march 26, 2009 newark public schools budget presentation fy 2009-2010
TRANSCRIPT
MARCH 26, 2009
Newark Public Schools Budget
PresentationFY 2009-2010
State Funding Reform Act State Funding Reform Act (SFRA)(SFRA)
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Summary of Adequacy Budget Amounts
Elementary Middle High
Regular Ed $9,971 $10,370 $ 11,666
At-Risk + $5,683 + $5,683 + $5,683
LEP + $3,916 + $3,916 + $3,916
At-Risk/LEP + $6,930 + $6,930 + $6,930
Spec. Ed. +$11,749 + $11,749 +$11,749
Speech +$ 1,166 $ 1,166 $ 1,166
Total District Enrollment –Oct 15(Excluding Charter Schools)
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06-07 07-08 08-09
Elementary 20,570 19,278 18,768
Middle 8,768 9,951 9,751
Secondary 11,928 11,274 11,473
Total 41,266 40,503 39,992
Change from Prior Year
(763) (511)
State AidState Aid5
Equalization Aid $ 633,652,423
Transportation Aid 5,905,964 Special Ed Categorical A 25,823,243 Security Aid 19,457,862Adjustment Aid 30,151,202Extraordinary Aid 2,027,468
Total Aid Awarded $ 717,018,162
Revenue SourcesRevenue Sources6
Fund Balance $ 23,938,400
Local Tax Levy 100,213,266 Miscellaneous 6,898,018 Semi Medicaid 1,448,522State Aid 717,018,162 Operating Budget $ 849,516,368
Grants & Entitlements 142,436,331
Total Aid Awarded $ 991,952,699
Newark Public SchoolsThree Year Comparison of Revenues
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REVENUE SOURCE 2007-08 2008-09 2009-10Incr/(Decr)
09 vs 10 % of +(-)
Fund Balance 15,500,000 23,938,400 23,938,400 - 0%
Local Tax levy 96,358,910 100,213,266 100,213,266 - 0%
Other Local Sources 6,898,018 6,898,018 6,898,018 - 0%
State Aid 656,267,051 721,249,159 717,018,162 (4,230,997) -0.6%
Impact Aid/Medicaid 950,000 950,000 1,448,522 498,522 34.4%
TOTAL - OPERATING BUDGET 775,973,979 853,248,843 849,516,368 (3,732,475) -0.4%
Special Revenue (Grant $) 180,255,648 139,612,999 142,436,331 2,823,332 2.0%
TOTAL BUDGET 956,229,627 992,861,842 991,952,699 (909,143) -0.1%
Fund Balance2.4%
Tax Levy10.1%
Miscellaneous0.7%
State72.3%
Federal14.4%
Medicaid0.1%
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$ 991,952,699
FY 2009-2010 REVENUES
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2009-10 Budget Summary-General/Special Revenue Fund Changes
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Operating Budget
($2.3M) Central High School Facilities Aid not provided
($1.7 )Reduction in Additional Charter School Aid in 08-09
($214,272 )Adult Education not provided
$498,522 increase in Semi-Medicaid
No increase in the Tax Levy
No increase in Fund Balance
Special Revenues (Grants)
($3.8M) in Pre-School handicap Program transfer not required in 09-10
$5.6M Increase in Early Childhood Program
$1.0M increase in Early Childhood Carryover
FY 2009-10 Revenue Summary
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During this difficult economic climate, the decline in the revenues coupled with increasing costs, required that the district make tough choices to insure the efficacy of resources and programs toward increasing student achievement and maintaining the quality and fidelity of its programs.
WHAT DOES THIS MEAN?
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FY 2009-10 BUDGET
2009-2010 PROPOSED BUDGET13
$991,952,699
A net decrease of $909,143 over A net decrease of $909,143 over
2008-2009 budget2008-2009 budget
NEWARK PUBLIC SCHOOLS14
Operating Budget $ 849,516,368
Grants & Entitlements 142,436,331
Total District Budget $ 991,952,699
Impact on District Budget15
With decreases in State Aid and rising costs, the district had to consider the following: Reductions in positions and programs gained under
the Abbott Ruling Reallocation of Funds to cover increases in non-
discretionary costs i.e., Tuition, Utilities, etc. Closing/Consolidation of Schools Reallocation and Reduction of Staff Fund Staff/Programs with Grant Dollars
2009-10 Budget Summary-Expenditures
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Includes increases for non discretionary mandated items such as: Salaries Tuition Transportation Utilities Charter Schools New Park School
All non salaried discretionary costs were reduced to balance the budget
Summary of Anticipated Major Cost Increases and Revenue
Reductions
Categories FTE Amounts
Salaries $ 14,969,392
New Park School 66.0 6,462,424
Charter Schools 13,934,135
New Initiatives/Educational Programs 2,750,000
Upgrade of Student Information System 1,000,000
Employees no longer funded by Grant 13.0 998,221
General Fund Revenue Reductions 3,732,475
TOTAL 79.0 $ 43,846,647
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Major Costs of Total BudgetMajor Costs of Total Budget18
Salaries $ 507,689,285
Health & Employee Benefits 106,869,708
Charter Schools 74,914,336
Tuition 62,545,613
Utilities 16,906,547
Pupil Transportation 34,147,878
Other 46,443,001
Total Operating Budget $ 849,516,368
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$ 849,516,368
Major Costs of Total Budget
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Total Salaries
School-Based $ 341,627,318 67%
Instructional Support & Central Office
160,423,768 32%
Summer School & Adult Education
5,638,199 1%
TOTAL $ 507,689,285 100%
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2009-10 Reductions to Balance The Budget
Reductions FTE Amounts
Reassignment of Certificated Non-Classroom Staff – To address classroom vacancies in hard to fill areas
(50.0) ($4,692,018)
Consolidation of School-Based Staff as a result of Reconciliations and Budget Reviews
(94.5) ($4,144,559)
Consolidation of an SLT- District proposes a reduction to 4 K-12 SLTs
(7.0) ($594,076)
Reduction in Vice Principals- New district model developed to address equity and allocate VPs based upon student enrollment and need
(6.0) ($687,950)
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2009-10 Reductions to Balance The Budget
Reductions FTE Amounts
Central Office Positions- Reduction in support cost
(61.0) (3,648,208)
Reduction and Reassignment of Elementary Tech Coordinators – Elementary Schools with smaller enrollments will share a position. Staff to be reassigned to classrooms
(20.0) (1,181,129)
Closing of Vailsburg - Final stage of the restructuring plan for West Ward Schools
(22.0) $ (1,611,997)
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2009-10 Reductions to Balance The Budget
Reductions FTE Amounts
Consolidation of William Brown – Based upon criteria for closing/consolidating schools
(36.0) (3,595,526)
Reductions in Non-Salary Costs - Budget for FY 2009-10 provided based upon historical expenditures
(12,303,817)
Non-Mandated Aides – Reductions to comply with state regulations. Individuals will be Grant Funded and be reassigned to address Special Education Needs.
(76.0) (2,174,940)
Reductions in After School Program –Reduction in number of weeks and hours of program
(1,067,163)
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2009-10 Reductions to Balance The Budget
Reductions FTE Amounts
Reduction in Consultants – As a result of those services proven to be ineffective and inefficient
(916,757)
Food Service Reduction – Improved Lunch Application Collection , Processing and Accountability
(3,000,000)
Reduction in Benefits – As a result of reduced FTEs
(3,109,507)
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2009-10 Other Expenditure Reductions to Balance The Budget
Reductions FTE Amounts
State Facilities Tuition (500,000)
Equipment (50,000)
Instructional Imp – Science (150,000)
Leases (419,000)
TOTAL (376.5) $ (43,846,647)
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Criteria for Closing/Consolidating Schools
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1. Academic Performance - Failure to make Adequate Yearly Progress (AYP)
2. Enrollment of Failing School and Capacity of Performing Receiving School(s)
3. Physical Conditions of Facilities
4. Proximity to Performing Receiving Schools
Extended Day/After School Program27
• There are no changes in the Summer Program
• All sites with Extended Day/After School Programs operating in FY 2008-09 will continue to operate in FY 2009-10
• Reductions in the Extended Day/After School Program were realized as follows:•Over-staffing based upon enrollment•Number of weeks•Number of hours
Extended Day/After School Program
Description# of Locations
Staff FTEs
Weeks Total Hours
Comments
3-6 pm Program
Current 58 186 33 480
FY 2009-10 58 169 26 390 Split SessionOct-FebMay-June
6-9 pm Program
Current 37 44 33 396
FY 2009-10 37 41 28 252 Change HoursM-W 6-8pmTh 6-9pm
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Per Pupil CostPer Pupil Cost
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FY 2009-10 Per Pupil Cost per State DOENET - $16,911
Total Classroom Cost $8,967
Total Support Services 3,813
Total Administrative Cost 1,294
Total Operations & Plant Maint 2,515
Total Food Services Costs 65
Total Extracurricular Costs 190
Total Equipment Costs 15
Total Other Costs 52
Grand Total $16,911
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Comparison of Per Pupil Costs
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Charter SchoolsCharter Schools
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RESIDENT STUDENTS ATTENDING CHARTER SCHOOLS
FY 2009-2010
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CHARTER SCHOOLS Grades 2009-10 Proj2008-09 Actual Diff +(-)
2009-10 Proj
Enroll
2008-09 Actual Enroll Diff +(-)
Adelaide L. Sanford K-5 2,824,589 2,206,393 618,196 227 177 50Pride Academy K-8 784,494 881,561 (97,067) 53 64 -11Newark Educators K-5 2,120,749 - 2,120,749 200 0 200Central Jersey K-5 29,090 24,518 4,572 1 1 0Hoboken Charter K-12 98,945 90,370 8,575 6 6 0East Orange Community K-5 807,252 767,741 39,511 56 56 0Elysian Charter of Hoboken K-5 29,090 24,518 4,572 1 1 0University Heights K-5 2,826,897 2,919,165 (92,268) 199 212 -13New Horizons Comm. K-5 6,518,110 6,242,612 275,498 474 454 20Gray Charter School K-8 3,905,000 3,650,930 254,070 311 295 16Marion P. Thomas K-8 7,239,389 6,333,614 905,775 540 470 70Robert Treat Academy K-8 6,795,655 5,653,104 1,142,551 545 450 95No. Star Academy K-12 13,487,268 10,219,480 3,267,788 1005 766 239Greater Newark CS K-8 2,358,462 2,271,331 87,131 176 163 13Lady Liberty Academy K-8 5,720,111 5,522,160 197,951 436 420 16Team Academy K-12 14,647,657 10,532,045 4,115,612 1060 760 300Paterson Charter School K-12 8,790 10,157 (1,367) 1 1 0Jersey City Comm. K-8 45,115 55,765 (10,650) 3 4 -1Maria L. Varisco-Rogers K-8 3,642,842 2,477,946 1,164,896 290 201 89Unity Charter School K-5 17,943 27,883 (9,940) 1 2 -1Liberty Academy Charter School K-5 - 13,942 (13,942) 0 1 -1Discovery K-8 1,006,888 1,054,966 (48,078) 75 75 0
Total Charter Schools 74,914,336 60,980,201 13,934,135 5,660 4,579 1081
Charter School Students Re-entering NPS 2006, 2007 &2008
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Month of Re-entry Number of Students %
July 27 0.1Aug 66 8.7Sep 428 56.5Oct 38 5.0Nov 23 3.0Dec 33 4.4Jan 49 6.5Feb 41 5.4Mar 13 1.7Apr 24 3.2May 12 1.6Jun 3 0.4
Total Pupils Re-entering: 757
Charter School Students Re-entering NPS 2006, 2007 &2008
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Charter School Number of Students %
New Horizon 122 16.1Lady Liberty 117 15.5North Star 75 9.9Greater Newark 72 9.5Marion P. Thomas 72 9.5Maria Varisco Rogers 69 9.1Gray Charter 54 7.1Team Academy 48 6.3University Heights 41 5.4Robert Treat 31 4.1Adelaide Sanford 21 2.8Discovery 19 2.5Pride (East Orange) 8 1.0East Orange Charter 3 0.4Englewood 2 0.2Schomburg (Jersey City) 1 0.1Calla Charter 1 0.1Unknown 1 0.1
Charter School Students Re-entering NPS 2006, 2007 &2008
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GenderNumber of Students %
Male 334 44.1Female 423 55.9
EthnicityNumber of Students %
Black 685 90.5Hispanic 68 9.0American
Indian 1 0.1Asian 3 0.4
Fund Balance AnalysisFund Balance Analysis
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Fund Balance Analysis38
06-07 07-08 08-09 09-10
Beg Bal 37,196,395 29,910,924 41,326,430 27,388,030
Additional 4,361,521 11,415,506 10,000,000
Used to balance the budget
-24,000,000
-15,500,000
-23,938,400
-23,938,400
Adjustment to Actual
12,353,008 15,500,000
Ending Bal 29,910,924 41,326,430 27,388,030 3,449,630
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Fund Balance Analysis
Recommended Fund Balance @ 2% $17,064,977
Fund Balance Projected in FY 2009-10 3,449,630
Anticipated Shortfall of 2% (13,153,347)
Tax Levy AnalysisTax Levy Analysis
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NEWARK PUBLIC SCHOOLNEWARK PUBLIC SCHOOLPROPERTY TAXESPROPERTY TAXES
TEN YEAR ANALYSISTEN YEAR ANALYSIS41
YEAR PROPERTY TAXESINCREASE
AMT.2001 80,000,000 - 2002 80,000,000 - 2003 80,000,000 - 2004 80,000,000 - 2005 80,000,000 - 2006 80,000,000 - 2007 88,215,449 8,215,449 2008 96,358,910 8,143,461 2009 100,213,266 3,854,356 2010 100,213,266 -
TOTAL INCREASE 20,213,266
Tax Levy Increase Comparison42
8,215,449 8,143,461
3,854,356
00
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2007 2008 2009 2010
Amount
School Operating Cost School Operating Cost To The Average Tax PayerTo The Average Tax Payer
Average Property Assessed Value
$175,000 $200,000
Current School Tax Levy
$1,594 $1,822
New School Tax Levy *
$ 0 $ 0
Average Annual Net Increase
$ 0 $ 0
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Looking ForwardLooking Forward
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Anticipated Budget Shortfall for FY 2010-2011
Fund Balance needed at FY 2009-10 Levels
$23,938,400
Projected Balance Available at end of FY 2009-10
3,449,630
Fund Balance Shortfall $20,488,770
Anticipated increased 2010-2011 costs
42,000,000
Anticipated State Aid increases 0
Anticipated Budget Shortfall for FY 2010-2011
$62,488,770
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Next StepsNext Steps
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Hold Community MeetingsDevelop Redistricting PlanDevelop Transportation RoutesCoordinate a Moving PlanReorganize Central Office and SLTsReassignment of StaffPrepare RIF List for Affected EmployeesEstablish a District Budget Task Force for
FY 2009-10 and 2010-11
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Next Steps
Questions and AnswersQuestions and Answers
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