Budget BOOT CAMP Part I: Budget Creation Budget BOOT CAMP Part I: Budget Creation Patrick S. DeGeorge Business Administrator Matawan-Aberdeen Regional School District September 28, 2015
The Budget Calendar July/August Enact current year budget September/October/November Prepare and distribute budget data collection tools to budget managers Adopt budget calendar and goals BOE election February Prepare preliminary budget for submission to Board DOE releases state aid figures December/January Collect and review budget data collection tools Conduct discussions with budget managers Annual organization meeting
The Budget Calendar (Cont.) May/June Submit final budget to County Office and Department of Education July through August Monthly budget meetings between the BA and the administrators March/April/May Board adopts and transmits the tentative budget to County Office County Office approves tentative budget for advertising in newspaper Conduct Public Budget Hearing Board at which the final budget is adopted
Dictionary of basic Terms Appropriation “PLAN” for the appropriation, encumbrance and expenditure of revenue Budget Revenue budgeted for a particular purpose Encumbrance Legal commitment of all or part of an appropriation Expenditure Payment of all or part of an encumbrance Revenue Funds the district expects to receive during the year
Build me a Budget!
Personal finances
District finances Step #1 Estimate total revenue Step #2 Estimate total appropriations Step #3 Estimated total revenue must = estimated total appropriations
The budget
REVENUEREVENUE $% General Operations Local Tax Levy$48,072,836 State Aid 12,180,468 Fund Balance503,458 Transfer from Maint Reserve347,280 Transfer from Cap Reserve2,733,542 Miscellaneous (Incl. Tuition + Transp.) 646,804 Subtotal64,484, % Grants1,061,9071.6% Debt Service2,448,7703.6% Total Revenue$67,995, % Source: Final District Budget
APPROPRIATIONSAPPROPRIATIONS $% General Operations Regular Programs – Instruction20,428,384 Special Education - Instruction4,908,513 Basic Skills – Instruction807,918 Bi-lingual – Instruction276,043 Co-curricular & After School1,296,816 Tuition2,567,187 Social Work & Health665,428 Related Services1,412,282 Guidance1,069,318 Child Study Teams1,574,357 Other Instruction1,505,778 Source: Final District Budget
APPROPRIATIONS ( Cont. ) $% Administration4,334,163 Information Technology202,786 Operations, Maintenance & Security4,961,466 Transportation2,677,302 Benefits (Net)12,334,173 Capital Outlay3,452,474 Subtotal64,484, % Grants1,061,9071.6% Debt Service2,448,7703.6% Total Appropriations$67,995, % Source: Final District Budget
“fixed” vs. “variable” Examples of a Fixed Appropriation An appropriation over which the district has no control and which remains the same from period to period “Fixed” (Non-discretionary) Appropriation Debt Contractual obligations Regulatory Requirements
“fixed” vs. “variable” (Cont.) “Variable” (Discretionary) Appropriation An appropriation over which the district has at least some control and which may change from period to period Examples of a Variable Appropriation Employee wages (increase or decrease number of employees) Employee benefits (increases or decreases with change in employees) Supplies (increase or decrease number of classes) Professional development (increases or decreases with change in employees)
THE KEY is to budgeting Sustainability!
THE BOARD’S ROLE Understand the budget process Establish clear and realistic budget goals – aligned with the district’s mission to instruct Remain informed on the development of the district budget through periodic updates from district administration Understand how the district operates Governance Policies Curriculum and programs Staffing Review and approve preliminary and final budgets for submission to the Executive County Superintendent Offer meaningful and constructive comments and questions
Questions?Questions? ? ?
Budget Boot Camp Part II: Budget Management October 5, 2015 Budget Boot Camp Part II: Budget Management October 5, 2015