Understanding TEA Budgeting Guidelines

TEA FINANCIAL ACCOUNTABILITY SYSTEM
RESOURCE GUIDE
2010
As I studied this resource guide, it was once again repeated to me that budgeting is a daunting task for which a superintendent must be adequately prepared. There are numerous resources to use in this process and the TEA Resource Guide is one of the most readily available and one of the most accessed by the superintendents and other financial officer that I have spoken with.
This document reiterates some of the other things I have learned in this finance course. Most importantly it states that a budget is the product of the planning process. In addition it describes the budget as an important tool for the control and evaluation of a school district’s sources and use of resources. And ultimately, an evaluation based upon budgeted and actual operations of a school can enlighten constituents as to the performance of a school district. I also learned that a budget is a continuous cycle of planning and evaluation used to achieve district goals.
There are several budgetary approaches. Line-item budgeting, performance budgeting, program and planning budgeting, zero-base budgeting and site-based budgeting are the ones explained in this document. Line-item budgeting, the type in which I am most familiar, is the type in which the financial officers base their expenditure requests upon historical expenditure and revenue data. Performance budgeting is, simply put, a budget where expenditures are based upon standard cost inputs multiplied by the number of units of an activity to be provided in that period. PPB, or program and program-planning budgeting is an approach where a variety of different budgeting systems which base expenditures primarily on programs of work and secondarily on objects. It is considered a transitional form of budgeting between traditional line-item and performance approaches. Zero-Base Budgeting (ZBB) is usually used on a periodic basis. The basic principle here is that the budget is prepared by dividing all of the operations into decision units. Then funds are allocated as a package. The final type of budgeting I wish to address is site-based budgeting. This process grants budgeting authority to principals at each campus to control a share of the budgeting process. This type budgeting is used along with one or more of previously mentioned types so that district-wide needs are also considered.
The next portions of the document include legal requirements that focus on local, state and TEA requirements, annual budgetary responsibilities and guidelines that provide roles, responsibilities and help in preparation of a budgeting calendar. The most important information I take from these sections is that to remain legal and timely – consult the manual. It is too easy to make errors that have enormous consequences.
The manual also provides in-depth explanations in estimating revenue and expenditures. Here again, I learned it is imperative to consult the most recent version of state documents and to keep up with new or revised laws and guidelines. I know I will use this information as a resource rather than attempt to memorize all the procedures. This policy has worked for me in other areas and it lessens the chances of making critical, yet avoidable mistakes.
There is a lot of new information that I have learned after studying this manual. I understand better the processes of planning, implementing and evaluating a budget and I feel that I will be able to use one or more of the budget types that were explained in this document. I also feel that I can put into place a goal driven budget based upon the needs of my students and other stakeholders. I also believe that I can adjust a budget throughout a school year when or if emergencies occur. In our small district, I have seen this done as one air conditioning unit replacement becomes of greater importance than something that may already have been earmarked to get an upgrade!