1. 1 Verona Board of Education Final Budget and Financial Framework March 2009

2. 2 Overview Budget Development Process Budget Development Process What’s In the Budget What’s In the Budget Priorities Not Met Priorities Not Met Drivers of the Budget Drivers of the Budget Efficiencies We’ve Sought Efficiencies We’ve Sought Verona Property Taxes Verona Property Taxes Summary Summary

3. 3 Budget Development Process Nov – Teachers/Staff Identify Needs Nov – Teachers/Staff Identify Needs Dec – Principals Prioritize Building Needs Dec – Principals Prioritize Building Needs Jan – Board Reviews District Needs Jan – Board Reviews District Needs Feb – Board Prioritizes District Needs Feb – Board Prioritizes District Needs Feb – State Releases Cap Figures Feb – State Releases Cap Figures Mar- State Releases Aid Figures Mar- State Releases Aid Figures Mar – State Approves Waivers & Budget Mar – State Approves Waivers & Budget Apr – Voters Approve Budget Apr – Voters Approve Budget

4. 4 Strategic Goals Improve Teaching and Learning Improve Teaching and Learning Curriculum Renewal Curriculum Renewal Learning Framework/Teaching Standards Learning Framework/Teaching Standards Co-Curricular and Character Co-Curricular and Character Community Partnerships Community Partnerships Professional Development Professional Development Integrate Technology Integrate Technology Safe and Inviting Learning Environments Safe and Inviting Learning Environments

5. 5 What This Budget Buys Additional Staff Maintain reasonable 1 st grade class sizes for FOR, LAN, and FN Brown: add.77 teachers Maintain reasonable 1 st grade class sizes for FOR, LAN, and FN Brown: add.77 teachers Meet staffing needs at HBW: add 0.2 Mandarin, 0.2 French Meet staffing needs at HBW: add 0.2 Mandarin, 0.2 French Custodial services for after-hours and weekend recreation gym & field use Custodial services for after-hours and weekend recreation gym & field use Instructional Supplies & Co-Curricular Activities Maintain textbook program for K-4, all elementary schools Maintain textbook program for K-4, all elementary schools New textbooks and novels for VHS English, World Language. HBW novels New textbooks and novels for VHS English, World Language. HBW novels Maintain full range of musical, athletic, scholastic events Maintain full range of musical, athletic, scholastic events Neighborhood Schools Comfort of principals and nurses in every building Comfort of principals and nurses in every building Specialized instruction in music, art, technology, media and world languages Specialized instruction in music, art, technology, media and world languages Innovative Programs/ Implementation Five Year Strategic Plan Curriculum renewal Curriculum renewal Professional Development all teaching staff Professional Development all teaching staff Technology integration strategy Technology integration strategy Expansive Math Initiative Expansive Math Initiative New Math Program K-4 New Math Program K-4 Program Support Guidance counselor availability over the summer Guidance counselor availability over the summer Maintenance of facilities Maintenance of facilities

6. 6 Priorities Not Met Staffing Needs HBW Physical Education Teacher HBW Physical Education Teacher Phased Expansion of Supervisory Model (behind schedule) Phased Expansion of Supervisory Model (behind schedule) Science Instructor VHS Science Instructor VHS Programs Educational Software Educational Software Technology Support Technology Support External Curriculum Audit External Curriculum Audit Computers Computers VSEA Funding VSEA Funding

7. 7 Budget Drivers Budget is driven largely by mandates Budget is driven largely by mandates  State standards and regulations  Special education: IEP-driven aides Personnel costs are two-thirds of budget Personnel costs are two-thirds of budget  Salaries increased only 3.7%  Increase includes enrollment-driven staff additions  Benefits are being re-bid as part of budget Enrollment is another major driver Enrollment is another major driver  Enrollment up 3.5% over five years  Enrollment projected to rise 10% by 2010

8. 8 Budget Constraints State Cap on Budget Increases State Cap on Budget Increases  4.0% increase allowed on tax levy  Cap Waivers for Capital Outlay, Special Education, Energy Costs State & Federal Aid Virtually Flat Over 6 Years State & Federal Aid Virtually Flat Over 6 Years

9. 9 Five-Year Summary 2004/2005 ACTUAL 2008/2009 ACTUAL 2009/2010 ADOPTED 1-YEAR CHANGE Average 5 YEAR CHANGE SALARIES$11,909,705 $ 14,426,436 $14,919,5423.7%5.1% BENEFITS$ 2,623,000 $ 3,849,108 $ 4,097,8636.5%11.2% SPECIAL EDUCATION$ 5,091,295 $ 5,561, 107 $ 5,507,949-1.0%1.6% NON-DISCRETIONARY$ 1,388,000 $ 1,710,253 $ 1,905,69411.4%7.5% DISCRETIONARY (class supplies, staff development, co-curricular) $ 1,044,000 $ 1,149,425 $ 1,086,118-5.5%.8% TOTAL $22,056,000 $26,696,329 $27,517,1663.07%4.9% Benefits 1-yr increase is an estimate; bidding for more favorable rates Benefits 1-yr increase is an estimate; bidding for more favorable rates Improved service delivery has resulted in an average annual increase of 1.6% in Special Education over the past five years Improved service delivery has resulted in an average annual increase of 1.6% in Special Education over the past five years

10. 10 2009-2010 PROPOSED EXPENDITURES - $27,517,166 2009-2010 PROPOSED EXPENDITURES - $27,560,439 2009-2010 PROPOSED EXPENDITURES - $27,560,439 4% Discretionary

11. 11 ENROLLMENT 2034 2065 2039 2012 2041 2085 2048 Since 06-07, growth of approximately 70 students (3.5%) while state aid has remained virtually flat

12. 12 Annual Reviews Course Offerings Based on Student Interest Course Offerings Based on Student Interest Essentialness of Non-Mandated Programs and Services Essentialness of Non-Mandated Programs and Services Effectiveness of Intervention Programs Effectiveness of Intervention Programs Effectiveness of Staff Training Effectiveness of Staff Training Health Plan Savings Health Plan Savings Maximizing Capacity and Revenues Maximizing Capacity and Revenues

13. 13 Our Taxes 2008 Average Verona Property Tax = $8,806 Average Verona Property Tax = $8,806  17.2% Below Comp Group Average Most Efficient Among Comp Districts Most Efficient Among Comp Districts  Five Year Average: Lowest Cost Per Pupil  Spending prioritized for most direct impact on classroom instruction classroom instruction Source: http://www.state.nj.us/dca/lgs/taxes/taxmenu.shtml

14. 14 Tax Impact 3.08% increase in spending 3.08% increase in spending Maintains existing programs Maintains existing programs Funds curricular enhancements Funds curricular enhancements Funds focus on teaching and learning Funds focus on teaching and learning $210 increase on average home $210 increase on average home $17.50/mo $17.50/mo

15. 15 In Summary Budget process is sound and open Budget process is sound and open Budget delivers great value (Appendix 3) Budget delivers great value (Appendix 3) Budget supports strategic goals Budget supports strategic goals If the budget is defeated, two effects: If the budget is defeated, two effects: Program and staff cuts Program and staff cuts Compounding negative impact on the budget Compounding negative impact on the budget

16. 16 Appendix 1: Cost Per Pupil 2004-052005-062006-072007-082008-09 PARK RIDGE BORO $ 11,059 $ 11,880 $ 12,252 $ 13,069 $ 14,053 MADISON BORO $ 12,135 $ 12,043 $ 12,636 $ 13,122 $ 13,711 BERKELEY HEIGHTS TWP $ 11,026 $ 11,240 $ 11,612 $ 12,389 $ 13,112 NEW PROVIDENCE BORO $ 10,323 $ 10,883 $ 11,759 $ 12,192 $ 12,960 KINNELON BORO $ 10,528 $ 10,779 $ 11,316 $ 12,158 $ 12,736 CALDWELL-W. CALDWELL $ 10,903 $ 11,299 $ 11,770 $ 12,070 $ 12,713 GLEN RIDGE BORO $ 10,229 $ 10,762 $ 11,438 $ 12,030 $ 12,455 CEDAR GROVE TWP. $ 10,909 $ 11,847 $ 12,447 $ 12,224 $ 12,446 VERONA BORO $ 9,907 $ 10,303 $ 10,931 $ 11,375 $ 11,919 CRESSKILL BORO $ 10,428 $ 10,493 $ 11,024 $ 11,241 $ 11,708 Verona: Five Year Average: Lowest Cost Per Pupil Among Comparative Groups http://www.state.nj.us/njded/guide/2009/

17. 17 Appendix 2: Classroom Spending per Pupil 2004-052005-062006-072007-082008-09 GLEN RIDGE BORO $ 304 $ 377 $ 304 $ 270 $ 363 VERONA BORO $ 249 $ 320 $ 249 $ 351 $ 355 NEW PROVIDENCE BORO $ 196 $ 207 $ 197 $ 250 $ 337 PARK RIDGE BORO $ 204 $ 263 $ 204 $ 331 $ 318 CEDAR GROVE TWP $ 243 $ 321 $ 243 $ 248 $ 316 BERKELEY HEIGHTS TWP $ 254 $ 278 $ 254 $ 318 $ 310 KINNELON BORO $ 399 $ 329 $ 400 $ 313 $ 275 MADISON BORO $ 184 $ 248 $ 184 $ 224 $ 210 CALDWELL-W. CALDWELL $ 289 $ 149 $ 289 $ 247 $ 208 CRESSKILL BORO $ 243 $ 177 $ 243 $ 257 $ 179 http://www.state.nj.us/njded/guide/2009/ Budget managed in a way to assure that classroom spending per pupil is a major priority and initiative

18. 18 Appendix 3: Tax on Average Home 2008 Cedar Grove$ 8,063 Verona$ 8,806 Berkeley Heights$ 9,447 Caldwell Township$ 9,452 Park Ridge$ 9,586 Madison$ 10,075 New Providence$ 10, 601 Kinnelon$ 12,040 Cresskill$ 12,547 Glen Ridge$ 15,826 Average$ 10,644