Week 3 Assignment, Part 4

The sources of funding in Copperas Cove ISD include Local, State and Federal. The 2011-12 budget, approved August 30, 2011, totaled $77,623,281. The funds were allocated for the following areas: instruction, instructional resources, staff development, school leadership, guidance and counseling, social work services, health services, student transportation, food service, co-curricular activities, general administration, plant maintenance, security services, data processing services, community services, debt services, facility construction and other governmental expenditures. Maintenance and Operations assumes $73 million dollars and Interest and the Sinking Fund assumes $4.5 million dollars. Instruction, instructional support, central administration compose 72% of the district budget. Operations, construction and debt make up the remaining 28% of the budget. As a property poor school district with very limited industry from which to generate revenue, CCISD receives additional funds from the federal government. These funds help to offset the lack of axes generally generated from local industry that are absent in our community because it is primarily composed of military families. These funds make it possible for our district to provide a quality education to our students. Without these funds we would be in a situation similar to District 1 that we have been studying this week. This last year, as compared to the prior year's budget, teacher salaries and debt payments increased. The debt increase was part of the debt repayment plan from the last bond election. Allocations and expenditures are tightly governed. As a manager of a budget, once a budget is approved it is expected that it is adhered to with exceptions being few and far between. The superintendent and the school board have made it clear that budgets should be built to address identified needs through activities, strategies and materials noted in the organizational improvement plans. And so any request to move allocated funds to make a different expenditure other than one that has been thoroughly filtered and previously requested to meet a specific need is rare. In this sense, the existing budgets are goal-driven and the procedures for reallocating budgeted funds protect the intended expenditures and allotments of the budget.

Week 2 Assignment, Part 5

Reflection: After taking all I can from the weekly lecture, recommended readings and interview with the Deputy Superintendent it is perfectly clear that the budget is the bloodline for all operations in the district. This is a perfect time, in my opinion, to be in this school finance course. I am witnessing our process and recognizing the good, the bad, and the ugly. I have been in administration at the district office for three budgetary years and only now am I beginning to see beyond my little piece of the large puzzle. I am amazed at how much of an impact the needs assessment and District Improvement Plans can have on the organization. The budget lays out the educational plan for a district/school (Harris, 2009). It cannot, however, be a quality plan unless time was taken to thoroughly collect and assemble a needs assessment which in turn leads to a District Improvement Plan. The budget is itself is easy, the devil is in the process and details (needs assessment and DIP).

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Input is critical in the development of the budget process. My Deputy Superintendent and I discussed how input from various stakeholders should be solicited and used in the creation of the budget. He echoed the same concerns that Dr. Arterbury did in this week’s video lecture. Communication in and out of the Superintendent’s office concerning the development of the budget is essential. The planned process is important but not to be overlooked are the individual components, those smaller details, such as the district needs assessment and the District Improvement Plan. Ronald D. Valenti, an experienced Superintendent, said that one thing remains constant regardless of size of the budget, “God is in the details” (Harris, 2009, p. 140). Knowing the details of the process as well as knowing the detailed revenue and expenditure reports is equally important. Once a plan is determined it must be communicated with all stakeholders during the entire process. The Deputy Superintendent emphasized the importance of communicating, clearly, and being transparent during the entire process. Mr. Valenti, my Deputy Superintendent and Dr. Arterbury all mentioned involving community in the budgetary building process. The Deputy Superintendent referenced our recent and ongoing progress in our budget building process. In large part due to the budget reductions that most districts will be facing our district dedicated a page on the district website to the budget and looming decisions that had to be made. Minutes of each budget meeting, “Budget Brief”, were posted on the website. There was also a forum on the page for community members and staff to make recommendations or comments in reference to the budget. As a matter of fact the early retirement incentive that the district actually implemented was an idea taken from the community forum. According to my Deputy Superintendent, having an outlet that taken seriously goes a longs ways toward building community support and soliciting their buy-in. He did mention that the input did need to be collated. He explained that someone in the community is going to want to cut pay and or administrative positions, someone is going to want to cut athletics, not everyone is going to look beyond their own personal bias and make a recommendation that is in the best interest of all students. Nonetheless, communication with any and all stakeholders for the duration of the process is paramount in the budget process. He also said to invite the media to these meetings. He said they are going to report school district budget issues without fail so it is in the best interest of the district to make sure that they are invited to every meeting. It is better to lead the direction of the media than to let them find their own and then publish a misconception or half-truth.

Week 2 Assignment: Part 4

Reflection: After my conversation with the Deputy Superintendent a few things stood out. The Superintendent’s role and responsibility in the budgetary process is first and foremost to be a good steward of taxpayer dollars. The steps taken to ensure that budgeted funds are conservatively managed are be to laid out in a plan that is communicated to all stakeholders. Once a plan is established district goals need to be reviewed, needs assessments conducted and reported, a District Improvement Plan created and then the activities listed in the DIP will need to be prioritized so that funds can be budgeted accordingly. When the process is properly implemented the decisions, while difficult, will be manageable. The Superintendent does not create the ISD budget, rather he/she facilitates the process and makes the recommendation to the Board of Trustees annually.

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In the current financial situation that all Texas ISD’s are currently experiencing, one of the more sensitive topics is prioritizing needs with limited funds. The role of the superintendent in the budgeting process, according to the Deputy Superintendent in my district, is to craft a transparent process that is thought out and articulated. He mentioned that the purpose of the budget is to drive instruction and increase student achievement. Often lost in this process is the fact that personnel costs consume in excess of eighty percent of budgeted funds. He mentioned that while the ultimate goal was to improve student achievement, areas other than academics play a very important role (Example: transportation). The superintendent’s role is to design a budgetary process that creates a timeline, establishes procedures and identifies stakeholders that will be important contributors to the collaborative effort. The strategies and activities that require budgeted funds should be targeted and a result of an identified need that is in the needs assessment. The activities must be ‘doable’, meaning that the fiscal demand is realistic. Tangible, realistic targets should be clearly established and progress, positive or negative, should be monitored on a continuous basis. With limited funds, the budgeting committee should systematically create a list of priorities ranking all activities based upon their impact on the previously established goals. Without a doubt the total budget necessary to fully support the activities listed in a District Improvement Plan that are based on evidence in the Needs Assessment will be greater than the funds available. My Deputy Superintendent referred to the process that our district is currently employing with the creation of a 2012-2013 budget that will be 4.5 million dollars less than the 2011-2012 budget year. He spent a few minutes speaking about the priorities. The district put together several budget cutting strategies/recommendation and then prioritized them according to the amount of impact that would be felt in the classroom. Tier I recommendations would have the least amount of impact on classroom instruction, and Tier III would visibly impact classroom instruction. By prioritizing the possible areas to cut cost the recommendation to the school board was made less difficult. The decision to cut programs and personnel are never easy but going through a process like this a Superintendent is able to rationalize and explain to all stakeholders why the recommendation is being made. In closing, the Deputy Superintendent said that the Superintendent’s role in the budget process is to ensure that there is a sound process in place during the creation of the process and then to make difficult decisions and recommendations based on the process and documents created to support the decision and that meet the goals of the district.

Week 2 Assignment, Part 3

Week 2 Assignment, Part 3

Reflection: Budget is a process. It should be organic. The timeline that was given as an example is an example of how the budget process is ongoing. With limited funds there must be a systematic process in place to ensure that limited funds are used for targeted purposes. The five different types of budgetary approaches were interesting. It would be beneficial, without a doubt, to take a critical view of current practice and then determine if one of the five approaches would better serve the needs of the organization. I believe that most budgets are approached every year just like they were last year. For one, it is easier, and two, it would take quite an effort to reform current practice. The Superintendent could spend all of his/her time on budget. This would not be practical and thus it is imperative that the Superintendent establish the process and then frequently check in on the progress with the CFO, budget managers, and staff.

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Budget is massive. I really liked how the TEA document explained a few things. I found interesting that an approved ISD budget implies that the school board and school district administration have made decisions that match allocated funds to district needs. Stated this way really hit home with me. And simply put, the budget is the product of a process that is actually ongoing and organic. Budgets are effective and efficient when needs are first identified. This document, the budget, is the ultimate policy as it identifies what goods and services that the district will or will not produce. In short, the budget is the vehicle for translating the goals back down to the funds. I really like the section that detailed a description of the five different types of budgetary approaches to include the advantages and disadvantages. The five approaches include Line-item budgeting, Performance budgeting, Program budgeting, Zero-based budgeting, and Site-based budgeting. I think that it would be difficult to choose one approach and apply it to all aspects of ISD budgets. An approach that works for instructional budgeting will not work as effectively for food service or maintenance. What I am beginning to understand is that the superintendent must be knowledgeable of all of the approaches and know when to allow one budget manager to apply a different approach than another. Budget, tax rates, revenue and the process are definitely an area to spend much more time.

Week two assignment, Part 2 – State budget development insights

Reflection:

There are really three dates that the district can identify as important to the budgetary process and as being in the ‘top five’. TEA mandates two dates, August 20 and August 31. I chose these two dates because it is the law. I think that identifying the process as the first date of significance in the creation of the budget because without a well thought out plan chaos will run rampant and funds will be spent on ‘stuff’ that lacks true, meaningful purpose. The other date I think is important is the preliminary estimate of the taxable values from the appraisal district. Districts must not spend more than they are allotted. I also think that communication is crucial in the development of a district budget. All budget managers should be on the same plan in the sense that they do not duplicate efforts and spend ISD funds on the same thing more than once. I think it is important that a district body review all budgets to ensure that funds are spent wisely and not duplicated. Ultimately my ‘top five’ dates for budget planning include the two dates that are mandated by TEA, one early in the year to establish the process, another to assess potential revenue, and finally one that is focused on communicating the intent of all proposed budgets by all budget managers.

My “top five” list of important budget development dates are as follows:

1. November: Budget process approved by the Superintendent

Why? The process is as important as the budget itself. In the absence of a well thought out plan it is likely that funds will be budgeted and spent on things that do little to address identified needs or to achieve the goals of the district that are established by the Board of Trustees.

2. March – April: Review and analyze the budget requests by district team

Why? It is good to review all the budgets requested from all managers beginning with the district level so that efforts are not duplicated and to ensure that all requests are supported by a need and also are tied from to a district goal.

3. May: Receive preliminary estimate of taxable values from Central Appraisal District.

Why? The requested output, the budget can’t be greater than the input, the allotted ISD budget that is formula driven at the state level and is impacted by local tax revenue.

4. August 20: The last day to post the proposed budget so the public can review it.

Why? It is the law, section 44.002 – 44.006 of the Texas Education Code. The proposed budget must be posted for a 10 day review period prior to being adopted by the Board of Trustees.

5. August 31: The last day that the budget can be officially adopted.

            Why? Again, it is the law. This is the second of two dates (August 20 being the other) that is mandated by TEA. This is the last day that the Board of Trustees can adopt the budget as the fiscal year ends on August 31 and the new year begins on September 1.

Reflection  for Week 2 Assignment, Part 1:

Goal-driven budgeting is an organic event that includes collecting data, district improvement committee, and finally the creation of the actual budget itself. As I have read about budgeting, attended trainings, and watched the week 2 lecture I understand what is supposed to happen and it does make sense. What I see in action is sometimes questionable. I think one of the most important aspects of building a budget takes place long before the budget is entered into the system. The needs assessment is critical, especially given the hard fact that school districts needs are much greater than their appropriated allotment. Prioritizing strategies and/or activities, as a result, is another critical component of the budgetary process that districts/schools should spend energy and time on in order to get the most out of the funds that they do have. As we in Texas have all experienced this year, these priorities are not fun to establish.

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The budgetary needs of every Texas school district is generally greater than the financial resources they encumber each year to address the educational needs of their students. The limited funds along with increasing standards place an even greater weight on how the funds are to be spent. While every district receives a formula driven allotment of funds to operate and conduct school district business, not all districts have the same needs. Amounts and needs may vary but how each school district plans to spend those funds should be similar.

The definition of goal-driven budgeting, according to the week two lecture/interview with Dr. Arterbury, is a plan for expending funds to achieve the goals and the mission of the district. Goal-driven budgeting takes into account the current results, identifies needs based upon the resulting data, and should prioritize how funds should be spend in order to meet the district/campus mission and goals.

The process used to build the budget is probably the most important aspect of the budget. Building a budget around goals will have positive effects on the organization because of the credibility, feedback, ownership, communication, efficiency, and creativity that is stimulated and encouraged by and of all constituents. Critical elements of designing or building a budget include the design process itself, identification of key stakeholders, data collection, determination of a priority-setting approach and a communication/dissemination plan (Level II Curriculum Audit Training, CMSI). In most school districts these elements are generally included in the district/campus improvement plans. These plans are unique to each organization and should parallel the mission and goals of the district which are created by the Board of Trustees.

The district/campus improvement plans in my district list strategies or activities that will address a previously identified need to better meet the intent or measure associated with the aforementioned goal which is listed at the top of the document. Each of these strategies listed should include the required resources necessary to accomplish the initiative. Quality plans will also include evaluation plans, documents and benchmark timelines. Every department and every campus lists strategies and/or activities for each of the five district goals. Fiscal resources are extremely important and a paid particularly close attention to by the Chief Financial Officer and the Superintendent. These plans are required to be completed prior to developing organizational budgets. One of the checks and balances employed in my district is that every strategy and/or activity must be connected to an identified need. If the requested strategy and/or activity is requested but does not address an identified need it is denied. The budget is actually the third document created in the planning process for an upcoming year. The process is initiated with a needs assessment which is then used by the district improvement committee in the creation of the district improvement plan and when this plan is approved then the budget is allowed to be created. Naturally, the identified need at every district/campus is always greater than the amount of funds that will be made available. This fact requires district and campus committees to prioritize the strategies and/or activities that are listed in the improvement plans.