A Feasibility Study on the Regionalization of the Communities of Elmer, Newfield and Pittsgrove and the Termination of the Newfield Sending-Receiving Relationships with Franklin and Delsea Regional

Public Meeting

February 16, 2023

1. Status Quo
2. Formation of a PK-12 regional school district between Elmer, Newfield, and Pittsgrove with resulting termination of the sending-receiving relationship between Newfield and Franklin Township and Delsea Regional.

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Scenarios Studied

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DEMOGRAPHIC AND RACIAL ANALYSIS

• Doctorate from Rutgers University Graduate School of Education in Educational Statistics and Measurement.
• 25 years experience as a demographic consultant.
• Numerous publications on school demography and presentations nationally.
• Testified as an expert witness in school demography in several (OAL) Administrative Law hearings.

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Richard S. Grip Ed.D.

1. Population trends (historical and projected) of Elmer, Newfield, and Pittsgrove, as well as constituent communities from Delsea Regional (Elk and Franklin Townships).
2. Relevant Demographic Characteristics in each community (e.g., race, education, income, median housing price, etc.).

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Topics Analyzed by Demographer

• Whites are largest race in each community (73%-87%). Hispanics are 2^nd-largest in each community with the exception of Elk (Blacks/African Americans).
• Median household income ranges from $83,000-$116,000 (NJ= $85,751). Elmer has lowest income and Elk the highest.
• Median value home price range is $187K-$260K. Elmer has lowest median home value and Elk has highest.
• Education levels (Bachelor’s degree or higher) range from 20%-39%, which are all below the state average (NJ-41%).

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Topics Analyzed by Demographer

3. Historical enrollment trends (2016-17 to 2021-22) in each school district.

• Franklin – Enrollments were stable through 2019-20 before declining (1,263 in 2021-22).
• Newfield – Enrollments have been slowly increasing (258 PK-12 in 2021-22).
• Delsea – Enrollments increased through 2019-20 before reversing trend (1,590.5 in 2021-22).
• Pittsgrove - Enrollments declined through 2019-20 before stabilizing (1,659.5 in 2021-22).

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Topics Analyzed by Demographer

4. Birth counts in each community were used to project kindergarten students five years later.

• Franklin had greatest number of births in the last decade but has been declining (165 in 2011, 131 in 2020). Pittsgrove had 2^nd-greatest number, ranging from 52-87.

5. New housing in each community.

• Potential for 15 SF homes in Elk and 10 SF homes in Pittsgrove
• No new homes are proposed in Elmer, Franklin, or Newfield.

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Topics Analyzed by Demographer

6. Enrollment Projections in each district from 2022-23 through 2031-32 (10 years).

• PK-12 regional with Elmer, Newfield, and Pittsgrove – Enrollments are projected to be fairly stable through 2026-27 before increasing.
• 1,992 in 2031-32, gain of 74.5 students from 1,917.5 in 2021-22.

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Topics Analyzed by Demographer

7. Capacity Analysis – Can the existing buildings accommodate all of the students?

• Pittsgrove has surplus seating currently in each school. Elmer School is projected to be at capacity by 2026-27 in status quo. With Newfield students all buildings in Pittsgrove would have surplus seating except the Elmer School (-55).

8. Economically Disadvantaged Students (Free/Reduced Lunch) tabulated in each school and districtwide.

• In 2021-22, percentages range from 14% (Delsea) to 25% (Pittsgrove).

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Topics Analyzed by Demographer

Topics Analyzed by Demographer

9. Racial Impact
1. Racial percentages of each district and school was computed from 2016-17 to 2021-22.
2. Newfield students in 2021-22 (PK-12) - (72% W, 17% H, 5% B, 0% As, 5% Multi-Race, 28% Minority).
3. Franklin students in 2021-22 (PK-6) - (78% W, 11% H, 5% B, 1% As, 5% Multi-Race, 22% Minority).
4. Delsea students in 2021-22 (7-12) - (73% W, 11% H, 11% B, 1% As, 4% Multi-Race, 27% Minority).
5. Pittsgrove students in 2021-22 (PK-12) - (76% W, 12% H, 5% B, 1% As, 6% Multi-Race, 24% Minority).

Topics Analyzed by Demographer

9. Racial Impact, cont.
1. No negative racial impact upon removing Newfield students from Franklin and Delsea. Very small change in racial distribution in either district since the number of Newfield students is small compared to their student populations and Newfield students also have a similar racial distribution as Franklin and Delsea.
2. If Newfield students attended Pittsgrove, Newfield students would be afforded a similar racially diverse environment as compared to Franklin and Delsea. Adding Newfield students to Pittsgrove would not significantly change the racial distribution in Pittsgrove as Newfield students have a similar racial distribution and are small in number compared to Pittsgrove.

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EDUCATIONAL ANALYSIS

• Comprised of educational consultants with over forty years of experience in the field of education.
• Has completed over a dozen feasibility studies regarding school distict reconfiguration.
• Comprised of a former two-time Commissioner of Education, a former Executive County Superintendent of Schools, and a former Superintendent of Schools.

Porzio Compliance Services

• The goal was to determine whether there will be a negative educational impact on students in Newfield, Franklin and Delsea in the event of a termination of the sending-receiving relationships involving those districts.

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• The education chapter also examines the educational implications of Newfield joining with Elmer and Pittsgrove to form a new PK-12 regional school district.

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EDUCATION CHAPTER GOALS

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EDUCATION CHAPTER ANALYSIS

• Reviewed data regarding student performance, climate indicators and indicators of success in college and careers. Conducted site visits to the schools and observed the school environment and discussed how the schools support teaching and learning and social emotional growth.

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• The data collected was compared against best practices that are research based and linked directly to the characteristics of successful schools.

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EDUCATION CONCLUSION

• No negative educational issues were found in the severance of the sending-receiving agreements given the small number of Newfield students currently comprising some 10% of the student body in each district.

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• Each district will continue to have sufficient students to operate its schools in an effective and efficient manner. Class sizes will decrease slightly but not to the extent that large scale reductions in force or programmatic reductions will be required.

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• However, we have identified concerns with the disruption of friend and community groups that are addressed in the Transition process below.

ADVANTAGES OF A REGIONAL DISTRICT

• Although the addition of Newfield students is relatively small in relation to the total enrollment of the existing consolidated district, these students will still bring significant additional resources to the new regional district.
• The new regional board will then be able to dedicate some of these additional dollars, as well as dollars that will flow from a more efficient educational model, for investments in best practices that lead to successful schools and improve educational outcomes.

ADVANTAGES OF A REGIONAL DISTRICT

With the additional Newfield students, an all purpose regional district has the potential to expand expertise and capacity in one or more of the following areas:

• Curriculum and Instruction;
• Professional development;
• Human Resources in finding, hiring and deploying talent across the organization;
• Programs and services for special populations; and
• Attendance and chronic absenteeism issues

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TRANSITION

To ease the impact on Franklin and Delsea Regional of Newfield students departing from the districts and to provide the new regional district time to build necessary capacity, the consultants recommend that Newfield students who are currently enrolled in Franklin or Delsea be allowed to complete their education in the grade levels of the school to which they are assigned (at the time of regionalization).

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FINANCIAL ANALYSIS

• Over 25 years of experience as School Business Administrator. Specific experience with sending-receiving relationships.
• Possesses a Masters of Business Administration from Walter A. Haas School of Business, University of California at Berkeley.

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Steven Cea, M.B.A.

Model Development

• Two Most Recent Audits – Actual Revenues & Expenses.
• Three Years of Budgets.
• Enrollment Projections.
• Other Data from Districts and State Sources.
• Project Revenues & Expenses Over a 5 & 10 Year Period.

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Financial Framework

Key Assumptions

• Estimated Tax Levies and Rates for Comparative Purposes.
• Full Implementation in First Year.
• State Aid Approximates Funding in 2020-21.
• Regression Analysis Used to Project 10 Years of Equalized Valuations.
• No Change in Educational Programs.

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Financial Framework

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• Referendum Requirement.
• Traditional Allocation Variables.
• Equalized Property Value.
• Enrollment.
• Net Tax Reduction of $1.3 Million.
• Tax Reductions for Each Community with Any Allocation Percentage.
• Transitional Allocation Method.
• Table Conventions.
• Dollar Values in $1,000’s.
• Tax Rates per $100 equalized property value.

Financial Results Overview

All-Purpose Regional – Pittsgrove, Elmer, Newfield�50% Equalized Value & 50% Enrollment

Transitional Allocation: Years One & Two 100% Enrollment

Year Three: 50% Equalized Value & 50% Enrollment

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Transitional to Permanent Allocation – Savings Projection

• The traditional allocation methods using a combination of equalized value and enrollment and distributes the savings to each of the constituent communities.
• Transition in year one.
• Use Transitional Allocation for two years to bridge remaining sending-receiving tuition payments.
• Revert to permanent allocation in year three.

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Financial Conclusions

• Newfield should consider terminating its existing sending-receiving relationships with Franklin Township and Delsea Regional and create a regional school district with Elmer and Pittsgrove for grades PK-12.
• Termination of Newfield’s sending-receiving agreements with the Franklin Board of Education and Delsea Regional Board of Education would not produce any substantial negative racial, educational or financial impacts.

Overall Conclusion

• Richard S. Grip, Ed.D.
• David C. Hespe
• Steven Cea, MBA
• Vito A. Gagliardi Jr., Esq.
• Kerri A. Wright, Esq.

Porzio, Bromberg & Newman, PC

100 Southgate Parkway

Morristown, NJ 07960

973-538-4006

vagagliardi@pbnlaw.com

kawright@pbnlaw.com

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Thank you