Budget Presentation2014-2015

April 24, 2014

Vernon Township Board of Education Charles Maranzano, Jr., Ed.D. - Interim Supt.

Steven Kepnes - Business Administrator

Annual Budget Development:A Question of Balance

Educational Accountability vs.

Economic Accountability

EFFECTIVENESS EFFICIENCY

Conflicting Needs = Tension

Internal Public Voice and External Public Voice

Central Question:

“How can we provide quality education in Vernon and relive property owners of higher taxes?”

Revenue and Appropriations Snapshot

2013-2014 Revenue Sources

0.053%

74%

2%

4%

1%

10%

7%

1%

Ed. Salaries, Benefits, Tuition & Support Services

Gen. Admin

School Admin.

Business Office

Facilities

Transportation

Co-Curricular

2013-2014 BUDGET APPROPRIATIONS

Challenges for Budget Development:Containing Overall Costs

Seven Variables Driving Higher Costs

1. The Rural Factor: Sussex County2. Inflationary Factors3. Transportation4. Special Education5. Full-Day Kindergarten and

Pre-School programs6. Salaries & Benefits7. Declining Enrollment

Declining PopulationsTen Year Trends

Since 2004-05 student population has declined from 5,256 to 3,561 students

32% decline

Line Graph of Decreasing Enrollment from 2005-2013

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

0

1000

2000

3000

4000

5000

6000

K-12 Enrollment

K-12 Enrollment

-32%

Declining PopulationsTen Year Trends

Since 2004-2005 certified teachers have declinedfrom 439 to 351

20% decline

Bar Graph of Decrease in Certificated Faculty from 2005-2013

2004-05

2012-13

200

250

300

350

400

450

500# of Certificated Faculty

# of Cer-tificated Faculty

-20%

How do Vernon’s Per-Pupil costs measure up against other districts?

Sussex Per Pupil Comparisons 2011-12(Provided by Executive County Superintendent , Sussex County 2/11/14)

• Sussex County Vocational $23,255• High Point Regional $22,470• Wallkill Valley Regional $22,120• Hamburg Boro $20,908• Montague Township $20,553• Frankford Township $20,405• Vernon Township $20,357• Sparta Township $19,733• Hopatcong Boro $19,525

Sussex K-12 Per Pupil Comparisons

District 2010-11 2011-12 Increase

Newton $17,145 $17,802 3.8%Hopatcong $16,937 $19,525 15.3%Sparta $15,828 $19,733 24.7%Vernon $18,707 $20,357 8.8%

COUNTY DISTRICT EXPENDITURES Per-Pupil Rank EXPENDITURES Per-Pupil Rank District Type

ATLANTIC ATLANTIC CITY 170,848,727 25,490 105 174,016,659 25,561 106N. K-12|K-12,3500+

ATLANTIC PLEASANTVILLE CITY 86,801,865 25,812 106 95,900,850 23,863 105N. K-12|K-12,3500+

CAMDEN CAMDEN CITY 320,312,367 22,306 100 336,146,343 23,709 104N. K-12|K-12,3500+

ESSEX EAST ORANGE 250,310,347 22,750 103 256,340,781 23,600 103N. K-12|K-12,3500+

OCEAN LAKEWOOD TWP 126,439,969 23,356 104 128,833,987 23,528 102N. K-12|K-12,3500+

MERCER PRINCETON REGIONAL 78,060,264 22,570 102 80,263,604 23,395 101N. K-12|K-12,3500+

ESSEX NEWARK CITY 962,229,754 21,706 98 1,003,365,545 23,160 100N. K-12|K-12,3500+

MONMOUTH NEPTUNE TWP 95,004,491 20,773 94 103,787,865 23,138 99N. K-12|K-12,3500+

BURLINGTON PEMBERTON TWP 115,137,275 21,986 99 121,680,017 23,010 98N. K-12|K-12,3500+

ESSEX IRVINGTON TOWNSHIP 169,461,673 21,191 95 176,272,196 22,914 97N. K-12|K-12,3500+

BERGEN TEANECK TWP 88,198,091 21,552 97 91,382,911 22,894 96N. K-12|K-12,3500+

HUDSON JERSEY CITY 643,441,251 22,397 101 661,261,323 22,273 95N. K-12|K-12,3500+

UNION ELIZABETH CITY 460,452,795 19,170 88 531,435,146 21,568 94N. K-12|K-12,3500+

ESSEX WEST ORANGE TOWN 144,436,017 21,236 96 145,149,314 21,053 93N. K-12|K-12,3500+

MONMOUTH LONG BRANCH CITY 107,883,285 20,140 92 113,377,121 21,038 92N. K-12|K-12,3500+

ESSEX CITY OF ORANGE TWP 100,412,081 18,948 85 112,895,564 20,927 91N. K-12|K-12,3500+

MERCER HOPEWELL VALLEY REGIONAL 77,306,035 19,851 89 79,898,882 20,731 90N. K-12|K-12,3500+

MERCER TRENTON CITY 276,937,777 20,340 93 285,038,315 20,407 89N. K-12|K-12,3500+

PASSAIC PASSAIC CITY 268,548,414 18,762 84 285,694,758 20,374 88N. K-12|K-12,3500+

SUSSEX VERNON TWP 75,695,426 18,707 82 76,743,628 20,357 87N. K-12|K-12,3500+

MIDDLESEX NEW BRUNSWICK CITY 176,802,265 19,998 90 182,105,763 20,229 86N. K-12|K-12,3500+

UNION PLAINFIELD CITY 151,325,551 19,117 87 161,782,340 19,995 85N. K-12|K-12,3500+

HUDSON UNION CITY 230,228,458 18,757 83 248,194,548 19,880 84N. K-12|K-12,3500+

SUSSEX SPARTA TWP 61,693,522 15,828 36 68,139,206 19,733 83N. K-12|K-12,3500+

CAMDEN WINSLOW TWP 97,674,295 18,194 80 99,097,061 19,705 82N. K-12|K-12,3500+

BERGEN PARAMUS BORO 76,440,560 18,152 79 80,748,990 19,628 81N. K-12|K-12,3500+

MORRIS MORRIS SCHOOL DISTRICT 100,360,268 20,121 91 98,667,943 19,619 80N. K-12|K-12,3500+

PASSAIC PATERSON CITY 538,112,270 19,042 86 552,715,373 19,618 79N. K-12|K-12,3500+

WARREN PHILLIPSBURG TOWN 67,253,006 17,901 75 72,077,742 19,405 78N. K-12|K-12,3500+

BERGEN GARFIELD CITY 88,659,745 17,674 67 94,983,352 19,299 77N. K-12|K-12,3500+

How does Vernon compare to other 3,500+ sized districts?

How much will Vernon receive in additional state aid next school year?

ONE YEAR %2013-2014 2014-2015 AID AID

• COUNTY NAME TOTAL AID TOTAL AID CHANGE CHANGE• SUSSEX BYRAM TWP 3,450,935 3,744,729 293,794 8.513%• SUSSEX HARDYSTON TWP 2,066,127 2,158,493 92,366 4.470%• SUSSEX GREEN TWP 2,332,645 2,381,755 49,110 2.105%• SUSSEX LAFAYETTE TWP 827,818 844,455 16,637 2.010%• SUSSEX SPARTA TWP 5,877,090 5,943,150 66,060 1.124%• SUSSEX FREDON TWP 526,667 532,107 5,440 1.033%• SUSSEX LENAPE VALLEY REGIONAL 4,584,967 4,630,671 45,704 0.997%• SUSSEX OGDENSBURG BORO 2,297,536 2,317,082 19,546 0.851%• SUSSEX NEWTON TOWN5,831,032 5,880,552 49,520 0.849%• SUSSEX ANDOVER REG 2,279,461 2,295,781 16,320 0.716%• SUSSEX KITTATINNY REGIONAL 5,928,514 5,960,854 32,340 0.545%• SUSSEX SANDYSTON-WALPACK 565,918 568,898 2,980 0.527%• SUSSEX FRANKFORD TWP 1,948,257 1,958,177 9,920 0.509%• SUSSEX HAMPTON TWP 1,269,740 1,276,100 6,360 0.501%• SUSSEX WALLKILL VALLEY REG4,683,780 4,707,210 23,430 0.500%• SUSSEX STANHOPE BORO 1,504,963 1,511,963 7,000 0.465%• SUSSEX SUSSEX COUNTY VOC 4,162,722 4,178,842 16,120 0.387%• SUSSEX HAMBURG BORO 1,618,266 1,623,906 5,640 0.349%• SUSSEX MONTAGUE TWP 2,690,096 2,699,116 9,020 0.335%• SUSSEX STILLWATER TWP 1,797,909 1,803,869 5,960 0.331%• SUSSEX SUSSEX-WANTAGE REG 7,784,729 7,809,569 24,840 0.319%• SUSSEX HIGH POINT REGIONAL 6,350,018 6,369,038 19,020 0.300%• SUSSEX HOPATCONG 11,349,365 11,383,175 33,810 0.298%• SUSSEX FRANKLIN BORO3,253,144 3,262,204 9,060 0.278%• SUSSEX VERNON TWP 24,967,495 25,034,455 66,960 0.268%

Moving in the Right DirectionCounty Efficiency Review

Three Years of Budget Comparisons

Sussex County Efficiency Review February 6, 2014

Adopted Budget 11-12 12-13 13-14

Total GFB $ 69,505,656 69,544,721 69,143,261Dollar change+/- +39,065 -401,460

Local Tax Levy $ 41,423,349 41,470,508 40,470,508Dollar change+/- +47,159 -1,000,000Percent change+/- 0.1% -2.4%

NJAC 6A:23A-9.3 Review of Efficiency Standards

Quantitative ImplicationsFour-Year Budget Trends

If approved, the four-year budget trend for Vernon Public Schools results in decreased total

operating budgets over time

2011-12 $ 69,505,6562012-13 $ 69,544,721 $ + 39,0652013-14 $ 69,143,261 $ -401,4602014-15 $ 68,640,904 $ -502,357

We have developed a budget that is $ -864,752 less than the 2011-2012 total operating budget.

If a 2% Cap were Achieved in each of four budget years 2011/12 - 2014/15

The 2011-12 base budget would have grown to:

$ 73,759,957

2014-2015 proposed $ 68,640,904 $ -5,119,053 less than allowed

Resulting in overall taxpayer savings

What Does the Proposed Budget Accomplish?

2014-2015 Budget Proposal:Balancing Quantitative with Qualitative

• Attempts to maintain academic rigor and programs• Preserves Arts, Activities, and Athletic Programs• Emphasizes a commitment to safety and security• Includes needed facility improvements• Reduces the number of administrators • Considers the educational and cost benefits of

outsourcing needed educational services• Incorporates state mandates ACHIEVENJ, PARCC, and

COMMON CORE• Considers long-term needs of the School District and the

Vernon taxpayer

Cost Savings

The Vernon School Board deserves to be commended for reducing costs over the past three budget years due to difficult economic times.

However, there may be a point in time when increases to the base budget are needed to keep up with inflation and provide additional educational services to children.

Which Direction is Right?

“When you get to a fork in the road, take it.”

Yogi Berra

Next:Steve Kepnes will present an overview of the 2014-

2015 proposed budget

Thank You