Definitions of Budgeting

The financial aspect of planning
Definitions of Budgeting 2

The financial expression of the
programs, objectives and
activities of the media program
Definitions of Budgeting 3

A formal statement of
anticipated revenues and
expenditures for a given period
of time.
Definitions of Budgeting 4

An examination of the
relationships between the
programs and objectives.
Budget is ….





A chart for a future course of
action.
A statement of policy.
A public relations tool.
An outcome of bargaining over
conflicting goals.
A reflection of value placed on
various functions of entire school.
Rationale Behind Budgeting

Budget should be developed in
recognition of the role of the
modern and technology-rich
media center in promoting high
level student achievement.
Rationale Behind Budgeting 2



Resources of media center benefit
all students and teachers.
Believe in what the media program
is doing.
Obligated to take money away from
other sources that don’t benefit the
school as a whole.
Research Behind Budgeting

A correlation between wellfunded, professionally managed
and generously supplied media
center and student
achievement.
(Keith Curry Lance, Colorado Study)
Politics of Budgeting
Work with other groups.
 Participate in local politics
 Individual School
 District Level

(Doug Johnson, Indispensable Librarian)
Budgeting Systems





Lump sum budget
Line-item budget
Object of Expenditure Budget
Formula budget.
Performance budgets.
Lump Sum Budget



Set number of dollars given to program.
Little or no accountability.
Represents peripheral interest in the
media center.
Line Item Budget



List includes items and services with
budget amount attached.
No flexibility.
No program accountability.
Object of Expenditure Budget





Related expenditures are grouped in
categories. Numbers correspond.
One of most popular.
Usually has justifications.
Easy to prepare and understand.
Effective fiscal management.
Formula Budget


Takes demographic facts and figures
and converts them into budget
amounts.
Uses formulas to determine budgets as
a means to take into consideration:



Book losses
Variation in student population
Inflation rate for replacing materials.
Performance or Program
Budget
Relates the achievement of objectives
to resources required for media center.
 Used more often in public libraries.
 Groups function in the media center
and sets budgetary amount.

Types of Program Budgets
PPBS (Planning, programming
budget system)
 Zero Based Budgeting

PPBS (Planning, Programming
Budget System)


A type of budgeting that addresses
relationships between resources
assigned to certain programs and
the values added to the products or
“outputs” of those programs
through the use of resources.
Each program has certain
objectives and activities needed to
achieve goals.
PPBS
(Continued)
This approach requires a great
deal of planning, both short
term and long range.
 Planning precedes the program.
 Budgeting is done according to
program plans.

Disadvantages of PPBS
Requires a lot of paperwork.
 Requires a lot of effort.
 Requires a lot of time.

Advantages of PPBS
Connects the media program to
budgeting.
 Requires planning.

Zero Based Budgeting
This is the extreme form of
program budgeting.
 The major feature of the
budget assumes that you
start with zero.

Zero Based Budgeting 2
This budget is for one year
only--no carryovers from the
previous year.
 Like PPBS, you construct what
you want to accomplish
according to your objectives.

Disadvantages of Zero
Budgeting
Requires a lot of paperwork.
 Requires a lot of effort.
 Requires a lot of time.

Advantages of Zero
Budgeting
Starting with zero.
 Connects the media program to
budgeting.
 Requires planning.

Basic Elements of Budget
Planning




Determining the nature of tasks to
be performed
Ascertaining tools and services
required
Determining available resources to
assist with tasks
Determining additional resources
needed
How Do Budgets Work?


Budgets vary with changing goals
and plans for achieving them.
If goals and procedures remain the
same from year to year, the same
budget could be used repeatedly,
with allowance for replacements
and for changing costs of good and
labor.
How Do Budgets Work 2

If goals are changed, budget
changes must be made to
support improvements, new
functions or different means for
carrying out the program.
Levels of Budgeting

The degree to which budget
making is governed by present
goals or seeks to establish
some higher standard, can be
described in terms of levels of
budgeting.
Three Levels of Budgeting
Continuity
 Incremental
 Expansion or Creative

Continuity Budgeting

Budget planning which calls
only for continuation of
established services or
functions (usually done in
schools).
Disadvantages of Continuity
Budgeting
Does not alert planners to its
possible deficiencies.
 Does not take into account the
effect and new demands of
changing conditions.

Advantage of Continuity
Budgeting

Its validity lies chiefly in the fact
that sound programs
demonstrate continuity and
gradual growth.
Incremental Budgeting


Concerns adequacy of means
already in use to implement an
established program.
Involves budgeting in
increments, usually over period
of time.
Incremental Budgeting 2
Deals with applying external
standards developed by some
authoritative source, such as
ALA standards or accreditation.
 Sets minimum requirements for
equipment, staff, facilities in
terms of students, faculty, or
classrooms being served.

How Incremental Budgeting
Works

When a program is found to be
deficient, it may be determined
that incremental expenditures
required to correct deficiencies
may be made by spreading
them over a period of years
How Incremental Budgeting
Works 2
Add to what have.
 Give a percentage increase to
what already have.

Advantages of Incremental
Budgeting
Ease with which it can be done
 Little paperwork or time is
required
 Little work required
 Requires no hard judgments

Major Disadvantage of
Incremental Budgeting

Lacks fairness and equitability
Expansion or Creative
Budgeting

Involves planned expansion of
the programs in terms of goals,
functions, reorganization,
creative innovation, or a
combination.
When Is Creative Budgeting
Used?

May be required as a result of
certain technological or social
developments or administrative
decisions to enlarge, reorganize
or otherwise improve existing
programs.
Budget Justifications

In planning a budget, it is
usually expected that written
justifications will be required to
accompany the budget.
What is Budget Justification?

Giving a reason for why you
need something to be included
in the budget.
How Should I Justify the
Budget?

Identify specific goals and
objectives to be achieved by the
total media program within the
time frame of the budget.
How Should I Justify the
Budget? 2

Identify goals and objectives to
be achieved by each program
comprising the entire media
program supported by the
budget.
How Should I Justify the
Budget? 3

Provide rationale of the worth of
each program and show its
relationships to the entire media
program.
How Should I Justify the
Budget? 4

Describe kinds of observations
and measures (data) to judge
program success.
How Should I Justify the
Budget? 5

Offer a systematic analysis of
feasible alternatives to lead to
the achievement of goals.
How Should I Justify the
Budget? 6

Offer a systematic analysis of
feasible alternatives to lead to
the achievement of goals.
How Should I Justify the
Budget? 7

Itemize the types, quantities,
and costs of resources (both
human and nonhuman)
estimated to be required to
reach goals.
How Should I Justify the
Budget? 8

Provide data on which to base
decisions regarding the
advisability of using alternative
means of reaching program
goals.
Funding Sources





Federal: No Child Left Behind
State: state sales tax, income tax,
lottery
Local: property taxes, other
county/city resources
Local school district fund-raising
Grants
Handling Budgets
Use spreadsheets to handle
many budgets for which you are
responsible.
 Always keep your own records.
 Make 3 year budgets and revise
annually.

Record Keeping
Purchase Orders.
 Items received/missing.
 Complete order.
 Amount final order.
 Reconcile with bookkeeper.

Importance of Budgeting



Largest fund in the school
Shows support of instruction
Serves everyone
The End