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.