New Directors Workshop

David Lipscomb UniversityJanuary 15, 2014

Budget Overview

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General Overview

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Budget

The budget is the numerical representation of your district’s mission.

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Budget

Organization• Uniform chart of accounts• Organized by function• Allows comparison and analysis across years, other

districts in TN

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Account Structure

Funds

• 141 General Purpose School Fund• 142 Federal Projects Fund• 143 School Nutrition Fund• 144 Transportation Fund• 177 Education Capital Projects• 191 Endowment Fund• Debt Service Fund

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Account Structure

Major Functions (sample)• Regular Instruction• Special Education• Attendance• Health Services• Regular Education Instruction Support• Vocational Education Support• Office of the Director of Schools• Maintenance• Transportation• Community Services

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Account Structure Object Codes

• Personnel (salaries)• Benefits• Contracted Services• Materials and Supplies• Fees and Other Charges• Equipment

Same in every fund, every major category• Example 71100-116 always regular education

teacher

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Sources of Funding

Local State Federal

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Sources of Funding

Local • Local taxes

– Property– Sales– Wheel

• City/School District Property Taxes• Licenses and Permits• Charges for Current Services• Other Local Revenues

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Sources of Funding

State• BEP• Career Ladder• Extended Contract• State Grants• Other State Funds

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Sources of Funding

Federal• Federal through state (General Purpose Fund)• Adult Education Grant (General Purpose Fund)• Vocational Education (Carl Perkins)• ESEA Grants (Title Programs)• IDEA (Special Education)• ROTC Reimbursement (General Purpose)

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Budget Process

There are as many ways to approach budget development as there are LEAs.

Basic process (50,000 foot view)• Estimate Revenues• Estimate Expenditures• Balance• Check MOE and fund balance• Approval by Board and funding body• On-going monitoring and adjustment throughout year

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Revenue Estimates Local Revenues

• Talk with county/city finance department• They may give estimates, or LEA may do own

estimates• Review current year revenues against budget• Look for anomalies/one-time occurrences• Monitor trends in revenue streams• Be aware of political and economic developments• Maintenance of Effort test

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Revenue Estimates State Revenues

• BEP estimates April, May, June• Final BEP July• Grant applications/awards• Career Ladder• Extended Contract (information from state budget)

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Revenue Estimates Federal Revenues

• Preliminary allocations in spring• Final allocations July• Estimate carryover in federal projects to include in

budget• Grant applications/awards

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Revenue Estimates Fund Balance

• May be used to balance budget • 3% fund balance test may apply• Estimate year-end fund balance

– Beginning fund balance– Plus revenues– Minus expenditures– Equals ending fund balance

• Determine restricted, committed and assigned amounts

• Unassigned is available for any education use

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Expenditure Estimates Review current year budget to actuals Information from state

• Insurance premium increases• TCRS rate changes (every two years – FY15)• SSMS

Local • Local salary decisions• New programs• ADM growth/decrease

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Expenditure Estimates Input

• District– Meet with principals, supervisors, department heads– Staffing needs– New/expanded programs– Maintenance needs– Capital Outlay needs

• Board members• Budget Committee• County Commission

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Budget “Philosophy” Budget should reflect strategic plan for district

• General Purpose and Federal Projects should be viewed as separate funding streams all supporting district plan

• ePlan facilitates this process Federal projects budgets governed by grant

requirements and restrictions School Nutrition governed by SNP program

guidelines and USDA requirements

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Budget “Philosophy” Don’t be afraid of difficult decisions

• Reducing number of teachers• Moving teachers between grade levels/schools• Closing schools• Re-zoning

Student needs come first – needs of adults are secondary

Open communication, transparency can ease pain of making difficult decisions

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Budget “Philosophy” NOT a ‘one and done’ exercise

• On-going monitoring essential• Revenues and expenditures reviewed monthly,

actual to budget comparison• Revisions/amendments completed as needed• Communication with funding body

– Reports– Meetings

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Budget Presentation Know your audience Visuals (charts, graphs) helpful

• A picture is worth a thousand words Transparency is critical Footnote line items for clarity

• Budget narrative• Footnotes to ‘numerical’ pages

Classroom Costs $3,066 Regular Instruction $ 556 Special Education $ 194 Vocational Education $ 186 Student Support

Sub-total $4,002

School Site Costs $ 405 School Administration $ 407 Instructional Staff Support $ 676 Facility Oper. & Maint. $ 225 Student Transportation

Sub-total $1,713District Admin. Costs $ 136 General Administration $ 39 Business Administration $ 71 Central and Other

Sub-total $246Other Uses $ 78 Other Uses $6,039 per student

Expenditures per Student

28%

4%1%

67%

Classroom CostsSchool SiteDistrict AdministrationOther Uses

Based on Total Budget $314,031,500 & ADM 52,000

14% 6% 6%

3%

0%

71%

Personal Services (100s) Employee Benefits (200s) Contracted Services (300s)

Supplies & Materials (400s) Other Charges (500s) Capital Outlay (700s)

FY 2005 Expenditures by Line-Item Category

Total Budget $314,031,500

$45,430,460

$17,539,962 $19,666,903

$10,610,689

$616,166

$220,167,320

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QUESTIONS?

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FRAUD, WASTE or ABUSECitizens and agencies are encouraged to report fraud, waste or abuse in State

and Local government.

NOTICE: This agency is a recipient of taxpayer funding. If you observe an agency director or employee engaging in any activity which you consider to be illegal, improper or wasteful, please call the state Comptroller’s toll-free

Hotline:

1-800-232-5454Notifications can also be submitted electronically at:

http://www.comptroller.tn.gov/hotline