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SchoolBudgets101
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Anylocalgovernmentoragency—includingpublicschools—usesitsbudgettodescribeitsprogramplansforthe
upcomingyear.Thisbrief—writtentohelpexpandfamiliaritywithandunderstandingofschoolbudgetsandthe
roleofvariouslevelsofgovernment—isabird’s‐eyeviewofschoolbudgetsandanswersthefollowing
questions:
• Whoisinvolvedintheschoolbudget?
• Whatistheroleandpurposeoftheschoolbudget?
• Whatarethemajorbudgetcategoriesforschooldistricts?
• Wheredotheresourcesforschoolbudgetscomefrom?
• Whenareschoolbudgetsspent?
• Howisthisinformationrelated
tothecurrentfederalbudgetproposalandeconomicrealitiesatthe
locallevel?
Thecontentandinformationpresentedhereisageneraloverviewofschoolbudgets.Assuch,specificswillvary
betweenbothstatesanddistricts.Asyouworkthroughtherestofthiswhitepaper,keepinmindthat
atanygiventime,schooldistrictsarelikelymanagingthreebudgets:finishingaudits/evaluationsandfinal
detailsofthepreviousbudget,operatingandmonitoringthecurrentbudget,andplanningforthenextbudget.
Overview:Whiletheconceptofbudgetsiscommonacrossprofessionalsectorsandfields,thebudgetprocessin
public
schoolshasnoticeabledifferencesthatimpact howdistricts’allocateandprioritizetheirfunds.For
example,whilemostpublicandprivateorganizationsandbusinesseshave35to40percentoftheirbudgetstied
topersonnelandbenefits,thecomparablenumberinpublicschoolsis,onaverage,morethandouble,between
80
and85percent.Furthercomplicatingdistricts’abilitytoaddressbudgetpriorities,theremaining15percent
oftheirbudgetsisoftentimesimpactedandlimitedbystate,localandfederalmandatesrelatedtoeverything
frombuildingcodestoclasssizerequirements.
Theschoolbudgetinvolvesmanydifferentindividualsandentitiesacrossseverallevels
ofgovernment.The
budget—andaccompanyingprocess—providesschooldistrictsandtheirleaderswithanopportunitytojustify
thecollectionandexpenditureofpublicfunds.Schoolbudgetresourcescomefromacombinationoflocal,state
andfederalcontributions.The2006‐07schoolyearisthemostrecentyearforwhichwehave
afulltabulationof
theeducationfundingcontributionssplitbetweenlocalgovernment(43.9percent),stategovernment(47.6
percent)andfederalgovernment(8.5percent).
Schoolbudgetsarespentcontinuouslythroughouttheyear.Federaldollarsinschoolbudgetsarealsospent
throughouttheschoolyear,withtheruleof‘firstin,firstout.’
Thatis,moneyisspentintheorderthatitis
received:AschooldistrictcannotspendanyofitsTitleIfundsforthe2011‐12schoolyearuntilitexhaustsits
2010‐11schoolyear.
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Prepared
by
Noelle
Ellerson,
Policy
Analyst,
American
Association
of
School
Administrators,
[email protected]