Missouri Association of School Business Officials

1. Missouri Association of School Business Officials Developing Budgets During Difficult Times William T. Rebore, Ph.D. Saint Louis University

2. Sources of Financial Distress There are many issues that could precipitate a financial crisis if not recognized and prepared for in advance. Some of the most prominent include: Flat state funding. Despite recent surges in tax receipts, officials in many states “remain concerned Stagnant or falling property taxes. The slowdown in the housing market could have ramifications Rising pension and healthcare costs. Health care costs for current and former employees now Escalating fuel costs. A confluence of factors may conspire to increase fuel prices.

3. Budget Decisions Mission (Core Values) Market Trends Financial Performance Program Decisions

4. CORE PURPOSEAn Organization’s Reason for Being To solve unsolved problems innovatively A collaborative learning community guided by a relentless focus to ensure each student achieves maximum growth To give unlimited opportunity to women To preserve and improve human life To give ordinary folk the chance to buy the same things as rich people To make people happy 3M Hazelwood School District Mary Kay Cosmetics Merck Wal-Mart Walt Disney Mission Organization

5. CORE PURPOSEAn Organization’s Reason for Being We will provide a quality education for all students and enable them to realize their full intellectual potential All students will have the knowledge, skills, abilities and attitudes to become productive citizens and lifelong learners in a changing global society. The School District strives to develop in all its children the strength of character, the skills, the knowledge and the wisdom necessary to build creative, productive lives and to contribute to a global society. Realize Full Intellectual Potential. Productive Citizens and Lifelong Learners. To Build Creative, Productive Lives. Mission Core Values

6. Definitions • Budgetary Solvency – The ability to generate sufficient recurring revenues during the fiscal year to meet recurring expenditures without incurring a fund deficit. • Financial Condition – A local government’s or school district’s ability to finance expectedservices on a continuing basis. A local government or school district with a positive financial condition maintains adequate service levels while surviving economic disruptions, has the ability to identify and adjust to long-term changes, and anticipates future problems. • Fiscal Stress – The inability of a local government or school district to maintain solvency • Financial Performance - A measure of how well a district uses assets to efficiently fund its programs (ex. cost per pupil, performance standards, outcomes). • Market Trends - The direction and momentum of programs, program changes, and mandates.

7. Your Marketplace DESE Federal Programs Appropriations Stakeholders Socio-economic Realities Commercial Development Major employers Civic groups

8. Relationship of Program Costs to Mission

9. Relationship of Market to Competencies

10. Resource Allocation

11. Quadrant/Sector Mapping Results