Executive Viewpoint

BUDGETS ARE OUR FRIEND!

Dr. Mike Hernandez, AAEA Executive Director

It is that time of year. You have closed out the 2023-2024 budget and are preparing to submit the 2024-2025 budget at the end of this month. Our business managers across the state feel the pressure and may not be warm and fuzzy when you come in with any last-minute requests or changes. Hopefully, you are still reading and are starting to think, If I am not a superintendent or business manager then submitting the budget is not a focal point of my daily administrative duties. On this point, I would beg to differ. Everyone in the school community is important in the budget process. A school budget is our signal to all stakeholders of what we prioritize and how we aim to raise student achievement. One way that a school district can widen awareness, involvement, transparency, and buy-in is through a budget committee.

A school budget committee is a vital part of the educational community and is responsible for overseeing and managing the financial resources of a school or school district. The committee plays a crucial role in ensuring that funds are allocated effectively to meet the needs of students, staff, and the educational environment. A school budget committee is a group of individuals tasked with developing, reviewing, and recommending the annual budget to a local school board. The budget outlines how the school's financial resources will be allocated for various needs, such as salaries, educational programs, facilities maintenance, and extracurricular activities. The committee's primary goal is to ensure that the school's financial resources are used efficiently to support its educational mission and vision. With the overall north star being increased achievement.

The composition of a school budget committee can vary, but it typically includes a mix of school administrators, teachers, parents, community members, and sometimes students. School Administrators often include the principal, vice-principal, and district financial officers. They bring a deep understanding of the school’s operational needs and strategic goals. Teachers provide insights into the educational needs and priorities of the school. They can advocate for funding that directly impacts classroom instruction and student learning. Parents and Community Members represent the broader community's interests and priorities. They provide a valuable external perspective on how the school’s resources are being utilized and can advocate for broader community concerns. A school board member should serve on or liaise with the budget committee. They ensure that the budget aligns with districtwide goals and policies. Students can provide a perspective on how budget decisions impact the student body. There are many more individuals that need to be included in the thought process such as special education, gifted education, and behavioral health staff to name a few.

The responsibilities of a school budget committee are extensive and include the following: Developing the budget by estimating revenues, forecasting expenses, and allocating funds to various departments and programs. The committee should regularly review financial reports to monitor the school’s spending and ensure that expenditures align with the approved budget. One of the hardest aspects is prioritizing spending. With limited resources, the committee must make difficult decisions about prioritizing spending. This could involve deciding between investing in new technology, hiring additional staff, or maintaining existing programs. The committee must actively engage with various stakeholders, including parents, teachers, and the community, to gather input and communicate budgetary decisions. This helps build transparency and trust in the budgeting process. Throughout the year, the committee may need to adjust the budget in response to unforeseen circumstances, such as changes in funding levels, unexpected expenses, or shifts in school priorities. Finally, the committee ensures that the school’s financial practices comply with local, state, and federal regulations, as well as any specific guidelines set by the school district.

Most, if not all, districts face challenges throughout the year. A strong active budget committee can help alleviate some of the frustration and stress seen in school communities. Many schools operate with constrained budgets, making it difficult to meet all the needs and priorities of the school community. Various stakeholders often advocate for different needs, the committee must carefully balance competing priorities to ensure fair and effective resource allocation. Unexpected costs, such as emergency repairs or changes in staffing, can disrupt even the most well-planned budgets. The committee must be prepared to adjust and reallocate resources as needed. Compliance with various financial and educational regulations can be complex and time-consuming, requiring the committee to stay informed and vigilant. In Arkansas, we are constantly seeing changes in rules from the state and federal levels.

So I know that some of you may say “phooey” to all my fine ideas about budget committees, but I believe it is worth consideration. As we face more and more challenges and criticism as administrators, we have to share the burden with the greater school community. This is one way to do that and be able to weather difficult decisions in the future. I hope you are having a great start to your year and making a significant positive impact on your school’s success and the community it serves. September 30 is coming!