1. New Directors WorkshopNew Directors Workshop David Lipscomb UniversityDavid Lipscomb University January 15, 2014January 15, 2014

2. Budget OverviewBudget Overview

3. General Overview 3

4. Budget  The budget is the numerical representation of your district’s mission. 4

5. Budget  Organization Uniform chart of accounts Organized by function Allows comparison and analysis across years, other districts in TN 5

6. Account Structure  Funds 141 General Purpose School Fund 142 Federal Projects Fund 143 School Nutrition Fund 144 Transportation Fund 177 Education Capital Projects 191 Endowment Fund Debt Service Fund 6

7. Account Structure  Major Functions (sample) Regular Instruction Special Education Attendance Health Services Regular Education Instruction Support Vocational Education Support Office of the Director of Schools Maintenance Transportation Community Services 7

8. Account Structure  Object Codes Personnel (salaries) Benefits Contracted Services Materials and Supplies Fees and Other Charges Equipment  Same in every fund, every major category Example71100-116always regular education teacher 8

9. Sources of Funding  Local  State  Federal 9

10. Sources of Funding  Local Local taxes – Property – Sales – Whe el City/School District Property Taxes Licenses and Permits Charges for Current Services Other Local Revenues 10

11. Sources of Funding  State BEP Career Ladder Extended Contract State Grants Other State Funds 11

12. Sources of Funding  Federal Federal through state (General Purpose Fund) Adult Education Grant (General Purpose Fund) Vocational Education (Carl Perkins) ESEA Grants (Title Programs) IDEA (Special Education) ROTC Reimbursement (General Purpose) 12

13. Budget Process  There are as many ways to approach budget development as there are LEAs.  Basic process (50,000 foot view) Estimate Revenues Estimate Expenditures Balance Check MOE and fund balance Approval by Board and funding body On-going monitoring and adjustment throughout year 13

14. Revenue Estimates  Local Revenues Talk with county/city finance department They may give estimates, or LEA may do own estimates Review current year revenues against budget Look for anomalies/one-time occurrences Monitor trends in revenue streams Be aware of political and economic developments Maintenance of Effort test 14

15. Revenue Estimates  State Revenues BEP estimates April, May, June Final BEP July Grant applications/awards Career Ladder Extended Contract (information from state budget) 15

16. Revenue Estimates  Federal Revenues Preliminary allocations in spring Final allocations July Estimate carryover in federal projects to include in budget Grant applications/awards 16

17. Revenue Estimates  Fund Balance May be used to balance budget 3% fund balance test may apply Estimate year-end fund balance – Beginning fund balance – Plus revenues – Minus expenditures – Equals ending fund balance Determine restricted, committed and assigned amounts Unassigned is available for any education use 17

18. Expenditure Estimates  Review current year budget to actuals  Information from state Insurance premium increases TCRS rate changes (every two years – FY15) SSMS  Local Local salary decisions New programs ADM growth/decrease 18

19. Expenditure Estimates  Input District – Meet with principals, supervisors, department heads – Staffing needs – New/expanded programs – Maintenance needs – Capital Outlay needs Board members Budget Committee County Commission 19

20. Budget “Philosophy”  Budget should reflect strategic plan for district General Purpose and Federal Projects should be viewed as separate funding streams all supporting district plan ePlan facilitates this process  Federal projects budgets governed by grant requirements and restrictions  School Nutrition governed by SNP program guidelines and USDA requirements 20

21. Budget “Philosophy”  Don’t be afraid of difficult decisions Reducing number of teachers Moving teachers between grade levels/schools Closing schools Re-zoning  Student needs come first – needs of adults are secondary  Open communication, transparency can ease pain of making difficult decisions 21

22. Budget “Philosophy”  NOT a ‘one and done’ exercise On-going monitoring essential Revenues and expenditures reviewed monthly, actual to budget comparison Revisions/amendments completed as needed Communication with funding body – Reports – Meetings 22

23. Budget Presentation  Know your audience  Visuals (charts, graphs) helpful A picture is worth a thousand words  Transparency is critical  Footnote line items for clarity Budget narrative Footnotes to ‘numerical’ pages 23

24. FY 2005 Estimated Revenue Total Estimated Revenue $314,031,500

25. Classroom Costs $3,066 Regular Instruction $ 556 Special Education $ 194 Vocational Education $ 186 Student Support Sub-total $4,002 School Site Costs $ 405 School Administration $ 407 Instructional Staff Support $ 676 Facility Oper. & Maint. $ 225 Student Transportation Sub-total $1,713 District Admin. Costs $ 136 General Administration $ 39 Business Administration $ 71 Central and Other Sub-total $246 Other Uses $ 78 Other Uses $6,039 per student Expenditures per Student Based on Total Budget $314,031,500 & ADM 52,000

26. 13 Year History of Teachers & District Office Administrators In 1988 District Office Administrators’ salaries represented 2.65% of the total budget. In 2000 District Office Administrators’ salaries represented 1.97%

27. FY 2005 Expenditures by Line-Item Category Total Budget $314,031,500 $45,430,460 $17,539,96 2 $19,666,903 $10,610,689 $616,166 $220,167,320

28. 28 QUESTIONS?

29. 29 FRAUD, WASTE or ABUSE Citizens and agencies are encouraged to report fraud, waste or abuse in State and Local government. NOTICE: This agency is a recipient of taxpayer funding. If you observe an agency director or employee engaging in any activity which you consider to be illegal, improper or wasteful, please call the state Comptroller’s toll-free Hotline: 1-800-232-5454 Notifications can also be submitted electronically at: http://www.comptroller.tn.gov/hotline