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State NJ Education Defeated Budget Presentation 2008


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State NJ Education Defeated Budget Presentation 2008 - Proceess Explained

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State NJ Education Defeated Budget Presentation 2008

  1. 1. Defeated Budget Process NJ Department of Education April A il 2008 1
  2. 2. Defeated Budget Process 2008- 2008-2009 Defeated Budget Packet 1. 1 Election Day 2. Consultation Phase 3. District & Municipal Role 4. Tax Certification Options p 5. Post Certification and Next Steps 6. 2
  3. 3. Defeated Budget Packet Memo outlining p g process – posted at: p Memo includes two attachments: Attachment 1 - List of required budget items every district with defeated budgets it di t i t ith d f t d b d t MUST send to municipal governing body(ies) Attachment 2 - S Att h t Sample M l Memo for Districts f Di i to use when sending out Attachment 1 required items 3
  4. 4. Key Dates & Responsibilities Date County Office School District Municipal ity Distribute memo to all districts Wednesday, April 9 that Defeated Budget Pkg is posted on the Web Tues, April 15 ELECTION DAY Wed, April 16 Report Election Results to By 9:00 am County Office By Noon Create/Mail Letters (municipal letters) to Governing Body(ies) of Districts with Defeated Budgets (with municipal letter attachment) Mail Budget & Defeated Budget By April 23 (2 days following Info with Salary info (attachment Certification of election 1 and appendix C) using Sample Send Receipt of Budget & results) Cover (attachment 2) to Defeated Budget Info Municipal Clerk Contact District/Muni Officials Schedule Mtg with Municipal Mtg(s) to discuss/set general Apr 23 – May 19 CONSULTATION PHASE Officials & Notify County fund tax levy By May 19 CERTIFY TAX LEVY Resolution with required line- item reductions & justifications/statements. 4
  5. 5. ELECTION DAY Tuesday April 15, 2008 District Reports Election Results to County Office by 9 a.m. April 16th 5
  6. 6. Districts with Defeated Budgets d/ S B d t and/or Separate t Proposals p WHAT HAPPENS NEXT???? 6
  7. 7. Consultation Phase April 16 - May 19 By April 16, County Office prepares B A il 16 C t Offi Letter to Municipal Clerk which outlines defeated budget process Consultation period begins between BOE and municipal governing body(ies) with Executive County Superintendent g p guidance 7
  9. 9. District Responsibilities By April 23rd yp Two days after certification of election results 4BOE prepares Defeated Budget Info Info. per N.J.A.C. 6A:23-8.10(a)1 6A:23- ( (attachment 1 of defeated budget p g packet), ) Salary info. per P.L. 2007, c.53 (Appendix C of budget guidelines), and Letter of Transmittal (attachment 2 of defeated budget packet) Required f R i d for all d f t d b d t ll defeated budgets 9
  10. 10. District Responsibilities Defeated Budget Information (attachment 1): Proposed Budget for 08-09 08- 1. Separate proposals passed by voters 2. 2 Salary schedules for all employees 3. (07- (07-08 & 08-09) 08- Pupil enrollment by grade as of 4. 6/30/07, 10/15/07 & projected 10/15/08. 10
  11. 11. District Responsibilities Defeated Budget Information (attachment 1): cont. # of schools & classrooms in each, incl 5. pup capacity pupil capac ty in eac classroom each c ass oo Detailed tuition analysis (sent &/or 6. received)) Analysis of professional & 7. nonprofessional staff, 07-08 & 07- projected for 08-09 (incl list of 08- retirees) 11
  12. 12. District Responsibilities Defeated Budget Information (attachment 1): cont. Proposed capital projects and/or 8. deposits into cap ta reserve depos ts to capital ese e Copies of BOE’s most recent annual 9. report, annual audit, comparative p, , p spending guide, and report card Any other information deemed 10. appropriate by Executive County Superintendent for a specific BOE 12
  13. 13. District Responsibilities Defeated Budget Information – Salary Information (Appendix C) y ( pp ) Pursuant to P.L. 2007 c.53, districts 4 must prepare supporting documents pp pp g for salary and benefit information for certain employees: Superintendent Assistant Superintendent Business Administrator Any employee not a member of a collective bargaining unit with a salary unit, that exceeds $75,000 13
  14. 14. District Responsibilities As soon as possible, district administration should establish meeting date with municipal officials to review t u c pa o c a s ee defeated budget information Executive County Superintendent should be y p notified of the date Open Public Meetings act applies if either BOE or municipal governing body, or both, have majority present 14
  15. 15. Municipal Governing Body Responsibilities By Monday, May 19th Municipality must certify General 4 Fund Tax Levy (not the entire general fund budget) to the County Board of Taxation CANNOT certify a tax levy below minimum levy required by N.J.S.A. ii l i db NJSA 18A:7F- 18A:7F-5 15
  16. 16. Municipal Governing Body Responsibilities R ibiliti Certify Levy by resolution for the sum of the base budget amount and any passed separate proposal(s) No authority to change debt service levy 16
  17. 17. Municipal Governing Body Responsibilities R ibiliti If certifying a decrease from the proposed base budget levy, governing body must also provide the BOE a: statement of the specific line-item reductions line- and revenue increases to offset the levy d i ff hl reduction; and a certification attesting the revised budget is sufficient for provision of a thorough and p g efficient (T&E) system of education. 17
  18. 18. Municipal Governing Body Responsibilities R ibiliti If certifying a decrease from proposed levy below the adequacy Budget, the municipality MUST also provide a specific written explanation and document by clear and convincing evidence for each line-item line- reduced that it either will not adversely affect T&E or the BOE’s overall operations ff t th BOE’ ll ti given the need for long term planning and budgeting. bd i 18
  19. 19. Municipal Governing Body Responsibilities R ibiliti And remember for certifications below the adequacy budget budget… The Burden of Proof is on the municipality that the reduced levy is sustainable for T&E . 19
  20. 20. Municipal Governing Body Responsibilities R ibiliti For defeated separate proposal(s): →Restoration b municipality is no l by l longer allowed. Decision of the voters is final. 20
  21. 21. Governing Body Options for Certifying a Reduced Levy Acceptable Line-Item Recommendations Line- 21
  22. 22. Proposed Budget > Minimum Levy Reduce general fund appropriations for 1. amount equal to or less than the difference between proposed tax levy and minimum tax levy; Increase other general fund revenues I th lf d 2. (budgeted fund balance or misc revenues) for amount equal to or less than the difference between proposed tax levy and minimum tax levy y y 22
  23. 23. Proposed Budget > Minimum Levy Appropriation of Surplus less than 2% remember… A municipality cannot increase budgeted fund balance (surplus) to reduce tax levy if the increase results in th BOE’ i the BOE’s remaining surplus balance ii l bl to be < $250,000 or the minimum amount necessary based on district circumstances and needs, whichever is higher 23
  24. 24. Proposed Budget = Minimum Levy If the proposed budget is at the minimum levy, the municipality levy, must certify the minimum levy. There are no options to reduce below the minimum. 24
  25. 25. Use of Capital / Maintenance / Emergency R E Reserves Neither the municipality nor BOE h th legal authority to has the l l th it t appropriate capital reserve to offset current expense funded by tax levy Only legal appropriation would be to offset capital outlay funded by tax levy but appropriation must fund projects that do not require voter approval (projects without excess costs) l( j ih ) Withdrawal from maintenance reserve is permissible if for required maintenance projects in the comprehensive maintenance plan that were included in the original budget Withdrawal from Emergency Reserve requires approval of the Commissioner, therefore not an option for reducing levy 25
  26. 26. Capital / Maintenance / Emergency Reserves Reserves cont’d Lastly… →Reducing a Capital Reserve withdrawal does NOT impact general fund levy and therefore, it is NOT a viable option →Reducing a Capital Reserve deposit DOES impact general fund levy and therefore, it IS a viable option, even if included in LRFP →Increasing a Maintenance Reserve withdrawal may impact general fund levy and therefore, it IS a viable option →Reducing an Emergency Reserve deposit DOES impact g general fund levy and therefore, it IS a viable option. y , p 26
  27. 27. Other Opportunities to Reduce Costs Costs Shared services agreements with local municipality →County Offices can facilitate Coordinate transportation services with other districts or utilize a CTSA Joint purchase copy paper, school supplies, fuel, etc Privatization options (e.g. food services, (e.g. maintenance) Energy efficient practices (e.g. energy efficient light bulbs, 4-day weeks in summer) 4- Courtesy busing taken over by muni (will affect cap calculation) 27
  28. 28. Shared Services under the Uniform Shared Services and Consolidation Act Uniform Shared Services and Consolidation Act (N.J.S.A. 40:65-1) 40:65- enables districts to enter into contracts with local units of gov’t to share services Limited to services which each entity could otherwise legally perform for itself 28
  29. 29. Shared Services Agreements DCA promulgated guidance, however, no guidance however oversight authority of agreements at the state level; established locally locally. DCA states generally, a shared service should involve the utilization of one unit’s existing unit s employees/services If desire to enter into agreement to jointly g j y purchase a service or good, that would generally fall under the joint purchasing law (N J S A 18A:18A-11) & regulation (N.J.A.C. 5:34- eg lation (N J A C 5:34- (N.J.S.A. 18A:18A- 18A 18A 5 34 7), not the shared services legislation. 29
  30. 30. Post Certification BOE and Municipality Next Steps 30
  31. 31. BOE Revises Budget BOE is NOT bound by municipal officials specific line-item reductions; BOE is ONLY line- bound by the total amount of the reduction in tax levy District MUST submit revised budget including all supporting documentation items and SFRA calcs updated as appropriate Districts should not change p j g projected 08- 08- • 09 enrollment in the revised budget 31
  32. 32. Revised Budget If BOE does not dispute reductions reductions, the Executive County Superintendent will ascertain whether revised budget is sufficient for T&E and maintain stability for final budget approval approval. 32
  33. 33. Dispute Resolution If BOE disputes reductions, the reductions Executive County Superintendent will schedule a combined meeting with BOE and governing body(ies) to reach agreement. If revised tax levy agreement is agreed upon, county board of taxation is notified notified. 33
  34. 34. Failure to Certify Failure to Agree F il A If no tax levy is certified by May 19 (“failure to certify”) y ( y) or regional constituents certify different amts y (“failure to agree”) then Commissioner must certify y the amount under the law even if dispute resolution p continues. 34
  35. 35. Application for Restoration If a tax levy is certified but no agreement is reached, BOE can file an Application for Restoration for some or all reductions, within 10 working d ki days of th tax levy f the t l certification. certification. Governing body then has 10 working days afte eceipt da s after receipt of application to submit comments. 35
  36. 36. Application for Restoration If an application for restoration has been filed, negotiations can still continue toward agreement As long as the muni certified a rate by May 19 then they can recertify 19, with a lesser cut after May 19 (cannot certify a greater cut) 36
  37. 37. Application for Restoration And remember… There is no requirement under law or regulation that Commissioner g decisions on Applications for Restoration will be finalized before tax bills are mailed. Generally, all decisions are completed by the end of August 37