Making Sense of the 2014-15 School Budget

There has been both confusion and concern surrounding the 2014-15 Moorestown Township Public Schools budget, along with inaccurate information. 

In this article, I hope I can clarify areas of confusion for those who are already familiar with the budget, and provide new information for those who have not seen the initial budget proposal. This is meant to be an overview of the budget, and more detailed information can be found at www.mtps.com in the March 4 PowerPoint presentation.

At the March 4 special Board of Education meeting, an overview of the district’s budgetary situation was outlined. This will be a particularly challenging financial year for the district because less revenue will be available and expenditures are expected to rise. 

On the revenue side, the board has less fund balance (surplus) available (about $2.1 million less than the 2013-14 budget), which in past years has allowed the Board to include a larger amount in the budget. If taxes are raised to 2%, which is the maximum allowed by law, about $1.08 million would result.

On the expenditures side, salaries and benefits are expected to increase by about $2.3 million, along with other increased expenses. In Moorestown, salaries and benefits amount to about 80% of the school budget. A financial problem is created because regardless of other factors, salaries and benefits are rising over what we have the authority to raise taxes to compensate. Overall, the challenge is a $4 million dollar deficit. 

In order to close this deficit, a proposal was presented to the Board to have a 2 percent tax levy increase, along with a series of changes throughout the district, including in every school and in overall district efficiency. Principals were asked to identify possible areas that could be changed or eliminated in order to close the deficit. It is important to keep in mind that this is strictly preliminary, and is not finalized.

I would like to share a few of the changes that I have heard most frequently discussed in the community. 

First is the proposed activity participation fee, which if approved would implement a fee for participating in the theater program, athletics, and clubs.

Second, is the proposed cut of kindergarten paraprofessionals, which concerns many board members, including myself. 

A third change is the potential impact on the music program at the UES, which would push back available opportunities by one grade. No direct changes in the music program are planned at the high school, but personnel could be affected. In addition, these changes would also likely result in increased class sizes across the district.

The Board does have another option in closing the budget deficit by using banked cap. Banked cap is not an existing source of money, but rather taxing authority. This was accumulated during years that the Board did not budget to the full 2 percent cap, and is maintained for a three-year period.

The board currently has about $2.5 million in banked cap. This means that the board could raise taxes over the 2 percent cap, but this must be approved by the County Office and follow certain criteria.

This would allow fewer cuts and changes to take place. A key decision facing the board is whether banked cap will be used or not.

The Board has decided to move forward with a revenue generation committee to investigate alternatives and creative revenue sources. While I would like to have seen this implemented much earlier, there was resistance early on.

Moving forward, the Board must submit an initial budget to the County Office by March 20, and the Board plans to approve the initial budget at our regularly scheduled March 18 meeting. 

A public hearing date has been tentatively scheduled for April 29, after which the Board will vote on the final budget for 2014-15.

I would like thank each resident who has spoken at a board meeting or contacted the Board, because this allows us to hear the perspectives of a wide range of citizens. As always, do not hesitate to reach out to the Board or myself if you have any questions or concerns. We invite you to attend a future Board meeting. 

--

The views and content in this column do not necessarily represent those of the Moorestown Board of Education as a whole or any other individual member.