Additional Stakeholders - Budget Process

     A superintendent must address all the different stakeholders input regarding budget to understand their position and meet the financial needs of the district.  My superintendent pointed out that now he asks what are you really using and what can you live without. He has made it very clear in the district that if you are not using it for the benefit of the students, then you don’t need it for the next school year. The district must again make major adjustments for the budget to balance and the district cannot afford to lose much more employees. The superintendent is currently in the process of developing a task course committee made of staff from each campus, students, parents, and community members to explain where we are and what needs to be done. He wants the perspective of this task force to be part of the budget process decision making for the next school year.

      My reaction to the current situation is that everyone is part of the budget process. Every employee must use their current resources efficiently and find ways to not spend unnecessary money. I do believe our principals are working closely with their departments/leadership campus teams to analysis and review how things regarding the budget are being done. I can remember just a short while back with the stimulus money asking for “wish lists” from campuses. The community members are personally feeling financial cutbacks and are actually showing a concern and interest in school finance.  Our board is reporting of parents and community members asking questions about the changes from last year’s cuts and what cuts are to be expected for next year. Parents, staff, board members, and community members are feeling the ripple effect from last year’s changes and are anxious about the upcoming year. We are experiencing difficult financial times and everyone is going to be uncomfortable as we weather this storm together. However, as educators we will see that our students are successful.

    

     The following is the input considered while working on the budget:

·         Central Office Administrators and Staff:  The cost and/or additional cost of web base programs, service agreements, insurance increase, and any additional expenses that may be needed. The costs of professional development, district programs, and technology upgrades.

·         Principals: Principals wants the best for their campus. The costs of the programs and equipment they use on campus. Any maintenance or building improvements to enhance their campus. The principals work to ensure their teachers have the materials, supplies, and training they may need for the upcoming year.

·         The Site-Based and District Improvement Committee focuses on student achievement for the most part and seeing that all students are represented in the planning process of their plans. The allocations of the budget are included, but the actual dollar amount is not their concern. The assumption that funding will be available to reach the goals. Sometimes a strategy or activity is in the plan and during the budget process this will be considered to find the funding from another department or funding source.

·         Teacher Organizations and Key Stakeholders are usually groups looking in from the outside.  They are passion on an issue and they can be your best friend or greatest enemy. These groups must be kept informed of what is going on and have them involved on some school and district committees. We must gain trust and be open with our communications.

·         Board of Trustees: The board has the obligations that the school district spends the money wisely. Their questions and input are welcomed. The board is the eyes of watching the funds and budgets. The revenues and expenditures are looked at closely each month by the board.

·         Food Service, Maintenance, and Transportation are other areas that must also be included in the budget process. Each of these departments has unique financial needs that can be difficult to fund and maintain.

Superintendent's Roles and Responsibilities in the Budgeting Process

  The interview answers I received from my superintendent is consistent with goal driven budgets, communications, and the budget process materials I am being exposed to in this course of School Finance. I learned from my superintendent the time, effort, and planning involved of budget, revenues, and expenditures. He stated his main responsibility is to have a good average and stay in the guidelines. Determine the revenue sources from the state, federal and local grants. Also, must take into account of adjustments in the budget and decrease of money actually received. The board is focused on the district goals and one goal is the expenses will mirror our enrollment.

      My superintendent reviewed the Summary of Finance report from TEA. He explained to me the LPE and DPE. The numbers were the same, but the DPE will change when enrollment is put in and tax collections. This site is only an estimate and he utilizes the live time collections often. He works closely with the Asst. Superintendent of Finance. I also learned of the amount the district sends to the state because WISD is considered a property rich district.

      I am appreciative of the information and time I receive from my superintendent. He is always willing and finds the time to discuss with me any questions in regards to this course. I value his responses because of his network and his years of experience as a superintendent in more than one district. He demonstrates the importance of communicating the funding (or lack of) and finances with all the campuses and the community. The previous year and this year my superintendent is making great strides to keep all inform of the budget and challenges we are faced with. Last school year was a turbulent year and he has begun preparing the district to expect the same for this spring.  

Goal Driven Budget

      A goal driven budget is a guideline based on the intentions of all stakeholders to meet the goals and vision of the district for student success.  Dr. Arterbury implied the board, district, and campus goals should be a “version of the vision” and this is the foundation for the budget process.  A goal driven budget is complex and receives the attention of all employees in district and the community. This is accomplished from the various committees’ and different people throughout the district.

       WISD district improvement plans states the district goals and the resources for funding by each strategy. The various types of funding is identified as  local, state, federal, special education, state compensatory, title, rural and low income, and Title II D Technology. The amount of the funding available is not presented in the improvement plan, but is included in the budget planning process.

        WISD district goal of student achievement is the area where the complexity of funding is evident. The funding resources are received from the different identities based on student enrollment in PEIMS and ADA. The funding for target student population is evident by utilizing state compensatory, special education, and rural and low income for achieving these needs of the district.

      Goal 4 of WISD states: “Operations: WISD will keep budgeted expenditures aligned with revenue projections to achieve a balanced budget. Staffing levels and student enrollment will be closely monitored to ensure payroll mirrors ADA.”  The objective to monitor financial projections is funded by local, Title, rural and low income, title, special education, and state compensatory. The majority of the resources for the objectives and strategies for this goal is local funding. This goal is a strong message that WISD will operate with a strong and balanced budget according the ADA. The district uses reliable revenue projections and the superintendent communicates this with the district and holds public meetings to keep the community abreast the current state funding.

            WISD has a total of six district goals and the funding resources are evident in the plan.  The campuses improvement plans includes the same goals listing their strategies and funding to achieve the goal. Therefore, a goal driven budget is developed by committee’s of several stakeholders at different levels within the district. According to Dr. Arterbury conversation, WISD process is a reflection of “a goal driven budget”.

           

Understanding TEA Budgeting Guidelines

  The preview of the TEA Budgeting Guidelines January 2010 organized the process and information that is pertinent to school finance. The information I learned to be most beneficial to me is the clarification of the various type of budgets, effective budget calendar, WADA and adjusting the difference in student population, and future forecasting.

    An overall line-item budget is traditional and the most familiar with. Each item of the budget is accounted for. However, program budgeting must be utilized into the budget process to review the district/campus programs for sufficient funding. Also, the program funding is vital information for reviewing the results of the program. The zero-based budget process is something I would be interested in investigating because of the justification and how the funds will be utilized. The zero-based budget process requires to use the expenditures as planned.

     An effective budget calendar is a must. The column format stating the completion date, activity, and person responsible would organize myself in accomplishing the budget process.. The calendar would require the budget to be planned  with all stakeholders and campuses. Also, the calendar would allow efficiency in completing the state mandate dates and provide sufficient time to develop a cohesive school budget.

     The importance on PEIMS is one of the most important parts of WADA. The students must be entered correctly and reviewed to see that the district is receiving the most funding possible. The adjusting the difference in student population according to the special education population and the career technology population would motivate me as a superintendent to express the value of PEIMS input.

     Future forecasting of revenue, expenditures, capital cost, debt service cost, and operating costs is a data collection and analyzing the budget is challenging, but more important in today’s current situation. The ability to forecast and plan in years to come represent a strong district that can overcome the changes in revenue and not find themselves in a crises situation.

    The TEA Budget Guidelines would be a resource that I would utilize as a new superintendent. The complexity of budgeting and funding is an area where there is constant change that requires more than just a general understanding of school finance.

School Finance - Introduction

Introduction to School Finance

Part 1 – School finance history.

1.       1845 – Texas became a state and the new constitution began the complexity of funding a free and appropriate education. The difficulty of having adequate funds for all schools in Texas has been the center of debate in school finance and considered “unconstitutional” in several court cases.

2.       1949 – Gilmer-Aiken Laws changed the funding and operation of state schools. The State Board of Education was founded, teacher salaries were increased, and formal school year were established from these laws. Also, the organization of state supplementing local taxes to adequately find public school.

3.        Edgewood v Kirby lawsuit that ended up with the Texas Supreme Court decision leading to the 1993 – “Robin Hood Plan” where property wealthy districts distribute their revenue based on one of five methods. This plan came from after a series of lawsuits beginning in 1984.

Part 2 – Issues impacting the state formula

1. Local property tax base varies greatly across the state. Thus, having a fair formula is impossible without the development of the “Robin Hood” plan.

2.        Foundation School Program (FSP – This is how Texas distributes its funding to school districts. The formulas and calculations in Tier 1 and Tier 2 along with the system of using the Weighted Average Daily Attendance (WADA) impacts the funding of a district and the allotment amount of the different special programs. District must continuously work on student attendance and most important, the students must be coded correctly to receive all allotment funds.

3.      Inflation: The current system of funding uses formulas created many years ago and has not adjusted to keep pace with the increasing costs and needed salary increases.

Part 3 – Equality, Equity, and Adequacy

Equality - Every student has the same access to the same type of basic educational program, all students benefit. Example: funding for meeting the needs of educating a student in the core subject and facilities suitable to the student’s academic need. (Texas Education Code Chapter 42)

Equity – fair and responds to the needs of the individual. Example: special education funding and bilingual education.

Adequacy – sufficient amount of funds for students to achieve. Example: minimum teacher salaries and textbook funding

Part 4 - Comparing Two District Improvement Plans

At first I found Austin’s plan difficult to understand and follow, but upon closer review I discovered Austin’s plan begins with a plan and is followed throughout the district. I do believe Austin’s plan is lacking in following the funding for their goals and compensatory education. I would like to continue with Woodville’s format and include behind each goal the update/detail information such as Austin.