at the end of the process, revenues must equal expenditures
Current (initial) draft of 2011-12 budget has expenditures exceeding revenues by more than $6M
Much work to be done to achieve balance
January 10, 2011 BOE Meeting 3
First, a look at REVENUES
2010-11 Revenues totaled $76,078,607 (which equaled expenditures)
First look at 2011-12 revenues has a total of $75,548,917 (down 0.7%), as follows:
January 10, 2011 BOE Meeting 4
January 10, 2011 BOE Meeting
Source 2010-11 2011-12 $ Change % Change
Taxes $70,487,758 $71,897,513 $1,409,755 2.00%
State Aid $476,427 $476,427 $0 0.00%
Excess Surplus (per audit) $2,886,088 $1,128,418 -$1,757,670 -60.90%
Restated Insurance Payments $0 $1,650,000 $1,650,000 --
Additional Surplus Allocated $1,201,774 $0 -$1,201,774 -100.00%
Misc. Revenues $396,560 $396,560 $0 0.00%
Capital Reserve Withdrawal $630,000 $0 -$630,000 -100.00%
TOTAL: $76,078,607 $75,548,918 -$529,689 -0.70%
5
Next, a look at funds retained from year to year (a.k.a. “surplus” or “reserve” funds)
January 10, 2011 BOE Meeting 6
January 10, 2011 BOE Meeting
ANTICIPATED
SOURCES OF RETAINED FUNDS 6/30/09 6/30/10 6/30/11
Surplus ("Rainy Day Fund”) $1,731,008 $1,955,465 $2,000,000
Prepaid Insurance Payments $1,522,031 $1,650,000 $0
Emergency Reserve Fund $700,000 $700,000 $700,000
Capital Reserve Fund $1,329,171 $1,633,273 $1,300,000
TOTAL: $5,282,210 $5,938,738 $4,000,000
7
Next, a look at the history of health insurance “pre-payments”
Practice began in June 2005 as a (very) conservative approach to unknown health insurance cost increases
Each pre-payment was used in the subsequent year (and therefore they are not cumulative, since the funds were spent)
January 10, 2011 BOE Meeting 8
January 10, 2011 BOE Meeting
HEALTH INSURANCE PRE-PAYMENTS
June 2005: $396,035 pre-paid (spent in 2005-06 school year)
June 2006: $930,000 pre-paid (spent in 2006-07 school year)
June 2007: $841,699 pre-paid (etc.)
June 2008: $1,215,233 pre-paid
June 2009: $1,522,031 pre-paid
June 2010: $1,650,000 pre-paid
June 2011: (practice of pre-paying will be discontinued)
9
January 10, 2011 BOE Meeting
What about a FORENSIC AUDIT?
• External (cost of $50K-$100K, & no specific target) • Internal/External “Hybrid” (no cost--DONE) • New SBA (14 years experience as SBA) • New Superintendent (8 years as SBA) • Treasurer of School Monies • Auditor (new) • Asst. SBA • Insurance Agents (2)
• We found conservative, sometimes ultra conservative, budgeting practices, but nothing out of the ordinary
10
Next, a look at EXPENDITURES
2010-11 Expenditures totaled $76,078,607 (which equaled revenues)
First look at 2011-12 expenditures has a total of $82,009,179 (up 7.8%)
January 10, 2011 BOE Meeting 11
January 10, 2011 BOE Meeting 12
Category 2010-11 2011-12 $ Change % Change
Personnel $49,080,197 $50,194,135 $1,113,938 2.27%
Benefits $14,157,074 $16,137,908 $1,980,834 13.99%
School accounts $1,482,405 $1,671,502 $189,097 12.76%
Special Services (other than salaries) $2,141,405 $2,114,404 -$27,001 -1.26%
Facilities (incl. construction) $3,922,560 $5,785,350 $1,862,790 47.49%
Other (technology, athletics, etc.) $1,919,520 $2,871,811 $952,291 49.61%
Support Services $1,377,678 $1,363,499 -$14,179 -1.03%
Transportation $1,997,868 $1,870,570 -$127,298 -6.37%
TOTAL: $76,078,707 $82,009,179 $5,930,472 7.80%
What about enrollment?
January 10, 2011 BOE Meeting 13
YEAR K-5 6-8 9-12 OOD+PK TOTAL % +/-
2007-08 2131 1052 1373 115 4671 +1.94%
2008-09 2149 1113 1385 104 4751 +1.71%
2009-10 2148 1177 1406 111 4842 +1.92%
2010-11 2180 1157 1495 109 4941 +2.04%
2011-12 2198 1157 1503 109 4967 +0.52%
2012-13 2215 1147 1580 109 5051 +1.69%
2013-14 2227 1158 1624 109 5118 +1.33%
GAP between REVENUES and EXPENDITURES in INITIAL DRAFT of 2011-12 Budget is $6,460,262
QUESTION: How did we get to this GAP?
QUESTION: What can be done to close the GAP between now and April?
January 10, 2011 BOE Meeting 14
QUESTION: How did we get to this GAP?
• Included all requests from budget managers • No cuts of any sort (yet) • Technology catch-up • Construction projects • Conservative budgeting approach (as compared
to ultra conservative approach in past)—this one helps NARROW the gap…
January 10, 2011 BOE Meeting 15
QUESTION: What can be done to close the GAP between now and April?
• Cull out most requests for INCREASES (will be reflected in version presented on 1/24/11)
• Consider CUTS to existing programs (list of possible cuts will be presented on 1/24/11)
• Maybe tweak revenues (e.g., additional surplus allocated and/or use of capital reserve)
January 10, 2011 BOE Meeting 16
Opportunities for public input/comment BOE Meetings 1/10/11 (tonight) 1/24/11 2/14/11 2/28/11 3/14/11 3/28/11 (tentative date for annual public budget hearing)
Open Discussion Forum (Sunday, 1/30/11, Millburn Township Library, 2:30pm)
PTO Meetings (at each school—to be scheduled) Other meetings/venues as needed/requested
January 10, 2011 BOE Meeting 17
QUESTIONS?
January 10, 2011 BOE Meeting 18