Policy & Planning Document. The budget serves as a policy document as approved by the Superintendent and Board of Education. The budget serves also as a planning tool, and the budget is a projection of the future based upon known information and estimations of unknown future events. Unknown future events, from a budgeting standpoint, include unfunded state and federal mandates, changes in local property tax collection rates, rising food and transportation costs, investment interest earning rates, unplanned emergency costs related to facilities and systems, and changing utilities costs. Consequently, the district’s practice is to conservatively project revenues and over project expenditures to provide a reasonable basis for understanding the future budget constraints facing the district.
On-Going vs. One-Time Revenues. The district shall disclose the use of one-time revenues for on-going expenditures to the Board of Education. Use of one-time revenues for on-going expenditures will be permitted if a long-term plan is in place to address the use of one-time revenues for on-going expenditures. In general, the district will avoid budgetary procedures that cover current expenditures at the expense of meeting future years’ expenditures, such as postponing expenditures, accruing future years’ revenues, or rolling over short-term debt. The district will use on-going revenues for on-going costs and one-time funds for one-time expenditures unless otherwise approved by the Board of Education.
Capital Assets. The budget will provide for adequate maintenance of capital, plant, and equipment, and for orderly replacement of equipment.
Annual program budget plans will be prepared and presented to the Superintendent for review and approval.
Performance Measures. Where possible, the district will integrate performance measurement and productivity indicators with the budget.
Indirect Costs. The district will continue its practice of budgeting for indirect costs in allowable programs to insure that full costs are reflected in every program and fund budget.
Administrator Oversight. It is the practice of the district to require the administrators who oversee programs to monitor their budgets to keep them in a positive balance. Each administrator will be provided with periodic budget reports to facilitate this task. In addition to this, the Business Department will monitor all programs and internal accounts for the district to make sure that expenditures do not exceed appropriations.
Use of Funds – Compliance. Many revenue sources are “unrestricted” or “restricted” based upon the laws, rules, grant regulations, or other contractual arrangements the district is subject to. The district receives restricted revenues from some property tax levies, State Minimum School Program funding, and Federal revenue sources. Restricted funds cannot be used to support general expenditures but must be used for the purposes the funding is intended for.
Risk Assessment. The Business Administrator shall provide the Board of Education with a risk assessment in conjunction with the proposed budget.
Balanced Budget. The district will balance its budget within each fund so that total expenditures do not exceed total revenues plus available fund balances within each individual fund.
Legal Budget Level. The district considers the legal budget level to be at the fund level as interpreted by the State Superintendent of Instruction.