Budgeting Changes Needed at CFBISD

The four B’s of school budgeting: baffle, bewilder, befuddle …. Bobby

At its August 13th meeting, the Carrollton Farmers Branch School District Board Trustees will "Consider Revised Time, Place and Location of a Public Meeting to Discuss Budget and Proposed Tax Rate for the 2009-2010 Budget Year." The Board of trustees face the thorny task of approving a budget for the 2009-2010 school year. The district faces a $10 million deficit and must contend with $3 million in state-mandated teacher raises, whose federal funding is uncertain. In June, district superintendent Bobby Burns' staff presented the board with three preliminary budget options, two of which would require a rollback election. In order to pass a balanced budget, trustees were told, the tax rate would have to rise 9 cents to $1.457 per $100 of valuation. The Districts current total tax rate is $1.367 per $100 ( $1.04 per $100 of valuation for management and operations, $ .327 per $100 of valuation for debt service. ) As January 2008, only 123 districts 0f 1028 school districts in Texas had a higher combined tax rate.

What is baffling, bewildering and befuddling, is the board of trustees has all but excluded the public from the budgeting process. Last May, the public clearly expressed its lack confidence in the board by ousting two sitting trustees, including longtime board President John Tepper. This vote was not simply a referendum about the outcome of the Annette Griffin affair , but a clarion call for more open school district governance. Even if the board chooses to forgo a tax increase in favor of substantial budget cuts, the board and the district administration must acquire the buy-in of the public to final budget, if the district is to succeed in these trying times.

What is baffling, bewildering and befuddling, is the budget deficit is a surprise. In August of 2008 the Board of Trustees approved a budget for 2008-2009 school year where expenditures exceeded revenues by almost 13.5 million dollars. (Revenue $284,230,351 Expenditures $297,664,026). The deficit is expected to be funded by depleting the district’s general fund (savings account). In August of 2007 the Board of Trustees approved a budget for 2007-2008 school year where expenditures exceeded revenues by 6 million dollars, the final actual shortfall was 2 million. It baffling, bewildering and befuddling that the Board of Trustees would continue to approve budget resolutions where expenditures grow at faster rate than revenues , compounding the size of yearly deficit. Clearly as early as the spring of 2007, it was apparent that difficult decisions on budget priorties had to be made by the district.

The Board has a choice to make to continue to approve budgets that compound the size of deficits and continue to deplete the general fund balance, or include the community in setting budget priorities, and make the tough budget decisions that are necessary for financial well being of the district. If the board of trustees does approve a tax rate increase, the board will no doubt try to justify the increase as necessary to paid for righteous cause like a well deserve paid increase for teachers. However, any increase in revenues from a tax rate hike cannot be earmarked for a specific purpose. If the board adopts a budget that makes any spending contingent on a tax rate increase, the board is identifying those expenditures as the least important to district, in the opinion of the board. Any tax rate is permanent; there is no assurance that future budgets will reflect the priorities of the community.

It is baffling, bewildering and befuddling, that board would expect the community to surrender more its treasure, without greater input to the budget priorities and transparency.
Successful change begins with acquiring the community’s buy-in to needed budget changes. In the future, the Board of Trustees must increase transparency of, and community participation in the financial decision making of the school district. First, the board needs to create a community based committee to advise the board on budget priorities. This committee should include a broad membership, including parents, community and business leaders, educators and others. Preliminary budgets and options should be posted on the district website, and an provide opportunity for every member of the community to have a voice in setting budget priorities. Everyone agrees that student achievement should be the highest priority of the district. In these trying times, the goal of high student achievent must be accomplished, while maintaining
cost-effective operations. Secondly, the district should post quarterly financial statements and monthly check registers on the district website. Only by the district providing complete financial transparency can the community evaluate the the return on its tax dollars invested to gains in student achievement.