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This is the Gov 2 presentation provided by NJSBA in Williamstown, NJ on 01/09/2010

This is the Gov 2 presentation provided by NJSBA in Williamstown, NJ on 01/09/2010

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  • THE FIRST TWO ARE MORE NECESSARY THAN EVER BEFORE ATTORNEY SHOULD BE INVOLVED IN NEGOTIATION AND IN MAKING SURE THAT THE CONTRACT MEETS ALL LEGAL REQUIREMENTS THIRD -SAME AS WITH UNIONS FOURTH – MERIT PAY FIFTH – DON’T GET YOURSELVES IN THE PRESS IN A BAD LIGHT LAST – LEADS TO BETTER RELATIONSHIP
  • THE FIRST TWO ARE MORE NECESSARY THAN EVER BEFORE ATTORNEY SHOULD BE INVOLVED IN NEGOTIATION AND IN MAKING SURE THAT THE CONTRACT MEETS ALL LEGAL REQUIREMENTS THIRD -SAME AS WITH UNIONS FOURTH – MERIT PAY FIFTH – DON’T GET YOURSELVES IN THE PRESS IN A BAD LIGHT LAST – LEADS TO BETTER RELATIONSHIP
  • SLIDE IS SELF-EXPLANATORY
  • The Players Municipal Gov. – collects taxes –defeated budget oversight NJ DOE – Reviews budget – Thorough and Efficient meeting all mandated programs Board of Education Treasurers of School Moneys Auditor Board Secretary Business Administrator Taxpayers Finance Chair
  • SLIDE IS SELF-EXPLANATORY
  • SLIDE IS SELF-EXPLANATORY
  • SLIDE IS SELF-EXPLANATORY
  • SLIDE IS SELF-EXPLANATORY
  • NJQSAC and good board governance mandate that the board and the administration set budget parameters that will support the district goals and most importantly move student achievement forward. The budget is by design a consensus document that all board members should be able to support fully. It is crucial that the board set parameters with their administrative team early enough in the process so that the administrative burden that could come with a myriad of changes is reduced. The executive county superintendent has sweeping authority on behalf of the commissioner to realign, reduce or add to your budgets. Boards need to have a clear understanding of what can and can not be included. Once the board has developed the budget, the county supet. Has approved it- the board’s responsibility is to communicate to your public, all of your stakeholders, the advantages that will accrue to your students as a result of the implementation of the budget as well as the fiscal efficiencies you have build into the budget. Your role is to ensure that you have provided the best education possible for all of the children in your community in the most fiscally efficient, prudent and responsible manner.
  • Highlighted here are some of the specific requirements for all schools budgets. Note the base budget must be within regional limits and there is specific language in the new regulations that point out that past budget practice or specific allocations are NOT sufficient reason to retain in a following budget. The Exec. County Supt. Is going to be looking at multiple resources to drive his/her decisions around your budget– the comparative spending guide along with many of your internal documents- LRFP, LRMP, audit, test scores, etc. All administrative and non-instructional expenses- and we will see some of these specific in a moment or two on the following slides are subject to particular scrutiny- so your board will want to pay close attention in these areas. Separate proposals- second questions that require a 60% vote for passage continue to require Exec. County Supt approval and again, require that boards demonstrate they are actively participating in shared service arrangements to contain district costs- and if not sharing services, provide documentation that sharing services would not result in cost savings or would indeed, cost the district more. Also note that the focus in on ensuring funds to the classroom to provide students with high quality instruction-aligned with the NJCCCS.
  • Here is some of the specific language around your budget for the coming year. District expenditures are being tied directly to the state average or median. Your board will need to have specific information from your financials- your BA- to let you know how your proposed budget expenditures line up to the state in these areas
  • Here are some specific requirements that districts will have to account for in their budgets. Some of you may recognize these as indicators from the various DPRs in NJQSAC-they are restated now as part of the regs for implementation of your budget. Some of you may find these particularly restrictive and may impact smaller districts disproportionately. One might conclude from this, that the ongoing efforts toward consolidation/regionalization are being coordinated through multiple sets of regulations around various legislative mandates- njqsac, A1, A5.
  • INTRO COMMENTS RE: PERC LAW VS. SUPT. NOT LR BUT NEGOTIATION LET’S LOOK AT THE ADVICE WE HAVE BEEN GIVING YOU ALL ALONG THEN DO AN OVERLAY OF THE RECENT DEVELOPMENTS
  • THE FIRST TWO ARE MORE NECESSARY THAN EVER BEFORE ATTORNEY SHOULD BE INVOLVED IN NEGOTIATION AND IN MAKING SURE THAT THE CONTRACT MEETS ALL LEGAL REQUIREMENTS THIRD -SAME AS WITH UNIONS FOURTH – MERIT PAY FIFTH – DON’T GET YOURSELVES IN THE PRESS IN A BAD LIGHT LAST – SAME BALANCING ACT AS WITH UNION
  • SLIDE IS SELF-EXPLANATORY MENTION HANDOUT PUBLIC HEARING VS PUBLIC MEETING
  • Just as a review……..for renewal or non-renewal
  • TOTAL ECONOMIC IMPLICATION SHOULD BE FOCUS STRESS MORE DETAIL ABOUT THESE WILL COME LATER!
  • ENTER NEW REQUIREMENTS JUNE 8, 2007
  • REGUALTIONS
  • NEW CHARACTER ADDED TO THE CAST FROM REG P. 12 OF 84 “PROVISION FOR CONTRACT EXTESIONS WHERE SUCH TERMS WERE NOT INCLUDED IN THE ORGINAL EMPLOYMENT CONTRACT OR ARE DIFFERENT FROM THE PROVISIONS CONTAINED IN THE ORGINAL APPROVED EMPLOYMENT CONTRACT”
  • SPEAKING OF PUBLIC HEARING NOTE THAT PUBLIC MEETING, THEREFORE DISCLOSURE IS ALWAYS NECESSARY, BUT HEARING IS FOR THINGS NOT GOING TO ECS FROM 18:11-11    A board of education shall not renegotiate, extend, amend, or otherwise alter the terms of a contract with a superintendent of schools, assistant superintendent of schools, or school business administrator, unless notice is provided to the public at least 30 days prior to the scheduled action by the board. The board shall also hold a public hearing and shall not take any action on the matter until the hearing has been held. The board shall provide the public with at least 10 days' notice of the public hearing.
  • “ The Board of Education shall provide the exec county supt with a detailed statement setting forth the total cost of the contract for each applicable year, including…………” Travel consistent with 18A:11-12 including but not limited to mileage and meals and lodging Reimb examples: FICA, taxes, medicare, pensions
  • 18a:17-20.2A REQUIRES SEP AGREEMENT TO GO TO AND GET APPRVL FROM COMMISSIONER 6A: 23A-3.2 COVERS REQ’T (MAY HAVE SEP PROVISION IN CONTRACT) (d) “NO EARLY TERMINATION AGREEMENT SHALL CONTAIN PAYMENT OF COMPRNSATION AS A CONDITION OF SEPARATION WHEN THE EXISTING EMPLOYMENT CONTRACT ALREADY CONTAINS PROVSIONS FOR COMPENSATION AS A CONDITION OF SEPARATION.” E.G. ANNUITY or life insurance plan that supplements or duplicates a plan already made available to the ee FROM DOE Q&A: “ AN ANNUITY FOR THIS PURPOSE REFERS TO A NINANCIAL INSTRUMENT IN WHICH THE BOARD OF ED INVESTS FUNDS ON A TAX-DEFERRED BASIS IN THE NAME OF AN EMPLOYEE TO BE DISTRIBUTED BACK TO THE EMPLOYEE IN THE FUTURE.”
  • THIS LANGUAGE IS OUT OF REGS, HOWEVER STAT LANGUAGE WOULD APPEAR TO ALLOW ACCUM TO END OF EXISITING CONTRACT.
  • PER DIEM ALSO APPLIES TO BA’S ETC. SO DO ALL OF THE REST OF THIS SECTION
  • THE FIRST TWO ARE MORE NECESSARY THAN EVER BEFORE THIRD - NOW MUST DOCUMENT FOURTH – NOW MUST DOCUMENT FIFTH – DON’T GET YOURSELVES IN THE PRESS IN A BAD LIGHT

Gov 2 Presentation Transcript

  • 1. SCHOOL FINANCE 2009 Property Tax Caps and State Aid A Look at the Numbers
  • 2. PROPERTY TAX CAPS AND SCHOOL BUDGETS A-1, N.J.S.A. 18A:7F-37 - 7F-42 P.L. 2007 c. 62, 4/3/07 N.J.A.C. 6A:23A-10,11,12
  • 3. Sustainable Property Tax Relief
    • Property Tax Levy Cap: 4%
    • School Districts
    • Municipalities
    • Counties
    • Fire Districts
    • Solid Waste Collection Districts
    • Allowable Waivers
  • 4. School Budget Cap Changes
    • Net Budget – CEIFA 1997-2007
    • Tax levy, state aid, locally generated revenue, appropriated surplus
    • Tax Levy Growth Limitation
    • 2007-2008 through 2011-2012
  • 5. Tax Levy Growth Limitation
      • Pre-Budget Year Adjusted Tax Levy + Enrollment Increase Adjustment: 4%
      • + Reduction in State Aid
      • + Increase in Health Care Costs
      • + Commissioner Waivers
  • 6. Pre-Budget Year Adjusted Tax Levy
      • Pre-Budget Year School District Property Tax Levy
      • - Debt Service
      • - Commissioner Waivers and Second Ballot Questions; unless permanent
  • 7. Enrollment Increase Adjustment
    • Per Pupil Pre-Budget Year Adjusted Tax Levy
    • Weighted Student Adjustment
    • 0.00 – Below 1%
    • 0.50 – 1% to 2.5%
    • 0.75 – 2.5% to 4%
    • 1.00 – Over 4.0%
    • Commissioner Approval - 1.0 for all Average Class Size 10% Above Facilities Efficiency Standards
    • DOE Enrollment Projections
  • 8. Tax Levy Growth Limitation Add-Ons
    • Reduction in State Aid
    • Increase in Health Care Costs
    • Commissioner Waivers
  • 9. Increase in Health Care Costs
    • Increase from Pre-Budget Year Budgeted Amount over 4% - Health, Prescription Only
    • - Current Expense Emergency Reserve Appropriation
    • Not Greater than Average SHBP or SEHBP Percentage Increase – 6.9% in 2007-2008, 4% in 2008-2009, 2009-2010?
  • 10. Commissioner Tax Levy Waivers 2009-2010
    • NJQSAC/NCLB - Failure to meet CCCS; Needed Programs and Services
    • Energy Cost Increases Over 4%
    • Capital Outlay Increases Over 4%
  • 11. Commissioner Tax Levy Waivers 2009-2010
    • Appropriation of Non-Recurring Revenues, Surplus
    • Non-Health Insurance Cost Increases Over 4%
    • Hazardous Route Transportation Cost Increases Over 4%
  • 12. Commissioner Tax Levy Waivers 2009-2010
    • Special Education – Per Pupil Costs Over $40,000, Increases Over 4%
    • Tuition Increases – Sending-Receiving/ Vo-Tech Over 4%
    • Opening a New School Facility
  • 13. Commissioner Tax Levy Waivers 2009-2010 Procedures
    • Submission at least five working days before budget; annual determination
    • Commissioner may reallocate in budget up to waiver request
    • Commissioner decides – Permanent Tax Levy Increase or Not
    • No appeal if Commissioner refuses– may go to voters as second question
  • 14. Commissioner Authority
    • NJQSAC/NCLB Improvement
    • Commissioner May Direct School District to Increase Specific Line Item Expenditures
    • May Increase Tax Levy to Support Line Item Increases
  • 15. Commissioner Authority
    • Commissioner may grant waiver for services essential to health, safety and welfare of school children
    • Extraordinary circumstances
    • Unanticipated increase in expenditures, one year
  • 16. Commissioner Authority
    • N.J.S.A. 18A:7F-60
    • The commissioner shall be authorized to take any affirmative action as is necessary to ensure the effective and efficient expenditure of funds by school districts.
  • 17. Cap Banking
    • Cap Banking Eliminated: 2007-2008 through 2011-2012
    • Prior Banked Cap May Not be Used
  • 18. Budgetary Issues Affecting Cap
    • Excess Surplus
    • Underbudgeted or Unanticipated Revenue
    • Transfer Limitations
    • Administrative Cost Limits
  • 19. Second Ballot Questions
    • Must be included in preliminary budget
    • Proposals may not include programs and services necessary to achieve core curriculum content standards.
    • Interpretive statements must include whether approval will result in permanent tax levy increase.
  • 20. Second Ballot Questions
    • Executive County Superintendent must approve before submission to the voters.
    • Executive County Superintendent may disapprove if all potential efficiencies are not met.
  • 21. Second Ballot Questions
    • Voter Approval – 60% Needed
    • If defeated, no appeal
    • If defeated, may not modify base budget; donation exception
    • 2008-2009 through 2011-2012
  • 22. Commissioner Study
    • N.J.S.A. 18A:7F-59
    • Commissioner study on tax levy growth limitation; end of 2010-2011 school year
    • Recommendation on use of tax levy growth limitation, spending growth limitation or other limitation after 2011-2012.
  • 23. State Aid
    • School Funding Reform Act of 2008
    • SFRA 2008
    • P.L. 2007, c. 260 January 13, 2008
    • N.J.S.A. 18A:7F-43 - 7F-63
  • 24. School Funding Reform Act of 2008
    • Equalization Aid
    • N.J.S.A. 18A:7F-52
    • Equalization Aid =
    • Adequacy Budget – Local Share
  • 25. School Funding Reform Act of 2008
    • Adequacy Budget - 2009-2010
    • Base Cost – Weighted Enrollment +
    • At- Risk Cost +
    • LEP Cost +
    • Combined Cost +
    • Special Education Census (2/3) X
    • Geographic Cost Adjustment
  • 26. School Funding Reform Act of 2008
    • Adequacy Budget - 2009-2010
    • Base Per Pupil Amount - $ 9,971
    • Grade Level Weights
    • Kindergarten (1/2) 0.5
    • Kindergarten (full) 1.0
    • Elementary (K-5) 1.0
    • Middle School (6-8) 1.04
    • High School (9-12) 1.17
  • 27. School Funding Reform Act of 2008
    • Adequacy Budget - 2009-2010
    • LEP Weight - 0.5
    • At-Risk Weights
    • Below 20% - 0.47
    • 20 - 60% - 0.47 + ((%-.20)(.25)
    • Above 60% - 0.57
    • Combined Weight – At Risk + 0.125
  • 28. School Funding Reform Act of 2008
    • Special Education Census
    • State Average Classification Rate, General Special Education Services – 14.69%
    • Excess Costs, General Special Education Services - $ 10,898 (08-09), $ 11,261 (09-10)
    • State Average Classification Rate, Speech-Only Students – 1.897%
    • Excess Costs, Speech Only - $1,082 (08-09), $1,118 (09-10)
    • Over 2/3 Special Education Aid Equalized
  • 29. School Funding Reform Act of 2008
    • Education Adequacy Report
    • N.J.S.A. 18A:7F-46
    • First report to be issued September 1, 2010 and then every 3 years thereafter.
    • Amounts established are increased by CPI in each of the next two succeeding years.
    • 2009-10 CPI = 3.34%
  • 30. School Funding Reform Act of 2008
    • Local Share Calculation
    • N.J.S.A. 18A:7F-52
    • Equalized Valuation – 50%
    • School District Income – 50%
    • Statewide Property Value Rate
    • Statewide Income Rate
    • Equilibrium with Equalization Aid
  • 31. School Funding Reform Act of 2008
    • Local Share Calculation
    • N.J.S.A. 18A:7F-52
    • (Total Adequacy Budgets Statewide) -(Total Statewide Equalized Valuation x Statewide Property Value Rate ) =
    • Total Statewide Equalization Aid
  • 32. School Funding Reform Act of 2008
    • Local Share Calculation
    • N.J.S.A. 18A:7F-52
    • (Total Adequacy Budgets Statewide) -(Total Statewide School District Income x Statewide Income Rate ) =
    • Total Statewide Equalization Aid
  • 33. School Funding Reform Act of 2008
    • Local Share Calculation
    • N.J.S.A. 18A:7F-52
    • ½ (Equalized Valuation x Statewide Property Value Rate) +
    • ½ (School District Income x Statewide Income Rate)
  • 34. School Funding Reform Act of 2008
    • Equalization Aid
    • N.J.S.A. 18A:7F-52
    • Equalization Aid =
    • Adequacy Budget – Local Share
  • 35. School Funding Reform Act of 2008
    • Additional State Aid
    • Preschool Education Aid - N.J.S.A. 18A:7F-54
    • In-District $ 11,506 (08-09), $11,890 (09-10)
    • Private Provider $ 12,934 (08-09), $ 13,336 (09-10)
    • Head Start $ 7,146 (08-09), $ 7,385 (09-10)
    • Special Education – N.J.S.A. 18A:7F-55
    • Categorical portion 1/3
  • 36. School Funding Reform Act of 2008
    • Additional State Aid
    • Extraordinary Special Education Aid
      • N.J.S.A. 18A:7F-55
      • Inclusion, in-district public, $ 40,000, 95%
      • Separate, in-district public, $ 40,000, 85%
      • Separate private providers, $ 55,000, 85%
  • 37. School Funding Reform Act of 2008
    • Additional State Aid
    • Security Categorical Aid – N.J.S.A. 18A:7F-56
    • $ 70 per student + up to $ 406 per at-risk student
    • Transportation Aid – N.J.S.A. 18A:7F-57
    • Mileage, # students, incentive factor
  • 38. School Funding Reform Act of 2008
    • Additional State Aid
    • Adjustment Aid – N.J.S.A. 18A:7F-58
    • 2% Increase 08-09, Hold harmless 09-10,10-11
    • Educational Adequacy Aid – N.J.S.A. 18A:7F-58
    • Educational Opportunity Aid in 07-08 plus several other criteria
  • 39. School Funding Reform Act of 2008
    • State Aid Limitation
    • N.J.S.A. 18A:7F-38
    • Spending above adequacy;
    • Tax levy greater than local share;
    • Receives state aid increase greater than 2% or CPI, whichever is greater; then
    • Tax levy is to be reduced by the amount of State aid which exceeds 2% or the CPI, whichever is greater
  • 40. School Funding Reform Act of 2008
    • State Aid Limitation – Stabilization Aid
    • N.J.S.A. 18A:7F-47
    • Stabilization Aid – Equalization Aid, Special Education Categorical Aid, Security Aid, Transportation Aid, Adjustment Aid
    • State Aid Growth Limit – Statute – Above Adequacy 10%, Below Adequacy 20%
    • State Aid Growth Limit – Appropriations Act, P.L. 2009 C. 68
    • Above Adequacy – 0%, Below Adequacy 5%
  • 41.  
  • 42. The Board’s Role in Finance
  • 43. BOARD MEMBERS’ FINANCIAL RESPONSIBILITIES
    • Overall Responsibilities:
    • Develop policies to ensure financial oversight
    • Oversee financial management
      • Approve monthly financial reports
      • Approve purchase orders and bill list
      • Approve all line item transfers
    • Set annual district goals
  • 44. BOARD MEMBERS’ FINANCIAL RESPONSIBILITIES
    • Overall Responsibilities:
    • Balance educational needs of students and ability to pay
    • Appoint Auditor, Treasurer of School Moneys and Board Secretary
    • Negotiate all labor costs
    • Review and accept NJQSAC Fiscal Management DPR’s
  • 45. BOARD MEMBERS’ FINANCIAL RESPONSIBILITIES
    • Budget:
    • Set budget parameters
    • Budget should support student achievement
    • Evaluate the implementation of the budget
    • Audit:
    • Accept the annual audit
    • Approve the Corrective Action Plan
    • Bidding:
    • Approve or reject bids
  • 46. Board of Education Auditor Superintendent Treasurer of School Moneys Board Secretary Business Administrator NJSDOE Commissioner Executive County Superintendent Municipal Gov. Taxpayers The Players
  • 47. EXECUTIVE COUNTY SUPERINTENDENT
    • A-4 Legislation established the position
    • Appointed by the Governor upon recommendation of Commissioner of Education and approved by the Senate
    • Three year term
    • Reports to the Commissioner
  • 48. EXECUTIVE COUNTY SUPERINTENDENT
    • Duties include:
    • Review of school budgets prior to vote
    • Authority to disapprove portions of budget when deemed appropriate
    • Authority to reallocate expenses within the budget
    • Authority to request a forensic audit
  • 49. EXECUTIVE COUNTY SUPERINTENDENT
    • Duties include:
    • Authority to recommend elimination of non-operating districts
    • Authority to recommend consolidation plan within 3 years to eliminate all non K-12 districts
    • Authority to recommend shared services or consolidation agreements
  • 50. EXECUTIVE COUNTY SUPERINTENDENT
    • Duties include:
    • Review and approve contracts for Superintendents, Assistant Superintendents and Business Administrators prior to execution of their contracts
    • Promote administrative and operational effectiveness
    • Coordinate and develop special education services
  • 51. The Board and the Budget Process
    • District goals must drive budget priorities and decisions
    • Budget parameters set by board/supt. team- a consensus document
    • Process and allocations must support instructional programs, student needs, curriculum/professional development (NJQSAC)
    • Executive County Superintendent role is pivotal; approval required
    • Board should communicated budget information in multiple venues
    • Board must be able to highlight the fiscal efficiencies and programmatic enhancements contained in the budget
  • 52. Executive County Superintendent Budget Review Procedures 6A:23A-9.1
    • Base budget must ensure all curriculum and instruction designed and delivered to meet NJCCCS.
    • Funds to ensure all statutory and regulatory mandates
    • Base within applicable regional limit (NJSA 18A:7F-5).
    • May use as resources for his/her budget analysis: annual audit, comparative spending guide, school report card, contractual obligations, LRFP, LRMP, pupil achievement scores
  • 53.
    • Will review all administrative and non-instructional expenses to insure all potential efficiencies have been implemented and/or eliminated all excessive non-instructional costs
    • Review and approve separate proposals to the voters for additional funds;
    • District must demonstrate it has made efforts to enter into shared arrangements for cost containment; is involved in ongoing shared services
  • 54. Efficiency Standards for Budget Review
    • Resources and costs equal to or less than the “efficiency standards.”
    • Indicators from Comparative Spending Guide for school districts’ operating type and enrollment range indexed to the budget year by the applicable growth in the CPI.
    • The following costs must be equal to or less than the state median or average on a per pupil basis
    • administrative costs
    • support services
    • operations and maintenance
    Administrative and Non-Instructional Expenditures and Efficient Business Practices.
  • 55. Efficiency Standards (cont.)
    • Food service is self sufficient; doesn’t require a contribution from general fund budget.
    • Vacant positions budgeted at no more than step 1 of salary guide-unless justification of additional amount approved by the DOE
    • School district solicits competitive proposals with fee quotes prior to award of contracts for professional services.
    • School participation in SHBP or SEHBP permits coverage waiver incentive; must be less than 50% of cost savings.
  • 56.  
  • 57. SUPERINTENDENTS 101 GENERAL OVERALL CONSIDERATIONS New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 58. SUPERINTENDENT CONTRACT -KEY CONSIDERATIONS
    • Involve the board attorney
    • Follow statutory requirements & timelines
    • Utilize the total package concept for costs
    • Base increase on performance evaluation
    • Be open & honest about the benefit costs
    • Balance needs of district & superintendent
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 59. BOARD ACTION – LEGAL REQ
    • Approval of Original Contract or Renewal or Non-Renewal N.J.S.A. 18A:17-15
      • Public Meeting
      • Roll Call Vote
      • Majority Vote of Full Membership
    • 3 – 5 Year Contract
    • Ending on July 1 st
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 60. RENEWAL – NON-RENEWAL
    • N.J.S.A . 18A: 17 – 20.1 (Amended Dec. 2008)
      • Board must notify in writing if not going to reappoint
      • Notice given by length of time equal to 30 days times the number of years of contract
    • No Action: Automatic Reappointment for Term of Same Duration
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 61. CONTRACT ANALYSIS: BENEFITS
    • Salary, Pension & Social Security
    • Vacation
    • Sick & Personal Leave/Reimbursement
    • Medical Insurance
    • Life Insurance / Disability Insurance
    • Travel & Expense Reimbursement
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 62. N.J.A.C. 6A:23A-1 et seq. SUBCHAPTER 3 ADMINISTRATOR AND BOARD MEMBER ACCOUNTABILITY New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 63. N.J.A.C. 6A : 23A-3.1 REVIEW OF EMPLOYMENT CONTRACTS FOR SUPERINTENDENTS, ASS’T SUPT. AND BA’S New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 64. WHO IS IN LOOP?
    • ROLE - Review & Approve
    • New Employment Contracts (including those replacing expired contracts)
    • Renegotiations, Extensions, Amendments or Other Alterations Of Contracts (if previously approved by Exec. County Supt.)
    • Provision For Contract Extensions (if terms were not in the original or are different from approved original)
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914 EXECUTIVE COUNTY SUPERINTENDENT
  • 65. WHEN ?
    • Prior To Any Required Public Notice And Hearing, Prior To Board Approval And Execution (to ensure compliance with applicable laws)
      • Public Notice and Hearing REQUIRED for Renegotiations, Extensions, Amendments or Other Alterations in the Terms of an Existing Contract
      • NOT REQUIRED for New Contracts (including those replacing expired contracts)
      • Nothing Precludes Public Notice and/or Meeting
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 66. WHAT ?
    • Total Cost For Each Year, Including Salary, Longevity, Benefits And All Other Emoluments
    • Review And Approval Consistent With :
      • Comparable Credentials & Experience In Districts in the Region with Similar Enrollment, Academic Achievements , Challenges & Grade Span
      • Travel Regulations
      • No Provisions For Reimbursement of Employee Contributions Either Required by Law or by a Contract in Effect in the District with Teaching Staff
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 67. WHAT ELSE?
      • No Separation Payment Deemed To Be Prohibitive Or Excessive (Not To Exceed The Lesser Of 3 Months Pay For Every Year Remaining Or The Remaining Salary Amount Due Under The Contract)
      • No Benefits That Supplement Or Duplicate Those Otherwise Available By Operation Of Law, An Existing Group Plan Or Other Means ( However, May Contain Annuity Where Those Benefits Are Already In Existing Contract. “ An annuity for this purpose refers to a financial instrument in which the board of education invests funds on a tax-deferred basis in the name of an employee to be distributed back to the employee in the future . ” )
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 68. WHAT ELSE?
      • Accumulation Of And Payment For Unused Sick Leave Consistent With N.J.S.A. 18A:30-3.5:
        • Only At Time Of Retirement
        • Not Paid To Estate Or Beneficiaries In Event Of Death Prior To Retirement
        • New Contract May Include Credit Of Unused Sick Leave In Accordance With The New Board’s Policy On Sick Leave For All Employees
        • Amount Cannot Exceed The Higher Of Accrued Sick Leave As Of June 8, 2007 (date of law) Or The Sick Leave Accrued After That Date Capped At $15,000 (Contained In DOE Q&A)
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 69. WHAT ELSE?
      • Accumulation And Payment For Unused Vacation Leave Consistent With N.J.S.A. 18A:30-9:
        • Payment For Accumulated Leave Prior To Separation Only For Leave Accumulated Prior To June 8, 2007 And Remaining Unused At The Time Of Payment
        • Leave Accrued After June 8, 2007 Can Be Carried Over Only During Next Succeeding Year
        • Payment For Accumulated Leave Upon Separation Or Retirement (And May Be Paid To Estate Or Beneficiaries In The Event Of Death Prior To Separation)
      • Calculation Of Per Diem For 12 Month Employees Based On 260 Day Work Year
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 70. WHAT ELSE?
      • Any Bonus Must Be Contingent Upon:
        • Achievement of Measurable Specific Performance Objectives Contained in Contract Approved by Exec. County Supt.
        • Deemed Reasonable Relative to Objectives
        • Where Achievement of the Objectives is Documented to the Satisfaction of the District Board
      • No Payment at Time of Separation or Retirement for Work Not Performed (except as otherwise authorized above)
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 71. WHAT ELSE?
      • No Monthly Allowance Except for :
        • Car Not to Exceed Cost of Average Monthly Miles Traveled for Business Multiplied by Allowable Reimbursement in NJOMB Circulars (currently $0.31)
        • If Monthly Allowance – Then No Other Mileage or Permanent Use of District Car for Official District Business
        • No Dedicated Driver or Chauffeur
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 72. WHAT ELSE?
      • NJSA 18A:17-15.1 - An employment contract entered into between a board of education and a superintendent of schools shall include a provision that explicitly states that "in the event that the certificate of the superintendent is revoked the contract is null and void as of the date of the revocation.”
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 73. FINAL WHAT ELSE?
      • No additional compensation nor tuition reimbursement or assistance for graduate degree courses not conferred by a duly accredited institution of higher education as defined in NJAC 6A:9-2.1
  • 74. EXECUTIVE COUNTY SUPERINTENDENT New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 75. SUPERINTENDENT CONTRACT -KEY CONSIDERATIONS
    • Involve the board attorney
    • Follow statutory requirements & timelines
    • Utilize the total package concept for costs
    • Base increase on performance evaluation
    • Be open & honest about the benefit costs
    • Balance needs of district & superintendent
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 76. PENDING ISSUES
    • Pending Legislation
      • State Template
      • Accreditation Verification and Limits on Tuition Reimbursement
    • NJASA Litigation
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914
  • 77. QUESTIONS?
    • As a result of legislative changes, judicial decisions and the readopted accountability regulations there may be some changes to the information included in this presentation. Please contact field services, labor relations or the legal department for further clarification if you have any questions .
    New Jersey School Boards Association – Serving Local Boards of Education Since 1914