Week Three Assignment

Week 3 – Part 1

	District1	District2
Econ. DisAdv.	93.3%	20.7%
Refined ADA	$3,893.754	$4,032.937
Weighted WADA	$5,555.815	$4,794.076

The district with larger WADA has the smaller ADA because they are servicing more students with greater needs as indicated by the number of students in special programs and that are receiving free or reduced lunch.  While both districts have about the same number of students the needs of the students in District 1 are far greater based on at-risk criteria and other demographic numbers.

Week 3- Part 2

	District1	District2
WADA Compressed Rate	$5,044	$7,206
Revenue M&O Fund	$28,023,530	$34,546,111
Teacher/Libr.,Nurses, Counselors	281	307

The amount money for the M&O Fund is calculated by multiplying the Compressed WADA by Weighted WADA.  As noted previously District 1 should have more revenue than District 2, but because of local revenue they have more M&O funding.

Week 3 – Part 3

WADA

After comparing both districts it becomes very clear why we studied in previous weeks the definitions of equality, equity, and adequacy. All of these are guarantees set forth by the Texas constitution more than 100 years ago and their definitions are still challenged in the courtroom when it comes to Texas school finance. The goal of WADA (weighted average daily attendance) is to provide more professionals and funding for districts that are property-poor by utilizing a formula that considers all sources of revenue for a district. Not only does this equation take into account the number of students in attendance, but it also looks at the type of students that are being serviced. The more students that are involved in specials programs such as gift and talented, bilingual, vocational, compensatory, and special education the more funding a district will need to provide a free and appropriate education for these students. The establishment of WADA was to provide equity among all students in the state of Texas regardless of what district they are in, but the witches in Shakespeare’s Macbeth best sum up the system, “fair is foul and foul is fair.” This week we are charged with comparing two districts and reviewing their snapshots and summaries of finance to look for correlations between revenue and demographics. This understanding will help us in determining funding for our future districts and begin to scratch the surface of the mystery of Texas school finance. With the combinations of areas of funding and the impending deeper budget cuts it stands to reason that our current knowledge of Texas school finance will change with the tides.

Differences

District 1 is similar to a district that we studied before, Edgewood ISD. They receive very little funding from tax revenue but have a high number of students that are being serviced in special programs. They are 100 % Hispanic and therefore have a large number of Limited English Proficient (LEP) students and a large bilingual program. It costs almost double to educate a child in both English and Spanish and without funding a district could not provide these programs. This district is also 93.3 % economically disadvantaged. This number directly correlates to the reason why there is a low amount of property taxes collected in District 1. This community most likely suffers from the effects of poverty. In an article published in Instructional Leader (May 2012) Eric Jenson discuses the effects of poverty on the brain. He describes how the brains of students who live in poverty are affected and how schools can address these gaps. This research is part of the driving force behind everyone’s favorite No Child Left Behind (NCLB) and is why the state monitors the data so carefully of children who are economically disadvantaged. Districts that have a higher number of students who are on free or reduced lunch receive more funding from the state for implementing programs to address the needs of this subgroup or in the case of some districts this majority.

In comparison, District 2 is a property-rich district. They receive less revenue from the state because they generate so much total target revenue locally. While both of these of these districts have about the same student-teacher ratio, District 2 has more professional staff. Even though the goal of WADA was to give District 1 this advantage, inadvertently District 2 has come out on top. District 2 does not have near the subgroups that District 1 has nor the amount of students in specials programs while District 1 is expected just to do more with less.

Positive Impact

The positive impact for District 1 is that without WADA they would not be receiving very much funding beyond local funds and ADA.  Clearly District 2 has many positive financial impacts from local revenue to WADA and ADA. 

Negative Impact

District 1 has many more student needs for funding than District 2.  I would wager that District 2 will have better accountability ratings than District 1 and can afford more educational opportunities for their students.  The inequity between the two districts is fierce and this battle is commonplace in districts across Texas.

Week 3 – Part 4

We are a property-poor district and therefore receive more state and federal funding than local monies.  We scrape every penny we can from every allotment and our expenditures prove that.  This year our goal has been to make sure that we are receiving all funding possible from ADA, compensatory, and the transportation allotments.  We have developed a better system for making sure that we are identifying both at-risk and economically disadvantaged students.  We have devoted personnel to Medicaid billing to maximize our return.  We calculated that we are losing about $50,000 annually by not billing for this.  We are also looking into better investments and making sure that our money is working for us.

Week Two Assignment

Week 2 Assignment- Part 1

The definition of goal driven budgeting is that the budget reflects the goals of the district and more specifically the goals of the board of trustees.  It is not enough to say that we need to improve our writing scores, but there has to be planned resources set aside to attain this goal.  This is basic goal setting.  The goal of a district should put students and instruction and a goal driven budget should reflect this.

Dr. Arterbury made the most profound statement that all of the goals of the district should be a “version of the vision.”  This implies a top-down goal setting approach, which is a delicate balance when it comes to the board of trustees in my district.  I have always been told that you can tell a lot about district by looking at their budget and this statement makes more sense to me now in the aspect of goal driven budgeting.  While I agree with Dr. Arterbury’s advice to always consider the board’s goals I am also cautioned because of their potential lack of understanding of curriculum and instruction.  I consider student instruction to be the most profound area of operation for a school district and this may or may not be the sentiments of the board.  As a superintendent it would be my job to make sure that not only is the board happy, but that we are maintaining a high level of academic success and as such our budget should reflect this attitude.

Instead of starting with my district improvement plan, I started by looking at our district budget.  I started here because I wanted to see what the budget would tell me our district goals are.  I was not surprised to find that the goals of our district had more to do with extra curricular, maintenance, and other non-instructional items then any other area.   For example, our band supply budget is greater than all three of our campuses combined.  It stand to reason that our athletic budget would be this way as well as the costs to operate this are greater, but in the areas of capitol improvement projects athletics reigns.  Our GT/testing coordinator makes more money than some of the campus principals and so does our athletic director. 

I then shifted my focus to our DIP.  It stated instructional goals but did not provide any monetary resources for acquisition.  In these difficult budget times the district also slashed teacher professional development but still states goals that include this area.  I have been very creative on my campus and was still able to send many teachers to training or bring training in this year.  One creative way is that some of our district goals do not need to have cost factor but rather by adding these duties to existing personnel.  In my meeting with Dr.Creel we discussed about keeping job descriptions updated for this reason. 

Week Two Assignment – Part 2

We determined that our top 5 important events dealt with more end of the year items.  After experiencing the late legislative session last year and the impending one the following year, we felt that this calendar was a mute point in some areas.  Our top 5 were both dates in March where districts receive budget services and start making plans for projected funds and starting to review and analyze this input.  We also decided that April was important because it was the start of discussion of the projected budget with the rest of the district.  June dates are especially important because this is when the budget is discussed and communicated with both the board and the community.  The board should already have had communication along the way about budget and truly been the first involved development on every point on the calendar.  By the finalized board meeting and community discussion are critical for open dialogue to all stakeholders. 

Week Two Assignment- Part 3

Out of all of the assignments that we have been required to do so far in this course I found this part to be the most beneficial for me.  I would say that I have a working knowledge of the budget process but this resource guide put everything into a systematic format that was easy to understand.  I have started a budget binder that contains my district budget and placed this entire resource guide in there as well.  I found that I was reading I was highlighting non stop items that I thought would be helpful for understanding as a superintendent.

I learned all about the different types of budgets and that the learning outcome that I will utilize the most is the evaluation of current programs for driving funding.  All of the different types of budgets had their strengths and weaknesses, but I found that a balance between them is a good place to operate. 

The area that I gained the most knowledge about was how to estimate revenues and expenditures through forecasting and planning.  I found that forecasting for me seemed to be the most important part for planning a budget.  By checking trends, monitoring enrollment numbers, projected tax rates, and the bulk of a budget being salary calculations a superintendent can plan for what to expect.  I have had many experiences in helping calculate or monitor trends for enrollment.  We had a drop in enrollment this year at my campus by only 20 student but that means that we will receive that much less money from the state and are still maintaining the same personnel.

Revenue projections were something that I have never had experience in.  The different Tiers and allotments for still fuzzy to me but after reading this article I feel closer to having a good understanding of it. By understanding state funding and then looking at local tax revenue projections a superintendent can accurately determine a potential budget.  Federal money is another area for projected revenue based on number of students and mainly in the areas of child nutrition (the cafeteria.) One area this year that our district had as a source of revenue was the fact that we cut out all local leave days and teachers were being docked if they missed more days then they had banked. 

Expenditure projections is another area that I read heavily about because I know that the revenues and expenditures go hand in hand.  There are three areas of expenditures: operating costs, capitol improvement projects, and state mandates.  Operating costs are everything from salaries, insurance, supplies, and salaries.  Capitol improvement projects are multi-year projects that deal with facilities.  State mandates are what Dr. Arterbury referred to as un-funded mandates.  These are things that districts are mandated to do and must budget for. 

Overall I found this resource guide very valuable and will keep it in my budget binder to refer to when needed.  While I realize that this course is designed to give me a quick 5 week snap shot of school finance I want to register from some up coming workshops in my region. 

Week Two Assignment – Part 4

My superintendent is known for his ability to stretch a budget and to get more bang for your buc (we are the buccaneers and this was our motto this year.)  We do not have an Assistant Superintendent or anyone over budget but him.  He is truly the Chief Financial Officer.  He had just come back from a Financial Officer’s meeting in Ft. Worth and so most of our discussion was about what he learned and was planning on reporting to the board that night.  His entire workshop dealt with investments and how to make more revenue.   There are three things to keep in mind when investing and they go in order of priority. 1. Safety/Security 2. Liquidity 3. Return.    Right now big districts with lots of money are not making very much money because of collateral.  Because school districts are tax exempt we only have one tax ID number and therefore all of our money has to be in one bank.  The bank has to collaterize this money (secure property in this amount that would be sold to make the money back in case the bank goes under.)  Collateral loans this amount does not make much money.  So right now small districts like us that have only have 3 millions dollars to move can make small revenues by distributing this amount of up evenly into 12 different banks at $250,00 each uncollateralized because the FDIC requires that all banks must have collateral for all single accounts up to $250,000.  Our return would only be about $20,000 annually but that is more that what it is making currently.  That pays an aide salary or a secretary.  While this move takes work it seems that it may be a good option to make money.  I really enjoy discussing finance with my sup because he is very knowledgeable and know how important networking is.

Week Two Assignment – Part 5

I interviewed my superintendent that same time that I did the other interview. Our Business Manager does not help create our budget nor does she take input from any of these stakeholders.  My district used to follow this model of involving stakeholders and really seeking input about budget but at this point there is not much money to be seek direction about.  In the current status the responses to this may seem bleak but I am afraid they are the cold hard truth.  I find his responses to be honest and open and truly reflect the sentiments of how the new budget is effecting all of these stakeholders. 

The central office admin and staff see the numbers on paper everyday.  So their inputs are cut more and do less with more.  They see the strain it puts on the district and me when they look at the projections.  They do not envy my job.

The campus principals are right there too with the central office staff but it is their job to fight for what their campuses need budget wise and not get left with nothing.  So they are charged with taking a stand when it comes to personnel and budget cuts for the needs of their students on their campus.

The SBDM unfortunately does not have much a say in the budget any longer because of the fact that there is not much money for professional development or programs. 

The district committee is in the same boat and really looks at the big picture.  I have sent out emails recently to the staff about what they would like to see for next year as far as days and salary.  What is important to them?  Well, I knew the answers before I pressed send but wanted to be wrong.  Everyone wants a raise, wants all of their local days back, more money from the district for health insurance, and does not want anyone to lose their job.  Wow.  Me too. But we still have a district to operate.  I explain it in this way:  We only have 8 ounces of water to distribute into all of these cups (days, raises, insurance, etc.)  I don’t mind how to distribute the water but you can’t have 10 ounces! 

We do not have any involvement with teacher organizations nor do we receive pressure from them.

Some key stakeholders in the community give me the same response as the teachers do.  Most of them thought are from the business world where the reality of salary freezes and lay-offs hits home.  They get it.  What they don’t get is the response that some teachers have. Funny.

The Board is my rock.  They understand it all.  They see the work and effort I put into this and these are goals that they have given me in this order. 1.  No lay-offs 2. Raises 3. Fringe benefits.  So if I start pouring into these cups and have to stop at 1 or 2 they know that I have looked at every angle and done everything I can do meet their goals.  They are 100% a part of the creating the budget and are with me every step of the way.  

Week One Assignment

Week One Assignment – Part 1- Reflection

I really enjoyed learning about the history of school funding. It really helps put our current situation into perspective and it is evident that the problem of school finance has plagued our forefathers.  As I read the historical issues I was reminded of how wonderful it is to be an American and more specifically a Texan.  By learning the history of these reforms I am given a helpful perspective in viewing our current budget.  As a future superintendent it will be helpful to take this with me.

The assignment itself was not the issue, but the technology and how to achieve collaboration was seemingly unclear.  I have found that not just the members of my group were confused but that other members in the cohort were having difficulty as well.

Week One Assignment – Part 2 – Reflection

My group had basic understanding of funding formulas.  I felt that I needed more information than just the lecture and could not find any of the suggested readings.  So I did the next best things and googled it.  I found an excellent PDF  out by TEA last January that honestly goes into more depth than some of the documents in epic.  I posted this to our discussion board and while it is 50 pages long, it leaves no topic uncovered for Texas School Finance.  I learned A LOT from this assignment.  This was the area where I wanted to learn and understand more.  All of the allotments, the Tiers, and the formulas for WADA were very helpful!

Week One Assignment – Part 3 – Reflection

I realized how perspective becomes such a viable definition for every educator and lawmakers understanding of these concepts.  I have read the laws and read the new cases that are being currently discussed on Texas ISD and find this to hold true for each individual from corporations, to boards of trustees, to parents, to lawmakers, to teachers, and to school administrators.  Many people hate Robin Hood because it takes way funds from already wealthy districts and helps equitably provide adequate funding for the receiving district.  The wealthy district remains unharmed and is still able to provide (according to the state) an adequate education.  Special education and bilingual education is always a discussion with equity and even with equality.  Some sides feel that the amount of money that is spent of these students should be reduced to support more of majority of the students.  If you were to ask a parent of a Special Ed or Bilingual student I am sure you would get a much different opinion.

Week One Assignment – Part 4 – District Comparison

As I began to review my district improvement plan I found that it looked very similar to the year before and then even the year before that.  This week I attended a workshop on Comprehensive Needs Assessment and I am going to take over our District Improvement Plan.  This was the largest difference between my DIP and Austin ISD was that when there was goal set then funding and personnel was devoted to this goal. Each goal for Austin ISD was marked by how they were going to monitor the results of the plan in place.  Key funding sources for many of the initiatives comes from the Compensatory Allotment, Grants, and Title 1 federal funds.  My district does not have anyone that is dedicated to grant writing and I feel like this should be something that the administrative team should look in to. All of our compensatory and Title 1 funds are currently being for salaries after all of the budget cuts.  I am sure that Austin ISD’s current Dip would reflect this also. In our DIP we did state the implementation of campus-wide PBS systems, but there was no money or personnel devoted to this.  In Austin ISD they were hiring PBS coordinators and people to help track this data.  Their implementation process was very in depth and required specifics steps for everyone in the district to easily follow.  There are some areas in our district where I know that we need to focus improvement efforts on and Austin ISD left no stone unturned.  They addressed everything from graduation rates to attendance to discipline referrals.  In my district it is tough to see what we need to focus on looking from the outside because the dates on the DIP were just changed and we never did a formal comprehensive needs assessment.  Four years ago we hired an outside agency to come in and put together our CIPs and DIPs and now we just change the dates. I pulled up other districts DIPs on their web sites if they were posted and noticed that some look pretty cookies cutter while others are a livable document used for truly working towards improvement.  While I did find other DIPs that I liked better format wise than Austin ISD, I found that theirs really included a lot of meeting minutes and communication with stakeholders.  I worked in Austin ISD for 3 years and know that each site based decision-making team meets once a month, which is more than the bi-annual requirements that the state mandates.  This is reflected in the DIP and I think that this would benefit our district to engage in more meetings like these to get a true feel for what changes need to be made district-wide.