Budget Presentation 2014-2015 April 24, 2014

1. Budget Presentation2014-2015April 24, 2014 Vernon Township Board of Education Charles Maranzano, Jr., Ed.D. - Interim Supt. Steven Kepnes - Business Administrator

2. Annual Budget Development:A Question of Balance Educational Accountability vs. Economic Accountability EFFECTIVENESS EFFICIENCY

3. Conflicting Needs = Tension Internal Public Voice and External Public Voice Central Question: “How can we provide quality education in Vernon and relive property owners of higher taxes?”

4. Revenue and Appropriations Snapshot

5. 2013-2014 Revenue Sources 0.053%

6. 2013-2014 BUDGET APPROPRIATIONS

7. Challenges for Budget Development:Containing Overall Costs

8. Seven Variables Driving Higher Costs1. The Rural Factor: Sussex County 2. Inflationary Factors 3. Transportation 4. Special Education 5. Full-Day Kindergarten and Pre-School programs6. Salaries & Benefits7. Declining Enrollment

9. Declining PopulationsTen Year Trends Since 2004-05 student population has declined from 5,256 to 3,561 students 32% decline

10. Line Graph of Decreasing Enrollment from 2005-2013 -32%

11. Declining PopulationsTen Year Trends Since 2004-2005 certified teachers have declined from 439 to 351 20% decline

12. Bar Graph of Decrease in Certificated Faculty from 2005-2013 -20%

13. How do Vernon’s Per-Pupil costs measure up against other districts?

14. Sussex Per Pupil Comparisons 2011-12(Provided by Executive County Superintendent , Sussex County 2/11/14) • Sussex County Vocational $23,255 • High Point Regional $22,470 • Wallkill Valley Regional $22,120 • Hamburg Boro $20,908 • Montague Township $20,553 • Frankford Township $20,405 • Vernon Township $20,357 • Sparta Township $19,733 • Hopatcong Boro $19,525

15. Sussex K-12 Per Pupil Comparisons District 2010-11 2011-12 Increase Newton $17,145 $17,802 3.8% Hopatcong $16,937 $19,525 15.3% Sparta $15,828 $19,733 24.7% Vernon $18,707 $20,357 8.8%

16. How does Vernon compare to other 3,500+ sized districts?

17. How much will Vernon receive in additional state aid next school year? ONE YEAR % 2013-2014 2014-2015 AID AID • COUNTY NAME TOTAL AID TOTAL AID CHANGE CHANGE • SUSSEX BYRAM TWP 3,450,935 3,744,729 293,794 8.513% • SUSSEX HARDYSTON TWP 2,066,127 2,158,493 92,366 4.470% • SUSSEX GREEN TWP 2,332,645 2,381,755 49,110 2.105% • SUSSEX LAFAYETTE TWP 827,818 844,455 16,637 2.010% • SUSSEX SPARTA TWP 5,877,090 5,943,150 66,060 1.124% • SUSSEX FREDON TWP 526,667 532,107 5,440 1.033% • SUSSEX LENAPE VALLEY REGIONAL 4,584,967 4,630,671 45,704 0.997% • SUSSEX OGDENSBURG BORO 2,297,536 2,317,082 19,546 0.851% • SUSSEX NEWTON TOWN 5,831,032 5,880,552 49,520 0.849% • SUSSEX ANDOVER REG 2,279,461 2,295,781 16,320 0.716% • SUSSEX KITTATINNY REGIONAL 5,928,514 5,960,854 32,340 0.545% • SUSSEX SANDYSTON-WALPACK 565,918 568,898 2,980 0.527% • SUSSEX FRANKFORD TWP 1,948,257 1,958,177 9,920 0.509% • SUSSEX HAMPTON TWP 1,269,740 1,276,100 6,360 0.501% • SUSSEX WALLKILL VALLEY REG 4,683,780 4,707,210 23,430 0.500% • SUSSEX STANHOPE BORO 1,504,963 1,511,963 7,000 0.465% • SUSSEX SUSSEX COUNTY VOC 4,162,722 4,178,842 16,120 0.387% • SUSSEX HAMBURG BORO 1,618,266 1,623,906 5,640 0.349% • SUSSEX MONTAGUE TWP 2,690,096 2,699,116 9,020 0.335% • SUSSEX STILLWATER TWP 1,797,909 1,803,869 5,960 0.331% • SUSSEX SUSSEX-WANTAGE REG 7,784,729 7,809,569 24,840 0.319% • SUSSEX HIGH POINT REGIONAL 6,350,018 6,369,038 19,020 0.300% • SUSSEX HOPATCONG 11,349,36511,383,175 33,810 0.298% • SUSSEX FRANKLIN BORO 3,253,144 3,262,204 9,060 0.278% • SUSSEX VERNON TWP 24,967,495 25,034,455 66,960 0.268%

18. Moving in the Right DirectionCounty Efficiency ReviewThree Years of Budget Comparisons

19. Sussex County Efficiency Review February 6, 2014 Adopted Budget 11-12 12-1313-14 Total GFB $ 69,505,656 69,544,721 69,143,261 Dollar change+/- +39,065 -401,460 Local Tax Levy $ 41,423,349 41,470,508 40,470,508 Dollar change+/- +47,159 -1,000,000 Percent change+/- 0.1% -2.4% NJAC 6A:23A-9.3 Review of Efficiency Standards

20. Quantitative ImplicationsFour-Year Budget Trends

21. If approved, the four-year budget trend for Vernon Public Schools results in decreased total operating budgets over time 2011-12 $ 69,505,656 2012-13 $ 69,544,721 $ + 39,065 2013-14 $ 69,143,261 $ -401,460 2014-15 $ 68,640,904 $ -502,357 We have developed a budget that is $ -864,752 less than the 2011-2012 total operating budget.

22. If a 2% Cap were Achieved in each of four budget years 2011/12 - 2014/15 The 2011-12 base budget would have grown to: $ 73,759,957 2014-2015 proposed $ 68,640,904 $ -5,119,053 less than allowed Resulting in overall taxpayer savings

23. What Does the Proposed Budget Accomplish?

24. 2014-2015 Budget Proposal:Balancing Quantitative with Qualitative • Attempts to maintain academic rigor and programs • Preserves Arts, Activities, and Athletic Programs • Emphasizes a commitment to safety and security • Includes needed facility improvements • Reduces the number of administrators • Considers the educational and cost benefits of outsourcing needed educational services • Incorporates state mandates ACHIEVENJ, PARCC, and COMMON CORE • Considers long-term needs of the School District and the Vernon taxpayer

25. Cost Savings The Vernon School Board deserves to be commended for reducing costs over the past three budget years due to difficult economic times. However, there may be a point in time when increases to the base budget are needed to keep up with inflation and provide additional educational services to children.

26. Which Direction is Right? “When you get to a fork in the road, take it.” Yogi Berra

27. Next:Steve Kepnes will present an overview of the 2014-2015 proposed budget

28. Thank You