west morris regional regionalization discussion information provided by the new jersey department of...

West Morris RegionalRegionalization Discussion

• Information provided by the New Jersey Department of Education as a resource to the citizens of the 5 towns making up the regional school district to help them make the best decisions for their children and taxes

Who thinks they pay too much in property taxes?

Who wants a better education for their children?

The Recurring Questions

West Morris Regional

•Do you have a successful school district?

West Morris Regional AcademicsAcademic Data2011 HSPA LA

PPLA P

LA AP

M PP

M P

M AP

SAT 2010

Central HS3.2% 61.7 35.1 12.9 45.3 41.8

1666

Mendham HS 1.6 41.2 57.1 6.5 42.3 51.1

1733

WMR 2.5 52.0

45.5

9.9 43.9

46.2

----

State 10.5

68.8

20.8

24.8

49.9

25.3

1515

2008 NJASK8

LA PP

LA P

LA AP

M PP

M P

M AP

Wash 8 4.9% 77.6 17.4 16.0 50.0 34.0

Chester 8 5.7 71.3 22.9 9.7 52.3 38.1Mend B 8 6.4 65.4 28.2 14.1 39.7 46.2Mend T 8 2.2 63.4 34.4 8.6 38.7 52.7State 18.9 69.7 11.4 32.6 42.6 24.8

- 18th & 65th out of 390 for HSPA LA in state (3rd & 44th not including choice high schools)

- 1st and 8th non-choice HSPA LA in county (out of 22)

- 38th & 78th for HSPA M (20th & 55th not including choice)

- 2nd & 8th non choice HSPA M in county

- 14th, 39th, 62nd & 130th out of 697 for NJASK8 LA in state

- 4th, 8th, 11th and 19th NJASK8 LA in county (out of 35)

- 34th, 59th, 71st & 136th for NJASK8 M

- 3rd, 5th, 8th & 17th NJASK8 M in county

High Achievement

West Morris Regional Academics- Only IB School in County

- More AP Offerings Than Comparable Schools

- More Rigorous World Languages

- More Electives

- Marching Band and Music

- Sports

Wide Breadth of Programs


•How does your district spend taxpayer money?

Total Property Taxes for a $500,000 HomeChester Boro – $12,031 Washington Township – $11,667 Chester Township – $10,901Mendham Boro – $9,537Mendham Township – $9,500State Average – $10,028

West Morris Regional Financials

School District Per Pupil Spending State Overall Median – $13,018 State 9-12 Median – $14,840WMR – $13,934

• 19th lowest out of 47 limited purpose regional (LPR) HS districts

• lowest of 3 Morris County LPRs (Hanover Park - $17136 and Morris Hills - $15,121)

Demonstrated Strong Educational Value

Mendham Central $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$16,073 $16,206

Per Pupil Budget forGeneral Current Expense

2011 - 2012

Series1

West Morris Regional FinancialsEqual Spending Between Schools

Mendham Central $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$16,457 $17,524

Per Pupil BudgetGCE + Debt Svc Expense

2011 - 2012

MendhamCentral

West Morris Regional FinancialsCurrent Constructions Costs Cause Difference in Expense and Debt

Calculation of Municipality Apportionment of the High School Budget

Net Evaluation NJDOE Equalized Valuation

Percent High School Enrollment for the

MunicipalityHigh School Equalized

ValuationPercentage Share

2011-2012

Chester Boro $ 389,281,256 $ 439,149,900 21.14% $ 92,836,289 3.0971217

Chester Twp $ 1,844,200,935 $ 2,066,993,099 33.78% $ 698,230,269 23.2937375

Mendham Boro $ 1,296,664,611 $ 1,412,817,864 31.10% $ 439,386,356 14.6584170

Mendham Twp $ 1,889,936,443 $ 2,082,272,422 32.47% $ 676,113,855 22.5559094

Washington Twp $ 2,820,516,022 $ 3,142,094,828 34.72% $ 1,090,935,324 36.3948144

$ 8,240,599,267 $ 9,143,328,113 $ 2,997,502,093 100.0000000


Actual GCETax Rate

for CY2011Chester Boro 0.0006Chester Twp -0.0017Mendham Boro 0.0083Mendham Twp 0.0087Washington Twp -0.0168

Impact on mil rate if State Aid was distributed by Municipality



•Do you still want to explore a change in the structure or funding apportionment of the district?

Regionalization Options• Steps to Change Funding Apportionment (18A:13-23)

– Property method is default and can be seen as more stable and reflecting ability to pay.

– Enrollment method is more like a user fee but can be seen as more volatile.

– Both can be seen as fair.– 50-50 or anything hybrid of property and enrollment methods can

be seen as a compromise.– Majority of voters in each constituent municipality of regional

school district must support.

Regionalization Options• Steps to Dissolution or Deregionalization/Withdrawal (NJSA18A:13-48)

– For withdrawal, need a resolution from local constituent school board of regional or municipality to apply for investigation from county office.

– For dissolution, need a resolution from a majority of the boards of education of the school districts which constitute a limited purpose regional school district and a majority of the governing bodies of the municipalities which constitute that district to apply for investigation from county office .

– County office meeting within 21 days– County office report within 60 days but if county office asked for feasibility study then have 60 days

from that study’s completion– Within 30 days after the county report, the municipality or school board can petition the

Commissioner for permission to submit the question to the voters.– For withdrawal, a majority of the whole and a majority within the town seeking to withdraw is

required, while for dissolution, a majority of the whole and a majority in the majority of towns in the regional is required.

– Other boards and other municipalities have 15 days from when the Commissioner is petitioned to respond.

– Within 15 days of the receipt of all resolutions, a board of review composed of the NJDOE Commissioner, a State Board of Education member, the State Treasurer and the Director DCA’s Division of Local Government Services shall determine whether to grant the petition to go to the voters and how indebtedness should factor in.

Regionalization Options• Steps to New Regional Structures (NJSA

18A:13-34)– Local board and Commissioner have to approve.– Majority of voters must support in each town.– Largest district CBA takes over.


•What financial ramifications could emerge from some of those changes?

Financial Considerations• Current Property Tax Levies (holding spending

constant)WT Levy CT Levy CB Levy MT Levy MB Levy

Property$13,948,567 9,044,663 1,488,459 9,225,895 5,703,424

50/50 Hybrid 16,795,092 8,586,237 1,312,111 7,672,411 5,045,156Enrollment

19,641,617 8,127,811 1,135,764 6,118,928 4,386,888

CB CT MB MT W

Current 151.391810921507 275.16914903258 259.79991100762 371.897739200268 179.853557908835

Enrollment 96.1517083966998 240.172974377348 199.885100552154 235.183711247654 259.797126334892

50% Blend 109.834679183056 259.024721678793 230.850391030367 295.850508338863 221.902031135206

$25.00

$75.00

$125.00

$175.00

$225.00

$275.00

$325.00

$375.00

Impact of Changing Formula onMonthly Homeowner

Property Tax by Municipality


Financial ConsiderationsChange in Monthly Tax Amount for Regional District based on $500,000 of

property value if funding formula was changed to per pupil only

High School

EnrollmentTax Year

2012

High School

EnrollmentTax Year

2013

Municipality 2011-12 Monthly Change 2012-13 Monthly Change

Chester Boro 67 ($36.58) 80 ($25.33)

Chester Twp. 560 ($27.21) 573 ($23.50)

Mendham Boro 311 ($49.00) 309 ($45.92)

Mendham Twp. 414 ($68.08) 431 ($68.04)

Washington Twp. 1,429 $90.58 1,384 $85.21 Values in chart illustrate what the difference each municipality would pay monthly if the current tax formula, based primarily on property values, was converted to a formula based solely on the number of pupils sent from each town. Changes in enrollment each year would effect tax impact.

Financial Considerations• Possible Property Tax Levy Changes (holding

spending constant and keeping it property-based)

WT Levy Share

CT Levy Share

CB Levy Share

MT Levy Share

MB Levy Share

Current35.39% 22.95 3.78 23.41 14.47

1 K-1234.42 22.66 4.68 22.68 15.55

MT Withdrawn 46.21 29.96 4.93 ---- 18.89

Note: MT would send tuition to a new district if it withdrew, and that per pupil tuition would be based on NJDOE calculations depending on the district that accepted their students

CB CT MB MT W

Current 151.391810921507 275.16914903258 259.79991100762 371.897739200268 179.853557908835

Mendham Twp Tu-ition

168.783990008835 306.781223249561 289.646301051607 232.112622781141 200.515542390546

Washington Twp Withdrawn

151.391810921507 275.16914903258 259.79991100762 371.897739200268 NaN

$25.00

$75.00

$125.00

$175.00

$225.00

$275.00

$325.00

$375.00

Impact of Changing 9-12 District on Monthly Homeowner


CB CT MB MT W

One K-12 District 539.39463872888 780.447725163211 801.852966788044 1035.24387968883 502.51733684682

One K-12 District (MT tuition)

662.169913905567 958.090616973361 984.368036266872 792.232062150091 616.898647343021

Two K-12 Districts 539.39463872888 780.447725163211 801.852966788044 1035.24387968883 502.51733684682

$100.00

$300.00

$500.00

$700.00

$900.00

$1,100.00

Impact of Changing K-12 District on Monthly Homeowner



• Now that you see some of your options, what other questions need to be answered to make the most informed decision on your children’s education and your taxes?

Unanswered Questions to Consider• Education Quality – Current and Future Questions

• SAT• Inputs vs. Outcomes• Absolute vs. Growth• Prioritization/Sacrifice

• Population Changes• Enrollment Declines Could Dramatically Change

Apportionment Discussion

Unanswered Questions to Consider• Examples

• Mixed Results• Delayed Savings• West Windsor-Plainsboro, Union County, Elmer, Sea

Isle City, Jamesburg, charter school

• Litigation

Unanswered Questions to Consider• Willingness to Further Regionalize

• Current and looming vacancies• Are there shared services occurring now?

• Obstacles & Benefits from Further Regionalization• New Resources• Reduced Administrative Expenses

Unanswered Questions to Consider• Collective Bargaining Agreements (NJSA 18A:6-

31.4)• Could increase costs• Bumping

• Staff & Student Transition• Unpredictability• Teacher morale• Shared resources for students

Unanswered Questions to Consider• Debt

• What happens to assets?• To be determined by panel but can go back to when

regional district was formed in 1958

• Sending/Receiving Headaches– Any savings could be delayed because of other variables– Who can take on new students after a deregionalization?– Will quality change?– Could the finances be more a wash than anyone thinks?– Will board representation stay the same?– Tuition spikes will no longer be shared


Questions?

Next Steps• Legislation and working within existing law

• Per Pupil --- --------- Assessed Valuation• Fixed Costs vs. Variable Costs• Blended Methodologies• Circuit Breakers ?&<rolling pupil costs>?%• Failure to solve the cost allocation just perpetuates the

argument

• Feasibility Study• Are Taxpayers willing to pay for a feasibility study to

answer the unknown so they can be better educated when asked to make a decision?

• Some towns are already budgeting


Thank You!

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