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Copy of Chapter 12: Administering the School Budget
Transcript of Copy of Chapter 12: Administering the School Budget
Administering the School Budget
"Because they are responsible for the use and the preservation of financial and human resources, it should be an imperative of every successful educational executive to strategically plan and utilize well the budgeting process." -Brent Pulsipher, 2007
Evolution of Budgetary Practices
Budgetary practices originated and were developed in England.
In the U.S, budgeting became common in business and industry before its use in the public schools.
The first law providing for a national budget was passed in 1921; the practice has improved steadily since that time.
Desire for Uniformity
The National Center for Education Statistics (NCES) created a handbook to
represent a national set of standards and guidance for school systems.
The handbook is called "Financial Accounting for State and Local School Systems".
The term "budget" has many definitions.The purposes for which budgets are prepared and the degree of adherence to budgetary detail and administration vary among people and the agencies using them.
What is a Budget?
A budget is a financial plan that involves at least 4 elements:
2. receiving funds
3. spending funds
4. evaluating results
These elements are all performed within the limits of a predetermined time.
Roe defined the educational budget "as the translation of educational needs into a financial plan which is interpreted to the public in such a way that when formally adopted it expresses the kind of educational program the community is willing to support, both financially and morally, for a one-year period.
Translating needs into a budget follow
a pattern of:
1. Identifying Needs
2. Establishing Goals
3. Organizing Objectives
4. Building a Program to Meet Objectives
5. Providing a Budget to fund Programs
1. It requires a plan of action for the future.
2. It requires an appraisal of past activities in relaiton to planned activities.
3. It necessitates the formulation of work plans.
4. It necessitates expenditures and estimating revenues.
5. It mandates orderly planning and coordination throughout the organization.
6. It establishes a system of management control.
7. It serves as a public information system.
The Budget's Three Dimensions
Cost of the Program
Determining the Educational Program
The educational program is directly related to the purposes and objectives of the school.
Purposes of Budgetary Practices
1. It projects the proposed school program and educational plan of the district for the next fiscal period.
2. It shows the sources of funds, anticipated expenditures, and allocation of authority for administering budgetary items.
3. It serves to inform the public about the educational program of the school.
4. It provides a guide for evaluating a year's program and a means of comparing school services with those that have been offered in other years.
5. It provides the motivation for careful planning, for establishing systems of control, and for wise and effective expenditure of funds.
6. It points out the relationship of the state, federal, and local units of government in supporting education.
Preparing the Budget Document
For budgetary purposes, the
educational plan is valueless
until converted into dollar
Who is Involved?
The Budget Hearing
It's all about the presentation.
Not all states have laws that require a formal hearing before adoption of the annual school district policy.
In those that do, the board and the administrative staff present and explain the tentative budget, listen to the suggestions and criticisms of school patrons, and make any necessary justifications of questioned items or policies.
Administration of the Budget
Once the budget is formally adopted, it becomes
effective on the first day of the new fiscal
period. The superintendent is the executive officer charged with carrying out the programs that the budget authorizes.
Once the budget is formally adopted, the various line items
and amounts are entered into the district's accounting system.
The new budget then becomes a daily guide for the expenditure of
It isn't perfect.
Evaluation of the Budget
Careful planning and evaluation may reduce but never completely eliminate the need for making changes in the current budget.
Each succeeding budget should be an improvement over the previous one in terms of utility and effectiveness.
The Budget Calendar
School administrators realize that maximally effective budget building must be a continuous process. They recognize the need to follow a fairly specific budget preparation calendar.
Budgeting at the School Level
At the building level, there is a need to follow sound budgetary
and expenditure practices. With the large amount of revenue generated at
the school level, principals must understand financial information.
It is essential that all funds be recorded and deposited into one school account.
A budgetary plan developed to plan a budget from zero.
Involves decision making from the lowest levels of management to the top.
Managers are required to analyze each budget item so that the starting point for the development of the budget is zero.
(SBB) is a concept of developing a district budget through the involvement of teachers, community, and administrators at the school level.
The process provides an opportunity for the school staff to assist in building a budget that will have an impact on the final decisions made by the board of education.
Strategic Planning is an approach to setting
district goals for a three to five year period.
Involvement includesa broad segment of the
community that is brought together for intensive
training and decision making that may cover two
to three days.
A mission statement is designed, belief statements
may be outlined, and goals or vision statements
are defined for the district.
Total Quality Management
Suggested as a basis for achieving excellence in
schools. It is an opportunity to conceptualize a systematic
change for school districts.
School board members, administrators, teachers, support staff,
parents, and students meet on a peer level to reach consensus about a shared vision of excellence.
The TQM process requires the total organization to take the authority and the responsibility.
Challenge of Leadership
All procedures of budgeting use
common elements of analysis:
No single budget format dominates and no one fiscal innovation
Many superindendents wisely incorporate the best elements of
recent budget concepts: budgeting that is more responsive to local needs
and does not highlight a particular acronym or fad.
The leadership challenge is to develop the best possible budget process and document that will convey to the board and community the goals and expectations of the district.