Week 2 Assignment

Week 2 has come and gone in an instant. I don't know about anyone else- but next week will be a bugger- with both classwork and TAKS! Blog boards were closed on EPIC at noon today (instead of the usual midnight time frame) so be sure and check your actual blogs for my comments. Hope everyone has had a nice Easter with friends and family. :)

Part 1: Goal driven budget

A goal driven budget is basically defined by its name- the adoption of a budget that is based, or driven, by the goals that the district has set for itself. In relation, a campus’s budget/plan should also be goal-driven. The district and campus goals should reflect the Board goals and the budgeting process should reflect a commitment to expending funds to achieve those goals (Week 2 lecture, paragraph 5).

Each stakeholder in a district has input in the process of preparing and finalizing a district’s budget that is adopted by August 31^st each year. The budget at Lockhart reflects the districts vision and goals in many different areas. The first goal listed on the district’s improvement plan is that each campus shall strive for the status of recognized or exemplary. The district has earmarked certain amounts of money in its budget to reach this goal. A few of the items are:

1. Funding and maintaining a full-day kindergarten program ($300,000- 7 units)
2. Use of Title I funds at elementary campuses to fund school-wide projects as set forth in their campus improvement plans ($1,206,880)
3. Utilize Federal Title II Class-size Reduction funds to reduce class-size to less than 22:1 in grades K, 1, and 2. All five elementary campuses have 1 additional teacher. ($294,234)                                                       (http://www.lockhartisd.org)

In preparing the individual budget requests for each campus, it is important that campus leaders make sure that the goals of the campus are aligned with the district goals. In addition, throughout its entirety, it is imperative to conduct the budget process with as much transparency as possible, to insure that the best interests of all are being considered.

Part 2: State Budget Development

In working with my group, the following was the consensus of the top five “dates” in preparing and adopting a district budget:

1. Identify Budget Priorities as identified in the DIP (Jan)
2. Input from campuses, departments, and programs presented to district planning committee along with identified budget priorities. (Mar-Apr)
3. During April/May the superintendent should work with the district business manager to forecast revenue for upcoming school year and go over budget proposals from campus administrators and department heads. A draft budget should be ready for budget workshops prior to June 10th.
4. August 20th, Budget must be prepared or June 19th for districts that have a fiscal year start date of July 1^st.
5. Adoption of the final district budget by the Board and Approval of the district tax rate (by August 31)

All districts are working on the same timeline for preparing a budget for adoption. The differences my group originally had with coming up with a top five was generally in the time frame that was given for each portion of the budget preparation process. A possible reason for the differences in the time frames are the amount of input and consideration given to each stakeholder group’s opinions and needs in the budget process as a whole. Larger districts may also have a longer process in order to get all of the input from the various departments and campuses involved.

The reasons we decided on the events that we did was due to the fact that they encompassed the major stepping stones on development of a district budget. You have to decide what you want to accomplish before you start out- that is why we included the input from the various stakeholders in the process. After that is gathered, the superintendent needs to take all of the information and streamline it into a proposed budget to present to the school board. Once the draft is prepared, it is imperative to give time for the superintendent and the school board to conduct numerous workshops to fine tune the proposed budget. Finally, as mandated by the state of Texas, the budget must be adopted and the tax-rate set by September 1^st each year. This is naturally the final date of the yearly budget process.

Part 3: Understanding TEA guidelines

The subject of school finance is a daunting one at its best. The TEA Budgeting Guidelines document is one, at first glance, that is also best described as “daunting”; however, after one gets over the initial shock of a 149 page “guideline” and peruses the document.one sees that it really is user friendly and an excellent tool for novice school administrators.

The guideline not only walks you through the process of developing a budget, it gives detail descriptions of the five different types of budget styles. In addition to the different styles of budget preparation, it also includes the requirements that must be met which include local, state, and federal mandates and legislation.

There are five different models of budget preparation that were detailed in the TEA guideline. Although some districts choose to utilize just one type, I believe that a hybrid model would better serve districts today. The ever-changing template of school finance requires districts to be more creative and more detailed in the use of the money available to them.

The guide also addresses all areas of budget preparation. It includes reports that can be used, estimation of revenues, enrollment projections, and the importance of including input from stakeholders. The information found in this guide is crucial to the planning and adopting of a school district budget. It will be a permanent tool in my library as a school administrator.

Part 4: Superintendent's Role in developing a budget

In meeting with the assistant superintendent to discuss the budget process for Lockhart, I felt very confident that I would be able to participate in the discussion in an educated manner. I felt that the knowledge I had gained from the TEA guideline would allow me to ask intelligent questions and be able to comment effectively on the topic being discussed. The budget that is adopted by a school district is not only a financial document; it too has some political ties attached to it. During the process, the stakeholders involved press their causes with what they believe to be the most important, pressing issues in the district. In developing the budget draft for the school board to work with, a superintendent will have taken the budget requests from the campuses and the departments in the district, and along with the financial officers of the district, and prepared a document that the group feels best meets the important goals and concerns of the district. With this being the case, it is important that the entire process be conducted in a transparent manner.

Each year the district is sent a financial template that helps the superintendent, along with the district’s financial officers, prepare an estimate for the funds that will be available for the upcoming school year. Not all funds that are available to the district are listed on the template.

The superintendent’s role in preparing a budget is determined by the size of the district. Dr. Parra works closely with the financial officer of the district to utilize the finance template and other reports to develop a working budget. It is his job to plan and bring to the board a balanced budget. The school board decides on the final budget. The process for next year’s budget will begin its preliminary stage by October, 2011, and then be completed by August 31, 2012, with its adoption and tax-rate being set.  

Part 5: Stakeholder's participation in budget development

In developing a comprehensive district budget, it is imperative to get input from all stakeholders. In Lockhart, the budget process is ongoing throughout the school year.

Each Wednesday morning, there is a “cabinet” meeting held at central office. The “cabinet” consists of the superintendent, the two assistant superintendents, and all department heads. During these meetings, financial health of the district is discussed along with any pressing needs or concerns. Every other Wednesday, the “cabinet” meeting is expanded to include all campus principals. They continue to discuss the current needs of the district as well as any activities on the individual campuses.  

Once a month, the campus improvement teams meet to discuss the needs and goals of the individual campuses. Twice a semester the district improvement committee meets to discuss information brought to it by the campus and community representatives. This is the beginning formation of implementation of campus and district goals and vision. The district improvement committee also addresses staffing issues. Both committees have representatives from the business community and parents of students.

In Texas, teacher organizations do not play as large a part in the budget process as they do in other states that are more unionized. They mainly indirectly lobby for certain issues that are important to their membership.

The Board of Trustees is the “top dog” in the chain of budget development. They have final say on budget issues. Lockhart sets the goal of having a firm budget by July 1^st each year.