Additional Stakeholder Input in the Budgeting Process

Summary

During my interview with the superintendent, we were joined by Ms. Battise, the business manager and continued discussing the preparation of the district budget. Both ladies agreed that involving all stakeholders in the process was absolutely essential. In our district, there are only two central office administrators, the superintendent and the business manager. These two ladies work together very closely on the budget and are constantly offering suggestions or reminders to one another about things to add or cut as they prepare the budget. At the campus level, the PK-12 principal offers suggestions on a variety of campus needs including staffing, staff development, supplies, and facilities. The principal is often included in budget discussions with the superintendent and business manager at different stages of the process. The Site Based Decision Making Committee and the District Improvement Committee are the same in our district due to our small size. Teachers, parents, business and community representatives make up the committee and generally meet several times each year to discuss budget concerns and prepare a list of priorities for the superintendent. The committee offers suggestions and makes requests for staffing, staff development, supplies, and facilities. The primary Teacher Organization in our district is the PTO which meets monthly and frequently discusses needs for the district and individual campuses. The PTO makes budget suggestions and recommendations to the superintendent each year. Key Stakeholders are frequently members of other groups previously mentioned, but there are other people in our district who contribute to budget discussions. Parents and business or community members frequently call or visit the campus or the central office to express concerns. These concerns are discussed and often influence budget decisions. Finally, the Board of Trustees has many opportunities to provide input on budget matters. Board members have several budget workshops each year to work on the budget as it is being prepared. According to the superintendent this is the best way to ensure that the board has plenty of input and has a good understanding of the budget when it comes time to adopt the budget for the year.

Reaction

I think that the input from all the different groups is essential to the budget process. The input from the principals is very important because they are responsible for their campus and understand the needs of their particular campus better than anyone. Any cuts (or additions) in staff or programs will affect the campus greatly and the principal will have to adjust master schedules and make other major decisions based on these budget cuts/additions. Site Based Decision Making Committees also have input that may cause major changes at the campus level. Proposed programs may or may not materialize depending on funding. Teachers and parents have a vested interest in the ideas presented by the committee and are very interested in the final budget decisions made. The PTO also awaits the final budget each year to see if their suggestions and recommendations will be followed. As with the SBDM team, the PTO hopes for a favorable budget that will make their plans possible. Finally, the school board has expectations for each year’s budget. Individual members have programs or activities that they believe are most important and hope to influence the budget to increase or at least maintain funding levels for the ones they feel are most necessary for the success of the district. Overall, each of these individuals or groups provides needed input throughout the budget process and watches carefully as the budget is completed.

Superintendent's Roles and Responsibilities in the Budgeting Process

Summary

Based on my interview with Ms. Vicki Jones of Leggett ISD, I believe the superintendent plays a vital role in the development of the district budget and holds a great responsibility for its success. TEC 44.002 says that “the superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the district for the following fiscal year.” Ms. Jones shared with me the TEA Summary of Finance Template and we talked about how to use the template to estimate revenues. She says that the template is essential in determining the expected revenues and a good starting place for the budget process. In her opinion, the superintendent’s most important role is to make sure that the district’s primary programs are funded each year. Once the next year’s revenues are estimated, she and the business manager compare the amount to the previous year’s budget to determine if any cuts are needed in programs or personnel.

The other important responsibility is to get input from campus level administration and the site-based committee. There are also board members and other key stakeholders who must be included in the process. As the budget is developed, it is vital that the process is open and that the public is kept informed at all times. The superintendent works closely with the business manager throughout the process and depends on her expertise in finance to help prepare a workable budget for the district.

Reflection

Overall, I found the interview very interesting. Even in a very small district such as ours, the preparation of the budget is a monumental task. There are steps that must be followed, and dates and guidelines that must be met regardless of the size of the district. Even though the business manager is responsible for much of the school’s finances, the superintendent must also have a good working knowledge of school finance in order to effectively develop the district budget. The superintendent must also have the people skills to work with all the different persons and groups who have input during the budget process. In our district, with a decline in enrollment, the superintendent must deal with a shortage of funds for the coming year. There are difficult choices that must be made and the superintendent will be required to fight the public relations battles when cuts are announced. It is not an enviable position to hold.

Understanding TEA Budgeting Guidelines

After reviewing the TEA guidelines for budgeting, I have determined that I still have a lot to learn about the budget process. Although I was familiar with the general process, I was surprised at the number of detailed components that play a part in developing a district budget. I think that I learned a great deal in reviewing the guidelines. To begin, I had never really thought much about the major phases of planning, preparation, and evaluation. Most importantly, I had not thought much about the ongoing nature of the budget and the fact that it is a “continuous cycle” rather than a one-time event. I also was not familiar with the different approaches that could be taken. Even though I have gone through the process at the campus level, I had not considered the variety of approaches that districts might use. I found the legal requirements to be very interesting and very informative. Finally, reviewing the guidelines made me aware of the importance of estimating revenue and expenditures.

I think that there are many ways that I will be able to utilize this information in developing or helping to develop a district budget. I think reading about the major phases will help me to remember that preparing the budget and getting it approved is only the beginning. The ongoing evaluation and monitoring of the spending is just as important as the planning and preparation. I think reading about the different approaches was very helpful to me, because the next district that hires me may have a totally different approach than my current district. Being familiar with different approaches will prepare me to work with the budget process in any district. Reading the legal requirements was very important. In developing the budget, it is essential that the school follow all the state, TEA, and local requirements to stay legal at all times. Finally, learning to use the templates to estimate revenues is a very important step in developing the district budget.

A Goal Driven Budget

A goal driven budget may be defined as planning and budgeting resources for the express purpose of accomplishing the district’s predetermined goals.  Based on the Week 2 Lecture by Dr. Nicks, the “purpose of a goal driven budget is to assist in the attainment of a shared vision for the school district and each campus.”  If the district begins with the vision and goals, and actively works through the budget process with a focus on these goals, a goal driven budget should be the result.  For example, if the district commits to improving academic progress in the area of science, the budget should reflect that money and resources are being spent in the area of science.  An additional staff member in the science department, additional funds for science lab equipment, or extra funds allocated for staff development in science would all be indicators that the budget is influenced by the district’s goals.  On the other hand, if the budget shows that funds have been decreased in these areas, then the budget is not really being driven by the goals of the district.  If the district has genuinely committed to accomplishing certain goals, the budget should support the goals.  Saying that you are committed to goals and then not financially supporting those goals is hypocritical, to say the least.

Examining the district improvement plan for my district reveals six district goals:

1.       All LISD students will reach high standards in reading/language arts, mathematics, science, and social studies.

2.       All LISD limited English proficient students will reach high standards in reading/language arts, mathematics, science, and social studies.

3.       All LISD students will be taught by highly qualified teachers.

4.       All LISD students will be educated in learning environments that are safe, drug free, and conducive to learning.

5.       All LISD students will graduate from high school.

6.       LISD will provide parents opportunities to participate in school activities.

The plan contains many strategies and activities designed to accomplish these six goals.  Resources are listed that have been allocated for each strategy.  For example, the first two goals are followed by a comprehensive list of programs from the basic curriculum to a wide variety of supplemental programs and materials.  The district has obviously provided the funds for hiring all teachers required to offer the core classes and has also funded the purchase of additional books and materials for tutorials and other extra programs designed to improve academics.  Goal three is supported by the district in paying for teachers to test and add certifications to teach additional subjects.  The district pays for the random drug testing of athletes and the random searches by drug dogs on campus.  These are two examples of how the district supports the goal of providing a safe, drug free environment.  The district funds a computer credit recovery program (A+) to help accomplish the goal of ensuring all students graduate.  Finally, the district provides funds for several parent involvement activities, such as Open House and Elementary Field Day.  These are just some examples of how the district provides funds to accomplish stated goals of the district.

Overall, I believe our district does a good job of funding the people and programs that will help us achieve the district’s goals.  As with most districts, we sometimes debate the priorities and question why some activities are funded more than others, but with limited funds, we do what we can.  For the most part, I do believe our district has a goal driven budget.

Texas School Finance - Top 3 Historical Events

In my opinion, the top three events in the historical background of Texas school finance would be: 1) Mirabeau B. Lamar persuading the legislature to establish land grants to support education, 2) the Texas Constitution in 1845 providing for the establishment of free schools and calling for state taxes to support education, and 3) Edgewood v Kirby, 1989, resulting in the Texas Supreme Court ordering the Texas legislature to establish an equitable system.

In the first event, we have the President of the Republic of Texas recognizing the importance of education by providing actual funds to establish public schools and universities.  Rather than an “unfunded mandate,” Lamar provided the land grants that allowed the schools to be established and remain funded for many years ahead.  The second event is also important due to the further recognition that education should be funded by the state and also the use of state taxes in a specific way to fund the state’s mandate.  The resulting Permanent School Fund has been a crucial component in school funding in Texas.

I believe that the Edgewood lawsuits have been very significant in our state.  Providing equal opportunity for all students across the state should always be our goal.  I think the impact of these decisions will continue to affect us for many years to come.