The Moorestown school board is projecting a budget shortfall of $1.17 million for the 2015–2016 school year. As part of a presentation at the Oct. 21 board of education meeting, Lynn E. Shugars, the business administrator and board secretary, said the early projected shortfall is assuming a 2 percent banked cap.
“These are very early, very preliminary numbers, taking our 2014–2015 numbers and projecting them for next year. This is just trying to get a feel as we go into next year of what things look like and where they stand,” Shugars said.
The budget projections are based on assumptions that include expenditures and revenue. The expenditures are the salaries of current staffing, salaries projected or estimated, a 15 percent increase in health benefits, and “other” expenses such as transportation and supplies that were kept the same as the 2014–2015 school year.
The revenues are a 2 percent increase in the tax levy and all other revenues, which were kept the same as the 2014–2015 school year.
“Her assumptions might not prove to be exact. Eighty percent of the budgets are probably very near correct. The contracts we have already stay and the benefits would be about right. The other 20 percent is basically assumed,” Board President Don Mishler said.
The health-care plan rate with Aetna for 2014–2015 is guaranteed, however it is not for next school year. This is why a 15 percent increase was factored into the costs of the district.
“We’re talking to our broker constantly about what are some other options, what are some different things we can look at, and how do we try to keep our health benefits cost as contained as we can,” Shugars said.
In regard to the taxes, for the years 2010–2013, there was no tax increase. In the 2013–2014 school year, there was a 0.4 percent tax increase, and in 2014–2015, there was a 3.8 percent tax increase with the use of banked cap. Because of the previous years without a tax increase, the school district still has some banked cap left, which totals about $1.37 million. To use the banked cap, the school must go up to the full 2 percent allowance first and adopt a formal resolution to have it approved by the county office.
“If we use banked cap, it would increase taxes by whatever amount of banked cap. We would have to have a special question on the ballot if it were to go over,” Mishler said.
According to Shugars in-depth board level discussions will probably begin in December, however committees will begin budget discussions right away. The state has not released the budget calendar for next year yet, but usually an initial budget is due to the county Office of Education in March for review and approval. The final budget needs to be approved by the board at a public hearing, probably sometime in late April.
In other news:
• The county as well as the board is monitoring the outbreaks of enterovirus and ebola. The county has scheduled training in the unlikely event it addresses the schools.
• The board is looking for a civil engineer and a construction manager for the construction that will be done to the schools. This should be on the agenda for November.
• The next meeting will be Nov. 18 at 7:30 p.m. at the William Allen Middle School.
