Budget Process Interview

The supt role is the most important role in the budgeting process.  He/She has to work with the Board and other stakeholders throughout the process.  It’s key for the supt to have a good relationship with the Board and to predict what their reactions will be to certain budgeting issues. Being part of the goal development process helps this relationship.  It’s important to have good communication throughout the school year with the Board regarding the district budget.   It’s also critical for the supt to work with the financial officer and to have a trusting relationship – based on the supt’s own knowledge of school finance, the financial officer can make you or break you very quickly, so it’s critical for the supt to have a strong foundation in finance.   If not, then he/she must be very resourceful and have people in the field he/she can call on and trust. It’s important to develop a plan early and to start gathering information and scheduling pertinent meetings early.  The tips from Learning from the Best… are all significant to the process: 1) Obtain unanimous Board support; 2) Honor the budget trinity; 3) Know what’s permissible and not: 4) Compare your tax rate; 5) Remember that public funds demand conservative stewardship.  These 5 tips are a good checklist to use during the process.  There are lots of areas to consider when planning the budget – that’s why involving various stakeholders is important.  Bottom line is that the supt is responsible for developing a budget that works; the buck stops at his/her desk. It can be a stressful process when involving so many stakeholders, but the outcome is one that usually works because all the input has helped manage the possible problems and has brought in ideas and information that could easily be overlooked if just one or two people develop the plan together.  When that’s the case, the budget is valid and will help prevent a budget crisis each year.

Reaction to Interview

It makes me a little nervous to think about having to lead this process; there’s still so much to learn in the area of school finance.  I did learn through this assignment, however, that there are so many resources available to supts.  The templates will be a big help, especially the ones designed for new supts.  So, my confidence went up when I discovered these things.  I can see why it’s important to involve so many stakeholders in the process and why you have to get on the development so early in the year.  It can be a long process if it’s done in a way that is best for your district.  I can also see that a smart supt will be very resourceful and will hire the most knowledgeable finance officer the district can afford!  That relationship is as critical as the Board relationship.  It’s critical to stay updated on all legislation regarding school finance and to meet regularly with the finance officer to review the budget throughout the year.  As a result of what I know now, I plan to start attending school finance workshops throughout the year to learn more about the system.

Additional Stakeholder Input for the Budgeting Process

Central Staff              special pops needs; technology needs; peims data; ada and enrollment     projections for following year; template information; legal finance updates; salary and staffing needs; instructional needs; facility and maintenance needs

Principals                   campus instructional needs; staffing needs; new program needs; funding  needs to meet district/board goals; expenditure projections

SBDM Committees    recommendations for meeting district/board/campus goals – cost of these    recommendations

DEIC                           recommendations for meeting district/board/campus goals – cost of these recommendations approval of budget and DIP)

Teacher Orgs            none in our district has been used; reps could be placed on SBDM committees for input; staffing and salary recommendations, perhaps; “teacher/work environment” needs and costs

Summary of TEA Budgeting Guidelines:

The superintendent (supt) has the most important responsibility in the budgeting process.  It’s the superintendent’s role to work with the Board and school district personnel to develop a budget based on law (both local and state laws and policies); the supt is to take the lead in this process and work closely with the financial manager in reviewing the templates and district data to be used in the templates. The supt also should ensure that campus and other departmental budgets are developed according to local and state policy and that the funds are expended accordingly; although many people are involved in the budget process, the ultimate accountability falls in the lap of the supt.; Therefore, it’s very critical to have a process in place that allows for frequent and regular oversight of the district budget and spending (use of an outside auditing firm is very important); regular reviews of the budget/expenditures should be scheduled throughout the school year.  Know your Board; work closely with them in the process; know the district and Board goals and be able to justify how the budget supports those goals; know about any special funding requirements and guidelines so that you can ensure the money is being spent the way it is “intended” to be spent; know enough to be able to ask critical questions and find the right answers. Be as resourceful as possible until you (supt) know all the “ins and outs” of the process and the budget requirements.

Goal-Driven Budget Development

Goal-Driven Budget Development

The idea of a goal-driven budget should not be unique to the world of education.  I’m certain the same practice is found in businesses across the world, as well as many other organizations that have to answer to a “bottom line.”  Goal-driven budgeting is exactly what it states…developing a budget based on the organization’s goals for the year  or budget period.  Dr. Arterbury simply states, “The purpose of a goal-driven budget is to assist in the attainment of a shared vision for the school district and each campus.”

With so much accountability in education, including accountability for finances and collaborative decision making, it’s difficult to imagine how any school district can get around designing their budgets based on the district goals.  In reviewing our District Improvement Plan, and having been part of the process, it is evident that Huffman ISD is a goal-driven budgeting district.  I feel strongly that we use our resources very well and that we are most considerate of each penny we get.  We are a 3A district with little/no industry to support our tax base.  We rely solely on property owners as our tax base and the funding from the state and federal branches.  So, every penny we receive in funding is important to us.  We have a collaborative process in the budget development process, and all budget decisions are based on the Board and District goals for the year.  We review the goals, review needs, review current and new programming mandated by the state or federal levels, consider a “minimum” figure of funding we will be receiving, then start the budget process from there.  We depend on our CFO to keep us updated on projections and any legal changes for the following year as we go through the process.  We plan very conservatively, as this is an expectation of our Board.  They require a balanced budget for approval.  They ask questions about how the budget relates to the goals, so they are involved in the process as well. 

From a high school principal standpoint, goal-driven budget development makes the budgeting and planning process much easier.  Our committee sets goals based on Board goals for the district; we know how much money we will be allocated; we look at the needs for each program and start plugging in numbers. I recall one of my first years as principal of my high school having a discussion with the campus committee about the needs in our science department.  I had the science team develop, in advance, a needs list along with prices for the items needed.  The committee realized since getting our science scores up was a goal for our campus, we’d need to put the money into that area.  I can always ask, as well, when we develop the budget, “Which goal does your request meet and how will that purchase help us meet that goal?”  The process keeps spending in perspective and prevents wasteful spending.