GFOA’s Award for Best Budgeting Practices

and An Introduction to Academic Return

on Investment (A-ROI)

Parts Presented with permission from:

Government Finance Officers Association

Agenda• Overview of the Award for Best Practices in

School Budgeting• Background• Criteria• Review and Judging

• Best Budgeting Practices• Goal Setting• Developing a Long-Term Strategic Finance Plan

• Academic Return on Investment

GFOA Budget Awards

• Distinguished Budget Presentation Award Program• Established in 1984• Purpose and Focus:

• To encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA's best practices on budgeting and then to recognize individual governments that succeed in achieving that goal.

Need for Better Budgeting

• “Traditional” budget model• Incremental changes in resource allocation• Limited resources drive spending plan• More reactionary than pro-active• Primary focus on next year challenges rather

than on long-term strategies

Budgeting Today

• Best Practices in School Budgeting and Smarter School Spending

• Pro-active approach• Need for better alignment of budget process

and student achievement goals• Strategic plan drives budget with focus on

student achievement rather than limited resources

• Transparency and Credibility

GFOA Budget Awards

• Award for Best Practices in School Budgeting• For Budgets with Fiscal Years beginning in 2017• Purpose and Focus:

• GFOA's most recent project is to enhance the existing Distinguished Budget Presentation Award for school districts and community colleges. Through this project and with the help of some of the best minds in the field, GFOA developed the Best Practices in School Budgeting for resource alignment to student outcomes, as well as criteria by which districts and colleges can demonstrate budget process excellence.

http://www.gfoa.org/best-practices-school-district-budgeting

Award Criteria

• Distinguished Award for Budget Preparation• Introduction & Overview• Financial Structure, Policy & Process• Financial Summary• Capital Debt• Departmental Information

• Award for Best Practices in School Budgeting• Plan & Prepare• Set Instructional Priorities• Pay for priorities• Implement Plan• Ensure Sustainability

Award Focus

• The major difference is a specific change in focus.

• The Distinguished Budget Preparation Award focused on the budget document preparation.

• The Award for Best Practices on School Budgeting focuses on documenting the budget process.

Participate in the Award Program

• Award Criteria mirrors the Best Practices in School Budgeting.

• Budget Submission is reviewed by a panel of 3 judges.

• An interview with the CFO and CAO is required.

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0 = Not provided/relevant, 1 = Does not meet criteria, 2 = Progressing, but substantial work still needed, 3 = Significant progress, close to meeting criteria, 4 = Meets criteria, 5 = Exceptional (Please rate each criterion)

Criteria Name Criteria Description Location

1. PLAN AND PREPARE1A. Establish a Partnership between the Finance and Instructional Leaders

* 1.A.1 Finance - Academic Partnership (mandatory) Co-signature of application by academic and financial staff Application1.A.1 Finance - Academic Partnership (mandatory) Academic and finance lead staff members are included in interview Interview1.A.2 Criteria for Success of the Budget Process Describe criteria for success of budget process Application

1B. Develop Principles and Policies to Guide the Budget Process 1.B.1 Budget Principles Submit board adopted budget principles. Supplementary Materials* 1.B.2 Policies (mandatory) Submit board adopted budget policies. Supplementary Materials* 1.B.2 Policies (mandatory) Summarize budget policies in Budget Document Document

1C. Analyze Current Levels of Student Learning 1.C.1 Data Analysis Overview Explain approach in using data. Application 1.C.2 Data Analysis Example Provide example that illustrates use of data analysis Supplementary Materials

1D. Identify Communications Strategy 1.D.1 Communications Describe how budget process engaged stakeholders and communicated decisions Application1.D.1 Communications Document should be consistent and indicative of approach described in application Document

2. SET INSTRUCTIONAL PRIORITIES2A. Develop Goals

* 2.A.1 District-Wide SMARTER Goals (mandatory) Include goals Document* 2.A.1 District-Wide SMARTER Goals (mandatory) Include goals as supplementary materials to provide context Supplementary Materials* 2.A.1 District-Wide SMARTER Goals (mandatory) Application describes goal setting process Application* 2.A.2 School Site SMARTER Goals (mandatory) Demonstrate how goals are distributed to schools sites Document* 2.A.2 School Site SMARTER Goals (mandatory) Submits how goals are distributed to school sites Supplementary Materials 2.A.3 Goal content Goals address student performance and other factors that impact performance Supplementary Materials

2B. Identify Root Cause of Gap between Goal and Current State* 2.B.1 Root Cause Analysis (mandatory) Submit an example of a completed root cause analysis for at least one goal Supplementary Materials* 2.B.1 Root Cause Analysis (mandatory) Describe more generally how root cause analysis was conducted Application

2C. Research & Develop Potential Instructional Priorities* 2.C.1 Instructional Priorities (mandatory) Submit instructional priorities and supporting research used to develop Supplementary Materials

2D. Evaluate Choices between Instructional Priorities 2.D.1 Option Analysis Describe process used to analyze options Application

2.D.1 Option Analysis Submit additional information on option analysis Supplementary Materials

Reviewer ID Document Number Name of Entity State/Province Record Number Order Rec'd Number

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Vote Page

Reviewer ID Document Number 01

Name of Entity State/Province 12

Record Number Order Rec'd Number 23

3

0 = Not provided/relevant, 1 = Does not meet criteria, 2 = Progressing, but substantial work still needed, 3 = Significant progress, close to meeting criteria, 4 = Meets criteria, 5 = Exceptional (Please rate each criterion)4

Criteria NameCriteria DescriptionLocation5

1. PLAN AND PREPARE

1A. Establish a Partnership between the Finance and Instructional Leaders

*1.A.1Finance - Academic Partnership (mandatory) Co-signature of application by academic and financial staffApplication

1.A.1Finance - Academic Partnership (mandatory) Academic and finance lead staff members are included in interviewInterview

1.A.2Criteria for Success of the Budget Process Describe criteria for success of budget process Application

1B. Develop Principles and Policies to Guide the Budget Process

1.B.1Budget Principles Submit board adopted budget principles.Supplementary Materials

*1.B.2Policies (mandatory) Submit board adopted budget policies.Supplementary Materials

*1.B.2Policies (mandatory) Summarize budget policies in Budget DocumentDocument

1C. Analyze Current Levels of Student Learning

1.C.1Data Analysis Overview Explain approach in using data.Application

1.C.2Data Analysis Example Provide example that illustrates use of data analysisSupplementary Materials

1D. Identify Communications Strategy

1.D.1Communications Describe how budget process engaged stakeholders and communicated decisionsApplication

1.D.1Communications Document should be consistent and indicative of approach described in applicationDocument

2. SET INSTRUCTIONAL PRIORITIES

2A. Develop Goals

*2.A.1District-Wide SMARTER Goals (mandatory) Include goalsDocument

*2.A.1District-Wide SMARTER Goals (mandatory) Include goals as supplementary materials to provide contextSupplementary Materials

*2.A.1District-Wide SMARTER Goals (mandatory) Application describes goal setting processApplication

*2.A.2School Site SMARTER Goals (mandatory) Demonstrate how goals are distributed to schools sitesDocument

*2.A.2School Site SMARTER Goals (mandatory) Submits how goals are distributed to school sitesSupplementary Materials

2.A.3Goal content Goals address student performance and other factors that impact performanceSupplementary Materials

2B. Identify Root Cause of Gap between Goal and Current State

*2.B.1Root Cause Analysis (mandatory) Submit an example of a completed root cause analysis for at least one goalSupplementary Materials

*2.B.1Root Cause Analysis (mandatory) Describe more generally how root cause analysis was conductedApplication

2C. Research & Develop Potential Instructional Priorities

*2.C.1Instructional Priorities (mandatory) Submit instructional priorities and supporting research used to developSupplementary Materials

2D. Evaluate Choices between Instructional Priorities

2.D.1Option Analysis Describe process used to analyze optionsApplication

2.D.1Option Analysis Submit additional information on option analysisSupplementary Materials

3. PAY FOR PRIORITIES

3A. Applying Cost Analysis to the Budget Process

3.A.1Cost Structure Analysis Describe why certain analysis technique was chosen and insights gainedApplication

3.A.1Cost Structure Analysis Submit cost structure analysisSupplementary Materials

3.A.2Cost-Effectiveness Measurement Demonstrates use of cost-effectiveness techniques or how it is building capacityApplication

3B. Evaluate & Prioritize Use of Resources to Enact the Instructional Priorities

*3.B.1Analyze Revenues (mandatory) Describe analysis and important conclusionsApplication

*3.B.1Analyze Revenues (mandatory) Provide results of revenue analysisSupplementary Materials

*3.B.2Sunset Programs (mandatory) Explain approach taken and important conclusionsApplication

*3.B.2Sunset Programs (mandatory) Provide results of evaluation of servicesSupplementary Materials

*3.B.3Finding Efficiencies (mandatory) Describe any efficiencies foundApplication

*3.B.3Finding Efficiencies (mandatory) Provide results of efforts to find efficiencies in existing servicesSupplementary Materials

4. IMPLEMENT PLAN

4A. Develop a Strategic Financial Plan

*4.A.1Strategic Financial Plan Document (mandatory) Provide copy of strategic financial planSupplementary Materials

*4.A.2Strategic Financial Plan Formally Adopted (mandatory) Provide a copy of resolution/other documentation confirming formal adoptionSupplementary Materials

4B. Develop a Plan of Action

*4.B.1Plan of Action (mandatory) Provide copy of district-wide plan of action for implementation of instructional prioritiesSupplementary Materials

4.B.2Plan of Action Accepted by Administration Describe how plan of action was formally accepted by administrationApplication

4C. Allocate Resources to Individual School Sites

*4.C.1Allocation Formula (mandatory) Clearly describe ratios/formulas used for allocationDocument

*4.C.1Allocation Formula (mandatory) Clearly describe rationale behind ratios/formulas used for allocationApplication

*4.C.1Allocation Formula (mandatory) Academic officer can describe how ratios/formulas workInterview

4.C.2Programmatic Elements Allocation to programmatic elements is evident in documentDocument

*4.C.3Consolidated Budgeting (mandatory) Allocation process includes all available fundingDocument

*4.C.4Direct Cost of Personnel (mandatory) Allocation decisions are made using direct cost of personnelDocument

4D. Develop Budget Presentation

*4.D.1The Challenges (mandatory) Describe challenges faced that shaped budget discussionDocument

*4.D.2Goals (mandatory) Present district-wide goals that guide resource allocationDocument

*4.D.3Strategies and Initiatives (mandatory) Describe strategies that will be used to pursue goals Document

*4.D.4Financial Plan (mandatory) Describe expected revenues, expenditures, reserves, and debt & capital spendingDocument

*4.D.5Long-Term Financial Sustainability (mandatory) Describe long-range sustainability of district's financial trajectory Document

*4.D.6Understandability and Usability (mandatory) Design of document easily navigable and understood by non-expert readerDocument

5. ENSURE SUSTAINABILITY

5A. Put the Strategies into Practice and Evaluate Results

5.A.1Monitoring Implementation Provide responsible parties, milestones and systems of reporting for monitoring implementationSupplementary Materials

5.A.2Continuous Improvement Include higher level information on difference between planned and actual resultsDocument

5.A.2Continuous Improvement Provide more detailed information on difference between planned and actual results Supplementary Materials

&8&P

3. PAY FOR PRIORITIES3A. Applying Cost Analysis to the Budget Process

3.A.1 Cost Structure Analysis Describe why certain analysis technique was chosen and insights gained Application3.A.1 Cost Structure Analysis Submit cost structure analysis Supplementary Materials

3.A.2 Cost-Effectiveness Measurement Demonstrates use of cost-effectiveness techniques or how it is building capacity Application3B. Evaluate & Prioritize Use of Resources to Enact the Instructional Priorities

* 3.B.1 Analyze Revenues (mandatory) Describe analysis and important conclusions Application* 3.B.1 Analyze Revenues (mandatory) Provide results of revenue analysis Supplementary Materials* 3.B.2 Sunset Programs (mandatory) Explain approach taken and important conclusions Application* 3.B.2 Sunset Programs (mandatory) Provide results of evaluation of services Supplementary Materials* 3.B.3 Finding Efficiencies (mandatory) Describe any efficiencies found Application* 3.B.3 Finding Efficiencies (mandatory) Provide results of efforts to find efficiencies in existing services Supplementary Materials

4. IMPLEMENT PLAN4A. Develop a Strategic Financial Plan

* 4.A.1 Strategic Financial Plan Document (mandatory) Provide copy of strategic financial plan Supplementary Materials* 4.A.2 Strategic Financial Plan Formally Adopted (mandatory) Provide a copy of resolution/other documentation confirming formal adoption Supplementary Materials

4B. Develop a Plan of Action* 4.B.1 Plan of Action (mandatory) Provide copy of district-wide plan of action for implementation of instructional priorities Supplementary Materials

4.B.2 Plan of Action Accepted by Administration Describe how plan of action was formally accepted by administration Application4C. Allocate Resources to Individual School Sites

* 4.C.1 Allocation Formula (mandatory) Clearly describe ratios/formulas used for allocation Document* 4.C.1 Allocation Formula (mandatory) Clearly describe rationale behind ratios/formulas used for allocation Application* 4.C.1 Allocation Formula (mandatory) Academic officer can describe how ratios/formulas work Interview

4.C.2 Programmatic Elements Allocation to programmatic elements is evident in document Document* 4.C.3 Consolidated Budgeting (mandatory) Allocation process includes all available funding Document* 4.C.4 Direct Cost of Personnel (mandatory) Allocation decisions are made using direct cost of personnel Document

4D. Develop Budget Presentation* 4.D.1 The Challenges (mandatory) Describe challenges faced that shaped budget discussion Document* 4.D.2 Goals (mandatory) Present district-wide goals that guide resource allocation Document* 4.D.3 Strategies and Initiatives (mandatory) Describe strategies that will be used to pursue goals Document* 4.D.4 Financial Plan (mandatory) Describe expected revenues, expenditures, reserves, and debt & capital spending Document* 4.D.5 Long-Term Financial Sustainability (mandatory) Describe long-range sustainability of district's financial trajectory Document* 4.D.6 Understandability and Usability (mandatory) Design of document easily navigable and understood by non-expert reader Document

5. ENSURE SUSTAINABILITY5A. Put the Strategies into Practice and Evaluate Results

5.A.1 Monitoring Implementation Provide responsible parties, milestones and systems of reporting for monitoring implementation Supplementary Materials 5.A.2 Continuous Improvement Include higher level information on difference between planned and actual results Document 5.A.2 Continuous Improvement Provide more detailed information on difference between planned and actual results Supplementary Materials

S11

Vote Page

Reviewer ID Document Number 01

Name of Entity State/Province 12

Record Number Order Rec'd Number 23

3

0 = Not provided/relevant, 1 = Does not meet criteria, 2 = Progressing, but substantial work still needed, 3 = Significant progress, close to meeting criteria, 4 = Meets criteria, 5 = Exceptional (Please rate each criterion)4

Criteria NameCriteria DescriptionLocation5

1. PLAN AND PREPARE

1A. Establish a Partnership between the Finance and Instructional Leaders

*1.A.1Finance - Academic Partnership (mandatory) Co-signature of application by academic and financial staffApplication

1.A.1Finance - Academic Partnership (mandatory) Academic and finance lead staff members are included in interviewInterview

1.A.2Criteria for Success of the Budget Process Describe criteria for success of budget process Application

1B. Develop Principles and Policies to Guide the Budget Process

1.B.1Budget Principles Submit board adopted budget principles.Supplementary Materials

*1.B.2Policies (mandatory) Submit board adopted budget policies.Supplementary Materials

*1.B.2Policies (mandatory) Summarize budget policies in Budget DocumentDocument

1C. Analyze Current Levels of Student Learning

1.C.1Data Analysis Overview Explain approach in using data.Application

1.C.2Data Analysis Example Provide example that illustrates use of data analysisSupplementary Materials

1D. Identify Communications Strategy

1.D.1Communications Describe how budget process engaged stakeholders and communicated decisionsApplication

1.D.1Communications Document should be consistent and indicative of approach described in applicationDocument

2. SET INSTRUCTIONAL PRIORITIES

2A. Develop Goals

*2.A.1District-Wide SMARTER Goals (mandatory) Include goalsDocument

*2.A.1District-Wide SMARTER Goals (mandatory) Include goals as supplementary materials to provide contextSupplementary Materials

*2.A.1District-Wide SMARTER Goals (mandatory) Application describes goal setting processApplication

*2.A.2School Site SMARTER Goals (mandatory) Demonstrate how goals are distributed to schools sitesDocument

*2.A.2School Site SMARTER Goals (mandatory) Submits how goals are distributed to school sitesSupplementary Materials

2.A.3Goal content Goals address student performance and other factors that impact performanceSupplementary Materials

2B. Identify Root Cause of Gap between Goal and Current State

*2.B.1Root Cause Analysis (mandatory) Submit an example of a completed root cause analysis for at least one goalSupplementary Materials

*2.B.1Root Cause Analysis (mandatory) Describe more generally how root cause analysis was conductedApplication

2C. Research & Develop Potential Instructional Priorities

*2.C.1Instructional Priorities (mandatory) Submit instructional priorities and supporting research used to developSupplementary Materials

2D. Evaluate Choices between Instructional Priorities

2.D.1Option Analysis Describe process used to analyze optionsApplication

2.D.1Option Analysis Submit additional information on option analysisSupplementary Materials

3. PAY FOR PRIORITIES

3A. Applying Cost Analysis to the Budget Process

3.A.1Cost Structure Analysis Describe why certain analysis technique was chosen and insights gainedApplication

3.A.1Cost Structure Analysis Submit cost structure analysisSupplementary Materials

3.A.2Cost-Effectiveness Measurement Demonstrates use of cost-effectiveness techniques or how it is building capacityApplication

3B. Evaluate & Prioritize Use of Resources to Enact the Instructional Priorities

*3.B.1Analyze Revenues (mandatory) Describe analysis and important conclusionsApplication

*3.B.1Analyze Revenues (mandatory) Provide results of revenue analysisSupplementary Materials

*3.B.2Sunset Programs (mandatory) Explain approach taken and important conclusionsApplication

*3.B.2Sunset Programs (mandatory) Provide results of evaluation of servicesSupplementary Materials

*3.B.3Finding Efficiencies (mandatory) Describe any efficiencies foundApplication

*3.B.3Finding Efficiencies (mandatory) Provide results of efforts to find efficiencies in existing servicesSupplementary Materials

4. IMPLEMENT PLAN

4A. Develop a Strategic Financial Plan

*4.A.1Strategic Financial Plan Document (mandatory) Provide copy of strategic financial planSupplementary Materials

*4.A.2Strategic Financial Plan Formally Adopted (mandatory) Provide a copy of resolution/other documentation confirming formal adoptionSupplementary Materials

4B. Develop a Plan of Action

*4.B.1Plan of Action (mandatory) Provide copy of district-wide plan of action for implementation of instructional prioritiesSupplementary Materials

4.B.2Plan of Action Accepted by Administration Describe how plan of action was formally accepted by administrationApplication

4C. Allocate Resources to Individual School Sites

*4.C.1Allocation Formula (mandatory) Clearly describe ratios/formulas used for allocationDocument

*4.C.1Allocation Formula (mandatory) Clearly describe rationale behind ratios/formulas used for allocationApplication

*4.C.1Allocation Formula (mandatory) Academic officer can describe how ratios/formulas workInterview

4.C.2Programmatic Elements Allocation to programmatic elements is evident in documentDocument

*4.C.3Consolidated Budgeting (mandatory) Allocation process includes all available fundingDocument

*4.C.4Direct Cost of Personnel (mandatory) Allocation decisions are made using direct cost of personnelDocument

4D. Develop Budget Presentation

*4.D.1The Challenges (mandatory) Describe challenges faced that shaped budget discussionDocument

*4.D.2Goals (mandatory) Present district-wide goals that guide resource allocationDocument

*4.D.3Strategies and Initiatives (mandatory) Describe strategies that will be used to pursue goals Document

*4.D.4Financial Plan (mandatory) Describe expected revenues, expenditures, reserves, and debt & capital spendingDocument

*4.D.5Long-Term Financial Sustainability (mandatory) Describe long-range sustainability of district's financial trajectory Document

*4.D.6Understandability and Usability (mandatory) Design of document easily navigable and understood by non-expert readerDocument

5. ENSURE SUSTAINABILITY

5A. Put the Strategies into Practice and Evaluate Results

5.A.1Monitoring Implementation Provide responsible parties, milestones and systems of reporting for monitoring implementationSupplementary Materials

5.A.2Continuous Improvement Include higher level information on difference between planned and actual resultsDocument

5.A.2Continuous Improvement Provide more detailed information on difference between planned and actual results Supplementary Materials

&8&P

Implementing Best Budgeting Practices –Where do you start?

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Focus on 5 major areas:1. Plan and Prepare2. Set Instructional Priorities3. Pay for Priorities4. Implement Plan5. Ensure Sustainability

Best Practices in School BudgetingS13

The Process Brings Together Strategic Academic Planning and the Budget Process

…strategic planning and the budgeting process are merged to create a process for strategic

use of resources in the district:

In Smarter School Spending…

Merging these processes allows for greater alignment of district strategy

and finances, and allows the district to balance financial decisions as tradeoffs for increasing strategic investments in

students

Budget Process

Academic Strategic Planning

1. Strategic Plan

2. Strategic Finance Plan

3. Strategic Annual Budget

…strategic planning and budget processes happen in parallel tracks

that don’t intersect:

In many districts…

Academic Strategic Planning

Budget Process 2. DistrictBudget

1. Strategic

Plan

When these processes happen in isolation, a district is at risk for creating a strategic plan that cannot be funded and a budget

that has no strategic basis

14

What are the most important steps?

• Setting and agreeing to “SMARTER” Goals

• The connection of instruction and finance staff eliminates silos, strengthens relationships of departments that are critical to the success of student learning.

• The work leads to collaborative partnerships, better communication and understanding of each other's work. This has a positive impact in more than strategic planning and budget.

School District Strategic Plans: Summary of Top Goals

• District Goals Inventory: Create a crosswalk to achieving district strategic goals using F5 resources

• 14 Schools Studied: • 93% stated “Increased Student Performance” as top goal• 86% emphasized a “Highly Qualified Staff”• 71% stated an importance on improving Technology,

Building Operations, and Facilities, as well as emphasizing Parental/Community Involvement

• 50% state Governance/Financial Health and School District Culture

• 36% and less cite School Safety, Diversity, Increased Communication/Transparency, and Innovation as priority

Goal Setting Purpose

•Two-fold:• Provide Direction• Set Expectations

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SMARTER Framework• Specific - precise outcome or result• Measureable - verifiable, ideally quantifiable• Achievable - grounded in reality• Relevant - focused on student achievement• Time-bound - short and long-term objectives• Engaging - reach for ambitious improvement• Resourced - finances aligned with goals

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Communication• Probably the most underestimated tool

• Know exactly why you are implementing the best budgeting practices through smarter school spending. If your stakeholders do not understand the “why” you will not get the support you need.

• Set realistic timeframes for the implementation of goals. Change at a School district can appear at times to be like trying to turn an aircraft carrier quickly.

• In hindsight, we might have selected a slower pace of implementation but we believed at the time that it was necessary to meet our objectives.

• Dr. Moxley described the experience as “building the airplane while in flight”—

The “Curse of knowledge”• In 2012, Lake County embarked on this project with an

very short timeline and a close core group of district executives.

• When you know a lot about a subject, it can be hard to explain to others because you make assumptions that they have the same level of knowledge on the topic.

• We were so immersed in the process we did not realize that others did not have the same level of understanding.

• At a staff meeting, I realized that my own finance department staff did not have a clear understanding of what we were working on or why.

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Lessons Learned• Dr. Susan Moxley,

• Retired Superintendent, Lake County Schools• Current Interim Superintendent Indian River County Schools

• Assessment of Indian River Schools• Superintendent position vacant• School Board in the process of hiring a permanent Superintendent• CFO Position vacant for almost 1 year• District was in survival mode, pay bills, make payroll• Budget had no connection to the Strategic Plan.

Lessons Learned• Question to Dr. Moxley:

• When you entered this new district, what tools from Smarter School Spending did you carry with you, even though there was no formal plan?

• Reply:The district is working toward including the concept of linking the budget to the strategic plan.

All agenda items taken to the Board are required to have a dollar amount included and identification of the strategic goal or objective that is supports.

Lessons Learned2. The District is including the concept of “Return on Investment” as a way of thinking and acting.

“Identifying the things we should stop doing so that the resources can be redeployed to areas of focus and need”

These are powerful statements of the value and underlying commitment to the process built into the Best Budgeting Framework.

Increase in Student Learning (Investment) x Number of Students Served

Total Costs

Example: 10 Step A-ROI Process

Focus on Academic Return on Investment

In the first year, we did not do much to measure the cost-effectiveness of programs because we were occupied with identifying which programs were the priorities and implementing them.

In the second year, we began to measure academic return on investment.

This provided a pathway to explain how and why we selected to keep or expand one program over another.

Process for Evaluation Existing or New Programs.

Evaluation Approaches

Goal Profile: Ask Where Do You Want To Be?

• What does the Resource Map for our strategic goals look like? (staffing ratios, technology ratios, fund balance %, etc.)

• What academic goals do we wish to meet and what resources will be needed to meet them?

• What salary schedule targets and fringe benefits are needed to meet our goals?

• What is our district philosophy and what are our priorities?

• How can we reflect our goal in resources by using SMARTER goals

Relative Cost Per Outcome

Great! Replicateresults here.

What happened here?

Analyze Current Levels of Student Learning

• Collecting performance data• Develop a well-rounded perspective on student

performance• Ensure data is – relevant, consistent and can be

disaggregated

• Measuring student performance • Comparison against a standard of proficiency• Relative improvement• Changes over multiple years

• Data culture• Focus on future needs

Algebra1 EOC Results Medium Size Florida Districts 2019

Understand your current levels of spending.

Evaluate & Prioritize Expenditures to Enact the Priorities

• Finding resources• Increased revenues, sunset existing programs,

efficiencies

• Weighing trade-offs• Consistency, transparency, data

• Overcoming constraints• Funding limitations, legal issues, culture, contracts

Example District Priority: Attract and Retain a Highly Trained Staff

• Strategy: Offer Staff Training at that is relevant and timely.

• Questions:• What is our current level of spending?• How do we compare to peer districts?

What have we spent and what are we currently spending on Staff training?Does this level of spending support our perception of this being a district priority?

Where are we spending our training dollars?

Where are the Salary Expenditures for Staff Training being spent?

Where type go facility are the training dollars being spend at?

Line Item Spending on 6400 Instructional Staff Training – Peer Districts

How does our Spending compare to our Peer Districts?

S48

Apply Cost Analysis to the Budget

• Staffing analysis• Use fully loaded employee cost & benefits

• Cost of service analysis• Per unit costs• Cost per outcome• Relative cost per outcome

• But – understanding the need for pairing context with analytical results

Budget Resources• Best Practices in School Budgeting developed by GFOA with input

of several districts and other experts - http://gfoa.org/pk-12-budget

• Smarter School Spending initially developed in partnership with four districts - resource library of examples, tools, etc. -http://smarterschoolspending.org/

• Award for Best Practices in School Budgeting is a new GFOA budget award based on the Best Practices in School Budgeting -http://gfoa.org/school-budgeting

• Alliance for Excellence in School Budgeting is an early adopter group of nearly 100 districts formed by GFOA to aid in implementing the new Best Practices - http://gfoa.org/alliance-excellence-school-budgeting

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http://gfoa.org/pk-12-budgethttp://smarterschoolspending.org/http://gfoa.org/school-budgetinghttp://gfoa.org/alliance-excellence-school-budgeting

51

Thank You!

Carol MacLeod, CPARetired CFO

Lake County Schools

===================

Sr. Analytics AdvisorForecast5 Analytics, Inc

Tampa 813-390-8636cmacleod@forecast5analytics.com

52

mailto:cmacleod@forecast5analytics.com

GFOA’s Award for Best Budgeting Practices �and �An Introduction to Academic Return on Investment (A-ROI)���Parts Presented with permission from:��Government Finance Officers Association�AgendaGFOA Budget AwardsNeed for Better BudgetingBudgeting TodayGFOA Budget AwardsAward CriteriaAward FocusParticipate in the Award ProgramSlide Number 10Slide Number 11Slide Number 12Best Practices in School BudgetingThe Process Brings Together Strategic Academic Planning and the Budget ProcessWhat are the most important steps?School District Strategic Plans: Summary of Top GoalsGoal Setting PurposeSMARTER FrameworkCommunicationThe “Curse of knowledge”Slide Number 21Lessons LearnedLessons Learned Lessons LearnedSlide Number 25Slide Number 26Slide Number 27Example: 10 Step A-ROI ProcessFocus on Academic Return on InvestmentProcess for Evaluation Existing or New Programs.Evaluation ApproachesSlide Number 32Goal Profile: Ask Where Do You Want To Be?Relative Cost Per OutcomeSlide Number 35Analyze Current Levels of Student LearningAlgebra1 EOC Results �Medium Size Florida Districts 2019Understand your current levels of spending.Slide Number 39Slide Number 40Evaluate & Prioritize Expenditures to Enact the PrioritiesExample District Priority: Attract and Retain a Highly Trained Staff�What have we spent and what are we currently spending on Staff training?�Does this level of spending support our perception of this being a district priority?Where are we spending our training dollars?Where are the Salary Expenditures for Staff Training being spent?Where type go facility are the training dollars being spend at?Line Item Spending on 6400 Instructional Staff Training – Peer DistrictsSlide Number 48Apply Cost Analysis to the BudgetBudget ResourcesSlide Number 51Thank You!