1. Strategic Budgeting Board Development Series | January 2015 Derrick R. Stair, CPA Director of Fiscal Performance and Accountability The Governor John Engler Center for Charter Schools | Central Michigan University

2. Definitions Definition of Strategic: “Carefully designed to serve a particular purpose” Definition of Budget: “A plan used to decide the amount of money that can be spent and how it will be spent” Sources: Oxford Dictionary Merriam-Webster Dictionary

3. Definition of Strategic Budgeting Development of a carefully designed plan to decide the amount of money that can be spent to serve a particular purpose.

4. Tonight’s Focus Why do we budget? How do we budget?

5. Definition of Strategic Budgeting Development of a carefully designed plan to decide the amount of money that can be spent to serve a particular purpose.

6. Budget Process Common Mistakes Lack of planning Lack of clear direction Individual vs. team approach Not starting early enough Lack of communication

7. Question #1 Why Does a School Establish a Budget? Set expectations Set accountability targets To know how much money is coming in versus going out Required by law To make the authorizer happy

8. Question #1 Why Does a School Establish a Budget?

9. Budgeting Steps Assessing needs Determine priorities Determine sources of funds Fund the priorities

10. Question #2 What documents will you look at and which people will you talk with to gather information on assessing needs in your school?

11. Question #3 What are the current needs in your school? Please prioritize and list the top four.

12. Step #1 Assessing Needs Mission (story) Educational program School improvement plan Strategic plan Assessment data Staff input Community input

13. Step #2 Determine Priorities Student recruitment (enrollment) Employee compensation Facility Transportation What about educational program priorities?

14. Step #3 Determine Sources of Funds State aid Grants Business/community relationships Capital campaign

15. Step #4 Fund the Priorities Align dollars with priorities and put your plan into action

16. Budget Team Who is on the Team? Business manager School leader Teachers Technology Maintenance/custodial (story)

17. Budget Timeline When should the budget process begin? o January When should the board first see the budget? o March/April When should the board approve the budget? o May

18. Communication Needs and priorities o Remember that all needs will not get funded Written and verbal budget assumptions o These should align with the budget priorities

19. Communication (continued) Review of the draft budget – who should be involved? o Treasurer o Committee (story) o Entire board (story) Ask questions and get answers (story)

20. Recap Budget Process Common Mistakes Lack of planning Lack of clear direction Individual vs. team approach Not starting early enough Lack of communication

21. Why Does a School Establish a Budget?

23. Contact Information Derrick R. Stair, CPA Director of Fiscal Performance and Accountability dstair@thecenterforcharters.org 989-774-2100