Operating Expenses Getting Out of Control?
Find Out Our Strategies to Save Up to 15% on Your Balance Sheet This Year
School districts have always encountered formidable obstacles while drafting their financial budgets, and that has never been more true than in today’s Covid challenged environment.
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Balancing the needs of its students with those of its teachers and administrators has never been more challenging.
A significant increase in operating expenses due to the extraordinary added measures needed to combat Covid, combined with a significant shortfall in revenues, due to significant decreases in tax revenues and State aid, have left many districts with no seemingly desirable options to balance its budget.
It is estimated that N.J. will experience an average decline of approximately 18% of pre-COVID-19 revenue projections, while estimates from AASA, The School Superintendents Association, released in May show it would cost an average district approximately $194k for personal protective equipment, $1.23 million to hire additional staff such as custodians and nurses, and $117k for health and disinfecting equipment.
Are runaway operating costs coupled with a significant reduction in revenues leaving your school district or municipality with the unenviable task of cutting back on crucial personnel and services in order to balance your upcoming budget?
The onset of the COVID-19 pandemic has created a unique set of challenges for municipalities and school districts. Shutdowns in the economy have created a shortfall in both tax revenues and State aid, while the costly strategies being employed to protect the health of teachers, administrators and students have led to a material increase in every district’s operating expenses.
Developing a plan to combat these deficits is easier said than done.
Ariston Advisory Group, an independent consulting firm, has identified innovative cost-saving solutions that target the second largest expense item in the budget, employee health benefits plan. Our strategies usually result in an annual savings of about 12-15%, while adhering to the all-important “equal to or better” mantra that is mandated by the unions.