School Driver Education Budgeting Procedures

Budgeting, or the allocation of resources to achieve institutional or organizational goals, is one of the most important functions of school district management, particularly the driver education program. In most school districts in the United States, this function is carried out centrally, with limited input from individual school sites. However, it is important for the driver education professional to be aware of the basic concepts of budgeting and participate in such activities.  Discussions of budget theory are filled with high expectations. Many writers have indicated that the school district budget "...is an important tool for school administrators to understand and utilize in achieving their basic mission -- educating children in the most effective and cost-efficient manner."

Typically, a district's budget is a process of balancing expenditures with revenues. After estimating revenues for the next year, budget officials ascertain the costs of providing the existing program in the following year. After providing for current programs, if additional funds are available, new programs may be funded. On the other hand, if resources are not adequate to fully fund the current program, reductions are required. As a result, school district budgets are typically incremental.  Fortunately, many states, including the State of Illinois provide reimbursement to the public schools for each student whom completes driver education during any one school year.  

To allocate funds across sites and programs, districts typically use a set of allocation rules. These allocation rules focus on three components:

  1. Formulaic ratios
  2. Centrally controlled budget categories
  3. Pay scales

Formulaic Ratios

Formulaic ratios often rely on enrollment projections for the allocation of funds. This is because enrollment generally drives both the revenue received from the state and the allocation of resources to school sites. Driver education reimbursement is a good example of this concept.  School districts usually use two formulaic ratios:

·  A staffing formula

·  A funding formula for supplies, materials and textbooks.

Staffing formulas for teachers are usually established on the basis of a predetermined average class size. For example a district may provide one teacher for every 23 elementary school students, or one teacher for every 18 high school students. Administrative staff are often assigned on the basis of school size. Almost all schools have a principal. Larger schools may require additional administrative staff, and a district may have a policy of providing an assistant principal for any school over a certain size. Counselors and guidance personnel are typically provided on a ratio basis, such as one counselor for every 350 or 400 students. Clerical positions are filled on the basis of school enrollment or number of teaching positions. Other classified staff such as custodians, gardeners and maintenance personnel are frequently assigned on the basis of the some factor such as building square footage, number of classrooms, or site acreage. These allocation rules are determined by individual districts and may vary considerably across districts. Moreover, in times of budget constraint, these ratios are often changed to accommodate reductions in funding, with little or no consideration of the educational implications of the decision.

Funding formulas for supplies, materials and textbooks are typically based on enrollments or staff positions as well. Some districts have very detailed distribution procedures, providing separate formulas for each item or group of items, while other districts provide a lump sum payment, usually based on enrollment, for schools to purchase these items as they see fit. Central control over supplies, materials and textbooks often extends beyond these distribution formulas as well, with schools being required to purchase items through a central purchasing system.

Centrally Controlled Budget Categories

As indicated above, school district budgeting is a very top down process. The first indicator of this is the centralized budgeting systems most school districts use. Budget categories are generally determined and established by the central office, and school expenditures need to fit into one of those categories to be approved. Many forms of educational technology are relatively new, and often, school districts simply have not developed spending categories to accommodate these new expenditures. Moreover, traditional models for allocating resources may not work as well for technology given the demand for expenditures over time in some instances. The problem is most educational expenditures occur on an annual basis. Those that don't, tend to recur at long intervals (i.e., building new school buildings or remodeling existing ones).

For example, most expenditures at a school site are for instructional programs, and the largest single component of those expenditures is for teacher compensation. These expenditures are needed each year, in roughly equal amounts. Moreover, changes have more to do with the enrollment of the school than they do with differing instructional needs from year to year. Consequently, it is relatively easy for the district to establish central budgeting categories within which all expenditures must be budgeted and recorded.

Many forms of educational technology, in particular computers, require large expenditures every three to five years, a time frame not usually considered in educational planning. As a result, few school district budget systems can accommodate such expenditures. One way to solve this problem from a school perspective is to carry over revenues from one year to the next. The problem is most school budget and funding systems don't allow schools to do this. If the funds are not spent the year they are allocated to the school, they are taken back by the district. Changing systems like this has proven quite difficult in the past, although some districts now allow schools to carry over some funds.

Another problem facing many districts is the issue of equity. Districts typically try to allocate resources to schools on an equal basis hoping to avoid charges of bias. This makes systems that provide "start-up" capital, or revolving sums of money for purchase of new computers invisible in school districts, and something not likely to be implemented in the near future.

Pay Scales

While pay scales do not appear to be a problem in budgeting, they are related to job descriptions and personnel systems. The problem is that many programs create the need for employees with differing job skills and titles, particularly at school sites. For example, until recently there was no need for a system operator or computer repair technician at most school sites. Yet today, keeping a school wide network, or even a single computer lab operating requires substantial attention from someone skilled in computer networking and repair. Often district personnel systems take a long time to establish new positions or job titles, seriously limiting the flexibility a school has in hiring qualified individuals. As a result, teachers attempt to take on these responsibilities in addition to, or in place of their teaching load, often doing both at less than optimal efficiency.  Generally the above concepts do not affect the driver education, where teachers’ salary is based upon the union contract and/or years of teaching experience plus educational obtainment.

Summary

School district budgets typically take the form of line-item budgets, indicating how much will be spent on individual objects such as teachers, other personnel, maintenance and operations, capital outlay, and others. More sophisticated school district budgets can track expenditures on these objects by function (e.g., instruction, administration, pupil services, etc.) and in some cases by program (e.g., regular instruction, special education, compensatory education, etc.). Many districts have the ability to track expenditures by school building, and some are beginning to keep track of educational resources by school level -- elementary, intermediate or high school -- or even at the secondary level by academic program. Unfortunately, examples of these sophisticated budgeting systems are few and far between.

Generally, budgets relating to driver education in public schools include the following categories:

1.     Teachers’ salaries (both full time and part time) (you can not include 100% of a teacher’s salary in a budget if they also teach other subjects)

2.      Teachers’ benefits (including insurance and health/medical benefits)

3.      Teachers’ professional development, including travel to professional meetings, workshop attendance, etc.

4.      Instructional supplies for classroom and laboratory (driving simulation, multiple-car driving range, and on-street) (in many cases supplies are items that cost less than $100)

5.      Equipment (new equipment for both classroom and laboratory) (in many cases equipment are items that cost over a certain amount, for example $250)

6.      Contractual service (for example, if you lease driver education vehicles, purchase insurance for the vehicles, and the like)

7.      Payment that will have to be made to other public school districts because of known/projected number of legal resident students whom will be enroll and complete driver education in other districts.

8.      Miscellaneous items.  Any budget needs that do not fall within one of the above categories.

The Elements of Driver Education Program Budgeting

  1. There are several major steps in driver education program budgeting.
  2. The school district identifies and defines its driver education program mission, goals, and objectives, and clarifies its desired outcomes.
  3. Appropriate approaches or programs for achieving these outcomes are specified.
  4. The programs are translated into fiscal and non-fiscal requirements. This includes planned expenditures and proposed revenue sources for a program. Ideally, this is done for a multi-year period, and not for a single budget cycle.
  5. Each approach is analyzed to determine its cost effectiveness. With this information, it is possible to select the best combination of programs and establish the optimum course of action for the district.
  6. Once implemented, each program is reviewed and an assessment of the degree to which desired outcomes were achieved is made.
  7. These evaluations feed back into the system at the beginning of a new budget cycle.

Strengths of Program Budgeting

Despite its lack of widespread acceptance in public schools, program budgeting offers a number of improvements over traditional line-item budgets. Primary among them is that it offers school districts implementing a program budgeting system to improve planning capabilities – an important component of any technology acquisition activity. The multi-year facet of program budgeting becomes very important. Even in districts where program budgeting has been abandoned, there often remains a long range or strategic planning function. Developing the capability to predict future student enrollments and the consequent spending requirements is an important capability, regardless of the budgeting system in use.

Another strength of program budgeting is its focus on accountability through its stress on performance and the achievement of objectives. Program budgeting also helps decision makers consider the full range of available options, requiring administrators to evaluate several alternatives before selecting the one most appropriate to his or her district or school.

Proponents of program budgeting also point out that the outcome orientation of the system requires the establishment of clear goals and objectives, and then forces planners to determine what resources are necessary to achieve those goals. When properly implemented, spending decisions are made on the basis of what is needed to achieve the district's goals, and not on some other basis such as "that's how we have always done it in the past." Programs are linked to outcomes, and the specification of activities and resources into a program structure allows inputs to be tracked to outcomes.

Weaknesses of Program Budgeting

As mentioned, one of the major problems with program budgeting was its cost. Full implementation of a program budget requires substantial personnel time, which is expensive. Some writers estimate that it takes five years to fully implement a program budget system, and that often regular staff had to prepare all the required documentation for a program budget along with their regular responsibilities. The time requirements for program budgeting were substantial. For example, if seven different alternatives were identified, each had to be costed out and analyzed before a decision as to how to proceed could be made. This is potentially seven times as much work as it takes to prepare a conventional line-item budget. As budget deadlines approached, program analyses were often set aside in favor of regular budget submission requirements. Moreover, in many agencies, new staff hired for program budgeting assignments was viewed with hostility by the existing budget staff. This limited their effectiveness and the ability of program budgeting proponents to make headway into the decision-making process of the agency.

Another problem faced by educational organizations attempting to implement program budgeting was the difficulty they had developing clear and quantifiable goals. It is difficult to reach full agreement on the goals of our educational system, much less obtain complete agreement on the specific outcomes that are expected of each child. Moreover, even if such agreement could be reached, knowledge of the specific resources needed to achieve each of those goals is not available. Because program budgeting's strength revolved around the development of such goals, and evaluation of an agency's progress toward meeting those goals, it performed poorly in education settings where the necessary specificity could not be obtained.

 

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