The Principals Guide to School Budgeting

Site-Based Decision Making  Norton (2005): “Today, leaders of organizations are expected to be knowledgeable of the political world in which organizations operate and to be highly skilled in working with the dynamics of political competition, conflict, decision making and control.”

Effective Strategies for School Leader  SBDM Process (Site-Based Decision Making)  Autocratic Process-followers don’t play a role in defining the problem or in generating a solution or decision  Consultative Process-followers are consulted but the leader makes the decision  Group Process-followers in collaboration with the leader reach a consensus relative to a solution to the dilemma or decision presented

Why SBDM  Crucial to building an effective and efficient school budget  Intense scrutiny and accountability  “Above Board”-no secret accounts or hidden funds  “Student-First” basis

Who builds the school budget?  The School Leader At the site-level is often considered the most important individual in the budgeting process.  School-Site Administrators Principal, Assistant Principal, Site Specialist, Campus Facilitator  Other Committee Members Teachers, Parents, Community Members

School Budget Applications  Descriptive Narrative-Detailed description of school (years of operation, location, demographic information, federal program eligibilities, socioeconomic backgrounds)  Programmatic Identifiers-grades of the school, students enrolled, ethnic distributions  Mission Statement  Student enrollment projections  Analysis of academic action plan  Needs assessment  Teacher/student distribution  Faculty distribution

Budget Allocations  Federal, State and Local  Average Daily Attendance  Restrictions Type, quality and quantity of instruction Public is critically interested in education School operations are diverse and broad in scope School allocations provide direction for school’s future

Restricted Funds  Title I  Bilingual Education  Special Education

Coding Applications  Fund Codes (1) 100-regular programs 200-special programs 300-vocational programs 400-other instructional programs 500-nonpublic school programs 600-adult and continuing education programs 700-debt service 800-community service programs 900-enterprise programs 000-undistributed expenditures

Coding Applications  Fund Codes (2) 10-Instruction 20-Instructional and School Leadership 30-Support services 40-Administrative Services 50-Support services-nonstudent based 60-Ancillary services 70-Debt service 80-Capital outlay 90-Intergovernmental charges

Coding Applications  Fund Codes (3) 6000-Expenditure/expense control 6100-Payroll costs 6200-Professional and contract services 6300-Supplies and materials 6400-Other operating costs 6500-Debt service 6600-Capital outlay

Important Budget Considerations  Utilize a budget calendar  Identify budgetary allocations and restricted funds  Project faculty and staff increases and reductions  Conduct a needs assessment  Receive input from all parties  Project and prioritize expenditures  Build the budget  Defend the school budget  Amend and adjust the school budget