The Budget Project Part 1 and 2
Joanne Lewis-Sawyer
National University
Financial Leadership and Management EDA 619
Albert Owen
12/13/2014
Abstract
A budget is an indispensable tool, which any institution will not survive without. It enables the managers to have a clear focus and the relationship between the forecasted events and finances. It also enables the organization to control its activities, communicate its plans to its different departments, motivates the leaders to work hard in order to realize the budgeted objectives. It also provides a visibility to the organization’s performance. Therefore, all budgets be it for public or private entities are subjected to analysis so that an assurance can be given to the stakeholders that the organization is financially stable and efficient. It also helps when ensuring whether the organization has sufficient funds to finance its projects.
Considering the budget of the school, this section analyses its process before it was adopted, the assumptions underlying it, how income is determined, and the review of the expenditures in the budget. It also focuses on how the carryover amounts are treated and how the budget accommodates the categorical programs according to LCAP.
The school serves K-12 youth program at Peterson Juvenile hall located at the county justice center. It also serves students who need a special education program where a special assistant delivers instructions 1:1. The students are allowed to stay at the school for the length of their court order. The school maintains its mission and vision to help achieve their goals.
- Mission: To instill skills and confidence among all students to enable them to make a difference and progress in ever-dynamic world.
- Vision: To maintain high prospect and an academic hub that is meticulous, relevant, and based on relationships.
- Values: to empower and inspire the students to be tomorrow’s leaders.
The adopted budget identified and took into account the following needs, which guided its adoption and implementation:
- Need for enhancing the English Instructions to increase the County’s Academic Performance Index and reduce the existing gaps in student’s achievement.
- Need for enhancing the mathematical instructions to increase the County’s Academic Performance Index and reduce the gaps which exist in the student’s achievement.
- Enhance CAHSEE to increase the number of students who graduate from the school.
- Enhance students’ engagement and involvement in the schools programs.
- Enhance the behavioral support systems that will effectively identify and serve the students to reduce the number of students entering the special education program.
Identification of the type of project
The school adopted the site-based budgeting approach in which all the stakeholders were considered. They also determine where the funds should be utilized in order to fulfill the school’s mission, vision and values. All the stakeholders do meet quarterly to see the progress of the school according to the adopted budget. The main aim of doing this is to ensure that the primary objective of the meeting the student’s needs with the available resources is available. This approach is incorporated together with the line-item budgeting approach since it relates to the categorical funds of the state.
Summary of the school’s budget
In the coming school calendar year the school is expected to receive $517,882,178. Sources of these funds are derived from the County Office of Education and this budget is to serve the students and the entire community. The School’s Site Council is ready enough to give guidance to ensure that we remain the best stewards of funds allocated to us in empowering the young generation that is in our care and reach. Therefore, the funds that we are going to utilize in ensuring that we achieve our school’s mission, vision and value is going to come from the following resources.
The revenue to the school is determined by ADA per student with categorical finance from federal and state. From the adopted budget project it is projected that each student will receive $7,577. Other several other sources like Adult Education Fund, Deferred Maintenance Fund and other various Capital Facility Funds. The following are the County Office of Education’s expenditures for the coming 2014-2015 calendar year.
In the general fund, a variety of function classifications exist that aims at fulfilling the school’s mission, vision and value of serving the young generation and the entire greater community. These functions include: pupil services (psychological services, transportation, guidance and counseling), instructional, instructional (related administration of the school, library and development of the school), community services (recreation of the community), plant services.
John Cruikshank, Jr School has budgeted $24,272,184 of the minimum with a proportional of amount $36,253, 6268. This amount is budgeted for the school for expending for security staff, professional development of teachers, counselors, and support staff of the school site, planning of teachers and the intervening programs for students. $10,423,885 was allocated to the school sites based on the number of English Learners and low-income earners to foster the young generation to ensure that school makes decisions that could see it employ qualified personnel that can make sure the needs of the young generation are met.
This amount to the EL, Low Income and Foster the Youth students was an increase of 14.91% which was aimed at meeting their needs through offering and providing a number of programs which include: Counseling services, development of professional teachers, intervening programs for students, safety and security, improve technology in the school, instructional support in English and Mathematics literacy, partnering with organizations, district AVID, Peer Leaders Uniting Students (PLUS).
Budgeting process
The school employees the site-based budgeting approach from the state funding and federal which is distributed by the county education office. The principal of the school oversees the overall budgeting process and assigns the different individual administrators to determine the expenditures. The chart below shows the budget allocation regulation in the school.
General fund is established by the state, it provides essentials that range from the salaries to supplies and books (see the Budget Expenditures above). Every individual director has a responsibility of budgeting categorical areas under his arm. For example, one director oversees the categorical funds of the state where the school site council establishes the expenditure in each categorical area. The directors meet with the school site council quarterly to have a review of the budget to make sure that the needs of the students are met without any constraint. The other learning directors in the school chair some activities that are done to benefit the greater community. There is a committee of stakeholders who help in establishing the budgetary process which is effective and efficient.
PART TWO: BUDGET REVIEW AND ANALYSIS
Budget calendar
Due to the many deadlines which are used in the development of a budget, the calendar below highlights the steps which were followed during the adoption process of the budget.
January 15, 2014- the proposed budget was released.
February 16, 2014- a preliminary representation of the budget was done to the Board
April 17, 2014- revision of the proposed budget
July 8, 2014- the budget was taken to the public for review
July 20, 2014- a public hearing was conducted and the project was approved
September 20, 2014- the adopted budget was updated on the 2014-2015 state adopted budgets.
Assumptions of the budget
The San Joaquin County Office of Education operates under numerous budget assumptions based on the projected enrollment and ADA, projections of the staff, projections of the expenditures, revenues and the cash reserves (Lecture 3A). The adopted budget was based on these assumptions:
An increase in the based revenue limit on the proposed LCFF (Local Control Funding Formula)
Growth enrollment of 217 students.
Adjustments of grants based on the history of funding and award of letters.
The dollars which have been budgeted conservatively.
Changes in the salary schedule at 1.5% for the classified and certified staff.
Elimination of the four furlough days on the employees who exceeds the instructional year of 181 days.
Carry forward the on-going expenditures.
Adjustment of the site budgets for the enrollment in supplies and staff.
Implementation of the approved adjustments as stipulated in the Budget Factors.
Income review (see the budget revenue in part one above)
The formula:
= Average number of students attending per day × Rate which is determined by the state per a student.
Therefore, the revenue that is generated and included with the property taxes is the largest revenue generator.
General Revenue: Revenue limit, federal, state, local, interfund transfers in, other sources.
Income determination
The revenue is determined by the San Joaquin County Office of Education accountability and budget department. The revenues are the based on the resources which are available to the county education office. The county receives finances through federal funds, state funds, local funds property taxes, revenue limit and the state lottery.
Expenditures review (see the budget expenditure in part one above)
The California state’s general fund expenditure is divided into seven classifications. They include:
Certified salaries (administrators, teachers, counselors, psychologists, supervisors, librarians and other employees who maintain a credential with the state of California. It has been allocated 46% of the total expenditures)
Classified Salaries (support staff, including instructional aides, clerical, custodial, maintenance, grounds, transportation, uncredentialed administrative and other personnel who are not required to maintain a credential with the State of California. 16% of total expenditures.)
Employee Benefits (all employer contributions to retirement plans—State Teachers Retirement, Public Employees Retirement, part-time Employees Retirement and Social Security—and health & welfare benefits provided to all eligible employees. 22% of total expenditures.)
Books and Supplies (textbooks, library books, and supplies for the classroom, office, custodial, maintenance and transportation areas. 7% of total expenditures.)
Contracted Services (utilities, repairs, consultants, travel, leases, postage, legal fees, liability insurance and other service contracts. 8% of total expenditures.)
Capital Outlay (new and replacement equipment over $25,000 per item as well as General Fund expenditures for sites and buildings.)
Other Outgo (transfers to other funds and debt service payments. 1% of total expenditures.)
Categorical programs
| Categorical Fund
|
Description
|
Purchases
|
| Title I
|
This helps the disadvantaged students | Food, instructional supplies |
| Carl D. Perkins Career and Technical Education
|
Authorizes the funding and improvement of the secondary and post-secondary education program | Support the activities that promote the education programs |
| Title II, Part A, Teacher Quality
|
Improve academic achievement through principal and teacher quality | Implement mechanisms that assist in the recruitment and retain qualified teachers. |
| Title III, Immigrant Education
|
Grants to immigrant students who want to achieve their educational goals | Identify and monitor the programs used. |
Statement of the carryover amounts
After every fiscal year, San Joaquin County takes a review of all the budgets to find out whether there is any surplus amount. If there is any surplus the county education office establishes the areas with the surplus, then a carryover is justified to that respective area. The surplus wills rollover to respective area as from the beginning of the next fiscal year. (Corum, 2013).
A budget as a local public relations document
San Joaquin County Office of Education budget represents its plan to provide and offer educational program for the young generation in the county. The document is available on the county’s office of education website and is reviewed and analyzed by the boards of the schools at least in one meeting per quarter. The residents of the county are allowed to attend these meetings and are allowed to ask any questions regarding the budget and its spending. Therefore, the budget is a document which holds the county accountable to its stakeholders.
The adopted budget acts as an extension of the county’s mission, vision and values. This is clearly stipulated in an earlier section of the budget, which features the students’ achievement. Most notably, the students’ performance have increased county wide (2014-2015 adopted budget). In addition, the number of students scoring advanced English has increased by 55%. Also, the budget takes into account the steps which are taken to maximize the budget during trying moments, however, an explicitly credit is given to students’ learning and a dedication by the employees of the county.
Finally, the ASBO (Association of School Business Officials International gives awards to the schools, which show an excellent preparation and issuance of their school budgets. The awards are given to the schools whose budgets meet the ASBO’s requirements (2014-2015 adopted budgets). San Joaquin County Office of Education has earned this award for the past 6 years. This shows that a budget is a document to the public that reveals where and how San Joaquin County Office of Education allocates its talent, treasure and time to students.
References
2014-2015 (2014). Adopted budget. www.sjcoe.org//docs/SARC1112JohnFCruikshankJr.pdf
Ballard, C. L. (1990). Marginal welfare cost calculations: Differential analysis vs. balanced-budget analysis. Journal of Public Economics, 41(2), 263-276.
Corum, Larry (2013). larrycorum@cusd.com. Budget.
Sewell, G. lecture 2A. EDA 619 (2014) Budgetary processes, National University, Fresno. CA.
Sewell, G. Lecture 2b.EDA 619 (2014) Financial Leadership and Management, National University, Fresno, CA.
Sewell, G. Lecture 3a.EDA 619(2014) Financial Leadership and Management, National University,Fresno, CA.
Townley, A., & Schmieder-Ramirez, J. (2012). School finance: A california perspective. (9 ed.).Dubuque: Kendall Hunt Publishing Company.
Vue, P. (2012). Wasc: Focus on learning. Cruikshank. John Cruikshank, Jr, School
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