A Presentation to the
Budget Advisory Committee
Group 4 (Kathy, Pam, Carol, Michelle & Mark)
The Challenge A Change in Fiscal Leadership Leaves Void in District
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Taking “Pro-Action”
• No pre-existing Budget Advisory Committee • New CBO wants to establish trust and openness • Establishes a Budget Advisory Committee
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• • • • • • • • •
Superintendent New CBO One Board Member CTA Rep CSEA Rep High School Principal Elementary Principal PTA Designee Community Business Representative
Budget Advisory Committee Members
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The Main Story
• Steadily declining enrollment for the past 11 years • Increasing public concern over the district’s finances. • Despite steadily declining enrollment, District has been and will continue to be fiscally solvent and will NOT have to make budget cuts
• Key Words and Phrases: • Steadily Declining Enrollment • Fiscal Solvency • NO Budget Cuts
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Communicating with Stakeholders
• The new CBO to begin by introducing the following points: – mission of the district – student-focused goals – priorities of the School Board
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Strategic Approach to Budget Presentation
• User-friendly budget presentation will include simplistic graphs and charts to convey the following information: • Revenue limit comparison and projections • ADA comparison and projections
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Emphasis:
“Despite the decreases in enrollment, ADA, and revenue, the District has remained fiscally solvent.”
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Materials to Use
Bill the User-Friendly Budget Man
Recommends…
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User Friendly Budget Program so that – information
presented is not too cumbersome or obscure. –presentation is clear meaningful, and simplistic.
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What NOT To Use
• CBO decides NOT to use
– J200 report, – interim reports, – any SACS related document.
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Political Aspects, Concerns and Sensitive Issues of Community Members
Board member – a vocal band booster,expecting there to be enough funding to purchase all new band uniforms for the coming year. Community Business Representative - voiced strong support for the High School Athletic Program. The gym is in a state of disrepair, and the track needs to be weatherized in order to the high school to remain competitive. CTA and CSEA- concerned primarily with pay raises
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Addressing the Political Issues
CBO to provide a clear, unbiased fiscal picture of available resources by presenting the following information: • Reserves • Restricted vs. Unrestricted Budget • Revenue limit COLA • The percentage of salary and benefits in total budget, existing collective bargaining agreements, and future obligations (OPEB)
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Choosing the Right Words!
MESSAGE • Good News- No Budget Cuts for Coming Year! • Reality: not enough new revenue to fund everything ( pay raises, facility improvements, AND band uniforms). •
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Seven Habits of Highly Effective CBOs
1. Use Simplistic Language (no acronyms) 2. Be Honest and Optimistic, yet Realistic 3. Encourage Stakeholder Input 4. Underline Flexibility - each site has received site discretionary one-time grant monies which allow sites to prioritize spending. 5. Validate Preferences (needs of each group are legitimate and important. 6. Communicate Tactfully Sober Message ( there is not enough new funding to do everything.) 7. Keep Priorities Student-Focused.
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Leave the Door Open
• The Superintendent closes invites each member of the Committee to develop a budget “wish” list from their constituents and submit it to the CBO for compilation and review. • At the next meeting, the Committee will discuss the contents of this document and explore ways to prioritize needs. • The CBO encourages all committee members to contact her for additional information, clarification, issues, or concerns prior to the next scheduled meeting.
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Budget Preparation and Development
Sierra Unified School District Director of Fiscal Services – Janelle Utheim
AGENDA
Background/Demographics Budget Preparation & Development Budget Assumptions How to Involve the Community & Stakeholders • Budget Monitoring • Budgeting Tips • • • •
BACKGROUND
• Janelle Utheim, Director of Fiscal Services for Sierra Unified School District and University High School Business Manager • BA Business Administration with Concentration in Accounting • 11 years at Sierra Unified • Hired as Account Clerk, Finance Manager, Director • ACSA Business Managers Academy, CASBO CBO Mentor Project
DEMOGRAPHICS
• K-12 District, 1876 students • ADA 1816.24 (96% Attendance Rate) • Declining Enrollment for 11 years
BUDGET
• $20.5 Million in General Fund (Restricted/Unrestricted) • 11 Different Funds
STAFFING
• Total Staff at Sierra Unified: 330
• Staff Involved in Budget Development: 1 (with Superintendent oversight)
BUDGET INSTRUCTION
• Centralized • Principals / Program Managers • General Fund
• •
At their discretion on allocated budget
•
Sites allocated budget
• Allocated based on number of students per site • Based on projected enrollment
Copy machines, nurse, audio-visual, non salary related discretionary funds
BUDGET INSTRUCTION
• Categorical Funding
and Arts and Music
• Block Grant, Instructional Materials • District Wide Programs
• •
CBO/Janelle decides amount
• Allocated based on number of students per site
Principals need to have a plan and decide where to move it
• Overseen by one person • i.e.. Native American Program
GUIDANCE
•CBO keeps a close watch on budget •Bi-weekly reports to Principals •March - looks at balances and projects to
end overspending
•Moves monies from one fund to another
TRAINING
CBO trains new Principals and new Board members
• • • • • •
How a Budget is created What each site receives Receives bi-weekly budget reports
Asks Principals to check over bi-weekly report for any changes or discrepancies Some Principals very aware of Grant monies, others not Janelle receives a lot of calls and questions
CALENDAR AND TIMELINE
• Budget Adoption Cycle
• Given to Board in October • (Handout 1)
• Budget Calendar
• (Handout 2)
• Always working on the budget
POLICIES
Board Policies & Administrative Regulations
Approved in 1992 (Handout 3)
TECHNOLOGY
• Technology and software used
•
Excel spreadsheets
• Changes
•
3548 accounts
• “Checkbook”
• Line by line basis • Board receives
BUDGET ASSUMPTIONS
• Collect Data
– Governor’s January Budget Release – School Services Dart Board – District Information
• Make Presentations
– Begin in February – Report to Board and Groups (Handout 4) – Budget Advisory Committee
BUDGET ENHANCEMENTS
• Director of Special Programs
•
Site Allocations
• Program Compliance
BUDGET REDUCTIONS
• Mid-Year Cuts
– Include the “World at Large” Needs – Public/Site Meetings – Board Decision • Declining Enrollment – Enrollment Projections – Staffing Ratio Forms – Staffing Reductions
INVOLVING COMMUNITY AND STAKEHOLDERS
• School Board • District and Site Administration • All Other Employees • Unions • Students • Community members
•
NO Budget Advisory Committee
LEVEL OF INVOLVEMENT
• Seek Input from Stakeholders Create “Wish List” (Handout 5) • Establish Priorities Superintendent and CFO compile information and make final decision on how dollars are spent. (Reflects accepted centralized budget process)
COMMUNICATION STRATEGIES
– Review Preliminary Budget with Superintendent – Present Preliminary Budget to Board – Meet with Union Reps Individually •Share Information •Be Honest
BUDGET MONITORING • Carryovers • Variances • Ongoing Communication
CARRYOVERS
• Restricted monies are allowed to be carried over • Unrestricted monies are put into the ending balance for one time expenditures. i.e. computer replacement; mandatory text book adoptions; any one time expenditures
VARIANCES
• Question:
What are the variances (budget vs. actual) noted in the annual audit? What caused them?
Janelle’s Answer: “Of course there are none! The budget is changed to reflect actuals at theend of the year!”
ONGOING COMMUNCATION
• Monthly reports to the board
• Interim reports go to the principals/cabinet members • Budget reports are given to all principals on the 1st an 15th of every month so they can see current activity • Collective bargaining settlements go to the board when we have something presented (openers) and then when we have agreed to a settlement for their final approval
COMMUNICATION DURING THE PROCESS IS THE KEY
BUDGETING TIPS
• Know District Goals • Keep Yourself Informed (School Services, FCMAT, CASBO) • Frequently Revise Budget • Monitor Budget – Interim Reports • Keep Open Communication • Ask for Input – Budget Advisory Committee, Leadership Team, etc. • Know Focus Group • DON’T LIE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!