Saying that it’s not easy for school districts in the realm of K-12 financing is an

understatement. Funding models across each state have their own nuances, and you
must continuously stay on top of changes in tax structures and grant programs before
attempting to create a realistic budget proposal.

But thankfully there are a number of ways to make the budgeting process flow
smoother and, when practice becomes habit, much of that routine can lighten the loads
of administrators who wear too many hats. In what follows, we examine the five biggest
education finance considerations: communication, technology, networking, shopping,
and contracting.  

Communication Across All Levels

Not only is communication important between business managers and district
superintendents, but soliciting the opinions of building principals and other
stakeholders is equally helpful. There’s no one in a better position to monitor potential
structural or systems costs than the folks who spend their work week on the premises.
For example, requiring monthly, or more frequent, reports on the state of the physical
assets can prevent unexpected and significant cost outlays. Maintenance staff often
have their finger on the pulse of a burgeoning problem so creating an efficient
reporting hierarchy is a prudent step.

Technology that Works for You

The reason for the slow migration of innovative trends in schools is obvious. Hardware
and software cost money, and so does the dedicated IT staff needed to maintain those
assets. These outlays far outpace traditional expenditures on pencils, protractors, and
paper. Yet, the school budgetary crunches seen nationwide shouldn’t preclude business
managers from using the latest tools available to forecast budgets and track spending. If
you’re performing accounting practices the old-fashioned way, investigate software
packages that will save time and resources—and ultimately dollars. The considerable
return on investment from automation simply can’t be forsaken. A great place to begin
may be small business accounting applications, which help public and private entities
with equal effectiveness.   

Networking with Your Peers

Networking is effective and free (unless it’s your turn to buy the coffee). Every state has
structured associations that business managers can join to discuss pertinent school
finance issues. Where those organizations don’t exist, or attending is simply a challenge,
pick up the phone and reach out to a counterpart at a neighboring district. It never hurts
to see what peer districts are doing to spend wisely and cut costs. Furthermore, aligning
with surrounding districts, in respect to salaries and benefit structures, can offer
legitimacy to your own proposals. For example, it’s difficult to suggest your employees
make significant contributions to healthcare premiums when a neighboring district
require minimal cost-sharing.

Smart Shopping for Health Benefits

As long as claims are paid and employees receive quality care, CFOs tend to stick with
the status quo when it comes to insurance carriers and other administrative partners.
Yet, you shouldn’t get lulled into thinking that there aren’t better options in the
marketplace. The relative size of districts gives them adequate means to negotiate fees
and premiums on their own or join a coalition that can leverage bargaining power even
further. Shopping insurances and brokers at least every three years will keep current
carriers honest and perhaps even uncover newfound ways to cut benefits expenditures.

Contracting Out Staffing

In school districts, intense budgetary scrutiny forces administrators and business officials
to think outside the box. Traditionally, schools would internally handle all recruiting,
hiring, training, and administering payroll for substitute teachers. Needless to say, with
teacher salaries commanding about 80% of budgets, this undertaking, albeit one piece
of the puzzle, costs districts substantial time and money.

Unique staffing agencies specializing in education have come to the fore lately, and
these entities understand the numerous problems facing schools today. By removing all
the expense of payroll and hours of administration, companies that specialize in absence
management can effortlessly help address ever tightening budgets.

The Bottom Line on Education Finance

Ultimately, the best practice in education finance is to take advantage of the structures
that support you, and if those structures don’t exist yet—create them. Make sure your
internal communication systems support employees from the ground up so you’re
aware of problems early on. Network with neighboring districts as much as possible, as
this will help you stay up-to-date with policies and technology. Shop around where you
can, and contract where you can’t.   
If you could offer one bit of advice to the students who surround you it would probably
be, “never stop learning.” That adage should also apply to your own daily endeavors
when navigating the choppy waters of education financing.