BUILDING TRUST IN YOUR COMMUNITY AROUND SCHOOL FINANCE ISSUES David Carlson, Director School Financial Services Team May 3, 2007

Motivation Florence was a crisis of community trust as much as it was a financial crisis Florence was a crisis of community trust as much as it was a financial crisis Personal observations Personal observations “Budgeting by Referendum” and “Budgeting for Referendum” “Budgeting by Referendum” and “Budgeting for Referendum” The new reality for many districts may be that the current school finance system makes referenda a required source of district revenues for operational purposes The new reality for many districts may be that the current school finance system makes referenda a required source of district revenues for operational purposes

Methodology Interview administrators, business officials, and others who may have insights into building trust within communities Interview administrators, business officials, and others who may have insights into building trust within communities Outcomes: identify elements/dimensions of trust and best practices that are applicable to the school setting Outcomes: identify elements/dimensions of trust and best practices that are applicable to the school setting

Methodology “How have you built trust or how do you build trust in school communities?” “How have you built trust or how do you build trust in school communities?” “What are some best practices that you have implemented?” “What are some best practices that you have implemented?”

What is Trust? “Assured reliance on the character, ability, strength or truth of some one or something” “Assured reliance on the character, ability, strength or truth of some one or something” Word derivation of trust is related to the word “truth” Word derivation of trust is related to the word “truth” A product of trust is the ability to influence behavior A product of trust is the ability to influence behavior

New Paradigm Budgeting by Referendum Community support is even more critical to a districts’ ability to provide a quality education Community support is even more critical to a districts’ ability to provide a quality education New “financial” decision makers New “financial” decision makers Poses new challenges to administrators, staff, board as it affects their ability to carry out their responsibilities Poses new challenges to administrators, staff, board as it affects their ability to carry out their responsibilities Some believe community participation is good Some believe community participation is good

New Paradigm Budgeting by Referendum “All superintendents need to understand school finance as most board meetings are now related to budgeting” “All superintendents need to understand school finance as most board meetings are now related to budgeting” “Advocates for school finance change” “Advocates for school finance change”

Building Trust “It’s not like a light switch. Hard to turn on but easy to turn off” “It’s not like a light switch. Hard to turn on but easy to turn off” “Giuliani affect” – district is judged by memorable events “Giuliani affect” – district is judged by memorable events “Not what you do but how you do it. We were planning on this. Now the time is here.” “Not what you do but how you do it. We were planning on this. Now the time is here.”

Building Trust “Trust is built on how the community feels you are using its money” “Trust is built on how the community feels you are using its money” “What you say and what you do must match up” “What you say and what you do must match up” “Credibility is built 1-2 people removed from you” “Credibility is built 1-2 people removed from you”

Building Trust “Community understands that it will not always be accommodated but expects to be listened to” “Community understands that it will not always be accommodated but expects to be listened to” “Citizens will buy what they want, not what they need” “Citizens will buy what they want, not what they need”

Building Trust “A referendum should not be a referendum on the superintendent” “A referendum should not be a referendum on the superintendent” “Our biggest problems are solved best when they are small” “Our biggest problems are solved best when they are small” “Chicken Little” doesn’t work “Chicken Little” doesn’t work

Building Trust “Reasonably intelligent people given enough time and information will reach the same conclusion” “Reasonably intelligent people given enough time and information will reach the same conclusion” “Build your votes one at a time” “Build your votes one at a time” “Communities cannot think creatively until they have expressed their fears and concerns” “Communities cannot think creatively until they have expressed their fears and concerns”

Building Trust Pick “Low Hanging Fruit” “Spread the butter” “No electric pencil sharpeners”

Building Trust “Superintendent as Trustee” “Superintendent as Trustee” “Are you talking about today or tomorrow?” “Are you talking about today or tomorrow?” “No surprises” “No surprises”

So What? – Now What? The following are suggestions that those interviewed believe are best practices for them and their attempt to build trust. It’s about communication and building relationships The following are suggestions that those interviewed believe are best practices for them and their attempt to build trust. It’s about communication and building relationships

So What? – Now What? The Board The Board Board members share their plan to comprehensively “listen” to community Board members share their plan to comprehensively “listen” to community Board has regular listening/learning brainstorming sessions beyond the routine and usual business Board has regular listening/learning brainstorming sessions beyond the routine and usual business

So What? – Now What? The Board The Board Board has public relations committee of the board Board has public relations committee of the board “Boards must agree to disagree without being disagreeable” “Boards must agree to disagree without being disagreeable”

So What? – Now What? Superintendent/Business Official Superintendent/Business Official Require administration staff to participate in community organizations Require administration staff to participate in community organizations When hiring key staff, consider their ability to communicate with the community When hiring key staff, consider their ability to communicate with the community Emphasize the positives of the district Emphasize the positives of the district

So What? – Now What? Superintendent/Business Official Superintendent/Business Official Use fiscal audit to demonstrate good stewardship Use fiscal audit to demonstrate good stewardship Require auditor to meet with Board Require auditor to meet with Board Establish accounting system that provides easy access to district data Establish accounting system that provides easy access to district data Every major project/initiative has a communications plan Every major project/initiative has a communications plan

So What? – Now What? Superintendent/Business Official Superintendent/Business Official Demystify the “black box” of school finance Have open book policy of finances Have open book policy of finances Hold finance workshops for community Hold finance workshops for community Link expenditures to programs for kids Link expenditures to programs for kids Create a district finance website for community (Finance team can help) Create a district finance website for community (Finance team can help)

So What? – Now What? Superintendent/Business Official Superintendent/Business Official Demystify the “black box” of school finance “You should be planning the budget now. The budget should be done because of prior planning “You should be planning the budget now. The budget should be done because of prior planning Use technology to engage community such as website, community television stations, listserves, newsletters, appearances Use technology to engage community such as website, community television stations, listserves, newsletters, appearances

So What? – Now What? Superintendent/Business Official Superintendent/Business Official “Feed the eagles” “Feed the eagles” Create strategy to communicate with key communicators Create strategy to communicate with key communicators For referenda, don’t allow superintendent or consultants to present For referenda, don’t allow superintendent or consultants to present Understand district demographics Understand district demographics

Conclusions New paradigm needs further study; this presentation is just an introduction New paradigm needs further study; this presentation is just an introduction Complexity of issues create incredible challenges but also opportunities Complexity of issues create incredible challenges but also opportunities