What I learned in reviewing the TEA Budgeting Guidelines is that this is an incredible undertaking and I certainly want to be a superintendent in a district where they have some type of finance director!
Although there are many formats that budgets may take, ultimately it is the process of allocating resources to the prioritized needs of the school district. There are three major processes in developing a budget: planning, preparation and evaluation. Planning should include all stakeholders in some manner. Planning defines goals and objectives of the district and then budgetary resources should be allocated to support these goals. When you begin working on allocations, you move to the preparation phase of budgeting.
I was surprised at the number of different processes that may be used to develop a budget. I have only been involved in preparing line-item budgets where individual schools and central administration departments submit requests for expenditures. Then the budget director submits a summary to the board in a line-item format, followed by school board review, revisions, appropriations and approval.
In reviewing the legal requirements, it is very important to adhere to the deadlines set forth by SBEC. It seems that the most important and challenging part of preparing a budget is accurate financial forecasting. This is currently where we are in our budget planning. This year, more than previous years, it is crucial to have as accurate predictions as possible, especially pertaining to staffing projections as personnel is the primary cost in education. Projecting enrollments, property tax base and revenues, new construction, grants and fund balance forecasting are also important considerations.
Reading the TEA Budgeting Guidelines is almost overwhelming. I am glad that there are specific guidelines and examples to follow.
After reading these guidelines, I agree with you that I want to make sure I have a strong CFO! As you mentioned, the accurate financial forecasting is critical, but it seems very difficult to do given the current legislative direction. There is so much to consider!!
ReplyDeleteI think anyone undertaking the superintendent position would gladly accept someone who knows much ore about finance, operations and budgeting than themselves. I have worked for four superintendents and would gladly agree that they were successful in academics because the CFO kept things under control.
ReplyDeleteI have to agree with Becky and Jo Ann on hoping that when I'm in the superintendent office that there is also a strong CFO. The ability to make accurate estimations of the factors that go into budgeting is necessary to have a solvent and successful district.
ReplyDeleteI agree. You need to have a Finance Director.
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