Budget BOOT CAMPPart I: Budget Creation

Patrick S. DeGeorgeBusiness Administrator

Matawan-Aberdeen Regional School District

September 28, 2015

The Budget CalendarJuly/August Enact current year budget

September/October/November Prepare and distribute budget data collection tools to budget managers Adopt budget calendar and goals BOE election

February Prepare preliminary budget for submission to Board DOE releases state aid figures

December/January Collect and review budget data collection tools Conduct discussions with budget managers Annual organization meeting

The Budget Calendar (Cont.)

May/June Submit final budget to County Office and Department of Education

July through August Monthly budget meetings between the BA and the administrators

http://www.nj.gov/education/finance/fp/dwb/calendar.pdf

March/April/May Board adopts and transmits the tentative budget to County Office County Office approves tentative budget for advertising in newspaper Conduct Public Budget Hearing Board at which the final budget is adopted

Dictionary of basic Terms

Appropriation

“PLAN” for the appropriation, encumbrance and expenditure of revenue

Budget

Revenue budgeted for a particular purpose

EncumbranceLegal commitment of all or part of an appropriation

ExpenditurePayment of all or part of an encumbrance

RevenueFunds the district expects to receive during the year

Build me a Budget!

Personal finances

District finances

Step #1

Estimate total revenue

Step #2

Estimate total appropriations

Step #3

Estimated total revenue must = estimated total appropriations

The 2015-2016 budget

REVENUE$ %

General Operations

Local Tax Levy $48,072,836

State Aid 12,180,468

Fund Balance 503,458

Transfer from Maint Reserve 347,280

Transfer from Cap Reserve 2,733,542

Miscellaneous (Incl. Tuition + Transp.) 646,804

Subtotal 64,484,388 94.8%Grants 1,061,907 1.6%Debt Service 2,448,770 3.6%Total Revenue $67,995,065 100.0%

Source: Final 2015-2016 District Budget

APPROPRIATIONS$ %

General Operations Regular Programs – Instruction 20,428,384 Special Education - Instruction 4,908,513 Basic Skills – Instruction 807,918 Bi-lingual – Instruction 276,043 Co-curricular & After School 1,296,816 Tuition 2,567,187 Social Work & Health 665,428 Related Services 1,412,282 Guidance 1,069,318 Child Study Teams 1,574,357 Other Instruction 1,505,778

Source: Final 2015-2016 District Budget

APPROPRIATIONS (Cont.)$ %

Administration 4,334,163 Information Technology 202,786 Operations, Maintenance & Security 4,961,466 Transportation 2,677,302 Benefits (Net) 12,334,173 Capital Outlay 3,452,474 Subtotal 64,484,388 94.8%Grants 1,061,907 1.6%Debt Service 2,448,770 3.6%Total Appropriations $67,995,065 100.0%

Source: Final 2015-2016 District Budget

“fixed” vs. “variable”

Examples of a Fixed Appropriation

An appropriation over which the district has no control and which remains the same from period to period

“Fixed” (Non-discretionary) Appropriation

Debt Contractual obligations Regulatory Requirements

“fixed” vs. “variable” (Cont.)

“Variable” (Discretionary) AppropriationAn appropriation over which the district has at least some control and which may change from period to period

Examples of a Variable Appropriation Employee wages (increase or decrease number of employees) Employee benefits (increases or decreases with change in

employees) Supplies (increase or decrease number of classes) Professional development (increases or decreases with change

in employees)

THE KEY is to budgeting

Sustainability!

THE BOARD’S ROLE

Understand the budget process

Establish clear and realistic budget goals – aligned with the district’s mission to instruct

Remain informed on the development of the district budget through periodic updates from district administration

Understand how the district operates• Governance• Policies• Curriculum and programs• Staffing

Review and approve preliminary and final budgets for submission to the Executive County Superintendent

Offer meaningful and constructive comments and questions

Questions?

?

Budget Boot CampPart II: Budget Management

October 5, 2015