THE FISCAL CLIFF NJASBO DECEMBER 8, 2015 CHARLES MULLER INTERIM EXECUTIVE COUNTY BUSINESS OFFICIAL

What is the Fiscal Cliff? The Fiscal Cliff will occur when a district no longer has sufficient Revenues to continue to support the appropriations in a school district’s budget. Specifically, a school district will have to make decisions on balancing their budget.

Revenues What sources of Revenue does a district currently receive that could no longer be available which would cause a district to face The Fiscal Cliff ◦Excess Surplus ◦Banked CAP ◦Enrollment adjustments ◦Health care adjustments ◦2% tax levy increase ◦Adjustment for increase in certain normal and accrued liability pension contributions (pension deferral) ◦Adjustment for responsibility shifted to another district or entity ◦Adjustment for responsibility assumed by district

Appropriations What are the major appropriations increases (expenses) that could cause a district to face the Fiscal Cliff ◦Salaries and staffing levels ◦Health benefits: ◦Major medical, prescription, dental ◦Chapter 78 – what phase are you in? ◦Workers compensation insurance ◦Utility costs ◦Out of district placements ◦Send/receive tuitions ◦Special education ◦Co-curricular and athletic programs

What Can a District Do? ◦Review non-mandated programs ◦Review and adjust fund 20 grants ◦Address any potential legal settlements ◦Pay for grant expenses after reimbursement is received ◦Review all outstanding projects for closeout ◦Maximizing SEMI revenue ◦Operating costs ◦Changes in excess surplus ◦Changes in Banked CAP ◦Collective bargaining agreements ◦Evaluate class size ◦Change in insurance providers