Optimizing Resource Allocation Through Zero-Based Budgeting
Zero-based budgeting is a strategic methodology that involves analyzing every function within an organization to align spending with goals. By starting from a zero base, administrators prioritize goals, needs, and wants to enhance resource planning and organizational effectiveness. This approach facilitates decision-making based on essential services, service expansion, and resource requirements.
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Zero-Based Budgeting and the Budget Process SSD Board of Education Meeting October 27, 2020 Dr. Jeff Haug Chief Operating Officer
Zero-Based Budgeting Zero-based budgeting is a methodology that helps an organization align spending with strategic goals. The process starts with a zero base, and every function within the organization is analyzed for its need and cost. By aligning spending with strategic goals, an organization can improve its resource planning and increase employee engagement and organizational collaboration. 3
Zero-Based Budgeting Administrators should think about: CSIP goals Area/department current and future goals Areas of needs for students Attaching budget to outcomes 4
Zero-Based Budgeting Administrators will need to: Determine priorities first, then look at past trends Prioritize goals to continue day-to-day operations Prioritize new goals Prioritize needs and wants Ensure priorities align with area/department plans 5
Priorities What was FY21 focus? What should be the FY22 focus? Partner District Significant disproportionate Partner district priorities SSD Schools Review building plans Departments Projects or initiatives 6
Zero-Based Budgeting Administrators may: Eliminate some current activities to allow for funding of new initiatives This is an excellent time to review: Integrated Tiered Models of Support GAP analysis Professional learning plans 7
Making Decisions Needs provides only the most fundamental services essential to execute the written curriculum Wants provides resources essential to continue the current level of service, which expands the written curriculum Enhance details the resources required to expand services beyond the current levels 8
Budget Process Information provided to buildings, departments, and partner districts
School District Funds History of and guidance for use: General Revenue Operating Fund Special Revenue Fund Capital Projects Fund 10
Sources of Revenue Local Funds 70.00% Assessed Valuation and Tax Rate State Funds 21.00% State Foundation Formula Prop C Classroom Trust Fund Federal Funds 9.00% 11
FY22 Budget Planning Data Two years of historical data plus current year to date is provided to administrators. A baseline for staff will be determined and new staff requests must be justified. Capital improvement requests are submitted and prioritized by the Facilities Director. 12
Spending Report Spending performance reports are helpful for reviewing prior trend data and determining the correct account code to use. The reports are available in Finreporting Accounting rpt~Acc012 Spending Performance Specify a date range Enter department number Enter area number area coordinators and tech school programs Enter building number principals, department heads Enter project number grants, specific activities Enter function number purpose or types of classrooms Enter account number for specific expenses 13
Budget Trend Data Fund DEPT AREA BLDG PROJECT FUNCTION Acct 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 21 215 590 000 14 44 215 590 000 14 45 215 590 000 14 46 215 590 000 ACCOUNT_DESC 6418 GENERAL SUPPLIES 6418 GENERAL SUPPLIES 6431 TEXTBOOKS 6433 INSTRUCTIONAL MATERIAL 6451 SUBSCRIPTIONS/PUBLICATIONS 6418 GENERAL SUPPLIES 6344 CONVENTIONS/SEMINARS 6418 GENERAL SUPPLIES 6431 TEXTBOOKS 6433 INSTRUCTIONAL MATERIAL 6451 SUBSCRIPTIONS/PUBLICATIONS 6418 GENERAL SUPPLIES 6431 TEXTBOOKS 6433 INSTRUCTIONAL MATERIAL 6412 SUPPLIES - TECHNOLOGY-RELATED 6418 GENERAL SUPPLIES 6431 TEXTBOOKS 6433 INSTRUCTIONAL MATERIAL 6451 SUBSCRIPTIONS/PUBLICATIONS 6418 GENERAL SUPPLIES 6418 GENERAL SUPPLIES 6418 GENERAL SUPPLIES FY18 ACTUAL FY19 ACTUAL FY20 ACTUAL_YTD 578.87 600.67 519.15 784.37 - 566.06 637.28 - 772.55 701.24 - 225.00 898.52 56.55 - 3,284.99 2,198.08 - - - - - 722.29 104.92 269.36 - 888.63 849.99 - 3.76 - 412.68 - FY20 BUDGET_YTD 1,000 1,500 1,500 1,250 1,250 FY20 REMAINING 1,205.13 (117.63) 217.55 134.94 282.45 365.06 1242 1245 1245 1245 1245 1271 1272 1272 1272 1272 1272 1273 1273 1273 1281 1281 1281 1281 1281 2113 2161 2142 500 500 - 500 - - - - - - 500.00 - - 726.67 273.33 - - - - - - - - - - 1,500.00 - - - 1,500.00 500.00 - - - - 500 - - - - - - - 249.00 (249.00) 1,250.00 - - - - - 44.87 - 300.00 567.63 300.00 - - - - - 300 450 300 - - 7,617.45 7,457.51 2,415.66 9,550 7,134.34 14
Budget Worksheets All budget worksheets are available on SSD Life. The biggest change to the worksheets will be the addition of a column to distinguish and identify: Needs Wants Enhance 16
Budget Worksheet 2020 2021 BUDGET WORKSHEET Non-Personnel Special Ed Accounts Area Coord. Name: Area Coord. #: District Name: District #: Project/Grant Name: Project/Grant #: (LEAVE BLANK IF NOT APPLICABLE) 4-digit Disability Code: Disability FTE: The total amount of money allocated to teachers serving this disability in this district, determined by multiplying amount allocated per teacher ($500) by the number of FTE s from above. * $ 500 X 0 = $ - * amount includes any low dollar purchases Accounting Unit AC # Dist/Bldg Project Function Account Fund Dept Amount Justification / Explanation CSIP GOAL Technology Related Repairs & Maintenance 14 21 000 000 000 0000 6337 $ Conventions & Seminars 14 21 000 000 000 0000 6344 $ Supplies- Technology Related 14 21 000 000 000 0000 6412 $ General Supplies 14 21 000 000 000 0000 6418 $ Instructional Material 14 21 000 000 000 0000 6433 $ 14 21 000 000 000 0000 6441 $ Library Books Subscriptions / Publications 14 21 000 000 000 0000 6451 $ 14 21 000 000 000 0000 $ 14 21 000 000 000 0000 $ 14 21 000 000 000 0000 $ 21 000 000 000 0000 $ $ - 17
Personnel Requests Baseline for staff will be determined. Staff above baseline will need justification and be based on: Caseload Student need CSIP related, etc. 18
FY22 Budget Planning Other payroll costs are submitted each year and will need justification. This includes, but is not limited to: Overtime Substitutes Stipends/Extra Duty Pay Homebound SNAP Extended School Year 19
FY22 Budget Calendar October and November The superintendent and the budget committee will establish, and the Board of Education will approve, the fiscal goals and objectives for the upcoming fiscal year. Training will be provided to administration and staff. 21
FY22 Budget Calendar November and December The buildings, departments, and partner districts will identify needs, wants, and enhancements and enter the initial budget requests in the system. The chief operations officer and finance department will continue to help for the budget entry process. 22
FY22 Budget Calendar January Budget reviews for SSD schools and departments are conducted by the superintendent, chief operations officer, director of finance and the budget analyst. Budget reviews for partner districts will include the those listed above, as well as the partner district superintendent and designated members of their executive leadership team. 23
FY22 Budget Planning Additional information presented by buildings, departments, or partner schools: Goals Student enrollment: 3-year historical trend Transfer and change of placement data Special education minutes: 3-year historical trend MAP and formative assessment data Discipline data Disproportionality data 24
FY22 Budget Calendar February - June A budget workshop with the Board of Education is held in February. A budget workshop with the Governing Council is held in March. The preliminary budget, according to state statute, must be approved by June 30 of each year. This will be brought for approval in May to the Board of Education and in June to the Governing Council. 25
