2006/07 Budget Process

The 2006-2007 budget was developed in committee, and through administrative review by the Superintendent and Business Administrator.

This is the second review with the entire board and the first chance for the Board and public to see actual projected numbers.

The process included: Finance Committee Review at every Meeting Budget Review meetings with all Building Principals Special Education Review with Director Athletic Budget Review with Athletic Director

Public Hearing on Budget – Begins Tonight – Ends March 23rd Changes can be made to the budget Board will vote on final budget that goes to voters on March 23rd

School Board Election & Budget Approval – Tuesday, April 18th.

Last Year’s Prediction: Looking Ahead – to this 2006/07 Budget

Two known major impacts: 1% surplus used this year (2005), will not be available next year.

Alternative funding has to be found to replace this stream. Debt service will increase by ~$500,000 equivalent to a 2% tax hike. These two alone represent a 3% tax increase, everything else the

same.

Unknowns Represented Staff contract is up in ’05/06 Benefit costs continue to escalate (20% this year)

Technology costs have to be addressed. Computers are aging and a plan, probably expensive one, has to be put in place. This could easily be a 1% tax increase.

STATUS = THESE PREDICTIONS HAVE BEEN ON-TARGET

Budget Is Driven by Salaries and Benefits

Category% of

Budget*

% Increase in Category

=% Increase of Budget

Salary 0.91%Benefits 2.065%Debt 0.366%Spec. Ed. Excl Salaries 1.031%Energy 0.366%Supplies,Textbooks, Materials 0.967%Purchased Services 0.047%Other 0.104%Total 7.1 %100.0%

1.4%14.1%

4.9%

24.1%

63.0%14.7%

2.1%

4.3% 6.4%

2.3%

2.1% 4.4%

37.3%

16.1%21.9%

2.2%

Our Debt Service Through 2010 - 2011

-

500

1,000

1,500

2,000

2,500

01/0

202

/03

03/0

404

/05

05/0

606

/07

07/0

808

/09

09/1

010

/11

De

bt

Se

rvic

e,

K$

1988 19922000 Series - $3.8MM 2000C Series - $6.2MM2001 Series - $6.9MM 2005 - $9.0MM

1 - Budget Cuts and Reductions Proposed

Item Identified $ Impact Educational Impact

1.0 Elementary Teacher – Central School

$55,000 Class Size Increases

All other Teacher Hires Removed

N/A Elem. Class Size Music/ArtH.S. Guidance

Reduction in Overtime Pay

$50,000 Work not done

Reduction in Curriculum Pay

$30,000 New process; work not done

Reduction in Extra Pay $70,000 New processes; Work not done

Elementary Class Enrollment

Grade2005-06 2006-07 2005-06 2006-07 2005-06 2006-07 2005-06 2006-07

15 17 23 21 19 1915 17 21 21 16 18

21 21 10 15 140 149

15 17 22 22 15 1918 17 24 22 16 1917 24 21 15 19 166 156

21 17 23 23 19 2321 16 23 23 20 23

17 23 24 20 170 166

18 21 20 23 20 1918 21 23 23 18 2020 21 23 18 20 176 184

21 18 25 21 25 1921 18 24 21 25 19

20 25 22 18 166 162

19 21 21 24 20 2519 21 21 25 21 2519 21 25 161 166

Total Sections 15 14 18 18 16 16 49 48

979 983

K

1st

2nd

3rd

4th

5th

Central Haddon Tatem Total

2 - Budget Cuts and Reductions Proposed

Item Identified $ Impact Educational Impact

Reduce Energy Costs $50,000 New Energy Position; Guaranteed Savings

Reduction in Instructional Supplies & Materials

$30,000 Reduced amount of teacher supplies

Reduction In Purchased Services - Contracted

$50,000 More work in-district; work not done

Other Reductions $30,000 Reduction in programs

3 – Two New Revenue Sources Proposed

Item Identified $ Impact Educational Impact

Increase Number of Tuition Students at Haddonfield High School by 10

$101,000Larger 9th grade class; 210 students; class size impacted

Charge Regular Education Parents for Our Pre-School Program – currently a free service

$80,000 to

$100,000

Parents must pay; concern about impact on inclusive program

The Bottom Line:

Total Budget Increase ~ 6.05% Operating Expenses = $29,083,502

$1,522,340 (5.52 %) Increase Over Last Year

Debt Service = $1,978,530 $537,587 (37.3%) IncreaseIncrease over 2005-06:Impact = 2% on Tax Bill

State Aid = $1,659,239 Close to last year – no increase in aid

BOTTOM LINE (Local Tax Share) = $28,583,460 $1,934,318 (= 6.05% tax increase) Increase Over Last Year

$348 per Year increase for average assessed home

Proposed Budget – 6.05% School Tax Increase

Averaged Assessment of $220,000: School Tax Increases $348 from $5,755 to

$6,103 Tax Rate Per $100 Assessed Value = $2.77

School Board Elections – Tuesday, April 18th