Effective Budgeting—It’s Not Just About the Numbers

Although a great deal of technical work is involved, the process also requires a significant amount of communication, collaboration, and coordination.  

Following these general steps will ensure that you develop your budget with the appropriate balance of both the technical and nontechnical aspects.  

1. Discuss the budget with the school board and district leaders. Before jumping into the technical work of budgeting, meet with district leaders to understand their “big picture” goals, priorities, and expectations. Depending on your district’s organization, the meeting might be with the board of education, a finance committee, the superintendent, or all three. Discussion items typically include acceptable budgeting methods, desired contingency allowances, maximum allowable budget deficits, and more.

A budget has value by serving as a benchmark against which to compare future results and providing alerts when course corrections are necessary.  

In general, this discussion helps key stakeholders understand the complexities and challenges of school district budgeting, educates them about general school district budgeting principles, and provides an opportunity to discuss parameters for the upcoming budget. Defining and understanding these topics up front guide the budgeting process, get everyone on the same page, and avoid problems down the road.  

The discussion also ensures that everyone understands why the district is creating a budget in the first place. A budget has value by serving as a benchmark against which to compare future results and providing alerts when course corrections are necessary. A more accurate budget tends to provide more timely alerts. So while a reasonable amount of cushion should be built in for contingencies, the projections should not be so conservative that the overall value of the budget is unduly degraded. 

In addition, the conversation provides an opportunity to explain the collaborative nature of school district budgeting. A budget reflects information and input from multiple parties, such as administrators, teachers, and various staff members. All have a role in facilitating the development of a sound budget, and it is helpful if the board members understand that.  

2. Create a draft budget. Once you’ve established the guidelines, begin the technical work of developing a draft budget. Enter known expenses, such as those from collective-bargaining agreements, and estimate other amounts by calculating each account’s historical mean, median, and mode. Also conduct statistical regression analyses to account for trends in the data. 

Table 1 and Figure 1 illustrate the application of this approach to estimate expenses for athletic supplies using costs from an actual school district. The linear regression analysis (Figure 1) was performed using Microsoft Excel.  

Table 1. Expenses for Athletic Supplies, 2016–2020 

Budget estimate 1 (mean): $16,807.17 

Budget estimate 2 (median): $17,051.36 

Budget estimate 3 (mode): Not applicable here 

Figure 1. Linear regression analysis of athletic supplies expenses: estimated cost in year x = 1681 * x + 11764 (x = 6 for year 2021 since it is the 6th year of data); estimated cost in year 2021 = 1681 * 6 + 11764 = $21,850.  

In Figure 1, a budget amount close to the regression analysis estimate would be reasonable since it accounts for the upward trend in the data. 

3. Solicit budget requests. After developing a “high-level” draft budget based on historical data and trends, solicit requests from appropriate staff members for the upcoming school year. Communicate the importance of thoroughly considering all their needs so that the budget accurately reflects future spending requirements. A high-level initial budget draft will give staff members parameters or a range of budget dollars available to allocate.

Clarify expectations and list in detail the information that must accompany each request, such as vendor names, item numbers, quantities, descriptions, unit prices, and shipping costs. Having this information will help ensure a smooth process when it’s time to order the requested items. Remember that although you may work on the budget as a major part of your responsibilities, budgeting may seem like a foreign language for many staff members. 

When soliciting requests, coordinate with other administrators who will review and approve requests before submitting them. Emphasize the importance of conducting a thorough review to minimize waste and to ensure that needed expenditures are not overlooked. Administrators have specialized knowledge of their areas of responsibility and are most qualified to ensure that their departmental budgets are sound.  

4. Collect approved requests and refine the budget. This step is a return to the technical aspects of budgeting. All approved purchase requests are entered, and the draft budget amounts are adjusted and refined on the basis of the submitted and approved requests.
5. Meet with the administrative team. The next step is to meet with the administrative team to review each member’s section or sections of the budget. Depending on your district’s structure, the team may include personnel from the central office and curriculum, elementary, secondary, special education, technology, facilities, and grant budgets areas.

During these meetings, information and perspectives are shared, debates take place, and departmental plans are refined and coordinated. The sessions also provide an opportunity to introduce innovative ideas and to challenge the status quo.  

6. Further refine the budget. The next step is to refine the budget further to account for any decisions and outcomes from the administrative team meetings. 
7. Present the budget. You are ready to present the budget to the school board, community, and other stakeholders. Provide a comprehensive description of the budget in a format that is understandable and meaningful to the audience. Graphics such as bar charts, pie charts, and line graphs are helpful to foster understanding of the budget.

Demonstrate that the budget is a reasonable financial plan that reflects good stewardship. Highlight any grants the district will receive and the benefits of using the funds to implement new programs. Articulate how discretionary expenses have been limited to the extent possible while remaining true to the district’s overall mission and goals.  

In addition, talk about the challenges of school district budgeting: the unpredictable nature of costs—such as special education and charter school tuition—and the financial pressures of state and federal funding streams that are often inadequate and unpredictable.  

8. Finalize the budget. After the presentation, make final adjustments to the budget as required. It is now ready to be implemented as a tracking tool, and that’s a whole other story!

The Realities of Budgeting 

Following the general steps outlined in this article will ensure that you are properly balancing the technical components of budgeting while incorporating input and expertise from the appropriate staff members. You cannot develop an effective and relevant budget in isolation.  

It would certainly be an easier and seemingly more efficient process if you could formulate the budget on the basis of your technical knowledge alone. However, it would not adequately reflect the realities of budgeting that result when you are collaborative, seek input, and communicate throughout the process. Remember, it’s not all about the numbers; it’s about determining how those numbers can be used in a way that supports the educational program that is crucial to student success and achievement.