State Budget Development Insights and reflections

1) The development of goals and activities to reach those goals must be the first step in the development of a district budget. This step must be in place before any budget preparations can begin.  The district should use the goals within the improvement plan to determine what budget support is needed to meet the goals. Goals are reviewed each quarter by the campus and district site-based committees as part of the improvement plan review.

2) Training of district and campus personnel is crucial to financial forecasting and planning because it requires forecasts of projected enrollments, property tax base and revenues, and costs associated with salary adjustments.  This process must be completed accurately as it affects the school district’s operating environment on future operations and is an integral part of the ongoing planning effort.

3) Next, the budget committee gathers input from all affected sources including campus and district committees, campus and district administrators, and prior spending records.  This input is vital in that it comes from a group of stakeholders that represents a cross-section of the people impacted by the budget, whether directly or indirectly.  A district has a mission/goal statement that should drive the budget, but without clear and objective representation from the various campus levels weighing in on issues effecting district funding, then the system becomes fractionalized and ineffective.   Beginning in January, district and campus administrators begin evaluating current spending to determine if needs have been met and what revenue remains unspent.  Once campus level issues are solidified, then the district committee can evaluate similarities among campuses and establish a common interest platform.  

4) Once all data is collected, the budget committee identifies the expenditures necessary to meet the goals and needs identified by contributors.  Since personnel comprise the majority of the budget, the allocation of personnel is a key component to this process. It is important that this evaluation be completed prior to contract renewal so decisions can be made prior to the deadline.    It is also very important to review staff needs and student projections as the budget must be designed to address instruction and instructional support based on the needs of each student.
5) An annual evaluation of budget performance as it relates to district goals and objectives is critical to making needed changes for subsequent years of operation.  The campus administrators and the Superintendent must look at every section and item to determine where and what was most effective and efficient, and develop future budgets based on those measures. If not, consideration needs to be made regarding if funding was adequate and then adjustments for the future need to be made accordingly.  Evaluating the budget as the school year progresses and making adjustments as needed when needed will allow it (the budget) to remain a voluminous and dynamic  part of the district.