1 Harding Township School Tentative Budget Report 2021

1 Harding Township School Tentative Budget Report 2021 -2022 School Year Dr. Matthew A. Spelker-Superintendent Edward Appleton-Interim Business Administrator March 8 th, 2021

2 Board of Education • • • Mr. Davor Gjivoje - President Dr. Alex Anastasiou–Vice-President John Flynn Mr. Abi Singh Mr. Richard Bruno

3 2020 -2021 District Goals • To identify reentry learning gaps and measure the academic progress of our students through the administration of pre- and post-grade-level assessments in Reading, Math Facts, and Writing that correlate with the NJSLS standards and Reader’s/Writer’s Workshop. • To continue to grow our district’s STEM program, grades K-8, through the introduction of the principles of STEM including design, innovation, and coding, utilizing the new STEM facilities and K-6 curriculum. • The Harding Township School will continue to address the social, emotional, and recovery needs of its school community by providing added opportunities for social emotional learning for all students, and promoting practices and strategies for wellness. • Administration and faculty will engage in reflective practices through relevant professional development, to further develop a personalized learning environment as well as utilize remote learning techniques to enhance learning and instruction. The proposed 2021 -2022 budget will support yet to be named goals for the 20212022 school year.

4 2021 -2022 Operating Budget • The operating budget is: ▫ A collective document – BOE, Administration, Parents, Staff, Community. ▫ A statement, in financial terms, of the district’s educational priorities. ▫ A management tool that projects and balances the district’s revenues and expenses. ▫ A reflection of the community’s values (small class size, technology, co-curricular activities, facilities maintenance, etc. )

5 2021 -2022 Operating Budget • Projections are made up to 15 months in the future. For example, budget (revenues and expenses) estimates made in March 2021 will have to remain accurate until June 30, 2022. • This remains a draft adjustment and is subject to change prior to the Public Hearing on the budget. • Our budget has many line items that are increasing at a faster rate. These items include salaries, health benefits, and special education. These items “crowd out” other portions of the operating budget. • 2021 -2022 budget was not developed by increasing each line by a certain percentage

6 Budget Process • Audit health benefits roster. (completed) • Review CAFR, the 20/21 budget, and plan ahead for 21/22 operating budget. (completed) • Forecasting and budgeting for OOD placements for 2021 -2022. (completed) • Principal/Director of Curriculum–review of curriculum items. (completed) • Refine revenue (tuition, federal grants) estimates for 2021 -2022. (completed) • Refine and update position control roster. (completed)

7 Budget Process • Factors affecting the operating budget: ▫ ▫ ▫ ▫ ▫ Maintaining small class size. Ongoing maintenance needs. HTEA salary increases. Continued technology upgrades. Curriculum development and support. Student achievement-maintain excellent results. Increases in health benefits premiums. Enrollment - predicted to be flat. Professional development and other unfunded mandates from the state.

8 Revenue • • • State aid Tuition revenue Budgeted fund balance Federal grants Misc. revenue Transportation fees Extraordinary Aid Building usage fees Tier IV/health benefits contribution $532, 750 +70, 549 $62, 400 -16, 884 $368, 260 +3, 260 $203, 744 +43, 060 $62, 500 +5, 000 $9, 000 Unchanged $250, 000 +2, 745 $9, 000 Unchanged $220, 000 -$38, 368

9 Lower Revenues and Unexpected (but necessary) Expenses: 2020 -2021 school year Revenues • State Aid reduction of $37, 000 • Tuition Revenue down $17, 000 • Tier IV Health Contributions down $38, 000 Expenses- Covid-19 safety related • HEPA Filters for all class/office spaces- $24, 000 • HVAC Ionizers- $21, 000 • Desk partitions- $8, 000 • PPE (masks, face shields, gloves) sanitizing stations, cleaning materials, Therma-scan thermometers- $11, 000 • Miscellaneous- approximately $10, 000 TOTAL Negative impact on budget: $166, 000

10 Expenses • • Covid-19 expenses of $75, 000 in 2020 -2021 HTEA salary increase TBD (as per CBA) Health benefits premium increase Out Of District special education tuition +3 -5%. • Facilities improvements: - Capital improvement HVAC project planned for 2021 summer completion. Middle school 1 st floor - Capital improvement gym roof repair - Cafeteria floor replacement

11 State Aid • • • • 2009 -2010 -2011 -2012 -2013 -2014 -2015 -2016 -2017 -2018 -2019 -2020 - 2021 -2022 $364, 473 $0 $181, 191 $225, 137 $233, 677 $238, 834 $270, 110 $406, 173 $440, 532 $462, 201 $ 532, 750 * *Subject to change, based on past experience.

12 The Tentative 2021 -2022 Budget Includes Funding • • • • Genesis Honeywell Instant Alert. T-Eval/Marshall Model. I-Ready assessment program Rubicon online curriculum tool My Learning Plan. My School Building/School Dude. AESOP (staff attendance and substitute procedures). Applitrack (human resources tool). School Wires (website management). Safe Schools (staff professional development). CDK (accounting software). Professional development and curriculum development. Technology upgrades. Capital improvements

13 Banked Cap Year Saved $ Amount Year Expires 2012 -2013 $82, 496 (Used in 2015 -16) 2013 -2014 $74, 390 (Used in 2016 -17) 2014 -2015 $0 N/A 2015 -2016 $0 N/A 2016 -2017 $0 N/A 2017 -2018 $51, 437 2020 -2021 (all used 20 -21) 2018 -2019 $275, 249 2021 -2022 (only $90, 392 used 21 -22 from $275, 249 available, created by expenses outlined in slide #9) 2019 -2020 $20, 000 2022 -2023

14 • • • 1997 -2011 -2012 -2013 -2014 -2015 -2016 -2017 -2018 -2019 -2020 -2021 -2022 Local Tax Levy +6. 01% (average across 15 years) +1. 96% +1. 78% +1. 50% +2. 60% +3. 32% +2. 90% +1. 48% +2. 51% +1. 81% +2. 49% (with use of banked cap) +2. 84% (with use of banked cap/ enrollment adjustment)* * Driven by Covid-19 extra-ordinary expenses, and subject to change prior to final approval.

15 General Timeline • • • Oct. -Dec. – Administrative meetings December –Budget guidelines approved/BOE January 27 –Preliminary budget report February 28 th – State aid figures were released March 8 th – Tentative budget presented to BOE Week of March 9 th – Tentative budget submitted to Executive County Superintendent for approval • May 4 th – Public hearing on the budget • July 1 – New fiscal year begins

16 Harding Township Tentative School Budget • Questions or comments from Board members?