Lecture 7 Budget Approval and Presenting the Budget

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Lecture 7Budget Approval and Presenting the
Budget

• EDA 757/PPA 730
• Fall 2002
• TL 955
• Spring 2003

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Lecture 7 Outline

• Approval process
• Developing a budget presentation
• Budget elections

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Approval Process

• Assembling final budget
• Reexamine revenue estimates, and make adjustments
  to budget.
• Calculate employee benefits, and other
  undistributed expenditures (debt service).
• Reconcile revenues and expendituresrequire
  spending reductions in some schools/departments.
• Present budget to Board of Education
• Present budget to public
• Budget elections

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Budget PresentationKey Considerations

• What are your major objectives?
• Inform audience about budget environment
• To propose and justify new initiatives
• To protect budget from cuts
• Know your audience (Board, parents, citizens,
  media, staff)
• Level of technical knowledge?
• What are they interested in?
• How much time do you have, what technology for
  presentation?

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Budget PresentationGuidelines

• Keep as simple and jargon free as possible.
• Use graphs instead of tables for most
  information.
• You are telling a story, making a proposal,
  explaining analysis, not just presenting data.
• Do trial run with educated laymen to determine
  what requires clarification, simplification, and
  new information.
• Develop several version of presentation for
  different audiences.

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Presenting the Budget to the Board

• Core components of budget presentation.
• Be clear about assumptions being made.
• Tailor presentation to the situation, and what
  you want Board to decide.
• In good times new programs, renovation of
  buildings, new technology.
• In tough times Preserving the budget base,
  protecting new initiatives, guide budget cuts
  that will occur.

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Budget Presentation to the BoardCore Elements

• Enrollment section
• Assumptions used in developing forecasts.
• Enrollment projection by grade and school.
• Enrollment trends, and implications for budget
  decisions.
• socio-economic characteristics of student body.
  What have been trends. What are implications for
  programs and budget.

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Budget Presentation to the BoardCore Elements

• Revenue section
• Key assumptions in developing rev. projections.
• Changes in economy and tax base.
• Revenue by source.
• Revenue trends.
• Affordability analysis relative tax burdens,
  comparison of tax revenue changes to other
  districts.

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Budget Presentation to the BoardCore Elements

• Expenditure section
• Key assumptions in developing budget inflation
  rates, staff turnover, anticipated spending
  increases.
• Expenditure by program, object of
  expenditureshares and trends.
• Staffing requirements, salary and fringe benefit
  changes.

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Budget Presentation to the BoardProgram Section

• This is the part of the presentation that will
  change the mostCan include
• New state or federal requirements and how
  district will respond (e.g., No Child Left
  Behind)
• Status report on district programs and success of
  new initiatives. Budgetary impacts this year.
• Proposed new program initiatives, and
  justification state/federal requirement, pay for
  itself (new state grant), will improve efficiency
  (new inventory/accounting system), will improve
  student performance.

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Example 1 New Building Program

• Situation Period of economic expansion, and new
  increase in state building aid.
• Enrollment section emphasize growing enrollment
  and new facility needs (if this is case).
• Revenue section
• Describe new building aid program and
  implications for cost of new facilities.
  Emphasize the cost savings to building now, and
  uncertainty about permanence of change.
• Compare property tax burdens and trends to
  neighboring districts and state average.

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Example 1 New Building Program

• Program section
• New initiatives, and progress being made.
• Problems with facilities that will impede
  progress (safety issues, lack of access to
  internet, old equipment, overcrowded classrooms.)
• Proposed facilities improvements, and how they
  will support instructional program.

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Example 1 New Building Program

• Expenditure section
• Operating budget Impact of new building program
  on lowering maintenance costs, operating costs
  (energy).
• Financing plan for new facilities impacts on
  state aid, debt service, and tax revenue.
  Discuss debt limits if this is an issue. Compare
  debt burdens to state average, other districts.
• Expenditures and staff required to continue
  program initiatives.

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Example 2 Coping with a Recession and Higher
Standards

• Situation Recession has cut revenue increases,
  but implementation of new state performance
  standards.
• Enrollment section Emphasize changes in total
  enrollment and composition of enrollment
  (particularly increase in at-risk or special need
  children).
• Revenue section
• Projections for state and federal aid (slow
  growth or decline).
• Projection of change in property tax base.
• Revenue plan Use of reserves and fund balances,
  proposed tax increases.
• Analysis of affordability of tax increase
  (comparison to other districts).

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Example 2 Coping with a Recession and Higher
Standards

• Program section
• Discuss new standards and timetable.
• Status report on existing programs designed to
  support standards.
• New program initiatives to support standards.
• Efficiency improvements last year and planned
  improvements this year.

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Example 2 Coping with a Recession and Higher
Standards

• Expenditure section
• Proposed staffing changes, and justification.
• Proposed budget changes, and justification.
• Efficiency improvements.
• Overall budget by program and object.
• Budget trends and increase this year.
• Comparison on expenditure levels and growth to
  similar districts.

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Presentation to Public/Media

• Keep presentation short, simple, and visually
  easy to follow (no complex tables).
• Focus on what interests members of the audience
  (support of existing programs, new programs,
  effect on property taxes, and staffing).
• Put budget numbers into context. Compare to
  other districts and state average
• Discuss future implications of the budget
  (student performance, facilities, taxes, debt).

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Budget Referenda (Elections)

• Referenda requirements vary widely by state.
• Some states dont require elections.
• Some states only require if taxes exceed a
  certain level.
• Some states require for all (or most)
  districtsNY case.
• How much of budget is voted on, and what happens
  if district loses elections vary by state.
• Contingency budget is the default budget if
  referenda failsthe lower the contingency, the
  higher stakes is the referenda.

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Key Steps In Budget Elections

• Organize support groups (parents, community
  leaders, teachers) to help in campaign.
• Do research on past elections, carry out surveys,
  telephone polls.
• Develop media material and media campaign.
  Distribute material to the public.
• Hold public hearings, and other meetings to
  discuss budgets (PTA, staff meetings).
• Set time, place of electionorganize poll
  workers, election equipment.
• On election day remind people to vote.

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Budget ElectionsCommunicating with the Public

• Budget hearingshow will public comment on
  budget? Does Board formally discuss how it will
  address concerns raised.
• Medianewspaper and radio
• Newsletter sent to residents
• Speakers bureau to provide non district staff to
  discuss and defend budget.
• Citizen advisory groups (see example for Eugene,
  Oregon).

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Eugene, Oregons Schools of the Future
Initiative

• Welcome to the Schools of the Future, a
  conversation with our community to help us
  develop a shared vision for education in Eugene.
  We invite you to read Superintendent George
  Russell's Initial Proposal for background and to
  visit the individual committees and task groups
  to follow the progress of this dialogue.
• Schools of the Future Committee (SFC) assists
  District in identifying those characteristics of
  the schools and the school system that will make
  us capable of preparing students for the global
  knowledge and information age. Composition.
  leaders in business, local government, and
  higher education, as well as parents, teachers,
  administrators, and students from the district.
  (21 members).
• Council of Community Advisers (CCA) serve as
  advisers to the Schools of the Future Committee
  to bring a broader and more diverse
  community-based perspective The Council of
  Community Advisers would be composed of prominent
  and distinguished members of the educational,
  business, political, government, and social
  services sectors of the community.
• Website http//www.4j.lane.edu/future/
•