Operations and Support Systems: Allocation of Financial Resources

The Broad Prize Framework for School District Excellence

Allocation of Financial Resources Requirements

The district is financially sound.
The budget provides sufficient funding to ensure a quality educational program.
The district uses its funds efficiently, and seeks additional external sources of funding to support strategic plan implementation.

Best Practice Financial Resource Allocation Documents

Allocation of Financial Resources – Miami-Dade County Public Schools

Every year, Miami-Dade County Public Schools publishes a comprehensive budget document that describes how its spending aligns with the district’s mission of providing “the highest quality education so that all of our students are empowered to lead productive and fulfilling lives as lifelong learners and responsible citizens.“

1 – Tentative Budget for Executive Summary Details the district’s revenue and spending, both historical and projected.
What to Notice The first tab contains an open letter from the superintendent which links the financial report to the district’s mission. The first of the superintendent’s five non-negotiable points is that “the needs of children will come first.” The tabbed format allows the reader easy access to the detailed information in the report, and the frequent use of charts provides the reader with visual aids that help him or her understand the numbers. In many sections, the district makes a direct comparison between: (a) the prior year’s actual spending, (b) projected spending in the current school year, and (c) the budget for next year. Tables include columns which indicate the increase/decrease from the prior year, highlighting budgetary changes. On pages four and five, the district answers the question “Where does the money go?”—showing what percentage of the district’s budget is spent on teaching, other classroom expenses, and the central office. Special sections are devoted to (1) the district’s bond ratings and terms, (2) capital outlays, and (3) the pension fund. Appendices put the district’s financial situation into perspective, offering details on major budgetary changes, as well as historical statistics on enrollment, population and test scores.	Questions to Ask How does the district allocate budgets to schools? Is there a weighted student formula? Do school principals have significant budgetary discretion? How are spending decisions at the school level monitored to ensure effective use of resources? Does the district benchmark its financial performance against other large urban districts or other Florida districts? What percentage of a typical district’s budget should be spent on teacher salaries or instruction? Does the district have lobbying staff that engage on state-wide decisions about education funding? What types of financial reforms does the district support or oppose? How does this “tentative budget” become finalized? What is the budgetary process in Miami-Dade? What is the public perception of Miami-Dade’s financial accountability and competence? Has the district earned the public’s trust?
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Allocation of Financial Resources – Northside Independent School District

The Northside Independent School District aligns its resources to achieve academic goals. The district has received unqualified audit opinions and recognition through the state’s Financial Integrity Rating System (FIRST) for its financial management.

1 – Annual Financial Report Presents legally-required financial statements and information.
What to Notice On page six, the district uses a pie chart to clearly depict its sources of revenue. On page 11, the district analyzes the potential impact of changing enrollment and property tax collections. Also on page 11, the report identifies which district executive can be contacted for further information.	Questions to Ask From what source does Northside receive the vast majority of its revenue? Is this funding source expected to grow or shrink? Is the enrollment of the district growing or shrinking? What are the financial implications of potential changes in enrollment? Is the district building more schools? What kind of financial reserve does the district have? How large is this reserve as a percentage of the district’s annual operating budget? How does this compare to other districts in Texas and outside of Texas? Does the district have the ability to weather unexpected financial crises? How much of the district’s operating budget is under the control of school site administrators? Do principals have the ability to use funds creatively to serve their students? Does the district have monitoring mechanisms in place to combat wasteful spending and potential corruption?
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2 – Summary of Professional Development Costs Summarizes professional development costs for principals and teachers.
What to Notice Notice that the district tracks professional development spending on a per-teacher and per-principal basis. Notice also, the relatively small amount specifically allocated to new principals. This may indicate that new-principal training is rolled into training for existing principals.	Questions to Ask How do these numbers compare to similar districts in and outside of Texas? Is the district spending enough on teacher and principal training to ensure the best results for students? Is the money spent efficiently? How much training is off-site versus in the school building? Are outside contractors used?
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Providing Big Picture Insights Through Financial Reporting – Broward County Public Schools

Broward devotes considerable time and effort to making clear public disclosures about its financial activities and status. The district’s financial reports provide not only the detailed reports required by the state, but also “big picture” insights into the district’s financial priorities and decisions. For Broward, financial reporting is more than just a compliance function.

1 – Annual Financial Report Summary of the district’s financial activities and status in 2006–07.
What to Notice The annual financial report starts with an overview of the district’s financial status, targeted at a non-financial audience. Going beyond simple state reporting requirements, the superintendent describes all of the factors affecting the financial condition, including population growth and class-size reduction efforts. Notice that the district has been recognized for “excellence in financial reporting” by the Association of School Business Officials.	Questions to Ask What is particularly effective about Broward’s presentation of its financial data? Why do you think they have been recognized for excellence in financial reporting? How would you determine if Broward has aligned its spending with its educational goals? How does Broward benchmark its spending patterns against similar districts in Florida? How has Broward’s budget changed in the last few years? What statistics or ratios would you look at to identify changes in spending patterns? How much of Broward’s budget is devoted to instruction? What is the appropriate benchmark for instructional spending?
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2 – Facilities Plan Long-term plan for building and maintaining schools.
What to Notice Broward produces this state-required report that describes the five-year capital plan for educational facilities. Addressing both new school construction and the maintenance of existing sites, the report matches anticipated enrollment with facilities needs. Once again, the district goes beyond simple compliance and frames facilities needs within the greater context of educational goals, including class-size reduction and the expansion of charter school options. The bulk of the report is devoted to a detailed school-by–school breakdown of potential capital projects and costs.	Questions to Ask How does the district project enrollment growth? What key factors drive enrollment growth or decline? Are any of these factors within the district’s control? If so, what, if any, actions has the district taken? What impact has class-size reduction had on Broward’s facilities needs? How has Broward addressed those needs, and what factors were considered in that decision? How effective have these solutions been? What challenges has the district faced in implementing these solutions? How has Broward become a leader in charter schools? Does the district provide any facilities or facilities support for high-potential charter developers or existing charter schools?
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