As the school district works through the budgeting process for the 2012-2013 school year, I thought I would share four ideas that will frame any budget decision.
1. The school district is basing much of our budgeting information on the five year budget model that has been implemented this year. The model allows the district to input various amounts of information to predict where the budget will be in five years. The model allows the school district to base decisions on actual forecasted projections. The model shows that there are challenges in the upcoming years as increased costs meet decreased revenues.
2. The political environment in Harrisburg is a factor. The current climate in Harrisburg is not public school friendly. This is not a complaint, just a fact. I try not to worry too much about politicians in Harrisburg but we must keep a wary eye on them as they make decisions regarding policies toward public education.
3. The two year non-negotiable goals for student achievement and instruction will focus the school board on priorities in the school budget. I have talked quite a bit about these goals. They will serve as a foundation for the decisions that the Board will make regarding education in the school district.
4. The pension issue is still something that needs to be grappled with. I will have a post tomorrow that gives a short overview of the pension crisis. Just as a preview, the school district’s cost for the pension has increased from $500,000 last year to $1.3 million in the upcoming budget.
There are some tough decisions that will need to be made concerning the budget. I am confident that the school district will continue to focus on what is best for the children and produce a reasonable budget that will continue Penn-Trafford’s history of excellence.
1. The school district is basing much of our budgeting information on the five year budget model that has been implemented this year. The model allows the district to input various amounts of information to predict where the budget will be in five years. The model allows the school district to base decisions on actual forecasted projections. The model shows that there are challenges in the upcoming years as increased costs meet decreased revenues.
2. The political environment in Harrisburg is a factor. The current climate in Harrisburg is not public school friendly. This is not a complaint, just a fact. I try not to worry too much about politicians in Harrisburg but we must keep a wary eye on them as they make decisions regarding policies toward public education.
3. The two year non-negotiable goals for student achievement and instruction will focus the school board on priorities in the school budget. I have talked quite a bit about these goals. They will serve as a foundation for the decisions that the Board will make regarding education in the school district.
4. The pension issue is still something that needs to be grappled with. I will have a post tomorrow that gives a short overview of the pension crisis. Just as a preview, the school district’s cost for the pension has increased from $500,000 last year to $1.3 million in the upcoming budget.
There are some tough decisions that will need to be made concerning the budget. I am confident that the school district will continue to focus on what is best for the children and produce a reasonable budget that will continue Penn-Trafford’s history of excellence.
In looking at this post and the pension primer, it seems to me that the only way to think about the budget is to think about the next 4 years as part of a grand budget plan. Using the fund balance to "get through" this year may not be wise given that the pension increases will continue for several more years. It almost seems like these budgets are death by a thousand cuts, is there a longer term cost reduction/revenue increase plan that this year fits into? In other words, if it's only going to get worse, how are we going to get through the next 4 years?
ReplyDeleteIt also seems crazy that it sounds like the board has to decide on a tax increase or not well before the state financial #s are released.