The cash basis is used to enable the District to more accurately budget revenue and expenses as the resources are expended or received. Budget Cycle Dec/Jan - Dept/Building needs budgets prepared Jan - BOE reviews budget framework Early March - Dept/Building wants budgets requests due March - Update BOE on enrollment & staffing April - Budget compiled and refined May - BOE discusses draft budget document June - BOE Adopts budget Teacher Salaries are negotiated in odd-numbered years beginning in January and receive Board approval by the end of March. 16 Budget Development Process Zero-Based Budgeting – An Overview Each year, the Superintendent and the Chief Financial Officer present a proposed budget to the Board of Education that includes estimates of the total expenditures required to operate the District. Before this can happen, staff across the District must work through a number of components to develop these cost estimates. This process requires active involvement from teachers, building leaders, coordinators and all support staff in setting the stage. District administrators are committed to fostering inclusive budget discussions centered on student achievement and the goals that are leading the Superintendent’s work. The District’s instructional and departmental operating budgets were prepared through a Zero-Based Budgeting (ZBB) approach. This approach helps ensure that the budget is developed to align with priorities for instructional practices and organizational needs. The ZBB approach is built on needs and priorities rather than on historical spending trends. The ZBB process is about creating accountability for what the District spends and transparency of the decisions for where the District spends. Building the Budget to Align with Budget Priorities Since there is no wrong way to prepare a budget or a standard budget process for ZBB, each administrator built the process around the building’s/department’s culture to ensure what they do, who they do it for, why they do it and how well they do it are all maintained. By developing their own approach to this process, the building/department owns each decision provides input to each decision and is accountable for its results and how the results are defined. Each administrative leader was tasked to identify the “Needs” of the building or department by using decision units. Needs are defined as resources required to provide only the most fundamental services essential to execute the written curriculum, ensure adequate support services and operate the building. A decision unit is a decision-making group of staff that can be comprised of representatives from grade levels, subject areas, programs and departments that develop and prioritize budget requests. The Need’s recommendations are analytically reviewed by the Chief Financial Officer and significant fluctuations are discussed with the administrative leader who submitted the request. Next, each administrative leader was tasked to identify “Wants” and “Enhancements” of the building or department again by using decision units. Wants are defined as resources essential to provide educational services, which expand the written curriculum and achieve the level of excellence provided by the District. Enhancements are defined as resources that will expand educational services and opportunities for students in alignment with the Strategic Plan. Each administrative leader was asked to work with their decision unit(s) to prioritize the list of Wants and Enhancements in order from most important to least important. Collaborating to Balance A zero-based budget starts from a "zero base" and every function within an organization is analyzed for its needs and wants – all expenses must be justified. Budgets are then built for the upcoming year based upon these District-wide prioritized requests. The final ZBB budget is then balanced given funding constraints approved by the Board. All members of the District Leadership Council share in the experience of analyzing budget trade-offs and making tough decisions between building and department requested wants and enhancements. 17