Additional stake holder input

Week 2, Part 5 – Additional Stakeholder Input in the Budgeting Process

I interviewed our school superintendent, Dr. Ray Lea, on the topic of additional stakeholder input in the Budgeting Process. He stressed the key was to communicate, communicate and communicate with all stake holders during the budgeting process. His responses to the following groups are highlighted below:

·         Central Office – Start discussing in January. Have Central Office really look at and evaluate their departments.

·         Principals – Start discussing budget allotments in early spring. Campus needs assessment.

·         Site Based Decision Making Committees/ District Improvement Committee – Discuss and adopt district and campus improvement plans. Meet regularly to review and evaluate.

·         Teacher Organizations – He holds a yearly informal type meeting with ATPE officers to get their input and feedback, time to meet and listen to their issues and concerns.

·         Key Stakeholders – Dr. Lea made reference to school groups, PTO’s, Booster Clubs, Civic groups, Retired teachers association and local newspaper. Again he stressed communicating with these groups.

·         Board – OVER COMMUNICATE, start communicating early, no surprises, want them to always be prepared for worse case scenarios when discussing budget issues (this year perfect example)

As I reflect over my interview the key issue was being sure to communicate (good news or bad) with all groups when discussing budget and budget concerns. Be up front at all times and do not hide anything

Reflection of Supt interview - budget process

Reflection of Superintendent Interview – budgeting process

I learned a lot during the interview with our school superintendent, Dr. Ray Lea. Our interview lasted about 1 ½ hours. He expanded and we reflected on several items we had discussed or learned about during week 1 and currently during week 2.

It is my opinion that he is very knowledgeable on school finance. During the interview, Dr. Lea shared with me that in his opinion there are two tracks toward being a superintendent, especially in regards to school finance. One track is starting in smaller school districts (no assistants) and working your way up. One learns on the job by having to know the role and duties of all aspects: finance, transportation, personnel, food service, technology, etc. The other track is working in larger districts and gaining information from assistant superintendents/directors. Dr. Lea’s background comes from smaller districts. He shared several stories about being worried about preparing the budget and meeting budget deadlines early in his career.

I learned a lot from Dr. Lea in regards to calculating revenue. He shared and we even worked through the formula of: total property values x 1.4 (max M&O) = X , take X x 95% (never collect 100% of taxes) = Y which is local tax revenue. This lead to a discussion of WADA and targeted revenue. He also explained and showed me how to calculate amount needed to set I&S.

I was able to learn more and realize the importance of having a calendar to highlights key points and events during the budgeting process. Some of our conversation focused on the drastic state cutbacks and the strategies our district used trying to compensate for the reduction. Dr. Lea explained he started communicating with the board, staff and community a 1 ½ prior to legislative session in an effort to prepare them for what was coming. Our district implemented a hiring freeze and absorbed positions through attrition. The key of this discussion was communication and planning.

Overall I learned a lot from the interview. In one way it was a little discomforting to know I will be responsible for this process at some point. However, Dr. Lea reassured me that the state template is pretty easy to use and there are several resources as well as colleagues who will assist me through the process.

Superintendent interview - budget process

Superintendent Interview – Budget Process

I interviewed our school superintendent, Dr. Ray Lea. I found our interview to be very beneficial and helpful. I began the interview by describing what we had learned and discussed in week 1’s lesson as well as the first part of this assignment focusing on a goal driven budget. We discussed the importance of knowing about and being able to discuss the concept of goal driven budget when interviewing for superintendent positions. He shared that this is a very “hot” topic when interviewing and one has to have an understanding and be articulate in describing the process.

He likes to start the process with board goals. He said he likes to focus on 5 broad goals to define the goals of the district. The five he focuses on are academics, district personnel, safe environment for students & staff, communication (including community & public relations) and budget (good, sound stewards of tax payers’ money). This are discussed with District Leadership Team and adopted by board. After setting the district visions and goals it is up to individual campuses to be more specific and include specific strategies to meet campus goals which need to have a strong connection with district goals and vision.

When specifically asked what the superintendent’s role is during the budgeting process Dr. Lea quickly responded it varies by the size of the district. In our district (4A) there is a business manager and staff responsible for developing the budget. However, his background is from smaller districts. He shared in smaller districts it is the total responsibility and duty of the superintendent, which can be very challenging for a beginning superintendent. He did discuss he is involved in the budget process and reminded me that by law the superintendent is responsible for the school district’s budget.

For Dr. Lea the budget process starts immediately after current budget is adopted. He said this year the budget was adopted by the board on a Thursday night, on Friday morning he was in the business manager’s office discussing next year’s budget (basically preparing for next year’s additional 2 million dollar cut). The calendar our district uses is the TASB model. He said it is very important to follow a written calendar during the year so the district does not miss posting deadlines. He and the business office are in constant communication about upcoming dates and events. He stressed the two critical dates/ deadline: August 20^th budget prepared by & August 31^st adopted by school board.

During the budgeting process Dr. Lea said he works with the business office on calculating revenue projections and prioritizing every aspect of the district in order to get the best “bang for the buck” with the funds available. Dr. Lea pointed out it is important to pay particular attention to percentages of special funds used, such as: Compensatory Education, Special Education and Career & Technology.

We discussed cutting the budget; he cautioned me by discussing to watch federal law, especially when dealing with federal programs. He said often a district may have required amount they must spend or may not be able to cut more than a certain percentage based on previous year.  He stated that in most districts 83% of the budget is personnel expenses. This can be difficult to cut without a plan of action.

In the interview we also discussed using the state funding template for planning and preparing the budget, the use of property values, WADA (targeted revenue dollar), Maintenance & Operations (M&O) and Interest and Sinking (I&S) calculations.

In the end Dr. Lea reminded me the “buck stops” with the superintendent when it comes to the school district’s budget.

Goal driven budget

A goal driven budget is a budget which meets the district’s needs. It helps allow school districts to obtain goals set forth in shared visions statements of the school district and individual campuses. This includes   areas such as academics, facilities, personnel, extra-curricular, technology, transportation, utilities, etc.

 After a comprehensive needs assessment the District Campus Improvement plan would be set followed by individual campuses improvement plans supporting the overall district plan. Although individual campus plans may differ based on grade level configuration, student groups, campus needs assessment, etc. they should all be similar in working towards meeting district goals and vision. It is also important that the district and campus goals reflect the goals and directions set forth by the school board. As stated by Dr. Arterbury in this week’s lecture, these plans (as well as the budget) should be “a version of the vision”.  All of these goals need to be used and addressed during the budget planning process.

Our district improvement plan lists the goal, list the activity or activities which will be used or needed to carry out the goal, list individual responsible for overseeing goal and then list the funding source and total amount. The funding sources referenced in our district (other than regular education money) include compensatory education funds, special education funds, title funds, high school allotment, career and technology funds and local grant funds.

The same procedures set forth in developing the improvement plans need to be followed throughout the school year as well.  All budget items and expenditures should have a direct correlation to a goal or vision already in place for the district. This process shows the districts commitment to spending money on items they have deemed important in district and campus goals and visions.

In conclusion and referring back to week’s lecture it is important goal driven budgets include all aspects of the districts goals and visions. The budgeting process should be part of the total planning process for the district. I agree with the reference in the lecture that too often one sees districts saying they never really address goals or budgetary items other than stating hiring teacher(s) or generic statement using term staff development. Communication is very important. The communication includes district personnel as well as other stake-holders such as community members, parents and the board. For the budget planning process to be successful and beneficial to the district EVERYONE must be involved and “on-board”.

equality, equity, adequacy

Description of how equality, equity and adequacy relate to public school finance:

Equality means every student has the same access to the same type of basic educational programs. Examples of this include state adopted curriculum in core subject areas.

Equity means the system is fair and responds to the needs of individuals. Examples of this include additional funds or allotments such as: special education, compensatory, high school allotment, Title funds, Career and Technology. 

Adequacy means the school district receives financial support sufficient to meet state accreditation standards. Examples would include teacher salaries and textbooks.

In looking at the above terms I think it is important to note that many would argue that our current finance system in not equitable or adequate. Even though legislators state the above criteria is being met.

Important Issues impacting state funding

Issues impacting state funding formula:

There are many issues impacting the state funding formula. I feel the following four items significantly impact the funding formula.

1.        Property tax – Property taxes are a vital part of current funding formula.  Whether they are perceived as a positive or negative, they fluctuate across the state from district to district. This creates the need for assistance from the state.

2.        Weighted funding – This funding source covers a wide range and variety. It consists of numerous funding formulas and/or requirements that can be confusing at time but also beneficial to districts that benefit if they have a large number of students in required areas. This includes funding formulas such as, FSP program (Tier 1 and 2 funding) and weighted average daily attendance (WADA)

3.       Maintenance & Operation (M&O) tax rate- In my opinion this source of funding is important because it is actually set by the local school district. The state has capped the amount it can be but has left some control to the local district.

4.       My last thought does not necessarily come directly from week 1 lecture but it is something I observed from the lecture and was recently reminded by our superintendent as we were discussing school finance. Looking back over the history of school finance, for the most part school districts have benefitted better in terms of funding from court cases then they have from legislative sessions.

Key issues in TX history school finance

The creation of a poll tax and an ad valorem tax used to support education in 1869 which lead to property valuation tax system. I found this to be significant because it is similar to the Maintenance & Operation (M&O) tax rate currently used in school districts.

The Gilmer-Aiken Laws from 51^st legislative section in 1949. This was an organized approach by the state to supplement local taxes in an attempt to adequately fund public education. I found this event to be important because it is still the bases for issues and discussion in school finance, the amount of money the state will provide local districts.

Edgewood v Kirby lawsuits/ Senate Bill 1 / “Robin Hood Plan” – Defined methods for property wealthy districts to distribute revenue.  I found this event as significance because it still impacts local districts all across the state according to identification (per states guidelines) of a Chapter 41 or Chapter 42 district.