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

(c) 2008 The McGraw‑Hill Companies 1

School District Budgeting


Class Outline

• Defining Budgets

• Approaches to Budgeting

• Budget Preparation

• Budget Implementation

• Case Studies


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


Budget Triangle

Program

Revenue Expenditures


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?


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


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


Features of Classical Budgets

• Unity

• Regularity

• Clarity

• Balance

• Publicity

• Operational Adequacy


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


Budgetary Reforms

• Line Item Budgeting

• Program Budgeting

• Zero Based Budgeting


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



• 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)



• 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)



• 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



• 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.])



• 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.



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


Contents of a Typical Budget

• Introduction

• Financial Summary Information

• Expenditures

• Revenues

• Position Counts

• Explanation of Expenditure Calculations


Budget Process

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


Budget Process

• Budget Preparation– Enrollment Forecasting

• Comparative projection

• Extrapolation

• Ratio and Correlation Methods

• Component Analysis

• Build out rates

• Ultimate population analysis


Budget Process

• Estimating Personnel Needs– Certificated Staff

• Teachers

• Other Certificated, Non-Admin. Staff

• Site Administrators

• Central Office Administrators

– Classified Staff


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


Budget Process

• Expenditures – Object

– Function– Program


Budget Process

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

• Budget Modification

• Budget Approval


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


Distribution of Funds to School Sites

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


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

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

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