Photos by Susie Fitzhugh A More Deliberate Approach to Budgeting CUBE 2015 Annual Conference Phoenix, Arizona October, 2015 CUBE 2015 Annual Conference

Photos by Susie Fitzhugh

A More Deliberate Approach to BudgetingCUBE 2015 Annual Conference

Phoenix, ArizonaOctober , 2015

CUBE 2015 Annual Conference

A More Deliberate Approach to BudgetingSession 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)


Note: Plan to spend 15

minutes on each topic

CUBE 2015 Annual Conference 3

“A More Deliberate Approach to Budgeting” Small Group Discussion Topics (15 minutes each)

1) Policies: Board budget and related policies2) Strategic Plan: Budget aligned to strategic plan3) Guiding Principles: Annually review budget

guiding principles Effective Equity Policy integration

4) Work plan: Confirm budget development calendar5) Legislative: Adopt annual legislative priorities6) Communicate budget to public7) 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

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 PoliciesDiscussion Worksheet

Budget policies discussion• _________• _________• _________• _________• _________• _________• _________

Related policies discussion• _________• _________• _________• _________• _________• _________• __________

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Discussion: Identify common approaches and unique practices among CUBE member districts that support effective board budget oversight


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

Annual Budgeting & Planning

5 Year District Strategic Plan

24 Month Vision / Planning

5 Yr

2 Yr

1 Yr

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

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

Freq

uenc

y

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

More Strategic

More Tactical 69/14/2015


Topic 2 cont.) Budget Process Documents Unfunded Needs to Plan“Asks by Type”

HR

Capital, Facilities, Enrollment

Operations

Teaching & Learning

Superintendent

Deputy

Business & Finance

Performance Enabler

Compliance / Operational Redundancy

Rev. Generator /

Cost Reducer

Division Improvement

Priority

Other Division Priority

Performance Enabler

Compliance / Operational Redundancy

Rev. Generator /

Cost Reducer

Division Improvement

Priority

Other Division Priority

150 43 8 67 17 $27,187,457 $11,056,745 $397,324 $8,374,107 $719,824

Count $

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Topic 2) Align Budget to Strategic Plan Discussion Section Worksheet

Strategic plan

Tactical plan

Annual budget

Departmental

Individual

Periodic Assessment

Community Input

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Review how well District works to align budget to strategic plan. What are ways this can be accomplished?


Topic 3) Annually Review Budget Development Guiding Principles: Seattle Example

9

• 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

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List and discuss important budget guiding principles. Note where priniples compete or conflict. How well does your district use equity principals?


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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12

• 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?

Topic 3a) Parent Involvement/Equity Survey

Discuss how your District would respond to this recent survey from State of Washington’s Puget Sound Educational Service District


• 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

Topic 4) Confirm Budget Development CalendarSeattle Example

139/14/2015


Topic 4) Seattle Menu of Future Board Budget Work Sessions 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

• 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

• Bell Time• Racial Equity/Community Engagement

– City of Seattle: Universal Pre-K– Enrollment Projections– SPED/ELL Budget– Technology Budget and Plan– Grants/Restricted Budgets:

• Title 1/LAP Allocations• Head Start Budget

– City of Seattle: Family & Education Levy– Program Placement Decisions– Capital Fund Budget– Associated Student Body Budget 149/14/2015

Multiple Board Meetings Range of Budget Topics


Topic 4) Budget DevelopmentDiscussion Worksheet

List key budget components High level Detailed Level

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Review how well Board covers key budget components throughout year to support board members understanding of district’s budget.


Topic 5) Adopt Annual Legislative PrioritiesSeattle Example

1. Fully fund compensation2. Class Size/Staff Allocations3. Sustainable funding/resolve tax inequity4. 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

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

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Topic 5) Seattle exampleReceived State Legislative Funding Support

Sources of State Operating Funding Revenue ExpenseNet Impact

Maintenance, Supplies and Operating Costs (MSOCs) $19.8 $19.8

Maintenance & Operating Levy Inflator (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 $37.1M ($28.2) $8.9M

9/14/2015Seattle also received $25 million in capital funds.


Topic 5) Adopt Annual Legislative Priorities Worksheet

Levels of support Priorities defined?

Lobbyists? Association? Other?

State

Federal

City/County

Business CommunityCBOs

PTAs

Union groups

Other

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Who is engaged in process? What levels included in plan? Is plan effective in support district budget objectives?


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/ otherDevelop new

social media opportunities

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Meet with PTA, SPED, parents council, etc.


Topic 6) Communicate Budget to PublicBreakout discussion worksheet

Participation mechanisms:• Internal and external actors• Legal requirements

– Published– Public hearings– Notifications– website

• Local customs– Work sessions– Citizens committee– Surveys

Likely results:• Individual interest vs public

interest• Little agreement• Other ….

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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.


Topic 7) Monitor: Regular budget status reportsSeattle Example

(1) Basic Teacher Staffing (General Ed, SPED, ELL)

(2) Special Programs Teacher Staffing(Montessori, International, K8s, etc.)

(3) Core Administration

(4) Non-Staff Funds

(5) Equity Resources:(Title 1, Title 2, & LAP)

Fund

ing

Prio

rity

Ord

er

City’s Family &

Education Levy

PTA, Private grants funds

219/14/2015

Board Monitoring Tools: Budget book details Monthly reportsSchool details: Large Spreadsheet

Charter Schools?


Topic 7) Regular budget status reportsMonitor All Phases of District’s Strategic Needs Investments

Board Governance PrioritiesNine (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 Work9/14/2015


7) Monitor: Regular Budget Status ReportsDiscussion Worksheet

Helpful Least Helpful

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List types of Budget monitoring practices that are most helpful to least helpful for board members and their community


Thank you!!

249/14/2015