Learning Curve: What is a budget? 

Before board members can fulfill their responsibilities in the area of budget planning and adoption, they must know what a budget is and what it is not. A budget is never just a series of numbers.

It is much more than that. In its simplest form, a budget is a proposed plan for revenues and expenditures for a fiscal year.

In its typical form, a budget is a proposed plan for revenues and expenditures for a fiscal year in a format that meets county and state requirements.

In optimum form, a budget is a policy document that reflects the philosophy and priorities of the board, the administration and the community; an operations guide—to guide administrative/staff decisions and actions throughout the year; a financial plan—to show where the district has been and where it is going; a communications device—to share with the community the strengths and challenges of the educational program; and an accountability tool—to monitor and report on the fiscal soundness of the district.

The role of the board relating to budget planning and adoption is to:

Step 1: Prepare for the budget process by becoming knowledgeable about state, federal and district financial issues;

Step 2: Establish an effective budget development process and an annual calendar that reflects the full budget cycle;

Step 3: Guide the budget development process by establishing priorities and parameters;

Step 4: Involve the community in the budget development process; and Step 5: Adopt a budget that reflects the district vision and is fiscally responsible.

Taken from “School Finance: Understanding District Budgets” and “School Finance: Budget Planning and Adoption,” part of the Maximizing School Board Governance series from CSBA, available from the CSBA Bookstore.