(c) 2008 The McGraw ‑ Hill Companies 1 School District Budgeting

(c) 2008 The McGraw ‑ Hill Companies 2 Class Outline Defining Budgets Approaches to Budgeting Budget Preparation Budget Implementation Case Studies

(c) 2008 The McGraw ‑ Hill Companies 3 What is a Budget? A document which specifies the planned expenditures and anticipated revenues of a school district in a given fiscal year, along with other data and information relating the fiscal elements to the educational philosophy, programs, and needs of the district. Hartman

(c) 2008 The McGraw ‑ Hill Companies 4 Budget Triangle

(c) 2008 The McGraw ‑ Hill Companies 5 Why Do We Need Budgets? How do Public Budgets Differ from Private Company Budgets? –Why? –Should They? What does a Budget Tell Us? Why do we Care?

(c) 2008 The McGraw ‑ Hill Companies 6 Four Functions of a Budget Policy Document –Reflects philosophy of school board, administration and community –Emphasizes that philosophy in terms of resources Financial Plan –Past –Present –Future

(c) 2008 The McGraw ‑ Hill Companies 7 Four Functions of a Budget Operations Guide –Fiscal accountability –Program accountability –Personnel accountability Communications Tool –Share strengths and challenges of education program with the community –Shows how educational dollars are spent –Identifies the district’s programs and priorities

(c) 2008 The McGraw ‑ Hill Companies 8 Features of Classical Budgets Unity Regularity Clarity Balance Publicity Operational Adequacy

(c) 2008 The McGraw ‑ Hill Companies 9 Class Activity Groups review budgets Consider the six features of Classical budgets Ascertain how well budgets meet each of the six characteristics Discuss strengths and weaknesses identified in the budgets

(c) 2008 The McGraw ‑ Hill Companies 10 Budgetary Reforms Line Item Budgeting Program Budgeting Zero Based Budgeting

(c) 2008 The McGraw ‑ Hill Companies 11 School Site Budgets Using the Evidence Based Adequacy Model Determine school characteristics –Number of students by grade –Percent free and reduced price lunch eligible (or poverty measure used in your state) –Percent English Language Learners (ELL) –Percent of students with disabilities that qualify for special education services

(c) 2008 The McGraw ‑ Hill Companies 12 School Site Budgets Using the Evidence Based Adequacy Model Example using an Elementary School Personnel Resources –Core teachers K-3  1:  1:25 –Specialist 20% of core teachers –Instructional facilitators/coaches (1 per 200 students) –Tutors for struggling students (1 per 100 poverty students)

(c) 2008 The McGraw ‑ Hill Companies 13 School Site Budgets Using the Evidence Based Adequacy Model Personnel Resources (continued) –Teachers for ELL (1 for every 100 ELL students) –Extended day (1/2 poverty enrollment at ratio of 1:15 at 0.25 FTE) –Summer School (1/2 poverty enrollment at ratio of 1:15 at 0.25 FTE)

(c) 2008 The McGraw ‑ Hill Companies 14 School Site Budgets Using the Evidence Based Adequacy Model School Elements –Students with mild and/or learning disabilities (3 additional professional teacher positions per 432 students) –Students with severe disabilities (100 percent state reimbursement minus Federal funds) –Gifted Students ($25 per student based on total school enrollment

(c) 2008 The McGraw ‑ Hill Companies 15 School Site Budgets Using the Evidence Based Adequacy Model School Elements (continued) –Pupil support staff (1 for every 100 poverty students) –Non-instructional aides (2 for every 432 students) –Librarian/medial specialist (1.0) –Principal (1.0) –School clerical staff (1 secretary [12 mo.] one clerical [9 mo.])

(c) 2008 The McGraw ‑ Hill Companies 16 School Site Budgets Using the Evidence Based Adequacy Model School Elements (continued) Professional development –Included in above estimates Facilitators/coaches 10 summer days for planning and preparation –$100 per pupil for other PD expenses such as trainers, travel, conferences, etc.

(c) 2008 The McGraw ‑ Hill Companies 17 School Site Budgets Using the Evidence Based Adequacy Model School Elements (continued) –Technology -- $250 per student –Instructional materials -- $140 per student –Student activities -- $200 per student

(c) 2008 The McGraw ‑ Hill Companies 18 Contents of a Typical Budget Introduction Financial Summary Information Expenditures Revenues Position Counts Explanation of Expenditure Calculations

(c) 2008 The McGraw ‑ Hill Companies 19 Budget Process Development of Budget Guidelines –Superintendent’s message –Budget Calendar –Guidelines for participation –Budget forms –Information on structure –Other information

(c) 2008 The McGraw ‑ Hill Companies 20 Budget Process Budget Preparation –Enrollment Forecasting Comparative projection Extrapolation Ratio and Correlation Methods Component Analysis Build out rates Ultimate population analysis

(c) 2008 The McGraw ‑ Hill Companies 21 Budget Process Estimating Personnel Needs –Certificated Staff Teachers Other Certificated, Non-Admin. Staff Site Administrators Central Office Administrators –Classified Staff

(c) 2008 The McGraw ‑ Hill Companies 22 Budget Process Estimating Expenditures –Identify Specific Programs Around Which Budget is to be Constructed –Ascertain Resources Needed to Operationalize the Tasks Essential to Each Program –Estimate the Costs of the Resources Needed for Implementation

(c) 2008 The McGraw ‑ Hill Companies 23 Budget Process Expenditures –Object –Function –Program

(c) 2008 The McGraw ‑ Hill Companies 24 Budget Process Estimation of Revenue –Property Taxes –State Revenue –Federal Revenue –Other Sources of Revenue Budget Modification Budget Approval

(c) 2008 The McGraw ‑ Hill Companies 25 Distribution of Funds to School Sites Staff –Total dollar budget –Personnel allocations based on staffing ratios Non-staff (site or district?) –Technology –Transportation –Maintenance and operations –Risk management –Food services –Purchasing

(c) 2008 The McGraw ‑ Hill Companies 26 Distribution of Funds to School Sites Alternative Approaches –Weighted pupil methods (“fund the child”) –65 percent solution

(c) 2008 The McGraw ‑ Hill Companies 27 Examples Seattle –58.4% of resources distributed to schools –Relies on a weighted pupil formula plus a base allocation for each school San Francisco –Resources allocated to schools on staff basis using average staff cost –Additional revenues to schools based on student characteristics Special education is a central responsibility in both districts