Fact vs Myth #5

Claim: For the past 6 years, this District has spent more than the original budget in every single year.

Fact: The district's budget consists of three funds: the General Fund, Special Revenue (Grant) Fund, and Debt Service Fund. Each year, the Special Revenue Fund, or Grant Fund, consistently exceeds the budgeted amount. When preparing the budget, the district follows guidance from the NJDOE, which typically suggests budgeting for grants at 75%-85% of the previous year's allocation. However, grant allocations are often finalized after the budget is submitted. Additionally, the NJDOE may offer other grants, either available for application or awarded after the budget has already been approved. This trend of the Special Revenue Fund exceeding expectations has been consistent not only for the past six years but also prior to 2018.

FRSD Operating Budget 2014 to present

General Fund expenditures have varied not only over the past six years but prior to 2018, with some years spending less than anticipated and others surpassing the original budget. The district does plan for unexpected expenses by reviewing past trends but there are instances where actual costs are higher than projected, or where expenditures exceed the contingency set aside in the budget. Although the district strives to account for as many unforeseen costs as possible, some are unavoidable as we must meet the needs of our students. The district has not ended a school year in the red, thanks to the ability to maintain "savings" in the form of a 2% fund balance. This allowable fund balance has been crucial in balancing the budget each year. However, the district recognizes that this trend cannot continue indefinitely, as the fund balance will eventually be depleted. While the district is requesting a higher tax rate for the 2025-26 school year, it is also making reductions in its expenditures to ensure a more sustainable budget in the future.

In 2014-2015, the total operating budget of $55,934,124 increased to $70,434,234 in 2024-2025. According to the U.S. Department of Labor Statistics and the inflation rate calculator, the annual inflation rate for the United States was 3% for the 12 months ending January, compared to the previous rate increase of 2.9%, according to U.S. Labor Department data published on February 12, 2025. Since 2015, the cumulative inflation rate is 33.5%.

 Current US Inflation Rates: 2000-2025