School Finance - Final Reflection

This course has certainly succeeded in developing my strengths in the area of school finance.  The knowledge I have gained and the activities I have participated in allowed me to spend time with our business manager and superintendent, which was an extremely valuable learning experience.  I feel much more confident in the areas of internal controls, procedures and the auditing process. 

The activities throughout this class allowed me to learn about school finance through real school data.  Analyzing two districts not only helped me gain an understanding of the factors that affect revenue and expenditures in a district, but also prompted me to study my own district data.

One of the most interesting activities was learning about the financial audit and FIRST rating.  This activity emphasized the importance of having procedures in place that create and effective checks and balances system.  Procedures must involve multiple staff members so that there is never a time when one individual is solely responsible for a certain area.  An atmosphere of accountability is created when teams of people work together to maintain ethical behavior.

My areas of improvement are in applying legal concepts and regulations as well as understanding the revenue forecasting process.  These are two areas in which I feel much more confident than I did before the course, but do not quite have enough experience to feel as though I could do it without much guidance.  Fortunately, education is a career of collaboration and lifelong learning.  I know that although I may not know it all, I have a wealth of resources I can call on for help.  This course provided numerous websites and other readings that I am certain will come in handy in the future.

Code of Ethics for School Leaders

5 Examples of Unethical Conduct:

1. Standard 1.2:  A superintendent took sole responsibility over the vending machines in the district.  He was the person who emptied the change from the machines.  Eventually the administrative assistant began to notice that there were no deposits being made from the machines.  She asked the business manager about it and soon it was revealed that the superintendent had been keeping the money from the machines for himself.  He was required to pay back the money he had stolen and was dismissed shortly after.
2. Standard 1.3:  An administrative assistant began to notice that checks were missing from her check boxes.  Thinking this was odd, she began to carefully document when a box was opened and how many checks were in the box.  She realized that it was always a few checks off the bottom of the box.  After contacting the school board president, she and the business manager began a thorough investigation.  This resulted in the discovery that the superintendent was taking checks off the bottom of the box and writing them in small increments to himself.  The amounts were small, so he thought they would go unnoticed.  He was found guilty and sent on his way.
3. Standard 1.6: The superintendent was a close friend to the PEIMS clerk who assisted him in changing the enrollment numbers for CTE classes in order to create more funding for the school district.  The business manager recognized that the numbers do not seem to follow the trends of the past few years.  He began asking questions.  It was not long before they discovered what was going on.  The superintendent and PEIMS clerk received formal reprimands and eventually moved on to other positions.
4. Standard 2.7: A superintendent’s administrative assistant suspects that the superintendent is involved in unethical behavior in the area of finance.  She reports the suspicion to the president of the school board who immediately investigates the situation.  During the investigative process, the superintendent begins harsh and negative treatment of the admin asst.  He also retaliates by assigning unpleasant tasks that the admin asst usually does not perform. 
5. Standard 2.1:  An unmarried, junior high teacher requests a conference with the superintendent in which she reveals that she is pregnant.  She states that she understands that this might set a poor example for her students and seeks advice on how to best handle the situation.  She would like to keep the pregnancy confidential until she has determined what to do.  After the meeting, the superintendent tells his office personnel about the conversation.  Soon after, the rumor has spread throughout the district that the teacher is pregnant.  The teacher files a complaint against the superintendent for violating her confidentiality and privacy.

Consequences for 3 actions listed above:

The consequences for actions such as the ones listed above can range from a slap on the hand to criminal charges.  A common theme that emerged from my conversations with superintendents about this matter, was that most of the time, districts will go easy on the consequences if the superintendent will resign.  Although this is a common practice, it is a shame that they do not follow through with more severe consequences that would prevent this from happening in the superintendent’s next district.  If criminal charges are filed the superintendent would have a much more difficult time committing the same offense in the next school.  Perhaps the most cutting effect of these actions is the loss of trust from your community, faculty and students.  A superintendent who loses the respect of his stakeholders, has no chance for success.

#1:  The superintendent who stole from the vending machines: 

 Short term consequences:  Must determine a way to repay all of the money he has stolen from the district.  If unable to pay the full amount, a payment plan will be set up.

Long term consequences:  Should the district decide to file charges with the police about the actions, the long term consequences would be severe.  The superintendent would have a difficult time finding a job in another district and might have to seek a new career path.  Certification could also be revoked or flagged, which is public record.

#3:  The superintendent who falsifies records for the district’s financial gain will suffer severe consequences.  Because he/she has tampered with federal funding, this would instantly become a criminal issue.  The consequences could involve loss of certification, a thorough criminal investigation by the Texas Rangers, and possible jail time.

#5:  The superintendent who violates the confidentiality of an employee, would suffer short term consequences such as the loss of trust of his/her faculty.  Staff members would be less likely to trust him/her.  The long term effects would occur if the teacher decides to file a formal complaint with SBEC.   More than likely there would be a slap on the hand, but it could lead to a flagged certificate which affects future employment possibilities.

Actions taken to avoid such ethical conflicts:

There are several steps superintendents can make to avoid a lapse in ethical judgment.  First, the superintendent needs to spend as much time as possible with students.   Spending time with students reminds us why we do what we do.  You are much less likely to steal from your district, when you have a relationship with the teachers and students you would be stealing from.  Accountability is also crucial.  The auditing system and FIRST system are two ways to keep internal controls in check.  All office staff should be trained in the procedures and should be confident in the fact that all unethical behavior is to be reported immediately.  Training office staff in the protocol for how they should handle a situation in which they believe the superintendent is being unethical is also important.  If you take time to teach them how to report you, they will know that you expect them to report any suspicion even if it involves you.  Finally, the superintendent must handle all unethical behavior in a firm, fair and consistent manner.  Letting the small things slide sends a message that it is okay to bend the rules.  Bending the rules leads to breaking the rules, which leads to nothing but pain and suffering for those involved.  Modeling ethical behavior creates an atmosphere of both accountability and trust.  These two things are critical to the success of any school district.

The District Audit

The auditing process for school districts is perhaps one of the most important parts of financial accountability.  This is the process that provides the information necessary to determine the FIRST rating.  Administrators and business managers spend the entire year putting procedures in place and preparing for the financial audit.

     Most administrators believe that it is advantageous to change auditors every 3 to 5 years.  This is due to the fact that auditors focus on varying areas of school finance.  Changing every few years will ensure that a district does not let any area slide out of compliance.  If we are focusing on the same things every year, then other areas may fall by the wayside and get us in trouble.

     When selecting an auditor, school districts follow the same search process they use for other areas of service.  Contacting other school districts who have used the company is a common practice.  Researching the company’s reputation is critical to making the best decision.  The superintendent would then interview the auditor, compare prices, etc before making a final decision.

     The procedures for conducting the audit vary from district to district.  Because our school district is small, the actual “auditor visit” only lasts one to two days.  Much of the exchange of information is completed electronically prior to the onsite visit.  This gives the auditor time to review documentation before coming on site.  The information sent prior to the visit includes payroll reports, account distribution journals, salary information, capital asset acquisition reports, etc.  After receiving these reports, the auditor completes much of his/her work at the office.  The main goal of reviewing this information is to determine whether or not the district has effective internal controls.

     The length of the onsite visit varies according to school district size.  In our small district, the auditor spends 2-3 days on campus.  This will be sometime during October or November, depending on the auditor’s calendar.  During the on campus visit, the auditor looks at supporting documentation for the internal controls.  This includes looking at specific check requests, purchase orders, receipts, etc.  Every single transaction above a certain materiality level (for HISD it is $10,000) are thoroughly checked for accuracy.  This amount changes every year. The auditor then picks random smaller transactions to be certain districts are following the same procedures whether the transaction involves $10 or $100,000.  Federal program documentation, bank reconciliations, personnel records are also evaluated for accuracy.  Personnel folders are check to ensure that salaries are being paid at the appropriate “step” level and that permanent folders contain the appropriate contents and documentation.  The business manager and other financial officers of the district must be available for questions and to provide the information the auditor requests.

     The results of the audit help district determine the effectiveness of their internal controls and procedures.  This includes accountability in PEIMS reports, human resources, School Board Minutes, and coding.  It is clear that the audit provides information on much more than money.  Districts discover whether or not they are in compliance with state and federal laws, spending money appropriately, and also documenting transactions in the appropriate manner.  A survey completed by staff members asks questions about anti-fraud procedures and whether or not staff members believe there is an opportunity for employees to commit fraud without being detected.  The audit is extremely thorough and provides valuable, detailed information about the effectiveness of district financial procedures.

     Upon the completion of the audit report, the auditor sends a preliminary copy of the report to the superintendent for review.  This gives the superintendent an opportunity to ask questions and/or defend any negative parts of the report.  The auditor then presents his report to the school board for approval.  This is done through a formal presentation at a regularly scheduled board meeting. The board has the opportunity to ask questions about any part of the report during the presentation before taking action to approve the final audit.  After approval, the auditor submits the report to TEA, which is then compared to the report sent to TEA by the business manager.  The district report must match the auditor report.  The deadline for submission of the final audit is January 31^st.

Personnel Salaries in District Budgets

     Throughout my administrative career, I have been told that personnel costs to a school district generally fall somewhere around 65% of the district budget.  This statement holds true in my school district.  Hico ISD has a total budget of $5,777,800 with personnel costs of $3,577,151.  The professional salaries are $2,929,511 and paraprofessional staff salaries are $647,640.  The percent of the total budget spent on salaries is 62%.  This has serious implications for districts that are struggling financially.  When struggling districts look to make budget cuts, it becomes clear that cutting in the area of salaries will have the largest impact.  When programs, supplies, etc only account for 38% of the budget, cuts in that area will have very little effect.  Therefore, administrators begin looking at staffing patterns as areas in which they can save money.

     The 5% salary increase for all personnel is a double-edged sword.  On the positive side, salary increases are sure to improve staff morale.  When teachers feel valued by their school district, their production increases as does their loyalty to the district. Offering increases each year provides an avenue to recruit and retain quality teachers.   I am certain that superintendents and school boards across the nation include salary increases in their budget as often as humanly possible.

     The negative side to the 5% salary increases is related to the cost to the district over a period of time.  Districts have a difficult time offering a salary increase one year, then taking it away the next.  This practice can have severely negative effects on staff morale and teacher attitudes.  Therefore, when a district commits to that type of increase, they are committing to the long haul.  A five percent increase each year means a 5% increase to the budget each year.  If this is not offset by a 5% increase in revenue, a district can find itself in financial crisis in a very short period of time.  For example, a 5% salary increase in Hico ISD would amount to a budget increase of $178,857 the first year, $187,800 the next year and so on.  This is a huge amount of money to a small district that is decreasing in enrollment and revenue.  Our superintendent recently created a table demonstrating the effect that step raises will have on our current budget over the next several years.  If our revenue does not increase, and we have no reason to believe it will, within 7-8 years our district would have used up nearly all of its fund balance.    That was an eye opening discovery for all of us.

    While the concept of a 5% salary increase is certainly something each district would like to apply, the reality of the budgetary impacts will most likely prevent it from happening.  This is just one of many difficult and negatively perceived decisions that must be made by school district administrators and boards.

Analyzing M&O

Hico ISD is a small school district with a refined ADA of 528.364.  Our district has suffered financially due to rapidly declining enrollment.  Over the past 4 years, we have made numerous cuts in personnel and continue to analyze the operations of our district looking for areas in which we can decrease spending.

     Hico is not a property rich school district.  Therefore, we rely heavily on funding from the state.  Our current WADA is 846.266, with a RACR per WADA at $4,897.  The Tier 1 Allotments from the state total $2,453,885.  We have a high percentage of economically disadvantaged students which allows us to receive additional compensatory ed funds ($404,099).   Other sources include Career Tech allotment ($303,084), Special Education ($372, 581), Gifted and Talented allotment ($18,565) and a bilingual allotment ($21,054).   The M&O revenue from local taxes is $1,794,083. 

     When comparing the source of funding with allocations and expenditures, I believe there is no question that Hico ISD is making excellent budgeting decisions.  We are fortunate to have an outstanding business manager and superintendent who are not only knowledgeable and intelligent, but also work very well together.  The budgeting decisions of our district are beyond reproach.

     As in most districts, the majority of our funds are spent on teacher salaries.  The state currently requires that 52% of comp ed funds are spent on instruction.  Due to our lack of funds and efforts to keep the number of staff necessary to provide the best instruction possible, we spend the other 48% of comp ed funding on salaries and other areas.  This is becoming more and more necessary as our funding decreases.  We try to make cuts in areas where students will be the least affected.  Unfortunately, we have already made cuts in those areas and are now having to make decisions that negatively affect class size.  Our teachers provide before and after school tutorials which allows us to code part of their salary to comp ed funds.  This seems like an effective budgeting decision as it will free up money in other areas that might normally be coded to salaries.

     The Career and Technology program at HISD is another area worth mentioning.  Most of our Career Tech courses are technology and agriculture.  The additional funding provided for CTE is spent on teacher salaries and instructional supplies.  We have considered cutting personnel in the area of CTE, but realized that the teachers are “paying for themselves” with the additional funding.  Cutting CTE teachers, means cutting CTE courses which results in fewer CTE funds.  That does not seem like a wise business decision.  We are always looking for way to add CTE courses that will meet the needs of our students.

     Hico ISD’s Team of Eight has some very difficult budgeting decisions to make in the coming months.  From combining campuses to cutting personnel, there will be very little good news coming from the business office.  However, the teachers, parents and community have a great amount of confidence and trust in the superintendent and the board.  I have no doubt they will continue to make the best decisions for our district during these difficult times.

Gathering Input for the Budgetary Process

SUMMARY:

            Involving stakeholders in the budget process is critical to its success.  Each group contributes a different perspective which helps the superintendent look at the big picture when developing the budget.  Taking time to gather input from the various organizations, campuses and individuals will provide a wealth of data that will ensure that the budget is comprehensive and covers the needs of the entire district.

            Central office administrators and staff will provide information about expenditures from the basic office supplies to professional development and training required for each position.  These staff members can also provide information about the necessary software programs and book keeping programs to keep the district in compliance with legal requirements in regards to financial audits, PEIMS data, etc.  Information about revenue estimates can also be provided by this group of people.

            The superintendent relies on principals for a variety of budgeting information.  First, the principals must be aware of the maintenance needs of their campus.  Mr. Hartgraves has each principals provide a list of repairs and remodeling needed for each campus.  This list is made in conjunction with the maintenance department.   Principals must also provide input about textbook needs.  With textbooks now being purchased through the Instructional Materials Allotment, it is more important than ever that principals provide a detailed list of textbook and supplemental materials needs.  This requires principals to project adoption materials and gather input from teachers to prioritize textbook and curriculum purchases.  Professional development and training budgets also require the principal’s input.  This budgeting area must also include input from teachers and Campus Improvement Teams.  Professional development can become a very expensive area if not kept under control.  It is important that principals work with teachers to prioritize professional development needs.  Staffing patterns and STAAR remediation needs are other areas in which the principals must provide to the superintendent.  If a principal realizes that enrollment is changing and staff must be added or reduced, it is imperative that he/she notifies the superintendents.  Over staffing is an extremely expensive mistake.  Finally, principals must be aware of changing technology needs on their campus.  In this day and age, technology is a priority and the budget must reflect the needs of each campus.

            Site based decision making committees and district improvement committees cover many of the same areas as the principal.  In fact, an effective principal will use the SBDM to help prioritize and determine each of the budget areas listed above.

            We do not have active teacher organizations in our district, but I am assuming that their input would come in the area of teacher benefits, curriculum and staffing needs, and instructional support.

            Other key stakeholders can provide input on revenue projects such as grants, business support foundations, and other ways to provide more revenue to the district.  Community and business members can also be helpful in providing input in regards to the priorities of the community.  Superintendents must make budgeting decisions that reflect the ideals and priorities of the communities they serve.  Gathering input from those stakeholders can prove very beneficial.

            The school board is the most critical of the groups to provide input.  Superintendents must keep the board members in the loop when it comes to budgeting and must clearly communicate district needs.  The school board is also critical in offering information about the priorities of the community and ensuring that the budget reflects those priorities.  After gathering input from each of the groups listed above, the superintendent must work closely with the school board to ensure that the budget developed reflects the needs, priorities and the ideals of both the school district and the community.

REACTION:

            This week’s study of involving stakeholders in the budgeting process has reinforced what I already suspected:  developing the school district budget is an overwhelming responsibility that absolutely CANNOT be completed alone.  Effective superintendents take their role as budget preparer very seriously and commit an incredible amount of time gathering input from various stakeholders throughout the process.  Superintendents must also recognize the importance of communicating that data to the school board.  Listening to and seriously considering the input and suggestions from teachers, principals, maintenance staff, administrative staff, SBDMs, community members, etc. is critical to the superintendent’s success. On the down side, this means that the superintendent must also spend many hours sifting through the data and determining which suggestions and recommendations are legitimate.   Many groups will provide a “wish list” that contains luxury items rather than needs.  The superintendent must be able to find the perfect balance, which is without question, a very difficult task.

The Role of the Superintendent in the Budget Process

Summary:

     After reading the material regarding the role of the superintendent in the budgeting process, and interviewing my superintendent about this topic, I have come to the conclusion that the budgeting process is the most important (and probably most stressful) role he/she has.  As the preparer of the budget, the superintendent must be knowledgeable in many areas of education: legislation, budgeting guidelines, economic trends (local, county, regional, state, and national), and most importantly, education/instruction.  The superintendent must take all of the information and data gathered from each of these sources and apply it to the development of the budget. 

   The good news is that although the superintendent is responsible for the preparation of the budget, he/she is not alone in the process.  According to the text, Learning from the Best: Lessons from Award-Winning Superintendents, effective superintendents begin the budget process by gaining unanimous support from the board.  When the superintendent and school board begin the process on the same page, there is less chance of disagreement when it comes time to adopt the budget.  Board members must trust their superintendent to make effective and efficient budgetary decisions.

     The superintendent must also work hand in hand with the school district business manager.  I have always heard that “the most effective leaders are those who surround themselves with effective people.”  This is extremely important when it comes to hiring a business manager.  Hiring someone with integrity, values and work ethic is imperative.  According to my superintendent, hiring an effective business manager is just as important as hiring effective principals.  In the same way principals have an immediate impact on student performance, the business manager has an immediate impact on the district’s financial state. 

    Finally, in the role of budgetary preparer, the superintendent must be an effective communicator and have excellent collaboration skills.   This was emphasized in the text and also in my interview with the superintendent.  According to Mr. Hartgraves, involving stakeholders, including those taxpayers who no longer have children in school, in the budgeting process will help build support for the budget.  Communication can make or break the school district budget.  Being open to input and suggestions will give stakeholders ownership and encourage their support.  This can be accomplished by communicating budget information and regularly monitoring the budget throughout the school year.

Reflection:

    When I reflect on the role of the superintendent in the budgetary process, one thought comes to mind, “OMG!”  J In all seriousness, I believe this part of the superintendency must be the most stressful part of the job.  Knowing that you are responsible for every penny that passes through the school district seems like such a daunting task.  However, as I interviewed Mr. Hartgraves, it became clear to me that the superintendents who effectively manage the finances of their school districts, do so by relying on the resources around them:  Networking between superintendents, region service center professionals, auditors, lawyers, business managers, etc.  In order to survive the stress of this position, you have to realize that you are not alone…and that you do not know everything.  Your willingness to call and ask questions, research best practices of other districts and use the resources available will be the key to your success.  

TEA Budgeting Guidelines

     The TEA Budgeting Guidelines are extremely helpful to those of us who are new to school finance.  Although it is an overwhelming amount of information, I find that the more I read, the better I begin to wrap my mind around the process.  It provides many tables, charts and other exhibits that are excellent resources for new superintendents. 

     One of the things I found most interesting in the resource guides was the list of budgetary approaches.  It never occurred to me that there are multiple ways to approach budgetary planning.  I found it interesting to read about the advantages and disadvantages of each approach.  It seems that the best approach would be a hybrid:   finding the most effective combination of methods to meet your specific district’s needs. 

     Another thing that stood out to me was the emphasis of timelines and deadlines for complying with state and federal law.  Superintendents must familiarize themselves with these guidelines and create budget calendars to ensure that each person involved in the budgeting process is aware of their responsibilities and deadlines.  Exhibit 3 on page 32 was very helpful in learning the budgetary roles and responsibilities.

     Section 2.11 on Financial Forecasting was also very interesting.  It provides multiple methods for estimating expenditure projections. Learning about these methods will help a superintendent choose the best method, or combination of methods, to suit his/her district.  This section also emphasizes the importance of knowing where your district has been, where your district is, and where your district is going.  Using past and present data to make projections about revenue and expenditures proves very effective.  Another critical component to projecting expenditures is to be familiar with state mandates and legislation for the coming year.  Many times new mandates come with new expenditures.  Failure to stay up to date in this area could result in a budget crisis.  

     Overall, I found this guide to be extremely helpful.  I have no doubt it is a commonly used resource for both new and veteran superintendents.

The Goal Driven Budget

A goal driven budget is critical to the financial success of any district.  As Dr. Arterbury stated in the lecture this week, “the purpose of a goal driven budget is to assist in the attainment of a shared vision for the school district and every campus.”  Setting specific, measurable, attainable, realistic and timely goals (SMART goals) will foster change and improvement in every area of the school district.  Unfortunately, many leaders focus district and campus planning on the areas of instruction, curriculum, programs, etc, but forget about its importance when it comes to finance.  Using the same goal driven process we use to improve student performance, we can insure that the financial state of the district will also improve.

This process begins by involving stakeholders in decision making.  The district and campus improvement committees should spend time discussing budget issues and making recommendations for the coming year budget.  When input is gathered from all stakeholders, the budget will more likely reflect the goals of the district and funds will be more effectively utilized.

The district improvement plan of my school includes a column entitled “resources.”  This column lists the specific dollar amount that is allocated for that particular area.  This provides an excellent guideline for developing the new budget.  The superintendent can use the plan to see which programs are being used and how much each will cost.  With input from the campus improvement committees, decisions can be made about cutting and/or adding programs.  The format of our plan also allows stakeholders to see an estimate of how much money is being spent to reach each specific goal.  I believe that our district and campus plans are what Dr. Arterbury calls a “version of the vision.”  We are working very hard to insure that our campus, district and board goals are aligned and that our budget process and expenditures reflect those goals. 

Although the superintendent of the district is responsible for the preparation of the budget, it is absolutely necessary that he/she involve stakeholders in the process.  Developing a goal driven budget will insure that teachers, students, parents, community members and other stakeholders have an opportunity to submit input.  This does not mean that the superintendent must take every single recommendation or “wish list” a person submits.  However, it does mean that stakeholders will be given an opportunity to share their insights and suggestions and that the superintendent will listen, consider, and take action as he/she deems appropriate.  When stakeholders feel as though their ideas have been considered, they are much more likely to support the final decision (budget).

Dr. Arterbury also emphasizes the importance of communication.  I could not agree more.  In fact, I will go a step further and say that it is the superintendent’s communication that is most important.  I have seen some superintendents in school board meetings who defer all budget questions to the business manager.  Although the business manager probably has the most insight into the details of the budget, the superintendent MUST be prepared enough to answer questions from the board.  When they continuously turn the questions over to someone else, it causes the board to lose trust in the superintendent’s ability to manage the finances of the school.  Knowing the details of the budget and being able to answer a majority of the questions about the budget will help insure the success of the superintendent. 

Communicating the progress of the budget to all stakeholders, not just board members, will create a relationship of trust and confidence.  Trust is critical to the success of the superintendent and the school district.  In these difficult economic times, it is more important than ever that our teachers, parents, and community members are informed.  The further we fall into this school finance crisis, the more we will have to rely on our outside stakeholders to help.  If they see the school superintendent as someone they can trust to make the most effective and efficient decisions for the students, they will be more likely to support difficult decisions such as personnel cuts, program cuts, or higher taxes.  Being open and honest with your stakeholders will lead to a positive, supportive relationship in which everyone benefits.

District Improvement Plans

For quite some time, I have questioned the format of our school’s district improvement plan.  Although our meets the goal-setting and planning requirements, it seems to be more of a “list” of programs and activities, rather than a plan for the future.  The budget resources are included in the plan, but not in a way that reflects goal driven budgeting. It has been my understanding that the template we use is what is required by the state.  However, the AISD plan is nowhere near the same as our template.  This shows me that the format of our plan can be changed to better meet our planning needs.  I would like to find a middle ground between our formal plan and the AISD less structured plan.

                                              

One of the things I really like about the AISD plan was the links to various types of data.  Rather than list every little detail in the plan, they offered a link that went straight to the source.  This is a great idea and is beneficial to anyone looking through the plan.  I also like the way they listed their campus teams, meetings and attendance in a clear and concise format. 

Providing the list of comp ed expenditures in Appendix A provided valuable budgeting information in a useful format.  The one thing I might change is to include exactly how much of the comp ed money is spent on each activitiy list. Our plan identifies specific comp ed expenditures throughout the plan, but the information is sporadic and not in one easy to read location. 

The list of external resources and the programs they fund was also valuable information.  I found Appendix A to be of great benefit and would like to add that type of information to our plan.  Again, I would include the specific dollar amount applied to each activity.

As far as my overall impression of the plan, I found it to be a bit generic.  Although there are links to specific initiatives and committees, I would like to see a list of specific goals for the district.  Of course, I am from a small district, which makes easier to set specific district goals, and this may not be possible in larger districts.  The goals listed in our district improvement plan are general for the district, but provide guidance to set specific goals for each campus.  I believe the district plan must be one that guides your campus administrators in building their plan.  AISD’s plan does this fairly well.  My district improvement plan is almost too detailed and is a little overwhelming.  As I said before, I’d like to find a balance between the two. Rather than a list of “what we are doing”, it should be a list of “where do we want to be in five years” and “how are we going to get there?”

Appendix B is an excellent tool.  It is similar to the format of our district plan, and is more goal-oriented and specific.  I believe this is the most beneficial piece of AISD’s plan.  It lists SMART goals and includes the desired outcomes, measurable goals, activities and resources required to meet those goals and a timeline for evaluation.  The activities listed are specific, yet concise.  There is not a lot of education lingo, which makes them easy for parents and community members to understand. 

Reviewing the AISD plan and comparing it to our district plan has been a very beneficial activity. I believe I have a better understanding of goal-driven budgeting and the different ways to report and plan in this area.  It also prompted me to research the improvement plans of other districts and evaluate their effectiveness.  My goal through my internship is to develop a more effective planning program in our district.  Comparing plans has provided a step in the right direction.

Events in School Finance History

It is very difficult to narrow the events of history down to three major events.  I have no doubt that we will all have differing opinions as to the “most important” events.  I look forward to reading the opinions of my cohort group and learning from the collaboration.

1)      I believe that you cannot identify the top three events in the History of Texas School finance without listing the acts of Maribiau B. Lamar.  He is known as the Father of Education and his land grants were one of the first plans to provide funding for education.  It is evident throughout Texas history that education was an important part of society (although it was not readily available to all ages, genders and economic levels.)  Mr. Lamar was the first to develop a way to help FUND education.  Many valued educations, but few had any ideas of how to offer education to all.   Evidence of his impact is seen in the fact that his grants founded two of Texas’ leading universities: A & M and UT.  I believe Maribiau B. Lamar lit the educational fire in Texas and although it has become an extremely complex fire, it still burns brightly today.

2)      The second event was the Gilmer-Aiken Committee/Gilmer Aiken Laws in 1947. Their purpose was to make public schools more efficient and better funded and they had an impact on multiple areas of school finance.  Their actions resulted in reduced number of school districts, increases in Teacher salaries increases, a formalize school, the SBOE was founded and  an organized approach to the state  supplementing local taxes to adequately fund education was established.  The actions of this committee were ground breaking and had an immediate effect on public education.

3)      The third historical event in school finance history I believe had a tremendous impact was the events from 1984-1995 which included the school finance court case of Edgewood vs Kirby and led to the legislative development of a new funding program that became known as the Robin Hood Plan.  This plan recaptured funds from wealthy school districts and provided them to the poor.  Although it did seem to balance the equity of public school funding, it was not a popular plan with the wealthy school districts.  The wealthy school districts ultimately filed a lawsuit which resulted in the current funding system.  The reason I include the Edgewood vs Kirby court case is that I believe it opened the door for the school finance litigation.  Suddenly districts realized that the courts were willing to be involved in this issue and court cases could have a huge impact on legislation.  This remains true today with the current litigation.

Reflection:
I found it quite interesting to compare the thoughts of my cohort group in this area.  Although few stated the exact same three top events, we all had similar thoughts as to the general theme.  This activity was very beneficial to me because I had never really considered the history of school finance and the fact that education has faced the same challenges throughout history.  Lawmakers and legislators have continued to make education a priority.  The problem is finding a system that benefits every type of school.  Trying to find a “cookie cutter” formula for education is difficult and the challenge remains to this day.   In my opinion, lawmakers today have lost sight of the true meaning of education for all.  They seem to be more interested in accountability and politics than student needs.  I have no doubt that many of the challenges we face in school finance today are due to leaders and educators who failed to put children first.  As in every other area of education, it only takes a few “bad apples” to ruin the system for everyone.  One sure thing that educators and lawmakers today can learn from the history of school finance is that it began with leaders who had a heart for children and education.

State Funding System

1)      Tier 1:  According to the School Finance 101 Manual on the TEA website, Tier 1 is made up of several allotments: “ basic education, special education, career and technical education, bilingual/English as a Second Language education, compensatory education, gifted and talented education, Public Education Grants, transportation, and new instructional facilities. Tier I also includes an allotment for specialized programs at the high school level, the high school allotment. “ The Tier 1 amount is calculated based on the basic allotment, the district’s compressed tax rate and the average daily attendance.  In a nutshell, the district starts with a basic amount, then that amount is adjusted based on the average daily attendance of students in all of the programs listed above.  The more students in the “weighted” categories, such as special education and CT, the more money the district receives.

2)      Tier 2: This tier provides a guaranteed level of funding.  The property wealth of districts will vary and the state guarantees to supplement the income to a guaranteed level.  In other words, if a small district is not earning enough money from their tax effort, the state will subsidize their income up to a certain amount.  This is in place to assist the districts with lower property wealth.  There are three levels in this Tier.

3)      Revenue at the compressed tax rate: This guarantees districts a set amount of funds per students based on weighted average daily attendance.  This is a little more confusing and I am not sure I completely understand how it is calculated.

Reflection:
There is no question that there is a problem with our current funding system.  The number of court cases is evidence that the equity is not there.  I believe that the biggest problem is the fact that the state cannot decide on an acceptable standard for accountability, which results in a roller coaster system full of unfunded mandates and expenditures.   The pressure and accountability goes up, and the amount of money necessary to meet those standards goes up, but the funding offered to districts goes down.  How in the world does that make sense to anyone?  Although it is a frustrating predicament for all educators, I admire the fact that our superintendents and other leaders in education continue to fight to meet the standards.  Although we must continue to make cuts in personnel and programs, we will refuse to sacrifice our hearts for kids.  It feels like we are fighting a losing battle, but we will press on for the benefit of the students in our districts.  Fight the good fight!

Adequacy, Equity and Equality

1)      According to “School Funding 101” in the resource section of this course, adequacy is the need for just enough funding to allow students to achieve.  There are many examples of adequacy issues in education.  Generally, these issues are the hot topics that are the center of school finance litigation.  For example, many in education believe that teacher salaries are inadequate and should be increased.   With the rising pressure of standardized testing and accountability, are teachers being adequately paid for their efforts?  Adequacy is also an issue when it comes to the amount of money necessary for the General Diffusion of Knowledge.  This is currently a hot topic in the financial litigation is whether or not the state is providing adequate resources to educate our students and again, standardized testing is listed as a reason for needing more resources.

2)      Equity is defined “equal distribution of resources for schooling, taking into account student differences and school district characteristics.”  An example is in the Tier 1 funding formula.  Districts are given more funding for programs that are above and beyond the core curriculum.  These programs include, special education, gifted and talented, career tech, etc.  Special programs are for “special” students with “special” needs that required “special” attention and funding beyond those of “regular” students.  Another example is in Tier 2.  The state has a guaranteed level of funding and will “fill in the gap” for property poor districts.

3)      Equality, according to Dr. Arterbury, means “every student has the same access to the same type of basic educational program.”  An excellent example of equality can be found in special education.  Districts are required to offer each student the same “free and appropriate public education (FAPE)” in the “least restricted environment.”  This concept insures that schools meet the needs of every student in the best possible way.  Students are not discriminated against based on their learning disabilities, handicaps, etc.  Although instructional strategies may differ, students are receiving the same type of education.  In regards to school finance, an example of equality would be in the funding formulas.  The state provides equal funds for educational programs that benefit all students.  This includes your core academic areas that are required for all students to graduate, regardless of ability.

Reflection:
Until we realize there is no “cookie cutter” method to school finance, we will never meet the criteria of equality, equity, and adequacy in school finance.  Just like classroom instruction, school finance must be adapted to meet the needs of your specific students.  For example, offering more funding for special education is an excellent way to meet the needs of students with disabilities.  However, telling a district that they can only have a certain percentage of special education students takes away from that effort.  The funding formula does not know the specific students in each of our districts…WE DO!  Therefore, we should receive the funding necessary to education every single one of them.  Just like in the classroom, each group of students comes with a different set of challenges and needs.  Providing more local control of finances will allow districts to better meet the challenges of equality, equity, and adequacy.  I am a firm believer that if we make decisions on what is best for the individual students, we cannot go wrong.  Even a “wrong” decision can work out well if it is made for the “right” reasons. 

Internship Plan Revisions

After consulting with my internship supervisor, Superintendent John Hartgraves, I decided to change activity 24 to a more in depth activity regarding budget supervision.  With the declining enrollment at HISD and current financial restrictions, it is imperative that our district examine current staffing patterns and areas where campuses could be combined and staff could be cut.  We have been through RIF situations for the past three years and must continue to make cuts anywhere possible.

The following change was made to my draft internship plan based on feedback from Mr. Hartgraves.

24. Budget Supervision

Competency 8

Examine the school budget and the various accounts under the discretion and responsibility of the principal.  Analyze the extent to which funds are directly related to increasing learning.  Include a brief analysis of major responsibilities, plans, reports, and concerns. Through an Action Research Plan, determine the minimum number of staff necessary in our school district.  Develop a plan which shows “layers” of staff assignments from the minimum staff required to the current staffing situation.  Include logistics of teachers, buildings, classrooms, etc. as well as the impact on the district budget and finances.

Keith Elrod Jon Hartgraves

May 2013

Vita Revisions

My peers were very positive and helpful with their feedback.  Their remarks gave me confidence that I was on the right track with the vita.  The recommendation to increase the information about my activities in my current position was very helpful.  I realized that I had included more info in the previous positions that I had in my current position.  Although this may be due to the fact that I have only been HS principal for two years, there are numerous activities I could include.  I appreciated the encouragement to do so.

I added the following bullet points to the Hico High School Principal section of my vita at the recommendation of my peers:

• Implemented a Positive Behavior Support program which has reduced absences and tardies, as well as improved school spirit and teacher morale.
• As campus testing coordinator, I have organized all state assessment testing dates, groups, etc.
• Successfully, hosted the District UIL Academic Meet two years in a row.

Thanks to those of you who offered input and helped me improve my vita!

Professional Vita

Shelli Dyann Stegall

913 N. Kirk Street, Hico, TX 76457

(254)485-4984; sstegall@hico-isd.net

Education/Certification

M.Ed. – Education Administration, Lubbock Christian University, Lubbock, TX, 2004

BS – Elementary Education, Math specialization, West Texas A & M University, Canyon, TX 1990

Superintendent Certificate – Lamar University, Beaumont, TX (Expected completion June 1, 2013)

Principal Certificate – Grades EC-12, Lubbock Christian University, Lubbock, TX, 2004

Texas Teacher Certificates – Elementary Self Contained (Grades 1-8); Elementary Mathematics (Grades 1-8); Secondary Mathematics (Grades 6-12);  Educational Aid I

Administrative and Leadership Experience

Principal, Hico High School, Hico ISD, Hico, TX, 2010 – present.

·         Led the implementation of instructional technology in the form of iPads and netbooks in the classrooms at HHS.

·         Led teachers in the implementation of the CSCOPE curriculum.

·         Provided district-wide training on the incorporation of the book, The Fundamental 5, by Sean Cain and Mike Laird, and led teachers in the implementation of the concepts presented.

·         Provided training in data analysis programs such as AEIS-It and Eduphoria.

Principal, Hico Junior High School, Hico ISD, Hico, TX, November 2005 – present.

·         Implemented the Positive Behavior Support Initiative by designing a comprehensive PBS program that rewarded students for positive behavior, attendance, etc.

·         Utilized the PBS initiative to improve campus morale and teamwork among teachers.

·         Led teachers in the implementation of the CSCOPE curriculum.

·         Created a positive learning environment which resulted in HJH moving from an acceptable campus (2005, 2006) to a Recognized Campus (2007,2008) and finally an Exemplary campus (2009, 2010)

·         Wrote and successfully implemented the TEEG grant which provided monetary bonuses to teachers for improved student test scores. (2007)

·         Provided training in data analysis programs such as AEIS-It.

Assistant Principal, Hico Junior High and Hico Elementary School, Hico ISD, Hico, TX, August 2005 – November 2005.

·         Assisted the junior high and elementary principals with various activities until being named Junior High Principal in November.

·         Served as textbook coordinator the district.

·         Served as testing coordinator for the junior high school.

Math Department Chairperson, Watson Junior High, Muleshoe ISD, Muleshoe, TX, 1996 – 2004.

Teaching Experience

Math Teacher, Hico Junior High, Hico ISD, Hico, TX, 2004-2005.

·         Taught 6^th grade math, 7^th grade problem solving and 8^th Grade Algebra I.

·         Served as AEIS-It contact for the district and trained teachers in the use of the data analysis program.

·         Served as UIL Director and hosted the District Academic UIL meet.

Math Teacher, Watson Junior High, Muleshoe ISD, Muleshoe, TX, 1994-2004.

·         Taught 7^th grade math, 7^th/8^th grade Pre-Algebra and 8^th grade Algebra I.

·         Co-taught the Gifted and Talented class.

·         Assisted counselor with campus TAAS/TAKS administration.

Fourth Grade Teacher, Dublin Elementary School, Dublin ISD, Dublin, TX 1991-1993.

Related Experience

Paraprofessional, Gilbert Intermediate School, Stephenville ISD, Stephenville, TX, January 1991 – May 1991.

Substitute Teacher/Stay-at-home mother, Dublin ISD, Dublin, TX, August 1993 – May 1994.

Presentations

Eduphoria Training (district-wide), Hico ISD, Hico, TX, 2011 – present.

AEIS-It Training (district-wide), Hico ISD, Hico, TX, 2005 – 2011.

District PDAS Trainer, Hico ISD, Hico, TX, 2005-2008.

District PDAS Trainer, Muleshoe ISD, Muleshoe, TX, ?? – 2004.

Elementary Mathematics Academies, ESC 17, Lubbock, TX, 2001 – 2002.

Professional Affiliations

Texas Association of Secondary School Principals, 2005 – present.

Texas Classroom Teachers Association, 1994 – 2005

Honors and Awards

Delta Kappa Gamma Administrator of the Year, Stephenville Chapter, Stephenville, TX, 2010

Secondary Teacher of the Year, Muleshoe ISD, Muleshoe, Texas, 1995

Community Involvement

Civic Club Board of Directors, Hico Civic Club, Hico, TX, 2011 – present

·         Organize community service events that maintain a positive relationship between the school and community.

·         Organized and supervised a High School and Junior High Dance as well as a 5K Run during the Hico Old Settler’s Reunion Week.

Civic Club Member, Hico Civic Club, Hico, TX, 2006 – present

Provide student and HISD faculty volunteers for various community service events.

·         Provide student volunteers to deliver United Care gift boxes at the Senior Citizen Center each month.

Volunteer for Texas Steak Cook-Off, Hico, TX, 2005 – present.

·         Provide, train and organize volunteers for the event.  Most volunteers are HISD employees.

·         Served as an Assistant Director in 2011-2012.

Volunteer for Hico Six Man Super Saturday, Hico, TX, 2005 – present.

·         Organize student groups to work the concession stand.

·         Assign volunteers (HISD employees) to work the gate throughout the day.

·         Provide a list of contributing organizations to the Super Six organizers.  Each contributing organization is provided with a monetary donation from the Super Six fund.

Professional References

References will be included on a separate page, if requested.