It was not until the start of the 20th century—following the rapid expansion of the education landscape as a result of U.S. population growth and school district consolidation—that the finance and business functions of a school board were gradually transferred to a professional business officer (Guthrie et al. 2008). Since then, the education landscape has become ever more complex, driven by changes in education reforms, increased legal and funding complexities, and technological advancements, to name a few.
Today’s business manager role is broad and dynamic. It requires professionals with the deepest understanding of education finance, budgeting, and organizational management, as well as an insatiable desire to stay on top of ever-changing government laws and regulations in order to drive efficient school operations and maximize student outcomes.
The dichotomy between increasing mandates for greater student achievement and shortfalls in government funding has only intensified the expectations of today’s school business officials.
Despite the many hats school business managers wear, none may be as important as the ownership of the school district budget. In October 1937, School Business Affairs published an article by John Guy Fowlkes, professor of education at the University of Wisconsin, titled “The Functions of the Business Manager in Controlling a School Budget.” The article described the most critical functions of the business manager in controlling the school budget as that of an adviser, observer, guard, cautioner, and servant.
As we consider the framework of these functions retrospectively, we must first level-set for historical reference.
Historical Perspective
Although the article itself is undated, it was presumably written during the mid-1930s. At the time, the country was in the midst of the Great Depression, one of the darkest times in the history of education in America. While the number of students seeking education was rising because of growing unemployment, many schools faced budget cutbacks as unemployed citizens and those with reduced incomes could no longer pay their property taxes (encyclopedia.com 2019).
School administrators had to find creative ways to keep schools running, while business managers sought ways to protect funds by increasing class sizes, lowering teacher salaries, reducing the number of courses, and decreasing the number of supplies provided to students (Koning 2015). It is safe to say that “controlling the budget” took on a whole new meaning during that time. Controlling the budget was no longer about fear of temporary cost overruns, but was instead about conserving funds to simply keep the lights on and the school doors open. One might even argue that the Great Depression was, in fact, a catalyst for further expansion of the responsibilities of school business officials, particularly in the realm of advisers.
Even though considerable changes have taken place in the education landscape and significant growth in the complexity of the business manager role since Fowlkes wrote the article, these five core principles are as applicable today as they were then. In large part, these principles continue to be the building blocks for the foundation of a successful school business official today.
Following is a summary of the key principles under each of the five functions as highlighted by Fowlkes.
Adviser. The business manager should reflect on the budget and apprise all concerned about budget problems. Contemporary responsibilities include the preparation, adoption, administration, and allocation of the budget, highlighting the value received for each dollar spent, and messaging such facts to the broader school community.
In today’s complex landscape, business management is as much about effective and dynamic leadership as it is about functionally preparing and presenting the budget.
Observer. Business managers must constantly think about and watch the budget across the entirety of the school system. If a school budget is aligned with the district’s mission and objectives and as such is a fiscal interpretation thereof, then budgetary control must pertain to every offering and to every employee of the system. The business manager must question and guide the process, research whether good budgetary procedures are being followed, and ensure that appropriate decisions are being made regarding the efficient use of funds.
Guard. A business manager must protect the budget and be a watchdog of the treasury by maintaining efficiency and economy. Business managers should object to overspending when appropriate, while keeping in mind the need to be flexible. Budgetary vigilance is a major responsibility of the business manager.
Cautioner. The business manager should provide admonition, warning, and notices of danger to all school staff members at risk of violating established budgetary procedures through overspending or accelerated spending. Monthly statements should be provided to the superintendent and board of education concerning the financial status of the total school budget in relation to the adopted budget.
Servant. Similar to all professional workers in education, business managers must be servants—not to the board, not to the superintendent, and not to themselves, but to the children for whom public schools operate. Sound budgetary control by the business manager is a control that furnishes the greatest number and the richest of experiences for the discovery, emancipation, development, and creation of the child’s abilities and interests through efficient means.
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Applicability Today
The five functions brought forth by Fowlkes are undoubtedly applicable in the current education environment, although with a caveat. That is, except for servant, these functions are static and linear characteristics for some of the fundamental underlying responsibilities of today’s school business officials.
These characteristics are required to complete and monitor a budget primarily from a bookkeeping perspective. However, in today’s complex landscape, business management is as much about effective and dynamic leadership as it is about functionally preparing and presenting the budget.
Educational administration has evolved from tactical and process-driven management, a predominant focus on regulatory compliance, and a directive mentality with parents and students during the 20th century to strategic leadership, a focus on student performance enhancement, and a customer orientation with students and parents in the 21st century (Guthrie et al. 2008).
Given the complexity of the current education landscape, these functions appear to be the equivalent of a chef describing the activities required to plate a dish rather than the descriptive features of all of the various ingredients and elaborate methods required to execute the exquisite meal in a creative, cohesive, and timely fashion—the intricate dance that school business officials must execute daily in today’s education environment.
Although appropriate for the time and written with astonishing foresight, considering these functions alone in managing and overseeing a budget today is like looking through a window. However, today’s school business official is more often than not looking through a kaleidoscope where the background and landscape are in a continuous state of change.
School business officials’ responsibilities now include a web of analyses and decision making that can be complicated and often overlapping. Being an adviser today demands that a school business official be both an active observer and learner. Today’s business managers must be knowledge seekers, creative problem solvers, and forward thinkers.
As a result, adding to Fowlkes’s five functions to account for the dynamic nature of today’s school business official role is warranted.
Servant leader. Despite Fowlkes’s listing it last, servant leadership must be at the center of all decisions made by school administrators and education leaders. The core underlying principle continues to be that schooling should be student centered. However, servant leadership today is broader and focuses as much on encouraging and enabling teachers and building school communities as it does on serving students.
Servant leadership involves collaborative decision making, is strongly based on ethical and caring behavior, and enhances the growth of workers while improving the caring and quality of organizational life (Spears 2010). Servant leaders recognize the talent and value that instructional leaders possess, inspiring an atmosphere of trust and self-confidence that promotes better student outcomes and benefits the broader community.
Servant leadership focuses on the responsibility of the leaders to ensure the success of the school district, but also a responsibility to their teams (the teachers) and stakeholders (the students and school community) (Whitlock 2017).
Collaborator and communicator. Today’s business manager should meet regularly with the supervisory and instructional staff members of every school in the district to discuss budgetary procedures and funding. More broadly, business managers should regularly communicate with all district and school leadership teams, as well as the broader school community (school board, principals, parents, and community members) as the role now more than ever requires a skill set geared toward building authentic relationships with all stakeholders.
Business managers must be willing to use technology to help stakeholders understand the realities of school finance and funding complexities, thus driving greater transparency. Finally, business managers must also be politically astute and effective negotiators, driving win-win scenarios for the district, staff members, and the school community through negotiations (collectivebargaining agreements, transportation, food service contracts, etc.).
Gone are the days when business managers could manage budgets reactively.
Comprehensive knowledge seeker. Business managers should be proactive knowledge seekers in relation to the budget, meeting regularly with staff to ask relevant questions, strive for greater understanding, and develop a deep knowledge of school-level needs. Gone are the days when business managers could manage budgets reactively. The education landscape is in a continuous state of rapid change, requiring business managers to quickly understand and advise the district on the implications of new laws and regulations involving numerous areas like benefits, construction, food service, and transportation.
In addition, current business managers should ensure deep levels of knowledge in building-level safety and security as a top priority, as well as understanding modifications to local, state, and federal funding in order to maximize a district’s capacity to obtain new sources of revenue.
Critical thinker and creative problem solver. In this capacity, business managers should be consultants in addition to cautioners, informers in addition to guards. Enforcing the budget may oftentimes be necessary and appropriate; however, business managers should primarily focus on helping stakeholders identify solutions to budgetary concerns and implement changes where necessary.
An effective business manager can then apply this deeper level of knowledge to create meaningful and reasoned financial projections, as well as long-range strategic plans that align with the district’s stated goals and objectives.
Looking Through the Kaleidoscope
The ultimate goal of an effective business manager is to be able to look through the kaleidoscope and find ways to consistently drive greater levels of equity and adequacy in funding to obtain higher levels of achievement for all students.
The most effective school administrators continuously reflect on historical learnings, find ways to gain greater perspective from them, and modify their approach to incorporate this newfound knowledge.
References and Resources
Encyclopedia.com. 2019. Education 1929–1941. www.encyclopedia.com/education/news-and-education-magazines/education-1929-1941.
Fowlkes, J. G. 1937. The Functions of the Business Manager in Controlling a School Budget. School Business Affairs, October.
Guthrie, J. W., C. C. Hart, J. R. Ray, I. C. Candoli, and W. G. Hack. 2008. Modern School Business Administration: A Planning Approach. 9th ed. Boston: Pearson Allyn and Bacon.
Koning, L. 2015. Education in the 1930’s. The Thirties (blog), December 9. https://medium.com/the-thirties/education-in-the-1930-s-bc0e4b94fb2d.
Kowalski, T. J. 2005. Evolution of the School District Superintendent Position. In The Contemporary Superintendent: Preparation, Practice, and Development, edited by L. G. Björk and T. J. Kowalski,
1–18. Thousand Oaks, CA: Corwin Press.
Spears, L. 2010. Character and Servant Leadership: Ten Characteristics of Effective, Caring Leaders. Journal of Virtues & Leadership 1 (1): 25–30.
Whitlock, D. 2017. Types of Effective Leadership Styles in Schools. Standard for Success blog, February 21. www.standardforsuccess.com/effective-leadership-styles-in-schools.
Wood, R. C. 1986. Principles of School Business Management. Reston, VA: Association of School Business Officials International.