Photos by Susie Fitzhugh
A More Deliberate Approach to Budgeting
CUBE 2015 Annual Conference
Phoenix, Arizona
October , 2015
CUBE 2015 Annual Conference
A More Deliberate Approach to Budgeting
Session Overview
• Student Based Budgeting & School Design
Background in Cleveland Metro School
District, Megan Traum (45 minutes)
• Break (15 minutes)
• Seattle Public Schools Framework:
– Topics 1 to 3 (45 minutes)
• Break (15 minutes)
– Topics 4 to 7 (60 minutes)
CUBE 2015 Annual Conference
Note: Plan to
spend 15
minutes on each
topic
“A More Deliberate Approach to Budgeting”
Small Group Discussion Topics (15 minutes each)
1) Policies: Board budget and related policies
2) Strategic Plan: Budget aligned to strategic plan
3) Guiding Principles: Annually review budget
guiding principles
 Effective Equity Policy integration
4) Work plan: Confirm budget development
calendar
5) Legislative: Adopt annual legislative priorities
6) Communicate budget to public
7) Monitor: Regular budget status reports
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Topic 1) Board Budget and Related
Policies: Seattle Example
Budget Policies:
• Multi-year fiscal plan
• Sound financial and budget
principals
• Community engagement
• School Funding Model
• Budget implementation
• Minimum Fund Balance
• Designated Reserves
• Capital and technology levies
• Inter-fund loans and transfers
• Annual/monthly financial
reports
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Other related policies that
support budget process:
• Board committee structure
• Annual board goals
• Performance management
• Legislative program
• Collective bargaining
• Fiscal impact statements
• Strong Equity Focus
• Active Monitoring
responsibilities
• External/internal audit
oversight
• School capacity & boundaries
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Topic 1) Board Budget and Related Policies
Discussion Worksheet
Budget policies discussion
• _________
• _________
• _________
• _________
• _________
• _________
• _________
Related policies discussion
• _________
• _________
• _________
• _________
• _________
• _________
• __________
Discussion: Identify common approaches and unique practices among
CUBE member districts that support effective board budget oversight
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Topic 2) Budget Aligned to Strategic Plan:
Seattle’s Central Planning & Budget Process
The Annual Budgeting & Planning process is an integral component of achieving the goals set out in the 5 year
strategic plan
More Strategic
Frequency
5 Year District Strategic Plan
Strategy is developed every 5 years to guide
the district’s work in order to meet its
commitment to:
• ensure equitable access
• closing the opportunity gaps
• excellence in education for every student
5 Yr
24 Month Vision /
Planning
24 month vision / planning helps orgs. get more
tactical and create a road map / implementation
plan for how to drive positive change and
execute on the goals stated in the Strategic Plan
2 Yr
1 Yr
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Annual
Budgeting
& Planning
Annual reflection on how the services
provided tie into the roadmap /
implementation plan, and to ensure resources
are allocated appropriately to support and
achieve annual milestones
Tactical
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Topic 2 cont.) Budget Process Documents Unfunded Needs to
Plan
“Asks by Type”
Count
$
Performance Compliance /
Rev.
Division
Enabler
Operational Generator / Improvement
Redundancy Cost Reducer
Priority
Performance Compliance /
Rev.
Division
Enabler
Operational Generator / Improvement
Redundancy Cost Reducer
Priority
$865,000
$97,500
1
$5,315,374
$513,961
6
2
$2,740,437
$117,437
41
7
$5,920,684
$4,924,488
1
3
1
23
4
7
5
21
7
1
4
1
150
43
8
67
17
HR
15
2
Capital, Facilities,
Enrollment
15
3
2
3
Operations
37
3
1
Teaching &
Learning
36
23
4
Superintendent
3
Deputy
Business &
Finance
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Other
Division
Priority
3
$250,000
$220,567
$80,000
$350,000
$1,338,124
$5,000
$285,000
$125,888
$5,155,570
$184,969
$50,840
$5,341,211
$962,673
$6,654,751
$4,440,686
$27,187,457 $11,056,745
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Other
Division
Priority
$781,573
$391,989
$96,757
$513,000
$11,978
$397,324
$8,374,107
$719,824
Topic 2) Align Budget to Strategic Plan
Discussion Section Worksheet
Strategic plan
Tactical plan
Annual budget
Departmental
Individual
Periodic Assessment
Community Input
Review how well District works to align budget to strategic plan. What
are ways this can be accomplished?
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Topic 3) Annually Review Budget Development
Guiding Principles: Seattle Example
•
•
•
•
•
•
•
•
•
•
•
Ensure lean infrastructure
Invest in promising ideas and technology
Protect basic education service levels
Support responses to findings by the State of Washington Auditor’s Office;
Optimize capital expenditures
Ensure the budget process includes short and long-term solutions
Focus on budget sectors unaligned with National spending-per-student
benchmarks;
Invite labor partners to work with us to improve operational efficiency;
Ensure supports are in place for employees impacted by job losses;
Develop the professional capacity and skills for all staff
Shift investments to proven and promising ideas that align to our strategic
objectives.
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Topic 3) Budget Principles Worksheet
Budget Principals
Priority
(High/Medium/Low)
Equity considerations
List and discuss important budget guiding principles. Note where
priniples compete or conflict. How well does your district use equity
principals?
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Topic 3a) Effective Equity Policy Integration
• School Board is committed to success of every student, responsibility
shared by staff, administrators, instructors, communities and families
• Focus on closing opportunity gap and ensuring all students graduate from
Seattle Public Schools ready to succeed
• Fostering a barrier-free environment where all students, have the
opportunity to benefit equally
• Differentiating resource allocation, within budgetary limitations, to meet
the needs of students who need more supports and opportunities to
succeed academically
• With these commitments in mind, Seattle Public Schools will:
– Raise the achievement of all students while narrowing the gaps
between the lowest and highest performing students;
– Eliminate racial predictability and disproportionality in all aspects of
education and its administration
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Topic 3a) Parent Involvement/Equity Survey
•
•
•
•
•
•
•
•
•
•
Indicator: Allocation
What is your district currently doing to align your resources to meet the opportunity and academic
learning needs of students who have not been well-served due to their race, ethnicity, class, or home
language?
Up to five percent of a district’s State poverty (“LAP”) funds may be used to develop partnerships with
community-based organizations, ESD’s and other local agencies to deliver academic and non-academic
supports. How are your district’s LAP funds being used to support and sustain partnerships with
community based organizations to serve socio-economic, culturally, ethnically, racially, and linguistically
diverse students and families?
How is your district using State allocated funds for family/parent involvement?
Indicator: Collaboration
How does your district’s leadership collaborate with staff, students, families, and community members to
equitably allocate flexible funding for students who have not been well-served due to their race, ethnicity,
class, or home language?
Indicator: Alignment with Equity Policy
How is your district's Equity Policy explicitly considered as part of the budget development process?
Indicator: Budget capacity to support ongoing Equity work
Describe your district’s budget capacity to support your district's Equity work at the district, building, and
classroom levels?
Discuss how your District would respond to this recent survey from State of
Washington’s Puget Sound Educational Service District
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Topic 4) Confirm Budget Development Calendar
Seattle Example
•
•
•
•
•
•
•
•
•
•
•
•
•
October 14, 2014 - Guiding Principles
October 29 to May 27, 2014 - Board Budget Work Sessions
September 11 to June 15, 2014 - Audit & Finance Committee Meetings
November 17, 2014 - Central Office Budget Instructions
December 15, 2014 - School Funding Model Finalized by Committee
December 19, 2014 - Governor’s Budget
January 12 to April 13, 2015 - State Legislative Session
February 18, 2015 - Budget Instructions to Schools
April 13, 2015 - Washington State Budget Adoption
April 20, 2015 - Final Balancing
June 17, 2015 - Introduce Budget to Board
June 24, 2015 – Required Public Hearing
July 1, 2015 - Board Action to adopt FY 15-16 budget
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Topic 4) Seattle Menu of Future Board Budget
Work Sessions Topics
Multiple Board Meetings
•
•
•
•
•
•
•
•
•
•
•
•
•
Range of Budget Topics
Dec. 9 – A&F Committee - Budget Update
•
January 8 - A&F Committee - Budget Update
January 28 – Budget Work Session
February 12 - A&F Committee - Budget Update
March 12 - A&F Committee – Budget Update
March 25 – Budget Work Session
•
– FY15-16 Budget update
– Minimum Fund Balance Reserves
– Capital Fund budget
April 9 - A&F Committee – Budget Update
May 14 - A&F Committee – Budget Update
May 27 – Budget Work Session
– FY15-16 proposed budget
– Legislative Update
June 11 - A&F Committee – Budget Update
June 17 – FY15-16 Budget Introduced
June 24 - Public Hearing
July 1 - Board Action on FY15-16 Budget
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Required A&F Committee Budget Actions:
–
–
–
–
–
–
Recommend annual budget to board
Capacity Boundaries
Transportation Service Standards
Approve changes to student fees and lunch room rates
Minimum Fund Balance (Mar)
Capital Fund Transfer to General Fund
Important Topics:
– Governor’s Budget (Jan, June)
– WSS School Funding Committee (Jan)
– Central Services Budget (Mar)
– Strategic Plan alignment
•
•
–
–
–
–
–
City of Seattle: Universal Pre-K
Enrollment Projections
SPED/ELL Budget
Technology Budget and Plan
Grants/Restricted Budgets:
•
•
–
–
–
–
Bell Time
Racial Equity/Community Engagement
Title 1/LAP Allocations
Head Start Budget
City of Seattle: Family & Education Levy
Program Placement Decisions
Capital Fund Budget
Associated Student Body Budget
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Topic 4) Budget Development
Discussion Worksheet
List key budget components
High level
Detailed Level
Review how well Board covers key budget components throughout
year to support board members understanding of district’s budget.
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Topic 5) Adopt Annual Legislative Priorities
Seattle Example
1.
2.
3.
4.
Fully fund compensation
Class Size/Staff Allocations
Sustainable funding/resolve tax inequity
Reduce dependence on local levy
Monitor State Budget Milestones:
 Board approves legislative agenda - October
 SPS Budget Staff Plan – October
 Board adopts legislative priorities




Governor’s Budget (2) – December
House Budget – Late March
Senate Budget – Early April
Final Action – June/July
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Monitor Key State Budget
Drivers:
- Class Size/Staff Allocation
- Full Day Kindergarten $
- MSOCs (Non salary/benefits)
- Pupil Transportation
- COLA
- Pension
- Medical
- Operating Levy Base Inflator
- Other
Topic 5) Seattle example
Received State Legislative Funding Support
Sources of State Operating Funding
Maintenance, Supplies and Operating Costs (MSOCs)
Maintenance & Operating Levy Inflator
Revenue
Net
Expense Impact
$19.8
$19.8
(1.1)
(1.1)
Cost of Living Adjustment – 1.8%
4.1
(6.7)
(2.6)
Temporary Cost of Living Adjustment – 1.2%
2.8
(4.4)
(1.6)
Pension
4.8
(8.8)
(4.0)
K-3 Teacher/Student ratios
5.0
(6.0)
(1.0)
Expanded Full Day Kindergarten (six more schools) –
LAP funds redirected to summer school
1.0
(.8)
.2
Medical contribution change ($12 per month)
.6
(.8)
(.2)
Miscellaneous
.1
(.7)
(.6)
Total
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$37.1M
Seattle also received
$25 million in capital funds.
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($28.2) $8.9M
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Topic 5) Adopt Annual Legislative Priorities
Worksheet
Levels of support
Priorities
defined?
Lobbyists?
Association?
Other?
State
Federal
City/County
Business
Community
CBOs
PTAs
Union groups
Other
Who is engaged in process? What levels included in plan? Is plan
effective in support district budget objectives?
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Topic 6) Communicate budget to
public: Seattle Example
Monthly Board Committee Meetings and Work Sessions
Provide written
updates. Plus board
member monthly
community meetings
Budget Development Materials on website
Makes budget
development
available for review
and comment
Dedicated email address for questions
Actively monitor,
respond and use
information from
public questions
Public Hearings
Use city libraries/ other
Meet with PTA,
SPED, parents
council, etc.
Citizens surveys
Develop new
social media
opportunities
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Topic 6) Communicate Budget to Public
Breakout discussion worksheet
Participation mechanisms:
• Internal and external actors
• Legal requirements
–
–
–
–
Published
Public hearings
Notifications
website
• Local customs
Likely results:
• Individual interest vs public
interest
• Little agreement
• Other ….
Discuss how well your school district covers
key budget components throughout year to
support board members and the public’s
understanding of the district’s budget.
– Work sessions
– Citizens committee
– Surveys
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Topic 7) Monitor: Regular budget status reports
Seattle Example
City’s
PTA, Private
grants funds
(5) Equity Resources:
(Title 1, Title 2, & LAP)
(4) Non-Staff Funds
(3) Core Administration
Board Monitoring Tools:
 Budget book details
 Monthly reports
School details:
 Large Spreadsheet
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(2) Special Programs Teacher Staffing
(Montessori, International, K8s, etc.)
(1) Basic Teacher Staffing
(General Ed, SPED, ELL)
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Funding Priority Order
Charter
Schools?
Family &
Education
Levy
Topic 7) Regular budget status reports
Monitor All Phases of District’s Strategic Needs
Investments
Board Governance Priorities
Nine (9) Superintendent SMART Goals
Goal 1:
Educational excellence
& equity for every
student
Goal 2:
Improve systems district
wide:
Goal 3:
Strengthen school,
family & community
engagement
Strategic Plan Initiatives
Enterprise Risk Management/Improve Internal Controls
Continuous Improvement Projects
Other Day-to-Day Operational Work
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7) Monitor: Regular Budget Status Reports
Discussion Worksheet
Helpful
Least Helpful
List types of Budget monitoring practices that are most helpful to least
helpful for board members and their community
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Thank you!!
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