Jan 01, 2016
Budget FrameworkThree PhasesPhase IBudget PlanningPhase IIBudget ActionsPhase IIIBudget Implementation
Phase I Budget Planning
Some Phase I IssuesUnderstand current fiscal conditionDevelop project timeline that guides budget action workIntroduce and apply Decision Analysis concepts for addressing budget decisionsIntroduce and apply communication and budget-related tools for district use
Budget Process TimelineWhat are the major milestones and deliverables we need to achieve in the budget process?Budget resolution to BoardCommunicate with district administratorsNotify personnel of position reductionsComplete risk analysis for implementation of budget actionsAdoption of new budgetWhat else?
Budget Planning Timeline (page 1)
BUDGET PLANNING TIMELINE
Milestones, key events and accountability
What are the major milestones and deliverables we need to achieve in the budget project?
What key steps/events will we need to take to reach these milestones?
Governors Special Session
Extended Budget Team Work SessionJanuary 7
Governors Preliminary Budget Proposal for 2009-10January 13
Validation letters to all teachers
Prepare seniority list; move temporary status to probationaryJanuary/February
District Budget Preliminary Work
Target reduction amount identified
Budget action criteria agreed upon
Potential budget actions identified
Budget actions evaluated and prioritizedJanuary
a) Executive team evaluates district-wide budget action
b) Assist Supts to evaluate dept./school level budget actions
c) Assist Supts report budget action results to Exec. Team
d) Categorical sub-committee evaluates budget actions
Budget process and budget actions reviewed with Board January 20
Validation letters to be returned to Personnel ServicesJanuary 30
Update Board on budget and personnel reductionsFebruary 10
Agreement on resolution particular kinds of service (PKS)February 24
T o be reduced
Resolution to BoardMarch 10
Principals meeting to distribute letters, include all temporaryMarch 11
teacher letters 11:00 a.m.
Mail certified letters to certificated that did not receive on Mar. 11March 12
Resolution on classified position reductions to the BoardApril 7
Distribute letters to classified
Prepare Risk Analysis for implementation of budget actionsApril/May
Administrative Law Judge (ALJ) hearing for certificatedApril/May
ALJ report to Board for certificatedMay 12
Final certificated layoff letters distributed before May 15May 13
Governors May ReviseMay
Adoption of PYLUSD BudgetJune 23
Decision Making ExcellenceQuality-objectives (criteria)
Quality-evaluation of options
Budget Reduction Work Session
The Happy Valley School District has an enrollment of 3050 students. The districts List of Possible Budget Actions to Obtain $350,000 in Reductions enrollment is stagnant and some prodicest a slight decrease over the next few years.A. Eliminate K-12 Curriculum Supervisor Position $ 92,000 SchoolEnrollmentCapacityB. Cut 3 Teachers (1 pre-k, 1 first, 1-second) $ 172,000 C. Cut 2 M. S.Teachers (Science and Lang Arts) $ 108,000 1. Happy Valley High1,1001,300D. Cut 1 HS Social Studies Teacher $ 54,000 Grades 9-12E. Cut 1 Newly created Tech Support $ 43,000 2. Happy Valley Middle School700900F. Cut 1 HS Art Teacher $ 54,000 Grades 6-8G. Cut 1 Unfilled HS Industrial Arts Teacher $ 54,000 3. Madison Elementary400600H. Eliminate MS Basic Skills :Lab $ 54,000 Grade 1-5I. Cut 2 World Language Teachers from K-4 $ 113,000 4. Lincoln Elementary630750J. Cut General Supplies Budget to 05-06 level $ 62,000 Grades 1-5K. Move Science instruction in K-4 to Regular Classroom $ 54,000 5. Washington Kindergarten Center225300L. Cut HS Equipment by 25% $ 21,000 Grades KM. Eliminate All School Psychologists $ 154,000 N. Cut 1 Instructional Aide per school $ 80,000 The District is developing its next years budget. The Board has given the administration O. Cut Operations and Maintenance by 3% $ 15,000 directions to develop a budget no larger than the current budget of $28, 000,000. P. Cut Athletic Supplies by 25% $ 30,000 The preliminary budget for next year is $28,350,000. You are part of a budget task who has been Q. Cut Field Trips by 10% $ 5,000 charged with recommending cuts totaling $350,000 from the list of possible budget actions.R. Cut K-8 Student Activities by 20% $ 10,000 S. Close Washington Kindergarten Center $ 125,000 and move kids into Elementary BuildingsT. Eliminate Part Time Nurse Position $ 19,000 U. Eliminate the 8th Grade Football Team $ 45,000 Total $ 1,364,000
Decision AnalysisWhy:To help us make choicesWhen:Situations where we need to choose among alternativesPitfall:Jumping to Alternatives Key Steps:State the DecisionEstablish and Classify ObjectivesList AlternativesEvaluate AlternativesConsider RisksTrust Your WorkPick a Winner!
State the DecisionWhy:To provide focusHow:Ask What are we trying to decide? Decision Statement = Choice word (select, pick, choose)Plus:End Result/PurposePlus:12 Key Modifiers
State the DecisionBudgetFor example:Choose best actions for closing $____ budget gap Happy Valley Simulation: Choose best actions to close $350,000 budget gap
Develop Objectivesfor Budget ActionsWhat objectives might your districts need to take into consideration?Who should be involved?Role of the Board?Board Endorsement?
We prefer actions that
Establish andClassify ObjectivesWhy:To identify what we want and need in a final choiceHow:To ESTABLISH objectives, ask Whats important for us to consider in choosing an alternative?How:To CLASSIFY objectives, identify the one (es) that is most important and assign a weight of 10. Weigh the others in relation to the 10range of 101.
Sample Budget Objectives (page 3)We will favor budget actions (cuts) thatComply with state/federal mandatesMinimize impact on Board/District Goal #1 (2, 3, etc.)Minimize impact on instructional programsMinimize impact on extra-curricular programsMinimize impact on safetyMinimize disruption on schoolsMinimize disruption on familiesMinimize impact on district reputation
Minimize resistance from communityMinimize impact on the fewest numbers of studentsMinimize impact on classroom teaching and learningMinimize impact on student/ teacher ratiosMinimize impact on upkeep of current facilitiesMinimize impact on district reputation or desirability in attracting teachers and/or familiesMinimize impact on ability to effectively manage programs.
Minimize the impact on the fewest numbers of studentsMinimize impact on state test resultsMinimize impact on student learning/achievementMinimize impact on program effectiveness.Minimize the loss of personnelMinimize the impact on student healthMinimize the impact on remaining employees
1 Establish Objectives (page 4)
Weight (Classify) the ObjectivesWhy:To determine the importance/ priority of each objectiveHow:Ask Which objective (s) is the most important?Give it a 10Then askCompared to these, how important is each other objective?Assign values of 101 for each objective
2 Classify (weight) the Objectives (page 4 a)
Board Communication (page 5)Assure Board that visual, rational approach was used for budget processAssure Board that accurate and relevant data were gathered and analyzedGet Board input and support on tentative objectivesGet Board support on priority of objectivesIdentify next steps in budget processWhat else?
Phase II Budget Actions
List AlternativesWhy:To identify our possible actions for reducing budget gapHow:Ask What actions are available to us?
*Budget ActionsEvery budget action has its own cost and benefit profileDollars & centsOne-time vs. OngoingPolitical CapitalWithin school community (Parents/Students/Staff)Within community at large (Voters/Businesses/Political interests)Administrative/management burdenEvery district will have a different profile of management capabilitiesFacilities impactExpansion/Closure; Maintenance & Operations
So districts must weigh their budget actions in a wider context than just fiscal
The LIST (page 6)A. Eliminate K-12 Curriculum Supervisor Position$92,000 B. Cut 3 Teachers (1 pre-k, 1 first, 1-second)$172,000 C. Cut 2 M. Teachers (Science and Lang Arts)$108,000 D. Cut 1 HS Social Studies Teacher$54,000 E. Cut 1 Newly created Tech Support$43,000 F. Cut 1 HS Art Teacher$54,000 G. Cut 1 Unfilled HS Industrial Arts Teacher$54,000 H. Eliminate MS Basic Skills :Lab$54,000 I. Cut 2 World Language Teachers from K-4$113,000 J. Cut General Supplies Budget to 05-06 level$62,000 K. Move Science instruction in K-4 to Regular Classroom$54,000 L. Cut HS Equipment by 25%$21,000 M. Eliminate All School Psychologists$154,000 N. Cut 1 Instructional Aide per school$80,000 O. Cut Operations and Maintenance by 3%$15,000 P. Cut Athletic Supplies by 25%$30,000 Q. Cut Field Trips by 10%$5,000 R. Cut K-8 Student Activities by 20%$10,000 S. Close Washington Kindergarten Center$125,000 and move kids into Elementary BuildingsT. Eliminate Part Time Nurse Position$19,000 U. Eliminate the 8th Grade Football Team$45,000 Total $1,364,000
Evaluate AlternativesScore Objec