1. Photos by Susie Fitzhugh A More Deliberate Approach to Budgeting CUBE 2015 Annual Conference Phoenix, Arizona October, 2015 CUBE 2015 Annual Conference

2. A More Deliberate Approach to Budgeting Session Overview Student Based Budgeting & School Design Background in Cleveland Metro School District, Megan Traum (45 minutes) Break (15 minutes) Seattle Public Schools Framework: – Topics 1 to 3 (45 minutes) Break (15 minutes) – Topics 4 to 7 (60 minutes) CUBE 2015 Annual Conference Note: Plan to spend 15 minutes on each topic

3. “A More Deliberate Approach to Budgeting” Small Group Discussion Topics (15 minutes each) 1)Policies: Board budget and related policies 2)Strategic Plan: Budget aligned to strategic plan 3)Guiding Principles: Annually review budget guiding principles  Effective Equity Policy integration 4)Work plan: Confirm budget development calendar 5)Legislative: Adopt annual legislative priorities 6)Communicate budget to public 7)Monitor: Regular budget status reports 39/14/2015CUBE 2015 Annual Conference

4. Topic 1) Board Budget and Related Policies: Seattle Example Budget Policies: Multi-year fiscal plan Sound financial and budget principals Community engagement School Funding Model Budget implementation Minimum Fund Balance Designated Reserves Capital and technology levies Inter-fund loans and transfers Annual/monthly financial reports Other related policies that support budget process: Board committee structure Annual board goals Performance management Legislative program Collective bargaining Fiscal impact statements Strong Equity Focus Active Monitoring responsibilities External/internal audit oversight School capacity & boundaries 49/14/2015CUBE 2015 Annual Conference

5. Topic 1) Board Budget and Related Policies Discussion Worksheet Budget policies discussion _________ Related policies discussion _________ __________ 59/14/2015CUBE 2015 Annual Conference Discussion: Identify common approaches and unique practices among CUBE member districts that support effective board budget oversight

6. Topic 2) Budget Aligned to Strategic Plan: Seattle’s Central Planning & Budget Process The Annual Budgeting & Planning process is an integral component of achieving the goals set out in the 5 year strategic plan Annual Budgeting & Planning 5 Year District Strategic Plan 24 Month Vision / Planning 5 Yr 2 Yr 1 Yr Annual reflection on how the services provided tie into the roadmap / implementation plan, and to ensure resources are allocated appropriately to support and achieve annual milestones 24 month vision / planning helps orgs. get more tactical and create a road map / implementation plan for how to drive positive change and execute on the goals stated in the Strategic Plan Frequency Strategy is developed every 5 years to guide the district’s work in order to meet its commitment to: ensure equitable access closing the opportunity gaps excellence in education for every student More Strategic More Tactical 69/14/2015CUBE 2015 Annual Conference

7. Topic 2 cont.) Budget Process Documents Unfunded Needs to Plan “Asks by Type” HR Capital, Facilities, Enrollment Operations Teaching & Learning Superintendent Deputy Business & Finance Performance Enabler Compliance / Operational Redundancy Rev. Generator / Cost Reducer Division Improvement Priority Other Division Priority Performance Enabler Compliance / Operational Redundancy Rev. Generator / Cost Reducer Division Improvement Priority Other Division Priority 1504386717$27,187,457$11,056,745$397,324$8,374,107$719,824 Count$ 79/14/2015CUBE 2015 Annual Conference

8. Topic 2) Align Budget to Strategic Plan Discussion Section Worksheet Strategic plan Tactical plan Annual budget Departmental Individual Periodic Assessment Community Input 89/14/2015CUBE 2015 Annual Conference Review how well District works to align budget to strategic plan. What are ways this can be accomplished?

9. Topic 3) Annually Review Budget Development Guiding Principles: Seattle Example 9 Ensure lean infrastructure Invest in promising ideas and technology Protect basic education service levels Support responses to findings by the State of Washington Auditor’s Office; Optimize capital expenditures Ensure the budget process includes short and long-term solutions Focus on budget sectors unaligned with National spending-per-student benchmarks; Invite labor partners to work with us to improve operational efficiency; Ensure supports are in place for employees impacted by job losses; Develop the professional capacity and skills for all staff Shift investments to proven and promising ideas that align to our strategic objectives. 9/14/2015CUBE 2015 Annual Conference

10. Topic 3) Budget Principles Worksheet Budget PrincipalsPriority (High/Medium/Low) Equity considerations 109/14/2015CUBE 2015 Annual Conference List and discuss important budget guiding principles. Note where priniples compete or conflict. How well does your district use equity principals?

11. Topic 3a) Effective Equity Policy Integration School Board is committed to success of every student, responsibility shared by staff, administrators, instructors, communities and families Focus on closing opportunity gap and ensuring all students graduate from Seattle Public Schools ready to succeed Fostering a barrier-free environment where all students, have the opportunity to benefit equally Differentiating resource allocation, within budgetary limitations, to meet the needs of students who need more supports and opportunities to succeed academically With these commitments in mind, Seattle Public Schools will: – Raise the achievement of all students while narrowing the gaps between the lowest and highest performing students; – Eliminate racial predictability and disproportionality in all aspects of education and its administration 119/14/2015CUBE 2015 Annual Conference

12. Indicator: Allocation What is your district currently doing to align your resources to meet the opportunity and academic learning needs of students who have not been well-served due to their race, ethnicity, class, or home language? Up to five percent of a district’s State poverty (“LAP”) funds may be used to develop partnerships with community-based organizations, ESD’s and other local agencies to deliver academic and non-academic supports. How are your district’s LAP funds being used to support and sustain partnerships with community based organizations to serve socio-economic, culturally, ethnically, racially, and linguistically diverse students and families? How is your district using State allocated funds for family/parent involvement? Indicator: Collaboration How does your district’s leadership collaborate with staff, students, families, and community members to equitably allocate flexible funding for students who have not been well-served due to their race, ethnicity, class, or home language? Indicator: Alignment with Equity Policy How is your district's Equity Policy explicitly considered as part of the budget development process? Indicator: Budget capacity to support ongoing Equity work Describe your district’s budget capacity to support your district's Equity work at the district, building, and classroom levels? Topic 3a) Parent Involvement/Equity Survey 12 Discuss how your District would respond to this recent survey from State of Washington’s Puget Sound Educational Service District

13. October 14, 2014 - Guiding Principles October 29 to May 27, 2014 - Board Budget Work Sessions September 11 to June 15, 2014 - Audit & Finance Committee Meetings November 17, 2014 - Central Office Budget Instructions December 15, 2014 - School Funding Model Finalized by Committee December 19, 2014 - Governor’s Budget January 12 to April 13, 2015 - State Legislative Session February 18, 2015 - Budget Instructions to Schools April 13, 2015 - Washington State Budget Adoption April 20, 2015 - Final Balancing June 17, 2015 - Introduce Budget to Board June 24, 2015 – Required Public Hearing July 1, 2015 - Board Action to adopt FY 15-16 budget Topic 4) Confirm Budget Development Calendar Seattle Example 139/14/2015CUBE 2015 Annual Conference

14. Topic 4) Seattle Menu of Future Board Budget Work Sessions Topics Dec. 9 – A&F Committee - Budget Update January 8 - A&F Committee - Budget Update January 28 – Budget Work Session February 12 - A&F Committee - Budget Update March 12 - A&F Committee – Budget Update March 25 – Budget Work Session – FY15-16 Budget update – Minimum Fund Balance Reserves – Capital Fund budget April 9 - A&F Committee – Budget Update May 14 - A&F Committee – Budget Update May 27 – Budget Work Session – FY15-16 proposed budget – Legislative Update June 11 - A&F Committee – Budget Update June 17 – FY15-16 Budget Introduced June 24 - Public Hearing July 1 - Board Action on FY15-16 Budget Required A&F Committee Budget Actions: – Recommend annual budget to board – Capacity Boundaries – Transportation Service Standards – Approve changes to student fees and lunch room rates – Minimum Fund Balance (Mar) – Capital Fund Transfer to General Fund Important Topics: – Governor’s Budget (Jan, June) – WSS School Funding Committee (Jan) – Central Services Budget (Mar) – Strategic Plan alignment Bell Time Racial Equity/Community Engagement – City of Seattle: Universal Pre-K – Enrollment Projections – SPED/ELL Budget – Technology Budget and Plan – Grants/Restricted Budgets: Title 1/LAP Allocations Head Start Budget – City of Seattle: Family & Education Levy – Program Placement Decisions – Capital Fund Budget – Associated Student Body Budget 149/14/2015CUBE 2015 Annual Conference Multiple Board MeetingsRange of Budget Topics

15. Topic 4) Budget Development Discussion Worksheet List key budget componentsHigh levelDetailed Level 159/14/2015CUBE 2015 Annual Conference Review how well Board covers key budget components throughout year to support board members understanding of district’s budget.

16. Topic 5) Adopt Annual Legislative Priorities Seattle Example 1.Fully fund compensation 2.Class Size/Staff Allocations 3.Sustainable funding/resolve tax inequity 4.Reduce dependence on local levy Monitor State Budget Milestones: Board approves legislative agenda - October SPS Budget Staff Plan – October Board adopts legislative priorities Governor’s Budget (2) – December House Budget – Late March Senate Budget – Early April Final Action – June/July Monitor Key State Budget Drivers: - Class Size/Staff Allocation - Full Day Kindergarten $ - MSOCs (Non salary/benefits) - Pupil Transportation - COLA - Pension - Medical - Operating Levy Base Inflator - Other 169/14/2015CUBE 2015 Annual Conference

17. Topic 5) Seattle example Received State Legislative Funding Support Sources of State Operating FundingRevenueExpense Net Impact Maintenance, Supplies and Operating Costs (MSOCs) $19.8 Maintenance & Operating Levy Inflator (1.1) Cost of Living Adjustment – 1.8% 4.1 (6.7) (2.6) Temporary Cost of Living Adjustment – 1.2% 2.8 (4.4) (1.6) Pension 4.8 (8.8) (4.0) K-3 Teacher/Student ratios 5.0 (6.0) (1.0) Expanded Full Day Kindergarten (six more schools) – LAP funds redirected to summer school 1.0 (.8).2 Medical contribution change ($12 per month).6 (.8) (.2) Miscellaneous.1 (.7) (.6) Total $37.1M ($28.2)$8.9M 179/14/2015CUBE 2015 Annual Conference Seattle also received $25 million in capital funds.

18. Topic 5) Adopt Annual Legislative Priorities Worksheet Levels of supportPriorities defined? Lobbyists?Association?Other? State Federal City/County Business Community CBOs PTAs Union groups Other 189/14/2015CUBE 2015 Annual Conference Who is engaged in process? What levels included in plan? Is plan effective in support district budget objectives?

19. Topic 6) Communicate budget to public: Seattle Example Monthly Board Committee Meetings and Work Sessions Provide written updates. Plus board member monthly community meetings Budget Development Materials on website Makes budget development available for review and comment Dedicated email address for questions Actively monitor, respond and use information from public questions Citizens surveys Public HearingsUse city libraries/ other 19 Develop new social media opportunities 9/14/2015CUBE 2015 Annual Conference Meet with PTA, SPED, parents council, etc.

20. Topic 6) Communicate Budget to Public Breakout discussion worksheet Participation mechanisms: Internal and external actors Legal requirements – Published – Public hearings – Notifications – website Local customs – Work sessions – Citizens committee – Surveys Likely results: Individual interest vs public interest Little agreement Other …. 9/14/2015CUBE 2015 Annual Conference20 Discuss how well your school district covers key budget components throughout year to support board members and the public’s understanding of the district’s budget.

21. Topic 7) Monitor: Regular budget status reports Seattle Example (1)Basic Teacher Staffing (General Ed, SPED, ELL) (2) Special Programs Teacher Staffing (Montessori, International, K8s, etc.) (3) Core Administration (4) Non-Staff Funds (5) Equity Resources: (Title 1, Title 2, & LAP) Funding Priority Order City’s Family & Education Levy PTA, Private grants funds 219/14/2015CUBE 2015 Annual Conference Board Monitoring Tools: Budget book details Monthly reports School details: Large Spreadsheet Charter Schools?

22. Topic 7) Regular budget status reports Monitor All Phases of District’s Strategic Needs Investments 22 Board Governance Priorities Nine (9) Superintendent SMART Goals Goal 1: Educational excellence & equity for every student Goal 2: Improve systems district wide: Goal 3: Strengthen school, family & community engagement Strategic Plan Initiatives Enterprise Risk Management/Improve Internal Controls Continuous Improvement Projects Other Day-to-Day Operational Work 9/14/2015CUBE 2015 Annual Conference

23. 7) Monitor: Regular Budget Status Reports Discussion Worksheet HelpfulLeast Helpful 9/14/2015CUBE 2015 Annual Conference23 List types of Budget monitoring practices that are most helpful to least helpful for board members and their community

24. Thank you!! 249/14/2015CUBE 2015 Annual Conference