Schoales: 7 Principles For School District Budgeting In A Time Of Financial Armageddon

Schoales: 7 Principles for School District Budgeting in a Time of Financial Armageddon

Colorado’s school district boards are facing a monumental task of making crucial financial decisions. These decisions will involve making significant cuts to their budgets, which is an unprecedented challenge for school boards and district financial leaders.

The impact of these budget decisions in the upcoming month will be profound and long-lasting, as they will shape the educational experiences of students for decades to come. Quality education holds immense value as it has a lifelong impact on individuals, and its importance will likely be even more apparent after we recover from the current economic downturn. Similar to previous recessions, state education budgets are expected to be affected not only this year but for the next five years or more. While federal stimulus funding might provide temporary relief for this year, it cannot be relied upon as a long-term solution.

It is well-known that districts with low-income students and children of color receive significantly less funding compared to wealthier, predominantly white areas. Moreover, within districts, vulnerable students, such as those from high-poverty backgrounds, special education students, emerging multilingual students, and homeless students, already face inequities in terms of per-pupil funding, teacher experience, and class sizes. The COVID-19 crisis has exacerbated these inequities and further disadvantaged these already marginalized students.

Rarely has a Colorado school district faced the challenge of slashing 3 percent, let alone 10 or 15 percent, from a budget that was expected to experience significant growth just a few months ago. The challenge is further compounded by the escalating costs of dealing with COVID-19, increasing pension expenses, and rising personnel costs. Additionally, fewer teachers are leaving the profession due to financial reasons, which adds to the strain on district budgets.

So, what can be done in this situation?

1. Districts need to consider every option for discussion. No program, school, or employment contract should be exempt from exploration.

2. It is crucial for districts to present their budgets and projections in an understandable manner to the public. This will help people comprehend the magnitude of the problem and the available options.

3. A set of principles should be established to guide decision-making, with a strong focus on student health, safety, and education. The well-being of the most vulnerable children should be given special attention.

4. All adults in the district must be willing to make sacrifices for the benefit of the students. It is important to recognize that some individuals may have to make greater sacrifices than others.

5. Board discussions should be frequent, transparent, and easily accessible to the public.

6. Community feedback should be actively sought through conversations and polls.

7. Lastly, and most importantly, school boards need to demonstrate political courage in utilizing all available information to develop a budget that prioritizes the needs of the students.

Finding solutions will not be easy. The community, especially students and their families, will undoubtedly be negatively affected. Many adults within the school district may lose their jobs or experience significant salary reductions. However, implementing cost-cutting measures now can help prevent even more disruptive and widespread layoffs in the future.

Making these decisions will undoubtedly be the most challenging task that school board members have ever faced. Many will need to quickly gain a deeper understanding of school finance, a level of expertise that was not previously required before this crisis.

While it may be viewed as the most difficult moment for school board members, I believe it should be seen as their finest hour due to the magnitude and importance of their decisions. Although many board members may face consequences in the next election, their commitment to what is best for the students should remain their motivation for serving on the school board.

Van Schoales, the CEO of the nonprofit organization A+ Colorado, has extensive experience in leading education reform efforts. He has contributed to the establishment of various nonprofit groups, including the Odyssey School, Denver School of Science and Technology, Democrats for Education Reform Colorado, Bay Area Coalition of Equitable Schools, and Chalkbeat Colorado.