(c) 2008 the mcgraw hill companies 1 school district budgeting school finance: a policy perspective,...

(c) 2008 The McGraw‑Hill Companies 1

School District Budgeting

School Finance: A Policy Perspective, 4e

Chapter 8

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Class Outline

• Defining Budgets

• Approaches to Budgeting

• Budget Planning and Preparation

• Budget Adoption and Appropriation

• Budget Implementation and Evaluation

• Case Studies

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What is a Budget?

Budget (from French bougette, purse) generally refers to a list of all planned expenses and revenues. It is a plan for saving and spending.

Purpose is to:

Provide a forecast of revenues and expenditures i.e. construct a model of how our enterprise might perform financially speaking if certain strategies, events and plans are carried out.

Enable the actual financial operation of the business to be

measured against the forecast

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What is a Budget?

A document which specifies the planned expenditures and anticipated revenues of a school district in a given fiscal year, along with other data and information relating the fiscal elements to the educational philosophy, programs, and needs of the district.

Hartman (1988)

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What is a Budget?

Policy Document

Financial Plan

Operations guide

Communications Guide

Bennett, Hall and Berg (2006)

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Budget (Bermuda) Triangle

Program

Revenue Expenditures

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Why Do We Need Budgets?

• How do Public Budgets Differ from Private Company Budgets?– Why?– Should They?

• What does a Budget Tell Us?

• Why do we Care?

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Four Functions of a Budget

• Policy Document

• Financial Plan

• Operations Guide

• Communications Tool

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Four Functions of a Budget

• Policy Document– Reflects philosophy of school committee,

administration and community

– Emphasizes that philosophy in terms of resources

• Financial Plan – Past

– Present

– Future

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Four Functions of a Budget

• Operations Guide – Fiscal accountability and TRANSPARENCY

– Program accountability

– Personnel accountability

• Communications Tool– Identifies and describes the strengths and challenges of

education program and services with the community

– Shows how educational dollars are spent

– Identifies the district’s programs and priorities

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Features of Classical Budgets

• Unity

• Regularity

• Clarity

• Balance

• Publicity

• Operational Adequacy

p. 237 O & P

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Class Activityfor Saturday Jan 23, 2009

• Groups review budgets

• Consider the six features of Classical budgets

• Determine if and how well budgets meet each of the six characteristics

• Discuss strengths and weaknesses identified in the budgets

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Budget Philosophy and Formats

• Line Item Budgeting

(Obj-function)

Sample Budget Template CDC

• Program Budgeting

• Zero Based Budgeting

Windsor Ontario Hospital

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School Site Budgets Using the Evidence Based Adequacy Model

• Determine school characteristics – Number of students by grade – Percent free and reduced price lunch eligible

(or poverty measure used in your state)– Percent English Language Learners (ELL)– Percent of students with disabilities that qualify

for special education services

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School Site Budgets Using the Evidence Based Adequacy Model

• Example using an Elementary School• Personnel Resources

– Core teachers• K-3 1:15

• 4 5 1:25

– Specialist teachers @ 20% of core teachers

– Instructional facilitators/coaches (1 per 200 students)

– Tutors for struggling students (1 per 100 poverty students)

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School Site Budgets Using the Evidence Based Adequacy Model

• Personnel Resources (continued)– Teachers for ELL (1 for every 100 ELL

students) – Extended day (1/2 poverty enrollment at ratio

of 1:15 at 0.25 FTE)– Summer School (1/2 poverty enrollment at ratio

of 1:15 at 0.25 FTE)

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School Site Budgets Using the Evidence Based Adequacy Model

• School Elements– Students with mild and/or learning disabilities

(3 additional professional teacher positions per 432 students)

– Students with severe disabilities (100 percent state reimbursement minus Federal funds)

– Gifted Students ($25 per student based on total school enrollment

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School Site Budgets Using the Evidence Based Adequacy Model

• School Elements (continued)– Pupil support staff (1 for every 100 poverty

students)– Non-instructional aides (2 for every 432

students) – Librarian/medial specialist (1.0) – Principal (1.0)– School clerical staff (1 secretary [12 mo.] one

clerical [9 mo.])

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School Site Budgets Using the Evidence Based Adequacy Model

• School Elements (continued)

• Professional development – Included in above estimates

• Facilitators/coaches

• 10 summer days for planning and preparation

– $100 per pupil for other PD expenses such as trainers, travel, conferences, etc.

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School Site Budgets Using the Evidence Based Adequacy Model

• School Elements (continued)– Technology -- $250 per student – Instructional materials -- $140 per student – Student activities -- $200 per student

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Contents of a Typical Budget

• Introduction

• Financial Summary Information

• Expenditures

• Revenues

• Personnel and Position Counts (FTEs)

• Explanation of Expenditure Calculations

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ASBO MBA Budge Format and Elements

• Introductory Section

• Organizational Section

• Financial Section

• Information Section

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Budget Process

• Development of Budget Guidelines– Superintendent’s message– Budget Calendar– Guidelines for participation– Budget forms– Information on structure– Other information

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Budget Process

• Budget Preparation– Enrollment History and Forecasting

• Comparative projection

• Extrapolation

• Ratio and Correlation Methods

• Component Analysis

• Build out rates

• Ultimate population analysis

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Budget Process

• Estimating Personnel Needs– Certified Staff

• Teachers

• Other Certificated, Non-Admin. Staff

• Site Administrators

• Central Office Administrators

– Classified Staff

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Budget Process

• Estimating Expenditures– Identify Specific Programs and Services

Around Which Budget is to be Constructed– Specify Resources (Time, People and

Materials) Needed to Implement Tasks Essential to Each Program

– Estimate the Costs of the Resources Needed for Implementation

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Budget Process

• Expenditures – Object

– Function– Program

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Budget Process

• Estimation of Revenue– Property Taxes– State Revenue– Federal Revenue– Other Sources of Revenue

• Budget Modification

• Budget Adoption

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Distribution of Funds to School Sites

• Staff– Total dollar budget – Personnel allocations based on staffing ratios

• Non-staff (site or district?)– Technology – Transportation – Buildings and Grounds -Maintenance and operations – Risk management – Food services – Purchasing