EDLD 5342 Week 5 Part 1

Reflection

It was impossible to do this assignment without thinking of past experiences. I have known principals, as well as superintendents, who have used district materials and employees during work hours to work on private projects. In the local news this week, a nearby school district had spend $30,000 on a project that had not been approved by anyone and pulled maintenance workers away from scheduled projects for weeks. Two superintendents are in trouble in our area for allegedly misappropriating funds. One bypassed the requisition process and paid $400,000 to a company for $400 worth of posters to supposedly receive kick back money and line the pockets of a friend. Ethics violations happen much more often that one imagines. Several years ago, the district I used to work for had a superintendent who was described to me as a bully who wanted the budget director to approve moving expenses as part of her TRS salary. Having ethical employees who will stand up to people in power is also something essential. 

EDLD 5342

Week 5 Part 1

Examples of ethical behavior from Texas Administrative Code of Ethics, Standards 1.1 – 1.13:

1)       Standard 1.2- A superintendent does not use district funds or personnel for personal use. For example, if a superintendent wanted to put in a patio in his or her backyard, materials and supplies would not come from district sources and if district personnel did the work, it would be done after work hours to be paid out of the superintendent’s personal funds to them as independent contractors.

2)       Standard 1.3- The superintendent would only submit requests for reimbursement from legitimate expenses incurred in the course of district business in the capacity of representing the district.

3)       Standard 1.8- The superintendent will only offer employment  based on professional qualifications, not in exchange for favors nor based on a personal relationship.

Examples of ethical behavior from Texas Administrative Code of Ethics, Standards 2.1 – 2.7:

1)      Standard 2.1- A superintendent will keep information contained in personnel records confidential, including medical information, unless required by law. This would be a reason a board of trustees might go into executive session so matters can be discussed in private.

2)      Standard 2.6- A superintendent does not use coercive means to bully colleagues. For example, to threaten or imply disciplinary action if an employee joins a political group.

Short and long range consequences:

Standard 1.2- The short range consequence of using district materials and labor first of all would essentially be stealing public funds. Some may think this would be a perk, but ethically speaking, this is theft. Long range consequences may be public disclosure and embarrassment, being fired, being forced to resign or being under investigation and being indicted.

Standard 1.8- As far as short ranged consequences, aside from having someone who is not truly qualified in a position is probably the only drawback. Long range, this would affect the perception of people applying for positions in a district. If it is a foregone conclusion who will be chosen for any position, people within and outside the district will know this and the district and the superintendent will lose credibility. People who are qualified will avoid applying so the talent pool for the district will diminish.

Standard 2.6- Short term consequences of bullying or coercion are creating a hostile work environment and a work place where employees feel unsure where they stand. Long term consequences for this behavior sets up an unhealthy model that others may follow, high turnover rate, undermining loyalty to the superintendent and the district, and possible civil lawsuits.

Preventive Action Plans:

1)      Standard 1.2- (model and promote the highest standard of conduct, ethical principles, and integrity in decision making, actions, and behaviors- Competency 1.2) All supplies and requisitions for labor must use the appropriate form and must be approved by at least two district officers, ie. campus business manager, district purchasing officer, and or accounting department officer. By putting checks and balances in place with at least two people approving, this will cut down on the possibility of unauthorized use.

2)      Standard 1.8- (apply laws, policies, and procedures in a fair and reasonable manner - Competency 1.5) Set up objective interview committees who choose finalists based on scoring and mutual agreement to present to the superintendent. By charging the human resources department with securing members of interview committees from different stakeholder groups and holding interviews independent of any influence by the superintendent, the best candidates will rise to the top. This assures the best candidates are chosen, the process is transparent, and there is a fair system in place.

3)      Standard 2.6- (interact with district staff, students, school board, and community in a professional and ethical manner- Competency 1.6) Create a work atmosphere where employees are involved in teams, feel empowered to make decisions and welcome feedback. Also, a system should be set up for employees to voice grievances without fear of retaliation.

EDLD 5342 Week 4 Part 5- Interview Summary with District Budget Director

EDLD 5342

Week 4 Part 5

I was so grateful to Susan Olson, Director of Budget, of the Socorro ISD for meeting with me and being gracious enough to spend over two hours explaining changes to the instructional salaries this new school year and the process that took place to make those changes. In our discussion of the auditing process, she emphasized good internal and external auditing helps make sure the checks and balances built into the system are working well. She states the primary reason school districts gets into trouble with ethical dilemmas is when the checks and balances are ignored or bypassed. Having personnel with strong ethical integrity is essential in making sure no one is above the rules.

The auditing process extends for a good portion of the school year. In the fall, the district accepts competitive bids and considers not only price, but experience in doing school financial accounting. Ms. Olson has extensive experience in the public and private sectors in accounting and maintains school financial accounting is very different. Without a thorough understanding of state rules, regulations and mandates, an auditing firm can be more harm than help. To that end, Socorro ISD has hired the same firm for the past five years. Even though this could change any year, the experience and expertise this firm bring to the process is invaluable. The different bids are considered and the board accepts a proposal that the district lawyer will then create a contract with the winning accounting firm.

The external auditing team is given office space in the budget office. They request certain document which the district provides. District personnel are available to answer any questions; however, most of the time the documents requested are sufficient for the auditors to complete their evaluation. The auditors are currently at the district offices now. Ms. Olson explain this is an ongoing process.

Again, the primary objective of the audit is to evaluate the system of checks and balances, whether these are being maintained, and how effective they are in keeping the financial health and integrity of the system. The audit will confirm all things are well or shine a light on any unethical or circumnavigation of the system of checks and balances. This adds to the transparency to all stakeholders about how local, state, federal and other funds are handled.

Results are communicated to the board of trustees in a public meeting on the TEA website. Links to these sources are provided on the SISD website.

EDLD 5342 Part 4 Reflection

Reflection: I found all the numbers a little overwhelming, but I remember Dr. Lu said not to delve too deeply in the numbers and she wanted us to get the financial big picture. Looking at the local revenues that come in and comparing it to the state funding was a real eye-opener. With such a big number of students falling into the economically disadvantaged (74.7%) and at-risk (51%) catagories in a propert-poor district, there is no wonder why law suits are being raised to make sure students have an equal opportunity to succeed. It is imperative we do what we can to assure our students are as educated as possible to add to the wealth and economic development of our state and our country.

EDLD 5342

Socorro ISD Source of Funding and Allocation

Socorro ISD’s local property tax for 2010-2011 budget was $85,043,173 with other immediate and local taxes of $4,563,347. Its M&O tax rate is .0946% when added to the I&S of .264% equals 1.18%, .05% less than the state average. (TEA) Local revenues cover 23.87% of the general fund, while state funding covers 75.55% with additional allocated funds of $214,492,504. Federal funds are an additional 1,640,000 at .58% of the total general fund revenues. From local sources by category: businesses- $2,071,017,068 (25.2%), residences- $5,718,669,624 (69.6%), land- $391,198,802 (4.8%), and other- $38,198,802 (.5%).  High numbers are reflected in economically disadvantaged (74.7%), LEP (21.4%), and At-Risk (51%) which increase the WADA funds. (TEA, Academic)

Actual program expenditures show a direct alignment with WADA funds and special programs, although it is clear some programs are more expensive than others depending on the population served. With 65% ($146,671,399) of expenditures going toward regular education, this reflects the high incidence of economically disadvantaged and at-risk populations in the regular education program that need supplemental approaches to ensure achievement.  Only 3.3% ($7,403,233) of actual expenditures goes toward bilingual programs, even though 20.3% of the student population qualifies. Expenditures for SPED are 13.6% ($30,659,308) for 7.7% of the district’s students, indicating the added expense of specialized personnel and equipment for special education services.

TEA, 2011-2012 Budgeted Financials for Socorro ISD, http://ritter.tea.state.tx.us/cgi/sas/broker?_service=marykay&_program=sfadhoc.budget_report_2012.sas&_service=appserv&_debug=0&who_box=&who_list=071909

TEA, Academic Excellence Indicator System, Socorro ISD, http://ritter.tea.state.tx.us/cgi/sas/broker

5342 Week 3 Data Comments

Week 3 Assignment

(Part 1-Wiki Group)

1)      percentage of economically disadvantaged students, District 1- 93.3%, District 2- 20.7%

2)      the Total Refined ADA Adjusted for Decline, District 1- 3,893.754, District 2- 4032.937

3)      the Weighted ADA (WADA) for each district, District 1-  5,555.815, District 2- 4794.076

Develop a group position statement as to why the district with the smaller ADA has the larger WADA, post to your Wiki and the professor’s cohort blog, and comment on at least one other cohort group submission.

District 1 has a higher percentage of economically disadvantaged students and other special needs students than District 2, so greater funds are needed. Because the cost of educating these students is higher, they receive a higher WADA than District 2.

(Part 2-Wiki Group)

4)    determine the Revenue per WADA @ Compressed Rate and using the WADA figures from #1 above, District 1- $5044, District 2- $7206

5)    calculate the total target revenue (the figure is not included in your information) for the Maintenance and Operations Fund for each district,

District 1- $5044 x 5555.815 = 28023530

District 2- $7206 x 4794.076 = 34546111

6)    identify the total number of Teachers, Librarians, Nurses, & Counselors in each district

District 1- 281, District 2- 307

Post to your Wiki and the professor’s cohort blog and compare your figures with at least two other cohort group submissions.

(Part 3- Wiki Group)

Using the Wiki group process and your data from # 2 above for two Texas school districts, develop a 2 – 4 page paper concerning the fact that the intent of the Weighted Average Daily Attendance was to provide more money and professionals working directly with students to District 2 than to District 1 because of the percentage of economically disadvantaged students but failed to accomplish that goal in this case, site your group thoughts on these differences and the potential positive and negative impact to each program funded under Maintenance and Operations, post to your Wiki and the professor’s cohort blog and comment on at least two other cohort group submissions.

(Part 4 is individual)

(Part 5- Wiki Group)

7)    determine the 2010 Local District Property Value (DPV),

District 1- $145,968,635

District 2- $2,916,187,709

8)    the I & S Tax Collections

District 1- $94,871

District 2- $8,836,256

9)    the Chapter 46 (EDA)  totals

District 1- $572,716

District 2- $0

10) determine which district has the most funds available to make payments on existing debt/school facility bonds

Because Property Values and Tax Collections are much higher, District 2 has more funds. Even though District 1 needs are higher due to economically disadvantaged and special needs/bilingual students, more money is available to District 2.

Prepare a group conclusion on the possible condition of facilities in both districts and the potential impact on student learning,  post to your Wiki and the professor’s cohort blog, and comment on at least two other cohort group submissions.

This is a clear example of inequity that has property-poor districts concerned about proper funding for programs and facilities. Property-poor districts inherently have more economically disadvantaged, special education and bilingual students. One can conclude District 2 most likely has better facilities since there are more funds available for maintenance and upkeep. District 2 also has more funds available for new building.

(Part 6- Wiki Group)

11) determine the Compensatory Education Allotment for each district

District 1- $3,835,006

District 2- $633,369

Develop a group statement on the potential impact on student learning, post to your Wiki and the professor’s cohort blog and comment on at least two other cohort group submissions.

Comparing District 1 and 2 figures, District 1 should have more personnel and special programs available for students in need.

    

Additional Stakeholder Input

EDLD 5342

Additional Stakeholder Input in the Budgeting Process

Central Office Administrators and Staff- Input I could receive from this group could be changes in federal and state mandates, grant funding available, changes in program and staff needed, revenues received or generated for different programs, weekly/month expenses of departments, evaluation of new best practices and cost, technology improvements, PEIMS data, testing data and staff development needs.

Principals- Input I could receive from this group could be program costs, FTEs needed to support student requests/academic/extra-curricular needs, CIPs, reports on maintenance and utility costs.

Site-Based Decision Making Committees- Input I could receive from this group could be coordination of district/campus goals and objectives, evaluation of effectiveness of programs, suggestions for reducing costs, prioritizing programs, and reaction to proposed budgets cuts and expenditures.

Teacher Organizations- Input I could receive from this group could be reaction from teachers and staff about district plans for personnel changes, prioritized list of employee benefits requests, and cost comparisons between districts pertaining to personnel benefits and work conditions. This group would be essential in helping to explain budget considerations and gather questions from employees about the process.

Key Stakeholders- Input I could receive from this group could be corporate and homeowner tax changes, political issues, business needs, grants and community programs to help the district.

Board of Trustees- Input I could receive from this group could be priorities of the community and what they want from our schools, political considerations, reactions of the public to district programs, and how the public perceives the district and the value it brings to the community.

Superintendent's Role

EDLD 5342

Superintendent’s Role and Responsibilities in the Budgeting Process

The superintendent’s role is to prepare a budget for the board of trustees to approve. In order to do this effectively, our superintendent first reviews the data from PEIMS and WADA and compares it to last year’s district improvement plan goals to evaluate progress. Particulars are provided by the District Budget Director. The Chief Personnel Director provides information regarding FTEs. This information is summarized for the board of trustees to review and the superintendent works with them to revise district goals. As district goals are established, the superintendent oversees the review and revision of campus and department improvement plans. Each member of the cabinet is responsible for his or her areas and coordinates the improvement plans.

Working with the District Budget Director, the superintendent monitors the budget to make sure expenditures are being used correctly. He makes sure the calendar guidelines are enforced and public is kept informed and invited to give input into the process.

This year’s budget had a projected shortfall of $20 million dollars. In order to contain costs, the cabinet brainstormed possible solutions. The superintendent felt strongly that personnel would not experience a reduction in force. Working with the Chief Personnel Director, certain personnel were reassigned to different campuses, some job descriptions were eliminated, and normal attrition was used without replacement to cut personnel expenses. By redistributing personnel, no one lost his or her job. FTEs were scrutinized more strictly to eliminate extra jobs and trim costs. Class sizes were increased in certain areas to compensate. Transportation also was reviewed to consolidate bus routes and drivers’ schedules to be as cost effective as possible.

The superintendent must keep current with legislative mandates and political implications to adjust the budget that he proposes to the board, as well as keep abreast of current instructional trends to make allowances for new strategies for improving student achievement.

Understanding TEA Budget Guidelines

Understanding TEA Budgeting Guidelines

There are many types of budget formats and they are not uniform across the state, but a strong budget based on the board of trustees guidelines matches a school district’s needs with the resources available to it. A good budget also acts as a tool to evaluate programs and the success of those programs in alignment with student needs. Like any solution-based document, identification of the problems that are to be addressed is essential. This must be done with a careful review of data of student performance and measurable objectives of the effectiveness of existing programs. Adequate resources cannot be allocated unless the problems are clearly identified and solutions to tackle those problems considered. Solid planning and a comprehensive planning strategy is essential because school districts are limited with their resources, the public has high expectations for the services provided and student achievement results, the diversity of the types of services and programs a district provides is wide, and support is necessary from many different stakeholders making constant communication throughout the process highly desirable.

In this review, it becomes apparent the budget is the number one responsibility of the superintendent. One cannot overemphasize the importance of overseeing this process since it becomes a political document reflecting the superintendent’s accountability to its citizens for not only the fiscal side, but for the effectiveness of programs in the role of student achievement and success. It is a political powder keg that wraps up all the components of a successful superintendency and school district. The school district budget translates into how effective a superintendent is and is an objective measurement of all policies that person puts into place. It also is a document used to determine if the monies allocated have fulfilled federal, state and local legal mandates and responsibilities.

Planning, preparation and evaluation reflect the three components of the school budget process. In our consideration of top five dates of importance in the budget cycle, it becomes increasing clear the process never really stops. As an incoming superintendent, it is important that it is clear to everyone that even though there are scheduled activities throughout the year in this budget process, it is an ongoing process that requires constant revision and evaluation to address changes in academic expectations, government mandates and community demands. Understanding the state, TEA and local legal guidelines for the budget process becomes imperative. During the course of the school year, at every juncture, communication not only with individual stakeholder groups is essential, but posting proposals, findings and recommendations in a numbers of different public venues is required. In order to elicit public support of the school district and its budget, it makes sense to make these things as clear and transparent as possible. The superintendent must be available to answer questions, and therefore needs to keep abreast of developments at every step.

Annual district revenue estimates are necessary so district goals can be prioritized. Without an accurate accounting, programs and services will suffer. State revenue in the form of Tier I & II and other state assistance and local property tax revenue must be balances with annual district and campus expenditure estimates. This is why the detailed district improvement plan and campus improvement plans are so important.

These major insights are components that one can utilize to understand the big picture when it comes to putting together a comprehensive budget. Analyzing and reviewing data to develop strong district goals with the board of trustees should be a priority with any incoming superintendent. Emphasizing to all stakeholders their importance in the process and that the process is ongoing is another essential message that one can utilize from the review of information. Making sure there is a strong district and campus improvement plan format that helps to identify goals/objectives and is useful in evaluating programs and their cost needs to be a priority with a new superintendent as well. Maintaining a system of checking the progress along the way of the budget process is another lesson in making sure the budget process goes as smoothly as possible.