Establishing Budgets EEA 536 SCHOOL FINANCE AND OPERATIONS

Establishing Budgets EEA 536: SCHOOL FINANCE AND OPERATIONS BELANINA BRANT

Introducing… SD 43: Coquitlam Serves the communities of Coquitlam, Port Moody, Anmore and Belcarra Contains 5. 8% of provincial enrolment, which is approximately 31, 000 students 3 rd largest school district in the province Schools: 45 Elementary 14 Middle 11 Secondary (incl. CABE) Other alternate schools and programs

SD 43: Coquitlam Where does the money come from? 2017/2018 Budget Background. Retrieved from https: //www. sd 43. bc. ca/budget/Documents/Budget%20201718%20 Background%20 Information%20 Final. pdf. 28 Sept. 2017

SD 43: Coquitlam Where does the money come from? The base student operating grant allocation for 2016/17 is $7, 218 per FTE student. SD 43, like other school districts, also receives supplemental funding for unique student needs and geographic factors SD 43 received $7, 289 per student in total grant funding SD 43 ranks 56 th in funding out of 60 school districts

SD 43: Coquitlam Where does the money go? 2017/2018 Budget Background. Retrieved from https: //www. sd 43. bc. ca/budget/Documents/Budget%202017 -18%20 Background%20 Information%20 Final. pdf. 28 Sept. 2017

SD 43: Coquitlam Where does the money go: The Bigger Picture Salary vs Non-Salary Budget The vast majority of the SD 43’s operating budget, 89. 6%, is spent on salary and related benefit costs; this is higher than the provincial average of 88. 8%. School districts have different benefit packages; SD 43 is required to spend 20. 2% of its operating budget on benefits compared to the provincial average of 17. 7% SD 43 spends 10. 4% of its operating budget on nonsalary (ex. supplies, transport, etc. ) as compared to the provincial average of 11. 2% 2017/2018 Budget Background. Retrieved from https: //www. sd 43. bc. ca/budget/Documents/Budget%202017 -18%20 Background%20 Information%20 Final. pdf. 28 Sept. 2017

SD 43: Coquitlam Secretary Treasurer’s Perspective As a new administrator, what is the most important thing to consider when approaching a school budget? School Districts tend to budget two different was – using a centralized model as we do in Coquitlam or decentralized. The most significant aspect of budgets is the cost of staffing and associated benefits. A centralized model assigns staffing based on school demographics, class organization and composition. A decentralized model provides a block of staff to the School Administrator and they make the decision on staffing assignment. As there is not usually enough funds to ‘buy’ the level of staffing desired, class structure is shaped to fit the funds available. So while I would like to say it’s a needs based budget, its not – its based on funds available.

SD 43: Coquitlam Secretary Treasurer’s Perspective What are some recommendations that you would give to an administrator who has to build a budget? It’s about building capacity. Our business is education, however you cannot forget about the ‘backroom’ supports necessary to support students and teachers. So I talk about central office budgets below, but a key support to the system is what we call non-enrolling teachers learning services to support students (speech language, psychologists, educational assistants etc) , teacher supports (mentoring, ongoing professional development, curriculum development etc).

SD 43: Coquitlam Secretary Treasurer’s Perspective What are some things "central office" budgets for? The most significant aspects of a central office are the costs of support for the ‘system’. This includes human resources (hiring, employee engagement, collective agreement management) payroll, finance (financial reporting, government reporting, school audits, ) accounting (payables, receivables, ) contract management, procurement, information technology systems support, insurance, risk management. And of course facility maintenance – (custodial, plumbers, electricians, painters etc) and facility additions and refresh requirements (new schools, upgrades, roofs, playground equipment, etc. )

SD 43: Coquitlam Secretary Treasurer’s Perspective Where are most "mistakes" made in budgeting? Underestimating the total cost of staffing and the associated benefits. Secondly the cost of facility maintenance and associated supplies.

SD 43: Coquitlam Secretary Treasurer’s Perspective What are the priorities that "central office" has? How are these priorities established? Priorities are established through a Strategic Plan – ours is Directions 2020. Three broad goals have been established with a focus on; Education - Maximizing educational support to students. IT – the wave of the future Sustainable Education System (HR, Facilities, Financial)

What now? GOOD QUESTION…

SD 43: Coquitlam Administrator’s Perspective So, where to start? The district gives School Administrator’s their budget. This budget has two parts: Allocated Budget This piece of the budget is set. The district decides who can use it and how it can be used. This part of the budget includes such things as Pro-D, Skill Development funds, MACC funding, etc. General Budget This piece of the budget includes things like resources, computer renewal and repair, purchasing maintenance equipment, building maintenance, etc.

SD 43: Coquitlam Administrator’s Perspective How do you build your budget? Start by putting in the allocated funding amounts – these cannot be changed, so they are merely slotted in Then, take the rest, the “left-over” General Budget, and work the magic.

SD 43: Coquitlam Administrator’s Perspective How do you build your budget? By plugging in numbers to see if they work! Using the previous years’ budgets as a starting point, look for patterns of spending. Things that need to be considered include housekeeping items such as technology – what needs to be repaired of replaced? What patterns of spending have already occurred, what foreseeable expenditures are coming? Other demands – Such as the New Curriculum! What new resources are coming? What will we need? How much will it cost? These expenditures are necessary and can be hard to estimate – they depend on the staff that asks for and uses the materials. Considerations around licenses for computer programs/etc. rather than textbooks, ongoing discussions with staff are necessary, but the budget must be “set” far in advance.

SD 43: Coquitlam Administrator’s Perspective What if we underestimate? ? Money that is not specifically allocated can be left in a general account. This can be used to pay for various items and can also be used to “top-up” accounts that need more than originally estimated.

SD 43: Coquitlam Administrator’s Perspective How do you prioritize? Figure out what is essential to your staff and to your students. In our instance, replacing our technology has been a big concern How do you establish and decide on your priorities? Look at what is important for the kids and what the teachers need too. As an administrator, you cannot say yes to everyone! It is best to have a committee and to talk it through. People are good at coming up with solutions and ideas. If teachers can get together and make good collaborative decisions, then everyone can live with them.

SD 43: Coquitlam Administrator’s Perspective How do you balance your priorities with the needs of the students? By understanding the needs and having tough conversations with staff to understand what the needs of the students are. Are these aligned? What if they are not? They always have to be aligned. If they are not aligned, you are doing something wrong!

SD 43: Coquitlam Administrator’s Perspective What about school goals? How do these align with your budget? Depends on your school goals – some have very little impact on your budget – like this year our goal is around building school community, so the cost is low. But when it was something like Numeracy, the cost could be higher. We could be looking at things like textbooks, manipulatives, computer/online programs (IXL) Figure out what costs can be avoided and/or deferred – ie. math workbooks – by passing costs to parents, money can be redistributed into other realms - ~$7000 consumable expenses can be averted. Teachers’ input helps to decide the needs of the students the pulse from the teachers and the information that they have is cobbled together to make decisions about a school’s priorities. Ad-hoc committees are often used to find and recommend resources.

Varying Perspectives… Secretary Treasurer: School Administrator: District Budget School Budget Deals with Centralized Budget Deals with School Budget Allocated Funds (which are to be spent Includes allocations for all parts of the on specific areas – decided on by the board) budget (instruction, administration, operations, maintenance, transportation, debt retirement) General Budget (which accounts for the rest - at the administrator’s discretion Must run a balanced budget and is responsible for allocations Led by Strategic Plan – influenced by Educational Leaders Must run a balanced budget, but can allow for some carry-over Led by Educational Leaders – influenced by Strategic Plan

Common Goals… Secretary Treasurer: School Administrator: Student Success Enhanced Learning Opportunities Sound Business Practices Sounds Business Practices