Budget 101: How Your School Budget is Put Together

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Budget 101How Your School Budgetis Put Together

• A presentation by
• Dr. James P. Verbist
• School Business Administrator/Secty.
• Rockaway Township Schools
• January 2010

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We want to hear from you!

• Please read and let us know what else you'd like
  to know about the budget process.
• Please submit any questions to the School
  Business Administrator/Secretary at
  Jamesv_at_rocktwp.morris.k12.nj.us . so we can begin
  responding at the next board meeting.

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(No Transcript)
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Just a reminder that
Rockaway Twp. School District is K-8 ONLY
Copeland MS 6-8 916 Students Built
1969 C.A. Dwyer K-5 301 Students Built in
1971
Birchwood K-5 345 Students Built
1958 Stonybrook K-5 405 Students Built in 1962
K.D. Malone K-5 295 Students Built 1952 D. B.
OBrien K-5 340 Students Built in 1952
6 Schools and Out of District Placements
2,630 Students
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What is a School Budget?
Needs Priorities

• Your Schools Fiscal Year (July 1st - June
  30th)Its Developed August - February of the
  preceding yearSubmitted to you for review in
  March/April

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Budget Timelines

• Proposed Budget Timelines 10-11.doc

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Collaborative Process
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Where do Our Property Taxes Go?
SOURCE 2008 HUB TIMES
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Where does your Rock Twp. K-8school budget
revenue come from?
4,213,549 State Aid 8.85
937,723
39,109,380
3,031,625
310,000
Total 09-10 Budget
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Where does the K-8 money go?
Out of District Tuition
Professional Services
Salaries
Benefits
Repairs Maintenance
Transportation Equipment
Utilities
Supplies
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How do we build your K-8 Budget?Step 1 - Review
Required Spending

• Contracted Salaries, (Negotiated, then fixed for
  3 years)
• Contracted Health Benefits (Negotiated, then the
  benefits are fixed for 3 years, however the costs
  are not.)
• Mandated Special Education Spending
• Mandated Professional Services Lawyer, Auditor,
  Architect
• Essential Building Maintenance Custodial
  supplies repairs
• Transportation Required maintenance, fuel, state
  mandates
• Mandated Insurances
• Fixed Equipment Costs (buses)
• State Mandated Testing Services, Mandated
  Election Costs

TOTAL REQUIRED SPENDING
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• How do we build your K-8 Budget?Step 1 - Review
  Required Spending

• img-1060943-0001 (2).pdf

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• How do we build your K-8 Budget?Step 1 - Review
  Required Spending

• img-1060943-0001.pdf

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How do we build your K-8 Budget?Step 1 - Review
Required Spending

• img-1060943-0001 (3).pdf

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• Required Spending made up
• 93.9 of total budget in 2009-10

6.1 Variable Costs
93.9 Fixed Costs and State Mandated Spending
Total 09-10 Budget
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Leaving 6.1 variable costsfor things like

• Textbooks
• Teacher training/Professional Development
  (actually becoming a mandated cost)
• General supplies for departments
• Unexpected State mandatesthroughout the year
• Or other possible improvements to programs,
  instruction or facilities.

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How do we build your Budget?Step 2 Identify
Variable Costs

• Trends analysis to estimate any increases in
  current costs(performed by Business Admin.)
• Superintendent, Principals District
  Administration and
• Board review
• Curriculum needs
• State mandates
• Textbook review cycle
• Professional development
• Building equipment
• Classroom supplies
• Technology needs

TOTAL VARIABLE COSTS
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How do we build your Budget?Step 2 Identify
Variable Costs
Acct Description Amount DESC
1100021130015000 Professional Technical Services 750.00 PROFESSIONAL TECHNICAL SERVICES
1100021330015000 Workshop/Training Fees - Nurses 750.00 WORKSHOP/TRAINING FEES - NURSES
1100021350015010 Travel (mileage) 500.00 TRAVEL (MLGE)
1100021360015000 Nurse Office Supplies 7,000.00 NURSE OFFICE SUPPLIES
1100021380015000 Nursing Expenses - Other (food items) 100.00 NURSING EXPENSES - OTHER (FOOD ITEMS)
1100022260015000 books 12,525.00 BOOKS
1100022260015000 EBSCO - periodicals 1,400.00 EBSCO - PERIODICALS
1100022260015000 furniture 1,500.00 FURNITURE
1100022260015000 media orders DVD vhs 800.00 MEDIA ORDERS DVD VHS
TOTAL VARIABLE COSTS
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How do we build your Budget?Step 3 - Estimate
Aid Income(Revenue, other than Local Taxes)

• State Aid Given by Department of Ed, figures
  expected in March (with NJs budget deficit,
  State Aid will probably decrease or remain the
  same)
• Federal Aid Calculated on trend analysis and
  projections
• Bank Interest Calculated by trend analysis and
  projections
• Tuition Based on current/expected contracts and
  trend analysis

TOTAL REVENUE NOT FROM TAXES
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How do we build your Budget?Step 4 - Calculate
Tax Levy
TOTAL REQUIRED SPENDING

TOTAL VARIABLE COSTS
-
(TOTAL REVENUE NOT FROM TAXES)
LOCAL TAXES NEEDED TO SUPPORT BUDGET
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• Step 4 Cont.
• Calculation of Your K-8 Tax Levy
• Budget Cap
• Legally, local tax increase
• cannot exceed 4 per year

But what if the result is over 4?
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• We have 3 options
• Cut Expenses
• Cuts done in consultation with Administrative
  Staff, Finance Committee and Board of Ed, the
  Superintendents Office and the Business Office.
• Apply for Waivers, if possible
• Only allowed for certain expenses
• Waivers are regulated by State
• Must receive County approval for them
• Allocate funds from Surplus
• Rock. Twp. has 896,960 in current surplus, less
  than 2 of total budget
• State allows recommends a 2 surplus(for Rock
  Twp., it would be 952,046)

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Second Questions

• Second questions are additional spending
  proposals
• Appears as another line during budget vote
• Per new law must receive 60 approval
• Cannot contain programs needed to run the school,
  in order to give students a State defined
  Thorough and Efficient Education. For example
  You could not choose to have/have not a
  Principal.

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8 Steps of how your Budget is approved
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• On the third Tuesday in April,you vote on your
  budget!!!
• Simple majority is needed to pass.

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Next Board of Ed MeetingsJanuary
20,2010Copeland Middle School 700 PMLets
continue the conversation!Thank you.