TEA Budgeting Guidelines

The TEA Budgeting Guidelines, January 2010, is a wealth of information on the budgeting process. After reviewing these guidelines, I learned about different budgetary approaches, legal requirements, roles and responsibilities, revenue estimates, financial forecasting and planning, budgeting for grant programs and multi-year construction projects. From these guidelines, I will be able to use this information in helping me develop a district budget or contribute to developing a district budget because this document walks a person through developing a budget from the beginning to the end. It also provides the guidelines set forward by the Texas Education Agency including a district’s responsibility to the community.

         First I learned simply about different budget approaches. The TEA Budgeting Guidelines explains the five basic approaches to budgeting. It explains each approach has relative advantages and limitations. Also, one single approach may not be effective. A hybridized approach may be more appropriate depending on the needs of the district.

            Next I learned about the legal requirement for budgets and the roles and responsibilities of developing a district budget.  It explains the state guidance allows for considerable district autonomy during the budget process. I learned the Texas Education Code sections 44.002 and 44.006 establish the legal basis for budget development. This section of the resource guide explains the Superintendent is the budget officer for the district and prepares the budget. It also points out that TEA recommends an interactive approach between the board of trustees and the Superintendent while developing a district budget.

Next I learned about annual district revenue estimates. District revenue estimates are based on a variety of demographic and tax information. However, there are two main sources of district revenue. The two sources are the Foundation School Program revenue and the local property taxes. These two sources are essential to developing a budget.

Lastly, this resource guide provides information that a district may not be including every year in a budget such as grants and multi-year construction projects. Grant information is not required for a school district’s officially adopted annual budget, but this information may be included as a supplement or if the local district requires this information to be included in the budget. Next, the resource guide provided information on the preparation of construction project budgets.

        The TEA Budgeting Guidelines will be a useful document in the future because it contains necessary information on developing a district budget. It provides the guidelines set forward by the Texas Education Agency. As a Superintendent this document is necessary to have to refer to on regular bases as a resource guide as a district goes through the budget process. Ultimately, it is the Superintendent’s role and responsibility to develop the district budget and this document will be a tool to guide the Superintendent through the budget process.

Reflection

     The TEA Budgeting Guidelines provides a wealth of information for a Superintendent while going through the budget process. After reviewing these guidelines, I learned about different budgetary approaches, legal requirements, roles and responsibilities, revenue estimates, financial forecasting and planning, budgeting for grant programs and multi-year construction projects. From these guidelines, I will be able to use this information in helping me develop a district budget or contribute to developing a district budget because this document walks a person through developing a budget from the beginning to the end. It also provides the guidelines set forward by the Texas Education Agency. Ultimately, it is the Superintendent’s role and responsibility to develop the district budget and this document will be a tool to guide the Superintendent through the budget process.

Goal Driven Budget

Goal Driven Budget

A goal driven budget is exactly as it sounds. It is a budget that is driven by goals. The budget starts with the goals set forward by the Board of Trustees. Then the goals set forward by the District and Campus improvement plans should reflect the goals set by the board. As Dr. Arterbury points out in this week’s lecture: “The purpose of a goal driven budget is to assist in the attainment of a shared vision for the school district and each campus”. In turn the budget should reflect a commitment of funds to achieve a shared vision and obtain the goals for the district.

Clear Creek ISD has a collaborative process to the budget development.  In CCISD we have a statement of believe that: “Communication with all stakeholders develops unity”. This is evident with how the budget process begins.  First it begins with the Board of Trustees goals. Then the Deputy Superintendent explained throughout the budget development process he meets with campuses and department heads on each campus to determine the needs of the district. He stated that this information is essential to building a budget.  

Next, it is evident while reviewing CCISD’s District Improvement Plan that my district has a goal driven budget. The district is spending money on the set goals for the district. There is a set parameter in the District Improvement Plan that states: “We will not initiate or retain any program or service unless it contributes to achieving our mission and objectives, and benefits outweigh costs.”

An example of how the district is applying funding towards achieving goals and a shared vision is the district has the mission of equipping all students to graduate with the knowledge, skills, and resources to be successful in post-secondary education or employment in the 21^st century workplace. Every goal and resource is allocated towards every student in the district meeting that goal. This school year the district is focusing on the use of resources to accelerate learning for all students and eliminate the achievement gap so, that every student is equipped for the 21^st century workplace. One way the district plans on achieving this goal is to ensure that all resource allocations (financial and personnel) support district alignment and campus goals. Also, base all resource allocations upon a thorough analysis of student performance data annually.

It was evident by reviewing Clear Creek ISD District Improvement Plan that CCISD has a goal driven budget. All resources are allocated toward a shared vision. It is essential for a success of a district to have a goal driven budget.

Additional Stakeholder Input in the Budgeting Process

          While interviewing the Deputy Superintendent of Business Operations and Maintenance about the development of a district budget he mentioned the importance of receiving input from several stakeholders as the budget is being developed. His views are directly aligned with this week’s lecture. Dr. Arterbury explained the importance of communication and input from others during the budget process because receiving input from key stakeholders is essential for a valid budget to be developed and for it not to fail in the end. Receiving input from central office administrators, principals, district and site based decision making committees, teacher organizations, key stakeholders and the Board of Trustees is essential because these different stakeholders will provide the most updated information about needs that currently exist in the district. Knowing current information is vital to allowing the Superintendent to develop a valid budget.

            The Deputy Superintendent explained throughout the budget development process he meets with campuses and department heads on each campus to determine the needs of the district. He usually holds these meeting in late April and early May. He stated that not every district does this but he finds these meetings very helpful because it allows him to know each campus’ needs. It stated that this information is essential to building a budget. You must know the needs first before every beginning the budget.

            As I examined the importance of input from various stakeholders it became evident that everyone is involved in the budget process for a district. Each stakeholder has an important role and is vital to the success of a budget.

The following could be input I receive for budget development from the following individuals or groups:

·         Central Office Administrators and Staff:  Central Office Administrators are the Superintendent’s right hand people. They understand the needs of each of their departments and have the knowledge of how to improve their departments. They would help the Superintendent adjust the budget to meet the district goals.  

·         Principals: Principals have the knowledge of what their campuses needs are for the next year school. They know what supplies, materials, programs and equipment they need for their campuses. Principals input are essential in establishing campuses budgets. In my eyes, principals are responsible for developing a budget that aligns with the districts goals.

·         The Site Based Decision Making and District Improvement Committees: The role of the Site Based Decision Making and District Improvement Committee is to set the vision and goals for the district and each individual campus. Both of these committees involve numerous stakeholders from community members to students. So, the goals that these committees develop provide vital information for the development and the success of a budget. These committees will provide the most up-to-date information the stakeholders see as goals for the district.

·         Teacher Organizations: Teacher Organizations are important because they can provide the Superintendent with the most up-to-date information on the needs and wants of the teachers. This group of stakeholders should be communicated to often. As Dr. Arterbury pointed out “Employees want to know whether they will receive a salary increase and, if so, how much will it be. If the budget news is not good for the upcoming year, the message should be communicated to all stakeholders as quickly as feasible”.

·         Key Stakeholders: Key Stakeholders like community members are important to the development of the budget because community members can provide information like if the district is proposing a board election is the community going to accept or vote for a decision. Also, key stakeholders can provide essential information that the community sees as important for the district.

·         Board of Trustees: The Board of Trustees is crucial to the development of the budget. By law the Superintendent has the role of preparing the budget, but the board establishes the annual goals for the school district. Also, the Board has more access to public opinion and they are an important judge of the acceptance of the budget proposals by the community.

As I discussed and studied the importance of different stakeholders in the development of a budget none of the information surprised me when developing a budget. Just like when you develop any plan a leader must look at all sides and receive information from all stakeholders involved. If a leader does receive input from others in any decision being made you will not have all of the information and do not receive as much buy-in to those decisions. When tough decisions, like where to make cuts in a school district, have to be made it is important to have the input of all parties. 

Reflection:

Each stakeholder during the development of the budget brings a different perspective to the table. It is important for the Superintendent to involve and receive input from all stakeholders during the budget development process. If the Superintendent does not have the most updated information about the needs that currently exist in the district may cause a budget to fail and not meet the needs of the district. It is vital to have current information to be able to develop a valid budget. 

Superintendent's Role in the Budget

According to lecture this week the Superintendent has the role of preparing the budget and communicates proposed actions of the professional and support staff to address the annual goals proposed by the Board of Trustees. Based on that information, it was not surprising while interviewing the Deputy Superintendent for Business Operations and Management he described the Superintendent as being crucial in the whole budget process.

            The Deputy Superintendent went on to say the Superintendent sets the tone of the budget and is crucial to a smooth budget process. A Superintendent directs staff on appropriate responses to budget problems. He or she serves as a referee between departments. Then ultimately the Superintendent makes the final decisions on what to cut or what to add to the budget before taking the budget to the Board of Trustees for approval.

I found it extremely interesting the Deputy Superintendent described the Superintendent as a referee between departments when dealing with varying goals. I can see how the Superintendent has to serve as a referee especially in these hard economic times for districts. There is only so much revenue coming into the district and only so much money to go around to each department. Currently, in our district our Superintendent made it clear his goal is still to improve instruction while saving as many jobs as possible. Every budget decision in our district was driven around that goal.

Based on this week’s lecture and interview with the Deputy Superintendent of Business Operations and Management it is evident what the Superintendent’s role is in the budget process. The Superintendent is the crucial to the entire budget process. He or she sets the tone of the budget and ultimately has the responsibility of what to cut or add to the budget before taking it to the Board for approval.