Building Quality Budgets For Strong Community Schools Marcia Saulo and Elsa Forthmuller Region Finance Directors, Imagine Schools

Why Budget? Sustainability Accountability

Outcomes of Poor Budgeting Confusion Missed Opportunities Mismanagement Waste Surprising deficits

Outcomes of Successful Budgeting Administration of school is eased Effective instruction is within your means

Getting Started Know your enrollment Project revenue accurately Make the right assumptions Include all expenses Write it down – Do not assume you will remember what you were thinking!

Enrollment and Revenue Enrollment equals revenue! Match your budget to enrollment Use the Florida DOE Charter School Revenue Estimator: Basic K Basic K-3 with ESE Services 102 Basic Basic 4-8 with ESE Services 103 Basic Basic 9-12 with ESE Services 254 ESE Level 4 (Grade Level PK-3) 254 ESE Level 4 (Grade Level 4-8) 254 ESE Level 4 (Grade Level 9-12) 255 ESE Level 5 (Grade Level PK-3) 255 ESE Level 5 (Grade Level 4-8) 255 ESE Level 5 (Grade Level 9-12) 130 ESOL (Grade Level PK-3) 130 ESOL (Grade Level 4-8) 130 ESOL (Grade Level 9-12) 300 Career Education (Grades 9-12)

When Will Revenue Come In? October and February FTE counts Disbursement likely to change in July, December, and April Timing depends on your district! Plan your cash flow Other Possible Revenue Grants, Charter Capital Outlay, VPK, Title I, Food Service, Before/After Care, Fundraisers, Other Local Revenue

Key Assumptions Needed

How many students will you have? How many teachers do you need? What expenses should you plan for? When will revenue come in? What revenue other than FEFP will you receive?

How Many Students Will You Have? Enrollment determines costs! Demographics? Local history? Grades planned? Parent meeting turnout? Less painful to adjust for more students than fewer. Do not over spend before October! Set up your budget for multiple “what ifs”

How Many Teachers Do You Need? Know class size restrictions Establish a personnel budget to match your (changing) enrollment Remember Salary and Benefits Do Not Over Hire!

What Expenses Should You Plan For? Cost Categories Salaries & Benefits Direct Educational Expenses Facility Operating Expenses Furniture, Fixtures and Equipment Other School Services General & Administrative

Salaries and Benefits

Direct Educational Expenses

Facility Expenses

Furniture, Fixtures and Equipment

Other School Services

General and Administrative Expenses

Other Expenses?

What Will Things Cost? Gather Historical Data – your own and others Percentage Guidelines for Budget Categories Salaries and Benefits50% or more Benefits are running 32% of salaries Rent 20% or less Other Facility Operating Expenses3% Contingency 3% or more

Write it Down! Do not assume you will remember what you were thinking! Set up a Master Budget Workbook in Excel

Incorporate Florida Redbook What is it and what does it do for you? Fund, Function ( 4 digit, purpose, e.g. health services), and Object (3 digit, what type of goods or services, e.g. supplies) Build Redbook into your General Ledger codes Put your GL codes into your workbook Important for reporting and auditing purposes

Budgeting Throughout The Year Get your whole team (including teachers) on board with your budget Monitor and adjust for changes during the year Watch your cash flow and fund balance Suggested process for creating and working with your school’s budget April – early bird budget June – pre-final budget November – final budget July – amended final budget

Questions?

Marcia Saulo and Elsa Forthmuller Region Finance Directors, Imagine Schools Thank You!