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Jessica Egger

EDLP 6100
Outcome A: Bid Threshold

Last year, I had the invaluable opportunity to assist in creating the 2015-2016 FY budget at PS #2
in Paterson with the Assistant Principal charged with this responsibility. The PPSD Business Office
distributed a Budget Development Procedure booklet to guide administrators through the required
preparation and procedures. According to the document, the rules, regulations, and constraints are
outlined on PPSD Board Policy 6220, and must comply with the School Funding Reform Act of 2008
(6A:23A). The budget funding is based on enrollment projections data gathered through ASSA reporting.
ASSA reporting is due annually on October 15, and the budget is due in late December/early January to
an assigned Assistant Superintendent. As the Bilingual Point Person at PS#2, I am required to compile
data and complete components of the ASSA related to students with limited English proficiency (LEPs),
so I am also acutely familiar with this aspect of budget creation. Once student enrollment projections
are identified in the General Education, Special Education, and Bilingual populations, Cost Per-Pupil
funding (CPP) is applied to assess a buildings estimated budget. The CPP applied to K-8 buildings in
2015-2016 FY was $250. PPSD administrators utilize Alio technology to prepare their budgets.
Administrators are required to designate each line item to a particular account code (ex.
Supplies/materials, consumables, field trips etc). Once the account is identified, a PPSD district priority
goal must be assigned based on the Bright Futures Priorities, Goals, and Strategies of the district. These
codes have specific goals attached to each priority which must be accounted for (ex. Priority 1 Effective
Academic Programs Goal 1: Increase Student Achievement, Goal 2: Create Healthy School Cultures,
Priority 2: Safe, Caring, and Orderly Schools Goal 1: Create Schools with Healthy School Cultures, Goal 2:
Improve Student Discipline). There a total of 5 district priorities with a median of 7 goals each.
Administrators can attend informational and working sessions to receive support in their schools
budget creation.

Jessica Egger
EDLP 6100
Outcome A: Bid Threshold
Once money is allotted it must be spent. Doing so, involves the Purchasing Department. In their
2015-2016 Purchasing Manual, Policies and regulations are outlined as requirements to comply with NJ
Contract Law. Included in this are policies regarding competitive bidding. If the purchasing request
exceeds the bid threshold of $40,000 in aggregation, the item(s) must be competitively bid by the
Department of Purchasing (2015 PPSD Department of Purchasing Manual, p. 7). If any items or services
exceed the $40,000 threshold, they must undergo the bidding process. This items and services include:
building services department, plumbing/electrical/hvac work, custodial supplies, public works project,
food services department, technology, computer supplies/equipment, printers/computers, interactive
boards, and Title 1 testing (2015, PPSD Purchasing Manual, p.28). However, there are exceptions to the
bid threshold limits which include the following: purchasing through state contract, cooperative
purchasing, textbooks and copyrighted materials, student activity fund purchases for students, travel
and conference expenses, legal notices, utilities, and election expenses (2015, PPSD Department of
Purchasing Manual, p.9). Items and services required to undergo the bidding process are dealt with at
the district level. Appropriate vendors are pre-selected by PPSD, so when budgeting is done at the
school level, administrators include these items in the appropriate line item within each category; they
are intermingled throughout the budget spreadsheet. As well, contract awardees for various services are
also managed at the district level by the relevant department. For example, building maintenance
expenses are handled through a work order system and routed to the facilities department for funding
and completion.
In conclusion, since PPSD is a state controlled district most of the bidding process takes place
outside of the building administrators purvey. However budget creation, is left under the auspices of
each building administrator. In the case of PS#2, this process is facilitated by an Assistant Principal with
minimal oversight from the Principal. Typically, the principal has a small wish list of items that are
included in the budget creation process. PPSD has purchases many programs as a means of instructional

Jessica Egger
EDLP 6100
Outcome A: Bid Threshold
tools. Although these items are mandated as curriculum by the district, each school based budget is
required to absorb these instructional material costs in their budget projections.