every student. every classroom. every day. (RBB) Results-Based Budgeting (RBB) MSDF Impact Assessment

What is RBB? RBB stands for Results-Based Budgeting RBB is a budgeting process that accounts for all expenses associated with school operations. Budgets are allocated to and managed by school sites. RBB focuses on four key elements which include: equity, transparency, accountability and site-based decision making. Equity Allocation of funds are based on actual students versus staff allocations Schools have more control over the direction of their resources Transparency Easier to understand budgets for community and parents Reflects true cost to operate instructional program for schools Accountability RBB tied directly to school’s strategic plans (SPSA) School Site Council (SSC) oversight of categorical funds Site-based decision making Schools have more control over their budgets

What is RBB? RBB is a process by which sites are allocated revenues in accordance with the number and type of students in their program – It replaces expenditure-formula budgeting, whereby sites were allocated specific line items in their budget rather than top-line revenue Once the revenue is allocated to the sites, the sites have the flexibility to spend this revenue in the way that gets the best results given their program needs (hence “RESULTS-Based Budgeting”) – Flexibility in spending is subject to Union contract guidelines

How does RBB work? By charging schools the actual cost of teachers, a school with more novice educators has more money left over to pay for training, supplies, or another teacher and thus reduce class sizes—all of which could make a school more attractive to new teacher candidates, as well as students and families.

How does the RBB process work? Linear, step-by-step process where each step builds on the one that came before it – Site Information – Projected Revenues – Projected FTE Requirements – Projected FTE Expenditures – Allocation to Resources – Non-Salary Expenditures – Final Review Revenues Expenditures: Labor Expenditures: Non-Labor Expenditures vs. Revenues

Revenue not allocated to salaries REMAINS at the site and is available for any other site use: professional development, books, materials, supplies, consultants, contracted services, and capital improvement

RBB Results Streamlining of strategic planning and budgeting process allows principals to focus on effective resource use at the site Principals and community leaders interviewed in 2008 had a strong preference for RBB over previous budgeting system Equity of spending has increased for elementary schools, but not as much for secondary schools OUSD continues to increase transparency at Central Office/district-wide levels Operation Support coaching has been a very positive innovation RBB has helped to make way for a culture shift away from pure compliance to innovative planning to address the needs of students