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School Finance, Weekend 2 Administering the School Budget

School Finance, Weekend 2 Administering the School Budget. Administering a School Budget.

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School Finance, Weekend 2 Administering the School Budget

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  1. School Finance, Weekend 2Administering the School Budget

  2. Administering a School Budget “A good principal must first possess the basic skills necessary to keep a school running. That is, a principal must be well-grounded in budgeting and other nuts and bolts processes at the heart of a functioning school.” -Kent Peterson (1995)

  3. State Aid Primer • Public School Funding comes from 3 sources: • Federal: 4% • State: 44% = state aid, grants • Local: 52% = local revenues, property tax • State Aid comes from the State General Fund • 90% General Fund: state income tax, sales tax • 10% Special Revenue Fund: lottery

  4. 2000-2001 School Funding Facts • 56% State Aid to districts was unrestricted general aid • 15% State Aid was designated for students with disabilities • 29% transportation, capital projects, higher learning standards, etc.

  5. Local Revenue Facts • BOE can levy taxes on residential and commercial properties • Big 5 cities do not levy taxes but are bound by constitutional limits • Buffalo, Rochester, Syracuse, Yonkers, NYC • Small City School Districts can vote on school budgets since 1997.

  6. Administering a School Budget • The “Budget”: • A financial plan that involves: • Planning • Receiving funds • Spending funds • Evaluating results • Fixed time period “the translation of educational needs into a financial plan which is interpreted to the public in such a way that when formally adopted it expresses the kind of educational program the community is willing to support, financially & morally, for a one year period.”

  7. Purposes of Budgetary Practices Projects the educational plan of the district, and informs the community. • Presents the sources of funding, anticipated expenditures, and allocation plan for disbursing the funds • Guide for evaluating a year’s program. • Motivation for careful planning, systems of control, expenditure of funds • Frames the relationship of the state, federal and local support for education.

  8. Phase 1: Budget Planning • Determining the needs of the educational program • What are the goals of the school? • What services of the school need to be increased? • What is the state and/or federal issue, this year? • Effect of cost of living on salary needs? • What else?

  9. Phase 1: Budget Planning • Cooptating support for a budget plan • Involving constituents • Working with the community, PTO’s, community organizations, etc. • Planning sessions with the BOE • Community meetings • What else?

  10. Phase 1: Budget Planning • Preparing the needs and wants • Building and department requests • Comparison of information from previous years • Equipment and supply needs • Comparing the costs for the “wish list” with reality figures • Cost of living • Knowledge of the community

  11. Phase 1: Budget Planning • Salary Schedules, benefits, etc • Statistical summary of data • Enrollment • Staffing • Average Daily Attendance • Pupil-Teacher ratio • Sectioning of HS courses • State aid provisions • Insurance • Transportation needs • Retirement and social security needs

  12. Phase 1: Budget Planning • Budget Workshops • Budget Hearings • Budget Vote

  13. Phase 2: Receiving Funds • Responsibility of local authorities through a system of taxation, debt collection, and legal resources. • Funds are transmitted to a school district for use by community approval • Budget becomes effective on the first day of the new fiscal period.

  14. Phase 3: Spending Funds • Budget adoption leads to posting of line items. • Purpose of the budget is not to save money, but spend it wisely, and expeditiously.

  15. Phase 3: Spending Funds • Purchase Order Form (voucher) • Request or requisition form for ordering • Decision where funds can be drawn and approved by Principal (CEO) • Mailing of P.O. • Order completed, invoice received and approved by designee. • Payment fulfilled by check. • PO, invoice, copy of check filed together.

  16. Phase 4: Evaluating • Superintendent responsible for ensuring that the budget is well-conceived summary of the district’s educational plan. • Sup’t. must be able to demonstrate that it is constructed around specific purposes, objectives and guidelines that support the mission of the school. • Sup’t. must keep the BOE informed about the operation and effectiveness of the budget.

  17. July: Budget year begins September: Quarterly revision October: Data projections Population Staffing Program changes Facilities November: Staff requisitions December: Budget revisions January: Rough draft of budget needs February: equipment priorities March: budget workshops, sessions April: budget revisions May: Budget Vote June: Adoption of budget or contingency plan Phase 5: Time-line

  18. Building Level Budget Matters • Principal provides data to the superintendent: • Student enrollment, pupil-teacher ratios, course enrollments, projections for class size • Principal (Chief Education Officer) must supervise and maintain the line item expenditures assigned to his/her building.

  19. Budgeting Systems for Education • Planning/Programming/Budgeting Systems (PPBS) c. 1960’s • Cycle of planning including: • Establishing goals • Determining the financial cost of alternatives • Evaluating results • Improving the objectives • Improving the alternative plans to reach the objectives

  20. Budgeting Systems for Education • Zero-Base Budgeting (ZBB) c. 1970’s • Construction of a new budget each year from a zero base. • Every program, if it is to received continued funding, must be justified during each budget development. • A program provides a defense of its budget request that makes no reference to the level of previous appropriations. • Bottom-up organization of the budget.

  21. Budgeting Systems for Education • Site-based Budgeting c. 1980’s • Development of a budget through the involvement of teachers, community, and administration at the school level. • Matching student needs to available resources. • Giving the principal and instruction staff more control over the budget, personnel, and organization at the site level.

  22. Budgeting Systems for Education • Strategic Planning c. 1990’s • Goal setting program (2, 3 or 4 year visions) • Mission statement and district goals • Total Quality Management (TQM) • Total organizational control by all constituents.

  23. Budget Administration Issues • Auditing: • Procedure for verifying financial operations of a school district • Independent examiners • Internal Audits: qualified personnel employed by the district • State Audits: government examiners • External Audits: qualified examiners outside of district personnel

  24. Dark Side of School Leadership • http://nysosc3.osc.state.ny.us/press/releases/jan06/012406a.htm • http://newyorkmetro.com/nymetro/urban/features/9908/

  25. Cycle of Auditing F.O.B Internal Auditor External Audit Auditing Committee Board of Ed

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