EDLD 5342 - Week 3, Part 4

For 201-2011, my district’s M&O General Fund (199) was $64,112,712. Of that total amount, $23,426,281 was comprised of local tax revenue, $38,337,425 was total state aid, and the remaining  $2,349,006 was other income (e.g., delinquent taxes, fees, tuition, interest, etc.).

In general, all of the general fund revenue is allocated based on the needs of the students in the district. For 2010-2011, 80.9% of the general fund was used for salaries and benefits (6100). Revenue from the state that is allocated specifically for Special Education, Career & Technical Education, Gifted & Talented Education, Bilingual/ESL Education, or Compensatory Education is allocated appropriately in our budget.

This assignment was helpful because it helped me to see the sources of revenue for the school district general fund and how the money is allocated/expended. While there are numerous codes for fund, function, and object, it is easy to see from where every dollar comes and to where every dollar goes.

Additional Stakeholder Input in the Budgeting Process

Summary:

The types of input one could receive for budget development from each of the following individuals or groups includes, but is not limited to:

• Central Office Administrators and Staff

-       Special programs budgets

-       Enrollment projections

-       Staffing needs

-       Revenue estimates

• Principals

-       Curriculum resources

-       Instructional supplies

-       Staffing/scheduling needs

-       Funding priorities

• Site Based Decision Making Committees

-       Campus goals and objectives

-       Programs/Activities/Strategies

-       Funding priorities

-       Advisory review of preliminary campus budget

• District Improvement Committee

-       District goals and objectives

-       Programs/Activities/Strategies

-       Funding priorities

-       Advisory review of preliminary district budget

• Teacher Organizations

-       Assist in the identification of non-allocated funding needs

-       Teacher input/feedback

• Key Stakeholders

-       Vision input/feedback

-       Mission input/feedback

-       Goals and objectives input/feedback

-       Funding priorities input/feedback

• Board of Trustees

-       Public opinion

-       Vision development

-       Mission development

-       Set Priority Objectives

Reflection:

As I reflect on the types of input one could receive for budget development from all stakeholders, it is readily apparent that all stakeholders must be involved in the budgeting process. It is important for the Board to set the vision, mission, and goals so that the budget process can begin. Everyone else from the central administration to the principals to the teachers to parents, community members, and key stakeholders has important information that is vital to the development of an effective and efficient budget that can accomplish the goals of the district. A superintendent would be remiss to leave any of these persons/groups out of the budgeting process.

Superintendent’s Roles and Responsibilities in the Budgeting Process


Summary:

According to my superintendent, the role of the superintendent is to prepare and submit to the Board of Trustees a proposed budget. The superintendent is also responsible for administering the budget. In contrast, the Chief Financial Officer’s responsibilities include: oversee the budget preparation and administration; manage funds of the district – investment and procedures; supervise fund codes and control; manage cash flow; oversee payroll operations; manage employee benefits; manage purchasing. All that being said, the superintendent is the leader of the district. A good leader hires good people and gets out of their way. The superintendent educates the Board and helps them understand the budgeting process. The superintendent works with the Board to adopt a budgeting philosophy, policies, procedures, and calendar that are consistent with the Board’s vision, mission, and goals. Then the superintendent works with the Chief Financial Officer and other executive cabinet members to develop administrative regulations for planning, preparing, administering, and evaluating the budget. The superintendent generally stays out of the day-to-day administration of the budget. The business office administers the budget under the adopted administrative regulations with the superintendent approving exceptions. This helps to provide checks and balances in the system – the person requesting the money is not the person paying the money. In January, the superintendent reviews the budgeting philosophy, policies, procedures, and calendar with the budget managers (A-Team). The budget managers work with all stakeholders to develop their departmental budgets and send it to the business office. The executive cabinet prepares the district budget and submits it to the superintendent for review. Once the superintendent is satisfied with the prepared budget, the superintendent presents it to the Board for preliminary review. The superintendent and the Board work together in workshop meetings and public hearings to finalize the budget. The Board approves the final budget in August.

Reaction/Reflection:

Before speaking to my superintendent, I did not have any idea how involved the budgeting process was for a school district. I now know that a school district Board of Trustees must have a vision, mission, and goals set before district administration has clear direction in setting a budget. The budget is a document to accomplish the goals of the district. It clearly defines how monies will be allocated to every program. The superintendent is integral in this process. As the Chief Executive Officer – the leader – the superintendent helps the Board to identify the vision, mission, and goals of the district. Then the superintendent is responsible for creating (or causing the creation of) a budget that effectively and efficiently funds programs/activities that will accomplish the goals of the district. Ultimately, the buck stops with the superintendent, but the superintendent cannot do it all alone. As a good leader the superintendent must hire the right people, put them in the right place, and get out of their way. It is imperative for the superintendent to be a good communicator with the Board of Trustees and the executive cabinet.

TEA Budgeting Guidelines

After reviewing the TEA Budgeting Guidelines January 2010, I have learned that budgeting is allocating resources based on the needs of the school district. In essence, the budget reflects the values of the school district. The school district sets goals based on their mission and vision, and the school district funds activities that will accomplish their goals. The budget should be the product of a planning process. One of the objectives of budgeting is accountability to the taxpayers. As stewards of the taxpayers’ money, we should budget conservatively and transparently. The three major phases of the budget process are: planning, preparation, and evaluation. As stated above, the budget must be the product of a planning process. Funds must be allocated to activities that will help the district reach its goals that are aligned to its mission and vision. The budget must be evaluated as to its effectiveness in accomplishing the district’s goals. There are several different types of budgets, and most districts use some combination of approaches. There are several legal requirements for the development of the budget. Almost all of a school district’s revenue is a combination of local property taxes and state aid. Federal funds and grants supplement local and state funds. It is important for superintendents to know how to forecast and plan for expenditures, revenue, and student enrollment. The ability to manage the funds of a district effectively and efficiently is crucial to the success of a superintendent.

Goal-Driven Budgeting

Goal-Driven Budgeting

            In the week two lecture, Dr. Arterbury noted that a school district Board of Trustees should develop goals. He added that the district and campus goals should reflect Board goals. The district and campuses create an improvement plan to address their goals, and budget managers allocate funds based on the plans to achieve the goals. This is known as a goal-driven budget.

            My superintendent stated that the purpose of a budget is to get a job done. He also stated that a budget must be aimed at something. He explained that the Board of Trustees should start with a vision. From that vision, the Board develops a mission statement to guide all activities in the district. Each year the Board then sets Priority Objectives, or goals. The district administration develops goals in line with the Board Priority Objectives. They then create District Improvement Plan with activities and strategies to accomplish the goals in cooperation with the District Education Improvement Council. Individual campuses also create goals that reflect the Board Priority Objectives. The campuses then create a Campus Improvement Plan with activities and strategies to accomplish the goals in cooperation with their own site-based decision-making team.

            The planning for budget requests and the management of approved budgets are factors of a long-range District Management Plan, as well as of site-based management. Although each campus budget will address individual campus plans that target student learning and other specific areas, the overall focus will reflect the District’s mission and goals. Likewise, departments which provide services in support of the mission and goals will allocate dollars accordingly.

            Since the planning process is the essential ingredient in creating a budget that will allow us to reach campus and district goals, the administration and Board of Trustees should be committed to the development of a comprehensive approach. The justification for any expenditure is an implementation plan that aligns with the Campus Improvement Plan, District-wide Educational Improvement goals, and State and Federal requirements.

            The involvement of all stakeholders, the in-depth assessment of needs, and the inclusion of program evaluation, all coupled with careful planning, will work in harmony to guide us to provide the best education possible for all of our students and the wise allocation of resources.