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SchoolBudgets101

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Anylocalgovernmentoragency—includingpublicschools—usesitsbudgettodescribeitsprogramplansforthe

upcomingyear.Thisbrief—writtentohelpexpandfamiliaritywithandunderstandingofschoolbudgetsandthe

roleofvariouslevelsofgovernment—isabird’s‐eyeviewofschoolbudgetsandanswersthefollowing

questions:

• Whoisinvolvedintheschoolbudget?

• Whatistheroleandpurposeoftheschoolbudget?

• Whatarethemajorbudgetcategoriesforschooldistricts?

• Wheredotheresourcesforschoolbudgetscomefrom?

• Whenareschoolbudgetsspent?

• Howisthisinformationrelated

tothecurrentfederalbudgetproposalandeconomicrealitiesatthe

locallevel?

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Thecontentandinformationpresentedhereisageneraloverviewofschoolbudgets.Assuch,specificswillvary

betweenbothstatesanddistricts.Asyouworkthroughtherestofthiswhitepaper,keepinmindthat

atanygiventime,schooldistrictsarelikelymanagingthreebudgets:finishingaudits/evaluationsandfinal

detailsofthepreviousbudget,operatingandmonitoringthecurrentbudget,andplanningforthenextbudget.

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Overview:Whiletheconceptofbudgetsiscommonacrossprofessionalsectorsandfields,thebudgetprocessin

public

schoolshasnoticeabledifferencesthatimpact howdistricts’allocateandprioritizetheirfunds.For

example,whilemostpublicandprivateorganizationsandbusinesseshave35to40percentoftheirbudgetstied

topersonnelandbenefits,thecomparablenumberinpublicschoolsis,onaverage,morethandouble,between

80

and85percent.Furthercomplicatingdistricts’abilitytoaddressbudgetpriorities,theremaining15percent

oftheirbudgetsisoftentimesimpactedandlimitedbystate,localandfederalmandatesrelatedtoeverything

frombuildingcodestoclasssizerequirements.

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Theschoolbudgetinvolvesmanydifferentindividualsandentitiesacrossseverallevels

ofgovernment.The

budget—andaccompanyingprocess—providesschooldistrictsandtheirleaderswithanopportunitytojustify

thecollectionandexpenditureofpublicfunds.Schoolbudgetresourcescomefromacombinationoflocal,state

andfederalcontributions.The2006‐07schoolyearisthemostrecentyearforwhichwehave

afulltabulationof

theeducationfundingcontributionssplitbetweenlocalgovernment(43.9percent),stategovernment(47.6

percent)andfederalgovernment(8.5percent).

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Schoolbudgetsarespentcontinuouslythroughouttheyear.Federaldollarsinschoolbudgetsarealsospent

throughouttheschoolyear,withtheruleof‘firstin,firstout.’

Thatis,moneyisspentintheorderthatitis

received:AschooldistrictcannotspendanyofitsTitleIfundsforthe2011‐12schoolyearuntilitexhaustsits

2010‐11schoolyear.



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PreparedbyNoelleEllerson,PolicyAnalyst,AmericanAssociationofSchoolAdministrators,[email protected]

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