Best Practices in School Budgeting

Transcription

1 4D Develp Budget Presentatin SUMMARY Prerequisite Best Practices: Nne Key Pints Because the budget presentatin is ne f the schl district s mst imprtant plicy dcuments, the district needs t cnsider hw the presentatin is rganized, what infrmatin is included, and hw the it is presented. It is recmmended that a district rganize its budget in five majr sectins: challenges faced by the district; strategic gals; strategies and initiatives being pursued; the financial plan; and risks t lng-term range financial sustainability. A district shuld cnsider ther matters in its budget presentatin, including inclusin f all funds in the budget, detailing full f services, using prgram accunting judiciusly, and prviding cntextual infrmatin, such as enrllment figures, number f teacher wrkdays, persnnel time budgeted fr critical strategies, etc. Related Award Prgram Criteria Criterin 8.B.1: The Challenges (Mandatry). The Budget Dcument shuld describe the challenges faced by the Applicant - the nes that primarily shaped the budget discussin fr that year. Criterin 8.B.2: Gals (Mandatry). The Budget Dcument shuld present the district-wide gals that guide resurce allcatin and individual schl sites.. Criterin 8.B.3: Strategies and Initiatives (Mandatry). The Budget Dcument shuld describe strategies that the Applicant will pursue t achieve its gals. The Budget Dcument shuld highlight the mst imprtant initiatives the Applicant is undertaking in supprt f its strategies. Criterin 8.B.4: Financial Plan (Mandatry). The financial plan sectin f the Budget Dcument shuld describe the Applicant s expected revenues, expenditures, reserves, and debt and capital spending. Criterin 8.B.5: Lng-Term Financial Sustainability (Mandatry). The Budget Dcument shuld describe the lng-range sustainability f the Applicant s financial trajectry, lking ut a minimum f three years beynd the existing year. Criterin 8.B.6: Understandability and Usability (Mandatry). The Budget dcument is designed s that it can be navigated and understd by the nn-expert reader. Intrductin The budget presentatin is ne f the mst imprtant plicy dcuments that a schl district prduces because it describes hw the cmmunity s resurces are being allcated t create the best value fr the cmmunity and its children. This Best Practice cvers the fllwing essential issues with respect t the budget presentatin: I. Fundamental rganizatin f the budget presentatin. Page 1 f 12

2 II. Special issues and cnsideratins in the budget presentatin. III. An example f the freging issues in develping a budget presentatin in Appendix 1. I. Fundamental Organizatin f the Budget Presentatin Backgrund. There are tw majr rganizing principles fr the presentatin f the budget presentatin. The first is t tell the stry f the budget by describing the challenges that the district faces and hw the budget plan will help the district vercme thse challenges and achieve better results. The secnd is t fcus the presentatin n the needs f the primary audience fr that presentatin: the schl bard. Recmmendatin. The GFOA recmmends that districts develp their budgets in five majr sectins: challenges faced by the district; gals; strategies and prgrams being pursued; the financial plan; and risks t lng-range financial sustainability. The challenges. The challenges sectin f the budget presentatin shuld set frth a limited number f the mst imprtant challenges faced by the district. The challenges shuld be the nes that primarily shape the budget discussin fr that year. Each district will face unique challenges and the district s analysis f its strategic and financial envirnment will suggest which challenges are the critical nes. Example f the types f challenges that might be described in the budget presentatin include: Student under-perfrmance in key areas r by large subgrups Funding declines Demgraphic trend changes, such as rapidly increasing r decreasing enrllment, significant changes in the tax base, r changes in the sciecnmic cmpsitin f the student bdy Legal envirnment changes that have a significant impact n the budget, such as changes t state r federal legislatin Wrkfrce challenges, such as retentin r prfessinal capacity Imprtant capital asset acquisitin r maintenance needs The presentatin shuld use cmparative data t put the challenges in cntext. Tw ways t help the audience t better understand the nature and magnitude f the challenge are: 1) a histrical trend analysis f the district s wn data; r 2) a benchmark analysis against ther districts. Districts shuld als take ther steps t help the audience better appreciate the challenges, such as anecdtes that help t persnify the challenge and translate data t a persnal scale. Fr instance, a financial challenge might be presented n a cst-per-student basis, rather than as an aggregate number. Gals. The gals describe what the district will lk like when the challenges are met. The budget presentatin shuld present the district-wide gals that guide resurce allcatin. The district-wide gals shuld be applied t individual schl sites and custmized t be relevant t the specific challenges faced by each particular schl site. Hwever, depending n the size and management system f the district, the budget presentatin may r may nt include schl-site level gals in the budget presentatin itself. Where schl-site gals are nt included in the budget presentatin, the presentatin shuld clearly indicate t readers where they can btain a cpy f the schl-site gals. The gals presented in the budget shuld rughly parallel the SMARTER gal develpment framewrk described in Best Practice in Schl Budgeting 2A Develp Gals. While the develpment f the gals shuld take accunt f the entire SMARTER framewrk, the presentatin can fcus n just thse aspects mst imprtant t cmmunicating an understanding fr the gals t the audience fr the presentatin, such as: Page 2 f 12

3 Specific. The gal is precise abut the utcme r result that is desired by the district. Measurable. The descriptin f the gals shuld include the surces f evidence (e.g., perfrmance measures) that the district and schl sites will use t determine if the gals are being met. A limited number f measures (three t five) shuld be presented fr any gal. Relevant. Gals pertaining t the results r utcmes that matter mst t students academic achievement shuld be featured prminently in the budget presentatin. Gals als may need t address imprvement f elements f the strategic envirnment that are fund t be wanting, such as student behavir, lack f prfessinal capacity, a pr learning climate in schls, and s frth. 1 Time-bund. The gals shuld identify a time perid fr achievement. Strategies and prgrams. The strategies and initiatives describe hw the challenges will be met. The budget presentatin shuld describe strategies that the district will pursue t achieve its gals. The budget presentatin shuld then highlight the mst imprtant initiatives the district is undertaking in supprt f its strategies. The descriptin f each initiative shuld address: What the initiative will accmplish, relative t the district s challenges and gals. The presentatin shuld make clear why the district is undertaking each particular initiative and what will be different as a result. The presentatin shuld describe the lgic behind hw the initiative is presumed t have an impact. Cst, where determinable. T the extent pssible, the cst f the initiative shuld be included. The budget presentatin shuld als be clear if the csts are: All-new spending r a repurpsing f existing funds/resurces. If existing resurces are being repurpsed, the budget presentatin shuld als describe what activities the district is discntinuing in rder t make funding f the new initiative pssible. One-time/shrt-term (such as might be the case with a special prject) r nging. In cases where the district s cst-accunting methds make it impractical t determine the precise cst f an initiative, the budget presentatin shuld still address the tw bullet pints abve. Accuntabilities and schedule. The presentatin shuld describe wh is respnsible fr the success f each initiative and the timeline fr cmpletin f the initiative r when the initiative is anticipated t make an impact. Financial plan. The financial plan summarizes hw the district is allcating its resurces t best meet its challenges and achieve its gals. The financial plan sectin f the budget presentatin shuld address the fllwing items: revenues, expenditures, reserves, and debt and capital. Revenues. The budget presentatin shuld shw the district s ttal revenues fr the year. The presentatin shuld present revenues frm all funds and surces, and als by the district s mst imprtant accunting funds. The presentatin shuld identify the mst imprtant surces f revenue and prvide the reader with insight int majr trends, revenue prjectins, assumptins Page 3 f 12

4 underlying the revenue frecast, and ther pints f analysis that are critical t the district s financial capacity. Expenditures. The budget presentatin shuld shw expenditures fr the district as a whle and als by majr rganizatinal units, with schl sites being the mst imprtant rganizatinal unit. Within a given rganizatinal unit, bjects f expenditure (e.g., persnnel, cntractual services, cmmdities, and s frth) are traditinally the mst cmmn way t classify expenditures. The GFOA recmmends that districts g further by classifying expenditures by prgrammatic element, nt just bjects f expenditure. A prgrammatic element is a categrizatin f direct budgetary inputs (e.g., dllars and persnnel) that can be clearly assciated with a service prvided by the schl. 3 Examples f prgrammatic elements might include instructin in cre subjects, help fr struggling students within the regular schl day, r instructin fr English Language Learners. The expenditures sectin f the budget presentatin shuld describe hw staff is allcated accrding t the prgrammatic elements. Ideally, it wuld als shw the time allcated fr critical strategies. This might include, fr example, the number f minutes per week fr reading and math A Prgrammatic Element versus a Prgram Traditinally in public budgeting, a prgram is defined as a set f activities with a cmmn gal. 2 Hwever, state-mandated charts f accunts and reprting requirements might render develpment f a full prgram structure impractical fr a schl district. Prgrammatic elements may be a mre realistic alternative fr presenting the full range f expenditures undertaken by the schl district. Examples f a prgram might include a drput preventin prgram r a tutring prgram fr kids struggling t meet standards, whereas a prgrammatic element might simply be extra assistance fr struggling students within the regular schl day. instructin in elementary schls, the time available fr teachers t cllabrate each week, the amunt f time fr extended-day educatin and summer schl, the number f perids in the schedule fr middle and high schl, hw many perids each teacher instructs, the number f instructin days per year, and the number days that are free f pupils fr prfessinal develpment. These time allcatins are critical drivers f a district s cst structure and are highly relevant t student achievement. Finally, the budget presentatin shuld discuss any majr trends, assumptins, r ther pints f interest that are critical t a full understanding f the district s cst structure. Examples might include imprtant external influences like inflatin, cntractual bligatins, r legislative requirements r internal plicy changes like new prgrams r discntinued prgrams. Reserves. The budget presentatin shuld describe the district s plicy n reserves, including the district s target level f reserves fr its majr accunting funds. The presentatin shuld then describe majr anticipated changes t the reserve levels. Debt and capital. The budget presentatin shuld describe the district s majr issues and the purpses f thse issues and hw the district s current debt levels relate t relevant debt limits (e.g., as might be established by the district s financial plicies). The budget presentatin shuld describe the capital prjects being undertaken by the district and shuld prvide a reference t the district s lng-range capital imprvement plan. The budget Page 4 f 12

5 presentatin shuld discuss the extent t which the district s asset acquisitins are n budget and n schedule and shuld als discuss the anticipated impact n the perating budget. Risk t lng-range financial sustainability. The budget presentatin is primarily fcused n the upcming fiscal year, but the budget presentatin shuld als cnsider the lng-range sustainability f the district s financial trajectry, lking ut a minimum f three years beynd the existing year. Specific elements that shuld be included in the budget presentatin include: Lng-range enrllment prjectins. Enrllment is a primary determinant f expenditures and, ften, revenues. Lng-range financial prjectins. Revenue and expenditure prjectins shw the district s future financial psitin and may freshadw ptential budget shrtfalls. Risk analysis. The budget presentatin shuld highlight the risks t nging financial sustainability that are f the greatest lcal significance. Examples f cmmn risks that districts might cnsider include: District s ability t cntinue t fund its strategies and initiatives. Imprvements due t new initiatives ften take multiple years t fully manifest. Might financial cnstraints r ther frces prevent the district frm prviding a cherent, cnsistent apprach t its strategies ver a multi-year perid? Grant funding. Des the district s grant plicy result in the district taking n grant-funded prgrams that are unsustainable (i.e., that create nging cmmitments that the district has t fund ut f discretinary mnies after the grant ends) and/r that distract the district frm its strategic gals? Persnnel csts. Are persnnel csts sustainable? This might include the district s ability t affrd cntractual wage increases and the affrdability f pst-emplyment benefits. Tax base changes. Are there imprtant vulnerabilities in the district s tax base that culd impact the district s revenues? Capital prjects. Can the district affrd t build and/r maintain the capital assets it believes are necessary? Des the district s capital asset acquisitin plan adequately cnsider the impact n the perating budget f the acquisitins (e.g., the cst t perate and maintain)? New technlgies. What implicatins d new technlgies have fr the district s budget? Can the district affrd t maintain the new technlgies it wuld like t acquire and affrd t train staff t effectively use the new technlgy? Pensins and Other Pst-Emplyment Benefits (OPEB). Pensins and ther pst-emplyment benefits are high-prfile lng-term liability fr many schl districts. The budget presentatin shuld help readers understand the status f these liabilities. Page 5 f 12

6 II. Special Issues and Cnsideratins in the Budget Presentatin Backgrund. In additin t the essentials described in the freging sectins, there are a number f ther matters that districts shuld cnsider in the budget presentatin in rder t fully realize a budget that best aligns student achievement with resurce allcatin. Recmmendatin. The GFOA recmmends that a district cnsider the fllwing issues in its budgeting presentatin. Include all funds in the budget. In many districts, the general perating fund is ften cnsidered the budget, when in fact that there are a multitude f different budgets representing the many special funds the district receives (e.g., Title I funds, grants, etc.). This apprach fragments resurces, making fr a less crdinated apprach t serving students. A district shuld reprt all funds in its perating budget, shwing hw all resurces are used t imprve student achievement. Ideally, this integratin is nt just a matter f reprting, but reflects integrated peratins and planning between these funds as well. Demnstrate transparency in spending. Line-item budgets are intended t enhance cntrl ver the budget prcess, but fail t d s if they d nt accurately reflect hw a district is spending its mney. Fr example, if the csts f student transprtatin are distributed amng line items fr salaries, fuel, equipment, and cntracted services, withut a cnnectin t the brader service f student transprtatin, then it wuld be very difficult t discern the true cst f student transprtatin. Districts shuld develp presentatin methds that mre accurately describe the full cst f prviding services. Prgrammatic elements, described earlier in this dcument, can be used t prvide transparency n hw the district is spending its mney. Use true prgram accunting judiciusly. Elsewhere in this dcument, the GFOA has recmmended that districts present the budget using prgrammatic elements, which allw a mre practical alternative t classic prgram accunting fr many schl districts. While true prgram accunting is mre precise than prgrammatic elements and culd prvide greater management insight, the practical challenges in setting up and maintaining true prgram accunting can be cnsiderable. Hence, districts shuld cnsider develping and tracking true prgram budgets fr the mst imprtant r strategic prgrams, especially thse that entail significant csts. In additin t tracking csts, districts shuld track the results prduced by these prgrams in rder t be able t evaluate the cst effectiveness f this spending. Prvide cntext. It can be difficult fr the reader f the budget presentatin t fully understand a district s strategies and budget withut cntext. Therefre, the budget presentatin shuld include cntextual infrmatin such as enrllment numbers, number f teacher wrkdays, and the persnnel time that has been budgeted fr critical strategies. Endntes 1 These areas f underperfrmance wuld have been revealed by the district s assessment f its envirnment. 2 Definitin f a prgram frm Rbert Bland and Irene Rubin, Budgeting: A Guide fr Lcal Gvernments (Washingtn, D.C.: ICMA, 1997). 3 Nte that a prgrammatic element is nt intended t capture indirect csts. Page 6 f 12

7 Appendix 1 Outline f a Budget Presentatin I. Frnt Cver / Title Page A) Critical infrmatin. Nte fiscal year, ddistrict name, city and state lcatin and web address. II. Table f Cntents A) Easy navigatin. If the budget presentatin is fully electrnic try t use page links and cnsider ther ways t facilitate navigatin acrss the presentatin (e.g., bkmarks ). B) Cnsistent page numbering. Try t match pdf number t actual page numbers printed n dcument fter. III. The Challenges Faced by the District (The Budget Message) A) (Nte t user: This is hw GFOA suggests frmatting what has traditinally been referred t as the budget message. The sectin culd be titled The Challenges Faced by the District r smething similar. Alternatively, a Budget Message but have a sub-sectin n Challenges. ) B) Describe the challenges faced by the District 1) Challenges culd include, but are nt limited t student under-perfrmance, funding declines, changes in demgraphic trends, changes t the legal envirnment, wrkfrce challenges, imprtant capital asset acquisitin r maintenance needs. C) Present data t put the challenges in cntext 1) Histrical trend analysis f the District s wn data. (a) Use graphs t illustrate 2) Benchmark analysis against ther districts. (a) Use tables t illustrate D) Make the infrmatin accessible t the reader 1) Use anecdtes, as apprpriate, that help t persnify the challenge and add a human element t the stry. 2) Use presentatin techniques that translate data t a persnal scale (e.g., cst per student). IV. Respnses t Challenges Faced by District A) (Nte t User: This sectin describes the District s gals and culd be written as a cntinuatin f the prir sectin. Bth sectins culd be sub-headers under a larger sectin titled Budget Message if the District chses.) B) Present District-wide gals 1) Specific. The gal shuld be precise abut the utcme r result that is desired by the District and references measureable perfrmance bjectives that relate t the gal. Student achievement utcmes shuld be mst prminent amng the District s gals. Page 7 f 12

8 2) Measurable. The descriptin f the gals shuld include the surces f evidence (e.g., perfrmance measures) that the District and its subunits will use t determine if the gals are being met. A limited number f measures shuld be presented fr any gal. 3) Relevant. Fremst, gals shuld fcus n results r utcmes that matter mst t students. Secndarily, gals shuld als cver student perfrmance in ther key subject areas within the District s curriculum. 4) Time-bund. The gals shuld identify a time perid fr achievement. 5) Exciting. The gals reach fr significant, ambitius imprvement in student achievement and rganizatinal perfrmance and the reader f the budget presentatin can grasp why the gal is imprtant. C) Present r at least prvide access t schl site gals 1) (Nte t user: Districts may include schl site gals directly in the budget presentatin r prvide a link t anther dcument where interested readers can btain the gals. In any event, the reader shuld be able t access schl site gals in sme fashin via the budget presentatin.) V. Statutrily Required Dcumentatin A) Prvide any statutrily required dcumentatin. 1) Examples might include dcumentatin f legally required steps in the budget prcess r descriptins f the basis f budgeting. VI. Instructinal Pririties and Trade-Offs A) Describe and review prir year Instructinal Pririties (i.e., thse frm mst recent prir year, nt thse being budgeted fr as part f this dcument). 1) (Nte t user: Districts that d nt have a prir year s instructinal pririties may skip this sectin, such as thse that are using the Best Practice fr the first time.) 2) Shrt descriptin f prir year Instructinal Pririties. (a) Name and descriptin f each pririty. (b) Reference t Strategic Financial Plan and/r annual Plan f Actin t shw cnnectin between budget and strategic thinking undertaken by the District. 3) Cst budgeted fr Instructinal Pririty fr the prir year, if available. 4) What was achieved versus what was expected t be achieved. (a) Quantitative measures f perfrmance shuld be used t help describe planned versus actual results. (b) Ideally, the quantitative measures will address cst-effectiveness. 5) Dispsitin f the Instructinal Pririty ging frward (a) Is it being cntinued in its current frm and, if s, why? (i.e., expected results are being achieved, mre time is need fr expected impact t fully manifest, etc.) (b) Is it being cntinued, but in a mdified fashin and, if s, hw? (i.e., a successful pilt is being expanded, the apprach is being changed smewhat t get better results, etc.) (c) If it is being discntinued, why? B) Describe Instructinal Pririties the District is budgeting fr. 1) Describe what the Instructinal Pririty will accmplish, relative t the District s challenges and gals. Page 8 f 12

9 (a) The presentatin shuld make clear why the District is undertaking each particular Instructinal Pririty and what will be different as a result. (i) Describe current level f perfrmance in the area that Instructinal Pririty is expected t imprve (e.g., if the Instructinal Pririty is expected t imprve reading scres, what are reading scres nw?) (ii) Describe expected future perfrmance, ver a multi-year perid (e.g., what are reading scres expected t be ne, tw and three years int the future?). 1. Describe expected number f students impacted 2. Describe expected impact n thse students academic achievement (iii) Describe expected milestnes (i.e., dates) fr achievement f results (b) The presentatin shuld describe the cause-and-effect relatinships behind hw the Instructinal Pririty is expected t impact student perfrmance. (c) (Nte t user: Imprtant supprt service initiatives shuld als be included in this sectin, using the same basic presentatin frmat described abve, thugh perfrmance metrics may be mdified t reference a mre relevant measurement than students. In ther wrds, thugh a supprt service initiative shuld ultimately help students in sme way, it will likely be mre credible and useful t measure intermediate impacts). 2) Describe the cst f the Instructinal Pririties. (a) The actual dllar cst f the Instructinal Pririty. (i) The cst estimate shuld include estimates f imprtant cmpnent parts f the Instructinal Pririty (e.g., teachers, instructinal caches, technlgy, etc.). (ii) The cst estimate, at a minimum, shuld include direct csts f the Instructinal Pririty. Imprtant indirect csts shuld als be described., fr example, the perating and maintenance csts f capital assets. (iii) Describe number f full-time equivalents (FTEs) invlved with the initiative. (b) The lng-term implicatins f the csts. (i) D the csts cver a district-wide implementatin r nly cver an initial pilt r expanded pilt where csts might have t increase later in rder t impact student achievement at scale? (ii) Is the cst a ne-time/shrt-term cst (such as might be the case with a special prject) r an nging expenditure (as might be the case with hiring new full-time staff)? (c) (Nte t user: districts are encuraged t explre the use f innvative methds t present csts in a way that wuld be mre meaningful t the reader, such as per student csts.) 3) Describe the trade-ffs made t fund the Strategic Pririties. (a) Are there new revenues r are existing funds being repurpsed? If the frmer, what is the surce? If the latter, what activities are the District discntinuing r ecnmizing? VII. Annual Financial Plan A) (Nte t user: the budget presentatin shuld reprt all funds. Cnsider shwing an rganizatinal chart and a fund rganizatin chart. Nn-majr funds may be aggregated.) B) Describe key principles that guided the budget prcess. 1) Present a summary (i.e., ne page r less) f key budget develpment plicies. Page 9 f 12

10 (a) Limit the presentatin t plicies that directly impact budget develpment, such as thse described in the GFOA Best Practices fr Schl Budgeting. (b) Include a link t the full length, fficially adpted plicy dcuments, shuld the reader wish t see them. 2) List the rganizatinal units that are included in budget. (a) Districts are encuraged t use this list t als shw funding surces that each rganizatinal unit draws n, if pssible. (b) If the list rlls up t imprtant summary units, then that shuld be indicated. 3) Prvide access t allcatin frmulas. (a) Prvide brief summary descriptin f the frmulas rle in the budget prcess. (b) Prvide a link t frmulas themselves. The link shuld prvide a transparent descriptin f the frmulas (regardless f whether they are site-based funding r district-wide persnnel allcatin frmulas). C) Revenues 1) Discuss any majr trends, assumptins, r ther pints f interest that are critical t a full understanding f the District s revenue structure. 2) Shw the District s ttal revenues fr, at a minimum: (a) The prir year actual, (b) Current year budget and/r estimated actual, and (c) Upcming budget year. 3) Present revenues frm all funds and surces, and als by the District s mst imprtant budgeted funds. (a) Include all funding surces that the District can reasnably estimate in advance. 4) Identify the mst imprtant specific surces and prvide the reader with insight int majr trends and analysis f salient pints that are critical t the District s financial capacity. D) Expenditures 1) First, discuss any majr trends, assumptins, r ther pints f interest that are critical t a full understanding f the District s cst structure. 2) Then, prvide an expenditure summary acrss the entire District, including all funds. (a) Include all types f expenditures the District is budgeting fr including current debt service and current capital expenditures. (i) Include all expenditures that the District can reasnably estimate in advance. (b) The presentatin shuld shw the District s ttal expenditures fr, at a minimum, the prir year actual, current year budget and/r estimate, and upcming budget year. 3) Next, present expenditures by rganizatinal units. (a) These shuld be the same rganizatinal units that were listed under the key principles that guide the budget prcess (see VII-B, abve). (i) Districts ften chse t budget by schl site. Fr larger districts, especially, it may nt be practical t include the budget fr each site within the budget presentatin. The budget presentatin may include a link t the individual schl site budgets. (b) Shw the cnnectin between schl district spending and the Instructinal Pririties (at a minimum). Exemplary status will be awarded t thse that shw schl site spending. (i) Ideally, the budget presentatin will be rganized by prgrammatic elements, rather than just bjects f expenditure. The prgrammatic elements within each schl site will cnnect t the prgrams being implemented t achieve the Instructinal Pririty. (ii) In cases where it is nt practical t develp prgrammatic elements (e.g., accunting system limitatins), the District may shw where the spending t achieve the Page 10 f 12

11 Instructinal Pririties is lcated by making prminent ntatins next t the apprpriate budgetary lines. (i) The ntatin shuld identify hw many dllars within the budgetary line are devted t the Instructinal Pririty. (ii) The ttal f all such ntatins acrss the budget presentatin shuld ttal up t the same amunt that was presented fr the cst f each Instructinal Pririty in the Instructinal Pririties and Trade-Offs sectin (see VI-B-2). (c) When shwing persnnel csts fr an rganizatinal unit, the cst shuld include, at a minimum, all current expenditures fr fringe benefits, such as health care, pensin, and ther pst-emplyment benefits. (d) The guidelines described in VII-D-1 A and B als apply. 4) Describe staffing allcatins. (a) At a minimum, shw persnnel by psitin, rganizatin, and schl sites (i) This culd be shwn using a traditinal rganizatinal chart, with FTEs arranged by rganizatinal units and schl site and/r by classificatin. (ii) At a minimum, include figures n what is budgeted, current actual, and ne year prir. (i) The District is encuraged t shw additinal prir years. (b) Ideally, staffing allcatins will be shwn by Prgrammatic Element. 5) Prvide additinal cntextual infrmatin n hw resurces are being used. Sme f the infrmatinal elements culd include thse belw. The District shuld put tgether a presentatin that is relevant t its wn circumstances. (a) Student-teacher ratis, per pupil expenditures, average class size, free-and-reduced lunch students, English Language Learners, etc. (i) If the District is budgeting salaries by average csts, the rganizatinal chart shuld shw average years f experience r ther measure f teacher effectiveness at each site. (ii) Ideally, the presentatin will break dwn these elements by schl site. (iii) The infrmatin culd be hyperlinked t a website at the District s chice. E) Reserves 1) Describe the District s plicy n reserves, including the District s target level f reserves fr its majr budgeted funds. 2) Describe majr anticipated changes t the reserve levels. (a) Cmpare current reserve level t plicy requirements. VIII. Lng-term financial sustainability A) Discuss the lng-term sustainability f the annual financial plan, lking ahead a minimum f three years beynd the existing year. Specific elements that shuld be included in the budget presentatin include: 1) Lng-range enrllment prjectins. 2) Lng-range financial prjectins. 3) Risk analysis. The budget presentatin shuld highlight the risks t nging financial sustainability that are f the greatest lcal significance. (a) The District is strngly encuraged t address the risk psed by its lng-term pensin and OPEB bligatins in this sectin. Even if these liabilities are fully funded, please include infrmatin abut these issues. Page 11 f 12

12 B) Debt and capital. 1) Debt (a) Describe the District s principal and interest bligatins by majr categry f debt, preferably thrugh maturity. (i) Describe the majr purpses r use fr that debt. (b) Describe hw current debt levels relate t relevant debt limits (e.g., as might be established by the District s financial plicies). 2) Capital (a) Shw surce and uses summary fr majr capital prjects, preferably ver a five year perid. (i) Prvide a reference t the District s lng-range capital imprvement plan. (b) Describe the capital prjects currently being undertaken by the District. (i) Discuss the extent t which the District s capital prjects are n budget and n schedule and the anticipated impact n the perating budget. 3) Sustainability f the District s Lng-Term Capital Imprvement Plan (a) Summarize the ttal lng-term sustainability f the District s capital imprvement plan, cnsidering the fllwing: (i) Affrdability f current and prjected debt levels. (ii) Ability f the current revenue streams t supprt planned pay-as-yu g capital financing. (iii) Ability f the current revenue streams t supprt the peratins and maintenance f planned capital prjects. Page 12 f 12