Cyclebased Budgeting Strategic Budgeting for Continuous Improvement Bo

Cycle-based Budgeting Strategic Budgeting for Continuous Improvement Bo Yan Jefferson County Public Schools Louisville, KY

PROBLEMS • Lack of strategic focus in resource allocation • Impact of spending not monitored and tracked • Wasteful spending continues year after year • Undue political influences in budget decisions

SESSION PLAN ZBB: Zero-based budgeting IB: Incremental budgeting CBB: Cycle-based budgeting

STRATEGIC BUDGETING Strategic budgeting is the process that leads to increase in effective and efficient use of limited financial resources through continuous improvement to achieve optimal student outcomes.

STRATEGIC BUDGETING QUESTIONS How much money has been spent in what areas for how long to improve what student outcomes? What is the impact of the spending? What adjustments are necessary to improve resource usage?

CONDITIONS FOR STRATEGIC BUDGETING • Clear, consistent, and well-defined priorities and strategies • Data of alignment between priorities, strategies, and spending • Data of effectiveness and efficiency for strategies and programs • A disciplined and rigorous decision making process Yan, B. (2018). Empower Leaders to Make Strong Budget Decisions by Improving System Deficiencies. School Business Affairs, 84(1), 14 -17.

MAJOR LIMITATIONS OF ZBB & IB • Difficult to link spending, strategic priorities, and outcomes in a consistent way • Difficult to track spending in ways that are conducive to strategic budget decisions • Difficult to make strategic cuts

CBB – RATIONALE

CBB – TEN KEY CONCEPTS

BUDGET AS INVESTMENT Enterprise (Nutrition, Adult Ed, Day Care, …) $95 million 6. 3% $410 million 27. 1% Standardized (Site-based, Central Office, Overhead) Source: JCPS 2016 -17 budget $774 million 51. 1% $231 million 15. 3% Flexible Add-ons, Section 7, Special Schools, … Categorical (Grants, Building Fund, …) 10

CBB – TEN KEY CONCEPTS

CBB – INFRASTRUCTURE • • • Investment Tracking Form CBB Investment Tracking System Success Metrics System MS Word Version Investment Tracking Form Added to the Toolkit Track Investment Using MS Word and R CBB Technical Manual

INVESTMENT TRACKING SYSTEM

CBB – BASIC PROCESS (FIRST YEAR) Investment Tracking Data Set Budget Priorities Investment Tracking + Proposal Data Submit Proposals Investment Item Decisions Implement

CBB – BASIC PROCESS (AFTER FIRST YEAR) Investment Tracking Data Set Budget Priorities Investment Tracking + Proposal Data Submit Proposals Investment Item Decisions End-of-cycle Implement

CBB – DECISION FACTORS • Alignment with organizational priorities • Evidence of impact • Cost per pupil • Political support • Feasibility of implementation • Coherence with other programs Yan, B. & Hollands, F. (2018). To Fund or to Defund: Making the Hard Decisions. School Business Affairs, 84(8), 10 -13

CBB – DECISION PROTOCOLS • Sequential • Simultaneous

SUMMARY The Bone Investment Tracking System The Blood ITS Data & Analytics The Flesh Usage of ITS Data & Analytics

Ultimately, it is about helping people.

WHERE DO I START? • Acquire support from your superintendent • Identify and grow allies • Find or recruit the staff that can help you with the data work • Develop an investment tracking form and start using it with new investments • Visit http: //cyclebasedbudgeting. org to learn more

INVESTMENT TRACKING FORM