Budgeting 101

Class Activity Describe what you think the school district budget process looks like – steps and time lines. Completing some of the steps will require technical expertise, others will require education expertise, and all of the steps will require leadership as the staff prepares a menu of budget options for the Board of Education. Identify the budget managers that you would want to meet with.

1. Prepare an estimate of all revenue sources  The legislative budget cycle makes it very difficult to identify state revenue that accounts for approximately 60% of most school district budgets.  1.

 County Commissioners must adopt their final budget before July 1 and most school budgets must be submitted to the Commission in May. District leaders must talk with DPI staff, state legislators and county manager and county budget staff in order to guesstimate revenue increases or decreases.  The Finance Officer must estimate the fund balance.

 2. Conduct meetings with all budget managers to review the current and desired status of all program budgets (this meeting provides a formal opportunity to review with budget managers the relevant strategies included in the district’s strategic plan).

 This step will identify budget reductions, review pilot projects (a determination of whether to end, continue as a pilot, or expand will have to be made), identify the continuation budget (those funds necessary to support existing programs and staff), and consider new expenditures that cannot be avoided (high priority budget additions that may require a reduction in an existing expenditure), and new initiatives if funds were available.

 A sample list of budget managers:  Instructional services assistant supt. (funding of instructional coaches (identify funding sources current and future), textbooks, staff development)  CTE (equipment/materials, student activities, staff development)  EC (staffing and program changes, equipment and software, staff development)

 Title 1 (identify impacts on the local/state budget of anticipated Title 1 funding changes)  Arts (equipment, special district programs, materials, staff development)  ESL (staffing, program growth, equipment, staff development)  District-wide athletics (services and programs provided by the district to support athletics)  Media services (equipment leases, collection upgrades, media support staffing, software)

 Student services (staffing – counselors, social workers, psychologists, dropout prevention, alternative education programs, student assignment, staff development)  Operations:  Transportation (equipment, supplies, activity bus leases, fuel, oil, tires, staffing, staff development)  Maintenance (plumbing, carpentry, boilers, grounds, electrical, painting, HVAC, staffing, training)

 Custodial Services (contract cleaning, supplies, equipment)  Utilities (electricity, natural gas, water, sewer, storm water (actually a tax))  Technology (equipment leases, communication devices, network maintenance, classroom solutions)

 Finance :  Purchasing (equipment, warehousing, bid cycles, courier services, printing)  Internal auditor (recommendations on efficiencies, summer staffing)  Accountability (test supplies, equipment, staffing part-time support staff, staff development)  Research (staffing (grant support), Title 1, staff development, software)

 Legal Services (contract services, contingency funds, staff development)  Public Information Officer (website maintenance, media publications/printing, marketing materials)  Attorney (contract work, publications, estimates of legal contingency fund, staff development)  Assistant superintendents for elementary and secondary (assistant principal staffing, staff development, special teacher staffing changes)  Executive Assistant to the superintendent (Board memberships, travel, catering, publications)

 Convene staff budget committee and Board finance committee  Review preliminary budget work with principals, parent advisory council, teacher advisory council, and occasionally with student advisory council and post budget on line and solicit feedback  Conduct budget hearing with the Board  Finance Committee approves draft budget

 Present budget to Board at one meeting, ask if additional information is needed before final budget approval, announce the last possible date to approve the local budget.  Board approves budget  Present budget to County Commissioners –chair of the finance committee will usually provide opening remarks, superintendent usually presents

 Organize speakers for the County Budget Hearing – prepare talking points for speakers  The final county budget and the NC General Assembly will determine whether a July adjustment needs to be made to the local budget and whether salary schedules for the new fiscal year can be adopted. An interim budget resolution needs to be adopted to keep spending money.

 Adopt final state budget in September (IF final state budget has been approved)  Each month the Finance Committee will approve budget amendments and recommend approval to the full board.