119-10

WEST ORANGE BOARD OF EDUCATION LINE ITEM JUSTIFICATIONS (Continued) Account #/Line # Other than Health Insurance: 11-000-262-520/07631 Insurance Property: The Board currently obtains coverage from a JIF. The proposed budget has an increase of approximately 20 percent. Based on an analysis of the past two years of expenditures, the proposed budget appears to be overstated. 11-000-291-250/12660 Unemployment Compensation: The Board projected a budget as if all applicable staff will file for benefits for a prolonged amount of time. Even with this reduction, the Board would have available to them approximately $1,000,000.00 of funds on hand to pay for future claims through July 1, 2011. 11-000-310-930/07550 Undistributed Expenditures - Food Service: The Board appropriates this amount to cover any deficits that may occur in the Food Service Fund. This money has never been transferred in past years and as of June 30, 2009, the Food Service Fund had approximately $200,000.00 in Surplus. 11-120-100-101/06520 Regular Programs: Salaries of Grades 1 - 5: Between the time the budget was proposed until present date, there are employees who have since notified the Board of Education of their intent to retire. The Board will replace these positions with teachers at a lower salary than those who retired. This amount represents that difference and also positions that are not going to be replaced. 12-000-400-932 Capital Outlay - Transfer to Capital Projects: The proposed budget appropriated the sum of $2,600,000.00 for various repairs to all of the Districts. This is in addition to the $2,631,426.00 that is currently being budgeted for in the current 2009/2010 Budget. A “must do” list has been prepared for those items that might have a safety issue for the students. Even with this reduction, those items will be funded and an emergency contingency amount will be left for unforeseen events.