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Learn the key terms and concepts related to school budgeting, including definitions for budget capacity, expenditures, FTE, revenues, staff mix, fund balance, and various funds. Discover the budgeting timeline and techniques used in school districts.
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Definitions OSPI - The Office of the Superintendent of Public Instruction OSPI is THE state agency that is responsible for public education and therefore THE agency that holds school districts accountable. Budget – OSPI defines Budget as: Theexpenditure estimates for the fiscal year that represent the school district’s plan to use available resources. Notice the use of the words PLAN and AVAILABLE RESOURCES meaning: the plan may change as the resources change.
Definitions Budget Capacity – Total amount that a school district can spend, also known as Appropriation.. Budget Authority – The total budget amount that the board approves - the same as Budget Capacity. Expenditures – Also known as Expenses or Costs - When the district issues a check for payroll, supplies, electricity, training, etc., it becomes an expenditure.
Definitions FTE (Full Time Equivalent) – This applies to students AND staff. If a student is enrolled full time, they are considered 1.0 FTE. If a staff person works full time, they are considered 1.0 FTE. If a student attends or employee works less than full time, their FTE corresponds to how much they attend/work in relation to a full time person. For instance, if they work 1/2 time or attend school 1/2 time, they are considered .5 FTE Head Count – Total number of students, regardless of their school schedule.
Definitions Revenues – Money that the district receives to pay for expenses, also know as Available Resources. There are several types of revenues that are defined by their source (where they come from). For instance, Coupeville receives revenue from the following: Local Revenues (mostly Local Levy tax) State Revenues (generated by FTE & Staff Mix) Federal Revenues (mostly grants).
Definitions Staff Mix – This term is important because it is another factor that determines State Funding. It also determines how much a Certificated employee makes. Average Staff Mix is an average of years of experience and education/credits of the current staff the district employs. Every Certificated employee is placed on a matrix, based on their years of experience, their degree(s), and credits or clock hours. For instance, an employee that has five years of experience and a Bachelor’s Degree plus 45 additional credits would have a staff mix factor of 1.16008. This factor is then multiplied by the base salary of $34,048 to come up with their salary of $39,498. The average staff mix teams up with the student FTE to determine what the State will give a district for their basic education funding.
S T A F F M I X T A B L E
Definitions Fund Balance – The balance that is left after revenues have been received or recognized and expenses have been paid or recognized. In the General Fund, the fund balance will not equal the Cash Balance because of Accruals. Cash Balance – Cash that is on hand after revenues have been received and expenses have been paid. Accruals – Revenues or expenses that are recognized as measurable and owed, but have not been paid or received.
Definitions Funds CSD has five different funds: • General • ASB • Debt Service • Capital Projects • Transportation Vehicle
Definitions Funds A fiscal and accounting entity that is self- balancing and is segregated for the purpose of carrying out specific activities. Each fund has an objective and specific regulations, restrictions or limitations. Which means… Each fund has it’s own budget. There are 11 different funds available for governmental entities to use; Coupeville uses five.
Definitions General Fund Accounts for all financial resources except those that are required to be reported in another fund. ASB Considered a special revenue fund which means that the resources collected are restricted to expenditures for specific purposes. Debt Service Accumulation of resources for, and the payment of long-term debt principal and interest. Capital Projects Used for acquisition or construction of major capital facilities. Transportation Vehicle Fund Purchase and major repair of pupil transportation equipment (aka buses).
March – Project Student FTE - An estimate based on historical trends best guesses Estimate Revenues April – Determine Staffing - Based on FTE and revenues available Estimate Other Expenditures – Includes utilities, supplies, maintenance, etc Budget Timeline
Budget Timeline May – May 15 RIF Deadline – for Certificated Staff Hold work sessions for Board, staff and public – for input and education June – Input budget document into the state computer system
Budget Timeline July – July 10 – Deadline to the ESD for approval Budget Document available for public August – August 31 – Deadline for Board adoption of the budget
Budgeting Techniques Budget High Level R Best definition is summary budget. R Avoids lots of small budget entries. R From the original budget, there may be a difference in budget categories but not in total budget capacity. R There is leeway between budget categories, but not total budget capacity.
Budgeting Techniques Contingency Budget Capacity R An amount that is more than what you believe will be spent in the overall budget. R Builds “capacity” in case there is an unexpected increase due to need, emergency, increase in revenues, or increased student enrollment. R Usually has a corresponding increase in revenue. • Also used as a “place holder” for an expense that may or may not happen that fiscal year. • Helps to avoid a budget extension unless it is absolutely necessary.
