Successfully Navigating the School District Budget Adjustment Process

We all know the budget adjustment process is hard. Most of us have seen the process fail, but less often where it was a success. Each context is different, thus how the process is set up can dramatically impact the outcome.

As ESSER funds wane and districts face various scenarios from declining enrollment to cuts in state or local funding, many will need to make budget adjustments this spring. Today, let’s discuss a process which can increase your district’s chances for success when implementing budget adjustments.

In my experience, making budget adjustments (notice that I don’t say budget reductions or budget cuts…more on that later) requires school district leaders to design processes which ensure active staff and community participation. Processes which are conducted by a small group, without adequate opportunity for stakeholder discussion and feedback, are doomed to fail.

Ok, back to the concept of budget adjustment rather than budget reduction. The best processes look at both sides of the equation, budget reduction AND revenue generation. To leave one side of the ledger out of the discussion fails to consider the entire scope of the potential solution, but we often see school districts frame it as a budget reduction, or budget cut process. Words matter and we need to be thoughtful regarding how we describe our processes and be prepared to explain the nuances. Remember, this is a highly charged emotional exercise, so we need to be thoughtful regarding our methods and how we communicate with stakeholders.

Personally, I believe development of a participatory budget adjustment process requires a set of principles & goals from which to operate and engaging methods to collect budget adjustment and revenue generation ideas. A system to vet, refine, and establish items for action is important too. Regular, ongoing communication is a must as it builds and maintains trust in the process.

Although fully outlining the process and its systems would take a considerable amount of time, here is a rough overview of the “Participatory Budget Adjustment/Revenue Generation Process” that I developed, have successfully used, and consulted on over a period of years.

Step 1: Create Budget Adjustment Principles, Goals & Values (see attached example)

• The process can be conducted in several ways, ranging
  from involvement of the board to school staff and community members.
• Timeline: Fall/Winter
  
  

Step 2: Design the Budget Adjustment/Revenue Generation Process & Timeline

• The process should include establishing how items will be identified for review, vetted, and moved forward for consideration.
• Process documents and forms are developed at this stage of the process.
• The timeline provides process clarity and should be followed diligently.
• Timeline: Fall/Winter
  
  

Step 3: Present the Process to School Staff, Community, and Other Stakeholders

• Includes the principles, goals & values, the budget adjustment/revenue generation process (and forms), the timeline and how items will move from identification to consideration to action.
• Timeline: Winter
  
  

Step 4: Implement the Budget Adjustment/Revenue Generation process and follow predetermined timelines.

• Have a plan for how to communicate with the board and stakeholder groups throughout the process.
• Timeline: Winter/spring
  
  

Step 5: Bring List of budget adjustment/revenue generation Items to the school board for their consideration and ultimate approval, following the predetermined principles, goals, and values.

• The list can be brought to the board multiple times as the process continues, and items can be added or removed.
• Timeline: Spring
  
  

Step 6: Report final list of school board approved budget adjustment and revenue generation items to staff and community and thank all involved in the process.

• The communication process, as described earlier, will depend upon the local context and how information is most effectively shared.
• In communications, point to how the process was guided by a set of principles, goals, and values.
• Be clear in communications regarding how many individuals/groups participated in the process.
• Timeline: Spring
  
  

If the process is based upon an agreed set of principles, goals, and values, and provides adequate opportunity for active participation, it will have a greater chance for success. Remember that it is also important to vet all suggested items to ensure they are financially and operationally viable.

Often participants will identify items which can’t be quantified, or are not sustainable, and there needs to be a process to make these determinations and remove them from the list of items under consideration.

I hope this brief outline spurs thought and helps you in designing a process which will work well in your context. If you have thoughts or ideas, please enter them in the comments section below. Remember that we all gain when we share and learn from each other. Additionally, if you have further questions, please email me at hcarlsonthesupt@gmail.com.