DG45 -

Implementing a Transparent Budgetary Process with the Board of Education and Community

Thomas W. Wall, CPA CFO

Executive Director

Business Services and Operations

​

Jim Thorpe,

Board of Education Trustee

​

Glenn Maleyko, PHD.

Superintendent

​

February 17, 2023

AASA Conference

Our District By The Numbers

• $600+ Million Budget (Includes Foundation and Grant Funds)

​

• 41 Schools & Programs (3 Non-Instructional Buildings)

​

• 3 Traditional High Schools and 3 Early College

​

• Career Center & Alternative High School

​

• Virtual K-12 School

​

• 2,406 Staff Members (with subs over 2,700)

(one of the largest employers in Wayne County outside of Detroit)

​

• 1,432 in Dearborn Federation of Teachers Union

​

• 20,000 Students

4,000 Students Added In 17 Years

76% Of Students Free And Reduced Lunch

47% Of Students Are English Language Learners

8% Special Education Students

OUR VISION

OUR MISSION (Why we exist)

Dearborn Public Schools will provide

an exceptional learning environment

that empowers every student to succeed

in life today and in the future.

Our Vision Is Embedded In Our Culture Video

Accomplishments

Becker Elementary

Blue Ribbon School 2017

STEM Middle School

Blue Ribbon Schools 2018

Lindbergh Elementary

Blue Ribbon School 2019

Haigh Elementary

Blue Ribbon School 2021

Henry Ford Early College

Blue Ribbon School 2021

Points of Pride

• All high schools rated among the top in the state. Fordson #1 (2019). Fordson Top 20 (2017) Mackinac Center

​

• Maples Elementary Distinguished Title One School 2019

• Edsel Ford Recognized as a Model High School (2017)

• National Recognition Program
• 45 Districts Recognized
• School districts that are leading the way with new ideas that work (Innovation)
• Recognizes established initiatives that can be replicated by other districts

​

• NWEA Data shows growth above

national averages across the board

​

Points of Pride

94% Graduation Rate- Maintaining High Graduation Rates

2018 Release

Important to note that our early college students all attend college from 10th grade on.

Accomplishments are

a reflection of

the total work taking place in all schools !

Connect With The Superintendent and School District

• Twitter:

https://twitter.com/DrMaleyko

​

• Superintendent Blog:

http://superintendent.dearbornschools.org/

​

• Facebook:

https://www.facebook.com/wingshockey3

​

• Instagram Page:

https://www.instagram.com/superintendent.maleyko/

​

• My Youtube Channel: https://www.youtube.com/channel/UCI-XxCJ4wLzKm2dOQysFK1w

​

​

Association of School Business Officials (ASBO) International

​

Meritorious Budget Award 4 years in a row

Click Here for Twitter Feed

​

School districts that apply for the Meritorious Budget Award (MBA) or the Pathway to the MBA understand the importance of presenting an accessible and accurate budget to build trust and clear communication with stakeholders.

Click Here for the ASBO site Transparency Page

​

​

Social Media and Federal COVID Funding

​

• Face Book Video Click Here

​

​

​

• For Youtube Click Here.

​

​

• First Bell and All Social Media. Charts also distributed in schools

​

​

​

Saving Taxpayers Money

​

• Bond refinancing Click Here. Press Release.

​

​

​

Objectives

• We will Share the philosophical approach to keep Board, administrators and staff aware of the budget development process.

​

• Participants will be able to discuss with colleagues how this model is used for resource accountability and the multiple variances used in creating the budget.

Table Talk

How and what

do you share with

your Board and

top administration

in regards to

your budget?

Managing Expectations with the Board

• Know your Board policy

​

• Know the State law -

Section 16 of the Uniform Budgeting and Accounting Act (Michigan)

​

• Advertise in the local paper

(Does your district have an official newspaper for notifications?)

11-point boldface type: “The property tax millage rate proposed to be levied to support the proposed budget will be a subject of this hearing.”

​

• Required to hold “Truth in Budgeting Act” - Scheduled at least six (6) days before adoption

​

• Discuss the millage to be levied (L-4029)

(get the State Tax Commission Bulletins)

​

Managing Expectations with the Board

• Know your Board policy

​

• Know the State law -

Section 16 of the Uniform Budgeting and Accounting Act (Michigan)

​

• Set the amounts to be appropriated for expenditures and revenues for each fund

​

• Statement of estimated revenues by source for each fund

​

• Consistent with uniform charts of accounts

​

• Required to have a balanced budget

How do you get from Point A to Point B?

• Set a calendar for the Budget adoption

​

Dearborn Public Schools

School District�Summary of Budgets�

General Fund

Athletic Fund

Enhancement Millage��

Special Revenue Funds�

Debt Funds��

Capital Project Funds�

Funded Projects

Food�Service Fund

Title I, Title II, Special Ed. Preschool, Special Ed. Flowthrough, Title II, At Risk, ESSER and other State and Federal Grants.

2001

​

2006*

​

2007(Ath) 2007(FF)

​

2010(QSCB)

​

2013

​

2014A, 2014B

​

2017 (refunding)

​

2014 Bond Fund

Building & Site Fund

Enhancement Fund�

Special Education Act 18 Fund

Adult/Community Education

Show it with pictures

Tie in your Board actions to funding source

MDE - Michigan Public School Accounting Manual requirements

Know your ratios and the impact on the budget

Know your ratios and the impact on the budget

DPS Budget Model for Board Adoption

Board Presentations

• 1st Budget Amendment

​

• First Look at Budget Assumptions

​

• First Look at Budget Assumptions

All Funds

​

• Budget Hearing

​

• Budget Adoption

​

Board Communications

• Board Briefs weekly on budget development

​

• Finance Committee

​

• Superintendent one on one monthly with Board members

​

• Social Media/press releases

​

• Chatting with the Superintendent events

​

Dearborn’s Budgetary Process at the Conceptual Level

• General Fund is the primary operating fund, show the impact of other funds on the operating fund up or down? Follow the 90-10 rule, 90% of the time with the Board is spent on the General Fund

​

• How do you balance the numerous aspects of the data for the Board to follow? Keep it simple: Revenue, Salary/Benefits, & Other expenditures

​

• The Board should be concerned about the big picture, so treat it as such, but be prepared for the deeper dive into the data!

​

• Philosophical approach to building a budget

​

Dearborn’s Budgetary Process at the Conceptual Level

• Many unknowns at the beginning of the process
• Focus on the big three budget items:
• State Aid (73% for General Fund Revenue)
• Student Count
• Staffing (86% of General Fund Expenditures)
• We develop several scenarios to determine the impact of revenue and expenditure decisions
• Best Case Scenario
• Worst Case Scenario
• Most Likely Scenario

Budget Model Broken Down Into Four Sheets

​

Utilize Google Sheets or Excel

• Scenario Summary Page
• 19-20 Adjustment Page
• Budget Matrix Page
• Staffing Changes Page

​

Budget Model - Most Likely Scenario

Budget Model - Most Likely Scenario

This shows the historical aspect of our fund balance over the years.

​

Current year expectations as we finish the school year for budget purposes.

​

The expectation for next year is based upon the current year’s

budget and performance.

​

Budget Model - Most Likely Scenario

Keeping to the three main items, State aid, student count and staffing costs.

• Highlighted items to show importance of item for discussion
• Many items are linked to the other spreadsheets
• Showing the budget surplus from previous year as starting point
• Showing 19/20 expected surplus/(Deficit
• Ending Fund Balance as a % of expenditures

​

Carries info from Budget Matrix page

Carries info from Adjustment page

Budget Model - 2019-20 Adjustments

Budget Model - 2019-20 Adjustments

Keeping to the three main items, State aid, student count and staffing costs. The upper page deals with the State Aid Funding

• Current Foundation Grant
• Headlee Effect for Foundation (deals with hold harmless districts)
• 20m Categorical - (deals with hold harmless districts)
• New categoricals for discussion
• Looks at all three scenarios, estimated for starting discussion of a $20 difference between scenarios

​

Budget Model - 2019-20 Adjustments

Keeping to the three main items, State aid, student count and staffing costs. The middle part of the page deals with student counts.

• Current FTE count
• Looks at all three scenarios, estimated low for increase, higher for decrease between scenarios (this case estimated an decrease in students next year, therefore negative revenue adjustment for student count)
• Using estimated foundation allowance for upper part of spreadsheet for new revenue

​

Budget Model - 2019-20 Adjustments

Keeping to the three main items, State aid, student count and staffing costs. The bottom part of the page deals with existing staff costs.

• Broken down by union types and exempt employees - bargaining impact for contracts
• Looks at all three scenarios, estimated low for increase, higher for decrease between scenarios (All of our contracts are settled, so no difference between most likely or worst case, however best case if we wanted to ask for concessions vs losing staff )
• Looks at savings for retirement purposes between experience staff and new employees
• Sets the average teacher cost for Staffing Changes worksheet for staffing adjustments

​

Budget Model - Budget Matrix

Budget Model - Budget Matrix

Looking at year to year change for various categories that are important for the budget discussion

• Staffing levels - summary from Staffing Adjustments for FTEs and costs
• Changes important to the building level (i.e. unit budgets overseen by principals)
• Board comments from earlier meetings to show changes in the budget were considered

​

Budget Model - Budget Matrix

Looking at year to year change for various categories that are important for the budget discussion

• Categoricals from State Aid to track changes
• One time funds that are impacting budget (i.e. Act 18 for special education one time payment)
• New plans from the State level
• At Risk fund and potential additional funds above the 30% current funding level
• Special Education additional funding based upon Governors plan and impact to District funding

​

Carries info to summary page

Budget Model - Staffing Adjustments

Budget Model - Staffing Adjustments

Looking at Staffing positions that change from current program to new/deleted for next year

• Union positions can can be totaled to see impact across unions
• New, retirement, leave, etc. to determine why positions are changing
• FTEs to know the impact on total staffing
• Different Scenarios
• Switching to different funding scenarios
• Setting a reserve for last minute hires
• Transparent and inclusive in discussions

​

Budget Model - Staffing Adjustments

• Information carries forward to Budget Matrix page, which carries forward to the Scenario Summary page
• FTEs also carry forward to Budget Matrix Page
• Balance Trial Balance to Scenario Summary page

​

Budget Model - Staff Involvement

We involve the following in our discussion on the budget:

• Administrators during our monthly General Administrative meetings through google surveys, small group discussion for use of grant and enhancement funds

​

• We also survey and use composite scores on priority from:
• Board members
• Unions
• Executive Directors

​

• Did our first Meritorious Budget submission for ASBO 2018-19

​

​

Questions?

• Link to copy of Budget Worksheet

​

• Contact Information: Thomas S. Wall, CPA CFO

Executive Director of Business Services

and Operations

Dearborn Public Schools

18700 Audette, Room 11

Dearborn, MI 48124

Te: (313) 827-3018 Fax (313) 827-3129

Email: Wallt@Dearbornschools.org

​

​

Team Collaboration

We can achieve our fundamental purpose of high levels of learning for all students

only if we work together.

​

We cultivate this collaborative culture through the development of high performing teams.

Dufour & Eaker

We Use Social Media As Part Of Our Communications Plan Because We Do...