School District Budgeting School Finance: A Policy Perspective, 4e Chapter 8 (c) 2008 The McGraw‑Hill Companies

Class Outline Defining Budgets Approaches to Budgeting Budget Planning and Preparation Budget Adoption and Appropriation Budget Implementation and Evaluation Case Studies (c) 2008 The McGraw‑Hill Companies

What is a Budget? Budget (from French bougette, purse) generally refers to a list of all planned expenses and revenues. It is a plan for saving and spending. Purpose is to: Provide a forecast of revenues and expenditures i.e. construct a model of how our enterprise might perform financially speaking if certain strategies, events and plans are carried out. Enable the actual financial operation of the business to be measured against the forecast (c) 2008 The McGraw‑Hill Companies

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 (1988) (c) 2008 The McGraw‑Hill Companies

What is a Budget? Policy Document Financial Plan Operations guide Communications Guide Bennett, Hall and Berg (2006) (c) 2008 The McGraw‑Hill Companies

Budget (Bermuda) Triangle (c) 2008 The McGraw‑Hill Companies

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? (c) 2008 The McGraw‑Hill Companies

Four Functions of a Budget Policy Document Financial Plan Operations Guide Communications Tool (c) 2008 The McGraw‑Hill Companies

Four Functions of a Budget Policy Document Reflects philosophy of school committee, administration and community Emphasizes that philosophy in terms of resources Financial Plan Past Present Future (c) 2008 The McGraw‑Hill Companies

Four Functions of a Budget Operations Guide Fiscal accountability and TRANSPARENCY Program accountability Personnel accountability Communications Tool Identifies and describes the strengths and challenges of education program and services with the community Shows how educational dollars are spent Identifies the district’s programs and priorities (c) 2008 The McGraw‑Hill Companies

Features of Classical Budgets p. 237 O & P Unity Regularity Clarity Balance Publicity Operational Adequacy (c) 2008 The McGraw‑Hill Companies

Class Activity for Saturday Jan 23, 2009 Groups review budgets Consider the six features of Classical budgets Determine if and how well budgets meet each of the six characteristics Discuss strengths and weaknesses identified in the budgets (c) 2008 The McGraw‑Hill Companies

Budget Philosophy and Formats Line Item Budgeting (Obj-function) Sample Budget Template CDC Program Budgeting Zero Based Budgeting Windsor Ontario Hospital (c) 2008 The McGraw‑Hill Companies

(c) 2008 The McGraw‑Hill Companies

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 (c) 2008 The McGraw‑Hill Companies

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) (c) 2008 The McGraw‑Hill Companies

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) (c) 2008 The McGraw‑Hill Companies

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 (c) 2008 The McGraw‑Hill Companies

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.]) (c) 2008 The McGraw‑Hill Companies

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. (c) 2008 The McGraw‑Hill Companies

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 (c) 2008 The McGraw‑Hill Companies

Contents of a Typical Budget Introduction Financial Summary Information Expenditures Revenues Personnel and Position Counts (FTEs) Explanation of Expenditure Calculations (c) 2008 The McGraw‑Hill Companies

ASBO MBA Budge Format and Elements Introductory Section Organizational Section Financial Section Information Section (c) 2008 The McGraw‑Hill Companies

Budget Process Development of Budget Guidelines Superintendent’s message Budget Calendar Guidelines for participation Budget forms Information on structure Other information (c) 2008 The McGraw‑Hill Companies

Budget Process Budget Preparation Enrollment History and Forecasting Comparative projection Extrapolation Ratio and Correlation Methods Component Analysis Build out rates Ultimate population analysis (c) 2008 The McGraw‑Hill Companies

Budget Process Estimating Personnel Needs Certified Staff Teachers Other Certificated, Non-Admin. Staff Site Administrators Central Office Administrators Classified Staff (c) 2008 The McGraw‑Hill Companies

Budget Process Estimating Expenditures Identify Specific Programs and Services Around Which Budget is to be Constructed Specify Resources (Time, People and Materials) Needed to Implement Tasks Essential to Each Program Estimate the Costs of the Resources Needed for Implementation (c) 2008 The McGraw‑Hill Companies

Budget Process Expenditures Object Function Program (c) 2008 The McGraw‑Hill Companies

Budget Process Estimation of Revenue Budget Modification Property Taxes State Revenue Federal Revenue Other Sources of Revenue Budget Modification Budget Adoption (c) 2008 The McGraw‑Hill Companies

Distribution of Funds to School Sites Staff Total dollar budget Personnel allocations based on staffing ratios Non-staff (site or district?) Technology Transportation Buildings and Grounds -Maintenance and operations Risk management Food services Purchasing (c) 2008 The McGraw‑Hill Companies