Budget BOOT CAMPPart I: Budget Creation
Patrick S. DeGeorgeBusiness Administrator
Matawan-Aberdeen Regional School District
September 28, 2015
The Budget CalendarJuly/August Enact current year budget
September/October/November Prepare and distribute budget data collection tools to budget managers Adopt budget calendar and goals BOE election
February Prepare preliminary budget for submission to Board DOE releases state aid figures
December/January Collect and review budget data collection tools Conduct discussions with budget managers Annual organization meeting
The Budget Calendar (Cont.)
May/June Submit final budget to County Office and Department of Education
July through August Monthly budget meetings between the BA and the administrators
http://www.nj.gov/education/finance/fp/dwb/calendar.pdf
March/April/May Board adopts and transmits the tentative budget to County Office County Office approves tentative budget for advertising in newspaper Conduct Public Budget Hearing Board at which the final budget is adopted
Dictionary of basic Terms
Appropriation
“PLAN” for the appropriation, encumbrance and expenditure of revenue
Budget
Revenue budgeted for a particular purpose
EncumbranceLegal commitment of all or part of an appropriation
ExpenditurePayment of all or part of an encumbrance
RevenueFunds the district expects to receive during the year
Build me a Budget!
Personal finances
District finances
Step #1
Estimate total revenue
Step #2
Estimate total appropriations
Step #3
Estimated total revenue must = estimated total appropriations
The 2015-2016 budget
REVENUE$ %
General Operations
Local Tax Levy $48,072,836
State Aid 12,180,468
Fund Balance 503,458
Transfer from Maint Reserve 347,280
Transfer from Cap Reserve 2,733,542
Miscellaneous (Incl. Tuition + Transp.) 646,804
Subtotal 64,484,388 94.8%Grants 1,061,907 1.6%Debt Service 2,448,770 3.6%Total Revenue $67,995,065 100.0%
Source: Final 2015-2016 District Budget
APPROPRIATIONS$ %
General Operations Regular Programs – Instruction 20,428,384 Special Education - Instruction 4,908,513 Basic Skills – Instruction 807,918 Bi-lingual – Instruction 276,043 Co-curricular & After School 1,296,816 Tuition 2,567,187 Social Work & Health 665,428 Related Services 1,412,282 Guidance 1,069,318 Child Study Teams 1,574,357 Other Instruction 1,505,778
Source: Final 2015-2016 District Budget
APPROPRIATIONS (Cont.)$ %
Administration 4,334,163 Information Technology 202,786 Operations, Maintenance & Security 4,961,466 Transportation 2,677,302 Benefits (Net) 12,334,173 Capital Outlay 3,452,474 Subtotal 64,484,388 94.8%Grants 1,061,907 1.6%Debt Service 2,448,770 3.6%Total Appropriations $67,995,065 100.0%
Source: Final 2015-2016 District Budget
“fixed” vs. “variable”
Examples of a Fixed Appropriation
An appropriation over which the district has no control and which remains the same from period to period
“Fixed” (Non-discretionary) Appropriation
Debt Contractual obligations Regulatory Requirements
“fixed” vs. “variable” (Cont.)
“Variable” (Discretionary) AppropriationAn appropriation over which the district has at least some control and which may change from period to period
Examples of a Variable Appropriation Employee wages (increase or decrease number of employees) Employee benefits (increases or decreases with change in
employees) Supplies (increase or decrease number of classes) Professional development (increases or decreases with change
in employees)
THE KEY is to budgeting
Sustainability!
THE BOARD’S ROLE
Understand the budget process
Establish clear and realistic budget goals – aligned with the district’s mission to instruct
Remain informed on the development of the district budget through periodic updates from district administration
Understand how the district operates• Governance• Policies• Curriculum and programs• Staffing
Review and approve preliminary and final budgets for submission to the Executive County Superintendent
Offer meaningful and constructive comments and questions
Questions?
?
Budget Boot CampPart II: Budget Management
October 5, 2015
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