2006/07 Budget Process zThe budget was developed in committee, and through administrative review by the Superintendent and Business Administrator. zThis is the second review with the entire board and the first chance for the Board and public to see actual projected numbers. zThe process included: yFinance Committee Review at every Meeting yBudget Review meetings with all Building Principals ySpecial Education Review with Director yAthletic Budget Review with Athletic Director zPublic Hearing on Budget – Begins Tonight – Ends March 23 rd yChanges can be made to the budget yBoard will vote on final budget that goes to voters on March 23 rd zSchool Board Election & Budget Approval – Tuesday, April 18 th.

Last Year’s Prediction: Looking Ahead – to this 2006/07 Budget zTwo known major impacts: y1% surplus used this year (2005), will not be available next year. Alternative funding has to be found to replace this stream. yDebt service will increase by ~$500,000 equivalent to a 2% tax hike. yThese two alone represent a 3% tax increase, everything else the same. zUnknowns yRepresented Staff contract is up in ’05/06 yBenefit costs continue to escalate (20% this year) zTechnology costs have to be addressed. Computers are aging and a plan, probably expensive one, has to be put in place. This could easily be a 1% tax increase. zSTATUS = THESE PREDICTIONS HAVE BEEN ON-TARGET

S1701 Law: Impact on School Budgeting zBudget Cap reduced from 3% to 2.5% or CPI whichever is greater. We assume (3.71%) this year ySpending reductions may only be made to excessive administration and programs and services that are inefficient or ineffective zSurplus has to be reduced to 1% yOur “savings” account was reduced last year to reduce the property tax increase last year. This revenue stream is not available this year, resulting in a cost to taxpayers of 1% to make up the difference in our budget. zAdministrative Cost Limits: 0% this year and every year thereafter. yAs written, this effectively has frozen administrative salaries. yDoes not treat efficient administrative costs different from inefficient. zContent of 2 nd Questions limited further yCounty Superintendent has power to prohibit District from having a 2 nd Question zSpending Power flows from Local to County Control. Financing stays Local.

Budget Is Driven by Salaries and Benefits

Our Debt Service Through

1 - Budget Cuts and Reductions Proposed Item Identified$ ImpactEducational Impact 1.0 Elementary Teacher – Central School $55,000Class Size Increases All other Teacher Hires Removed N/AElem. Class Size Music/Art H.S. Guidance Reduction in Overtime Pay$50,000Work not done Reduction in Curriculum Pay$30,000New process; work not done Reduction in Extra Pay$70,000New processes; Work not done

Elementary Class Enrollment

2 - Budget Cuts and Reductions Proposed Item Identified$ ImpactEducational Impact Reduce Energy Costs$50,000New Energy Position; Guaranteed Savings Reduction in Instructional Supplies & Materials $30,000Reduced amount of teacher supplies Reduction In Purchased Services - Contracted $50,000More work in-district; work not done Other Reductions$30,000Reduction in programs

3 – Two New Revenue Sources Proposed Item Identified$ ImpactEducational Impact Increase Number of Tuition Students at Haddonfield High School by 10 $101,000 Larger 9 th grade class; 210 students; class size impacted Charge Regular Education Parents for Our Pre-School Program – currently a free service $80,000 to $100,000 Parents must pay; concern about impact on inclusive program

The Bottom Line: zTotal Budget Increase ~ 6.05%  Operating Expenses = $29,083,502 x$1,522,340 (5.52 %) Increase Over Last Year yDebt Service = $1,978,530 Increase x$537,587 (37.3%) Increase over :Impact = 2% on Tax Bill yState Aid = $1,659,239 xClose to last year – no increase in aid  BOTTOM LINE (Local Tax Share) = $28,583,460 y$1,934,318 (= 6.05% tax increase) Increase Over Last Year y$348 per Year increase for average assessed home

Proposed Budget – 6.05% School Tax Increase z Averaged Assessment of $220,000: ySchool Tax Increases $348 from $5,755 to $6,103 yTax Rate Per $100 Assessed Value = $2.77 z School Board Elections – Tuesday, April 18th