(c) 2008 the mcgraw ‑ hill companies 1 school district budgeting

(c) 2008 The McGraw‑Hill Companies 1

School District Budgeting

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Class Outline

• Defining Budgets

• Approaches to Budgeting

• Budget Preparation

• Budget Implementation

• Case Studies

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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

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Budget 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– Reflects philosophy of school board, 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

– Program accountability

– Personnel accountability

• Communications Tool– Share strengths and challenges of education program

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

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Class Activity

• Groups review budgets

• Consider the six features of Classical budgets

• Ascertain how well budgets meet each of the six characteristics

• Discuss strengths and weaknesses identified in the budgets

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Budgetary Reforms

• Line Item Budgeting

• Program Budgeting

• Zero Based Budgeting

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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

• Position Counts

• Explanation of Expenditure Calculations

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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 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– Certificated 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 Around Which

Budget is to be Constructed– Ascertain Resources Needed to Operationalize

the 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 Approval

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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 – Maintenance and operations – Risk management – Food services – Purchasing

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Distribution of Funds to School Sites

• Alternative Approaches – Weighted pupil methods (“fund the child”)– 65 percent solution

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Examples

• Seattle – 58.4% of resources distributed to schools– Relies on a weighted pupil formula plus a base

allocation for each school• San Francisco

– Resources allocated to schools on staff basis using average staff cost

– Additional revenues to schools based on student characteristics

• Special education is a central responsibility in both districts