ROBBINSVILLE PUBLIC SCHOOLS �

Public Question Proposal

Presented by:

Brian Betze, Superintendent

AUGUST 9, 2023

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TONIGHT’S AGENDA

1. Defining The Problem
2. The Options
3. Sample Question
4. Tax Impact
5. Addendum

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1. DEFINING THE PROBLEM

Define $2.1

Define $2.7

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HERE’S THE PROBLEM…

• ~$3 million fixed cost increases MINIMUM
• MAX Limit on raising taxes at 2% = $840,000 
• $0 banked cap remains
• $3 million - $840,000 = $2.16 million short

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• The state should have CUT aid by $2.7 million in 2023-2024…and can next year

The district will experience significant shortfalls until this problem is corrected

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Revenue challenges are NOT going away in the 2024-2025 budget……….Why?

$2.1 million fixed cost increases MINIMUM

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*ADDENDUM: Slide 35

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$2.7 million

We were 1.2% from being cut $2.7 mm

Chances we are cut next year

1. This year we were at 88.8% (spending % of adequacy)...anything below 90% and districts are NOT cut
2. With the 2% and banked cap this year…we are at 92.34%
3. Odds are state will increase the adequacy number, but by how much?
• They must increase by 2.61% so we’re not cut
• Last three years: Budget Data
1. 3.05% 2023-2024 (162 districts cut)
2. 2.75% 2022-2023
3. Negative 0.99% 2021-2022

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$2.1 million budget shortfall

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~$2.7 possible state aid cut

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$2.1 + $2.7 = $4.8

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2. THE OPTIONS

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2 OPTIONS

OPTION 1: Do nothing and rely on State Aid

▪Not a consistent or reliable solution

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OPTION 2: Fix the problem ourselves

• “Public Question” to permanently increase the operating budget

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RECOMMENDATION

Public Question Proposal: November 7, 2023:

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• This is a permanent increase in the Local Tax Levy

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• Depending on variables: Helps secures the district moving forward for 24/25

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WHY $4.8 MM�DEPENDING ON VARIABLES: SECURES THE DISTRICT FOR NEXT SCHOOL YEAR�

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• At current budgeted staffing and program levels
• DOES NOT INCLUDE the additional one-time $1mm in State Aid staffing increases
• Figures include taking 2% each year
• 2027-2028, the funding formula will be changed, and need to reassess our financial status

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• The public question does not add anything (i.e., staff, resources, projects, etc.) to the district…we stay status quo of what we have for the 23-24 school year.

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• $4.8 mm fills the financial hole for 1-2 years

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• $7.0 mm fills the financial hole for 3-4 years

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3. SAMPLE QUESTION

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PUBLIC QUESTION sample

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Cost of the potential cuts

A final list would be recommended to the BoE from Adm.

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No Cut State Aid - Short $2.1mm

• Cut some sports and clubs: $200,000
• Staffing cuts – 18: $1.52 million
• Half-Day Kindergarten: $380,000

Cut in State Aid – Short $4.8mm

• Eliminate all clubs k-12: $300,000
• Eliminate Kindergarten: $760,000
• Staffing cuts – 30: $2.74 million
• Eliminate courtesy busing: $300,000
• Eliminate all sports 6-12: $700,000

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4. TAX IMPACT

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Property Tax Increase

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• Analysis assumes board approval of the maximum 2% budget cap for future school budgets
• Due to tax structure half of the $4.8mm increase is in 2024 with the full tax implication in 2025

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*Assumption: 3-Year Historical Growth of Property Values = 0.52%

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WHAT’S NEXT?

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• Board approval of the Public Question
• Submit the Public Question to the County Clerk
• Deadline August 25, 2023 per NJ A5175
• Disseminate information about the election
• Vote on November 7, 2023

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VOTE �NOVEMBER 7^TH�THANK YOU

ADDENDUM

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5.ADDENDUM

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THE FOLLOWING SLIDES DETAIL THE FINANCIAL DATA USED TO BUILD THE BUDGET AND THE CHANGE IN THE STATE FUNDING FORMULA LEADING TO THE SHORTFALL

THE GOOD NEWS

• The state provided an additional $983,000 for the 2023-24 school year
• Our teachers and staff will be prepared for September:
• Hiring staff
• Ex. Over 150 applications for openings at Sharon
• Curriculum resources have arrived
• Teachers have been revising the curriculum over the summer
• Summer teacher trainings are proceeding
• Summer programs are up and running

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WHY 4.8MM AND NOT 7MM?

Going out for a $4.8 million referendum may have a better chance of succeeding than a $7 million referendum due to several key reasons:

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• Affordability: Smaller referendums tend to be more acceptable to taxpayers and voters. A $4.8 million proposal may be perceived as less burdensome on individual taxpayers compared to a $7 million one. People are generally more willing to support projects or initiatives that align with their financial capacity.

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• Greater Consensus: Smaller referendums have the potential to garner broader support among different interest groups and stakeholders. By focusing on a more modest proposal, it may be easier to find common ground and build a coalition of supporters with shared interests.

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• Economic Climate: The overall economic climate can play a significant role in the success of referendums. A smaller referendum may be more appealing as it presents a less substantial financial commitment during uncertain times.

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• In summary, a $4.8 million referendum might have a better chance of success due to its perceived affordability, clarity of purpose, potential for broader consensus, reduced financial risk, past positive experiences, and alignment with the economic climate.

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STATE OF THE BUDGET

• Expect no additional State Aid in future years
• Try to anticipate for a cut in State Aid
• Tightest budget, per auditor for the past two years
• Current budget – even tighter
• Large Capital Expenses, i.e. $3mm per year, are out of reach RIGHT NOW
• Debt reduced significantly in six years

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ASSUMPTIONS – BASELINE REVENUE

• Local Tax Levy: Maximum Allowed 2%
• Banked Cap: $0 - None remaining
• Misc. Revenue: 5%
• Grant Funding
• COVID-19: Exhausted
• Federal: NEGATIVE 2.8%
• Extraordinary Aid: 5%
• State Aid: FLAT

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7/26/23

ASSUMPTIONS – BASELINE EXPENDITURES

• Salaries: 3.5%
• Benefits: 7.2%
• Buildings & Grounds: 6%
• Transportation: 6%
• Tuition: 15%
• Utilities: 2%
• Insurance: 11%
• Miscellaneous: 2%
• NO CAPITAL PROJECTS

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STATE AID - HISTORY

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DEBT

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$4.8mm Request Impact (Risk and Opps)

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Residential Assessment Distribution

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CAPITAL PROJECTS - 1

• Architect conducted facilities analysis four years ago

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• Financial Analysis – Average Figures
• Prior to COVID Inflation
• Expenditures: $2mm per year
• Revenue: $2mm per year from Fund Balance/End of Year Funds
• Net: Sustainable
• Current
• Expenditures: $3mm per year
• Revenue: $1mm (hopeful)
• Net: NEGATIVE $2mm per year

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CAPITAL PROJECTS - 2

• Status:
• $2mm in Capital Reserve
• Paving projects for RHS & PRMS ($3mm…architect states $5mm) - suspended
• Tennis Courts - suspended
• Strategic Plan upgrades – unsupportable
• Upcoming necessities
• 2024/25 – RTUs at RHS ($2.8mm)
• 2025/26 – RTUs at SES ($2mm)
• 2026/27 – Unit Ventilators ($2.9mm)
• 2027/28 – PRMS Re-Roof and RTUs ($5mm)
• All of the above are eligible ~32% State Aid Contribution if approved via a bond referendum

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BASELINE

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BASELINE TALKING POINTS

• Baseline
• Revenue: Increasing around $900k/year
• Expenses: Increasing around $3mm/year
• Deficit: More than $2mm/year
• Scenarios
• State Aid Cut - $2,710,298
• State Aid Cut - $2,710,298 & 2^nd Question Passes $4,542,303
• $4,542,303 = Two years of expired banked cap ($1,832,005) plus the cut in State Aid
• State Aid Flat & 2^nd Question Passes $4,542,303
• State Aid Cut - $2,710,298 & 2^nd Question Passes $6,980,558
• $6,980,558 = Local Fair Share
• State Aid Flat & 2^nd Question Passes $6,980,558

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SUMMARY – PRO FORMA SCENARIOS

• Scenarios do not account for increased recurring expenses with 2nd Questions

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TAXES – HISTORICAL INCREASES

< Eight Year Average Increase 0.42% >

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TAXES

What if Max 2% used and allowable adjustments since 2018/19

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*Around $12 million of avoided local tax increases since 2018/19

��NEED TO BE AWARE OF RECURRING COSTS�

• Fill the $1.4 annual million hole
• Curriculum upgrades
• Offer additional programs 
• Modernize classrooms
• Additional staff
• Additional nurse
• Additional secretaries
• Add one to three adm.
• Chromebooks 1 to 1 all three schools

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• Paving lots/road
• Cyber security upgrades
• Build new tennis courts
• Upgrade auditorium
• Replace stage
• Additional bus
• Add after-school busing
• Warning system in all three schools
• Generators

*some will need to be added to a potential long-term referendum later

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7/26/23

DIRECT STUDENT                          CAPITAL PROJECTS*

          IMPACT

WHY WOULD WE COUNT ON STATE AID?

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2022-23 State Aid Calculation.       

Underfunded:               -$2,991,249

Additional Funding:      $1,645,184

Anticipated Next Year: $1,346,055

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Assuming no increase in calculations

STATE AID�-NO INCREASE AND $6 MILLION DIFFERENCE?

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Shorted

$13,665,924

MERCER COUNTY COMPARISON�COUNTY AVERAGE WITHOUT ROBBINSVILLE: 47.3% INCREASE

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3/14/23

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LOCAL FAIR SHARE = $48,255,537

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STATE AID RECAP

• For 23/24 – we expected at least $1,346,045
• Calculations Flipped
• Decreasing enrollment
• Increased property values
• Increased district income
• State should have CUT State Aid $2,710,298
• Fortunately we were held flat, but will most likely be cut next school year

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REVENUES

Local Tax Levy:

• 2% Cap = $786,298
• Banked Cap = $917,496
• Health Care Adjustment = $224,173

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EXPENDITURES

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3/14/23

RESERVES - DEPLETING

While Repairs Increasing

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BURN RATE – OPERATING FUND 11

• Operating Budget SY22/23 = $51,861,678
• Tighter and tighter budget…around 96% spending vs budgeted
• Auditor has stated we have the tightest budget out of 40 districts for 20/21 & 21/22
• End of year balances are used to fund Capital Reserve projects for future years

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Year Over Year

Questions regarding the slides

Please email or call:

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Brian Betze, Superintendent

betze.brian@robbinsville.k12.nj.us

(609) 632-0910 ext. 2201

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Nick Mackres, Business Administrator

mackres.nick@robbinsville.k12.nj.us

(609) 632-0910 ext. 2203

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