Budgeting for Technology Plans

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Budgeting for Technology Plans

“Reality and current environment”

Robert DwanAssociate Executive Director

Michigan School Business Officials

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Overview

Current Economic Factors

State Aid Foundation

Enrollment

Retirement and Benefits

Transparency/Efficiency

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So…. where do we go from here?

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Basics of Schools Finance

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Fiscal Year

Foundation Allowance

Enrollment – Number of Students

Taxable Value – Local Revenues

Categorical Funds

MPSERS – School Retirement System

Fund Balance

“Shared Services”

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Basics of Schools Finance

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Fiscal Year The time period covered by the districts financial statements

School District = July 1 – June 30

State and Federal = October 1 – Sept 30

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Basics of Schools Finance

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Foundation Allowance

This is the amount received by the district on a per pupil basis

Originated out of Proposal A

Used to fund general fund expenditures

A portion is collected locally through tax millage

What’s not collected locally is received from the State through monthly State Aid Payments*

*11 months only, no September payment

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Basics of Schools Finance

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Enrollment – Number of Students “Count Day” twice a year

Determines the number of students for which the district will receive funding

Is based on a Full Time Equivalent or “FTE”

2012-2013 School Year Count Dates

Winter Count – February 8, 2012 = 10%.

Fall Count – October 3, 2012 = 90%.

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Basics of Schools Finance

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Taxable ValueThe value accessed to properties that pay local operating millage, debt millage, sinking fund millage, and other millages collected by the district or ISD

Changes year-to-year

Directly impacts funds available to cover costs of debt and other obligations

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Basics of Schools Finance

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Categorical FundsFunds received by the district for a specific purpose

May/may not be used for specific purpose

Controlled by State or Federal

Funds in addition to regular foundation

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Basics of Schools Finance

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MPSERS – School Retirement SystemRetirement system covering school employees

Generally the second largest expense of the district. (Currently 24.46% of Payroll)

Undergoing reforms

Projected rate for 2012-13 = 27.37%

Projected rate for 2013-14 = 31.21%

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Basics of Schools Finance

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Fund BalanceA financial term that describes the difference between Assets and Liabilities of the district

“Rainy Day” Fund

Does not represent cash available

May be used as a measurement of financial health

Recommended to be 15%-20%

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Basics of Schools Finance

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“Shared Services”“Buzzword” describing the delivery of service between entities

An example may be Tech/Business services being supported by staff at one district for another district

Promotes best practice

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Current School Aid Fund

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No increase in Foundation Allowance

Property values decreasing

MPSERS Rate increases

No “new money”

One-time revenues

Much talk about consolidating systemsSoftware/Reporting/Operations etc.

No funding to do it!!

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Personality Types and the Finance World

According to psychometric testers there are distinct personality types that are the right fit for a job in finances.

The top personality types are:introverted, sensing, feeling, judging

They tend to be:cautious, gentle and thoughtful and they seem to be easily offended

Basics of Business Manager

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Personality Types and the Finance World

Other traits include:well organized, diligent and very stable

They enjoy a predictable life and the ability to help others in and out of the workplace.

In short …they don’t like budget SURPRISES!!

Basics of Business Manager

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Basics of the IT ProfessionalWhat you need to be a successful IT Professional…….

Patience, patience and more patience

Ability to adapt quickly to change

A positive outlook

The effective IT professional is not a 9 to 5

A love for challenge

A PARTNER to your Business Manager

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Tips for success…What the Business Manager needs:

To be involved in the development of the Tech Plan

Potential Funding Sources

Multi year plan

Why this is important to the district

What additional costs may be involved?

Who is responsible for carrying out the Plan?

What are the needs vs. wants?

What happens if we don’t follow thru on the Plan?

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Tips for success…• What the IT Professional can do…….

– Meet regularly with the Business Manager – Have “documented” system – “Manage” the Plan; Update Management Team – Make the Plan a regular discussion point with staff– Be prepared to be let down……financially– Be the “realist” in the planning process– Show the “cost of ownership” and “return on

investment” to the Business Manager – Be positive about the planning process and Plan

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Bottom Line• School funding is tight

• Expenditures with the biggest benefit “usually” prevail

• The lack of involvement of the Business Manager in the Tech Plan development can make or break its’ implementation

• Tech is essential to the success of our students….now and in the future!

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Your Turn…..

Questions? Comments?

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Robert DwanMichigan School Business Officials

1001 Centennial Way, Suite 200Lansing, Michigan 48917

rdwan@msbo.org 517-327-5920

Contact Information……