BUDGET

DEFENSE
MICHELLE KUBY
CO LLE GE OF E DUCATIO N, G RAND CANYO N UNIVE RSITY
EAD 510 : EDUCATION F INANCE
DR. NESA SASSER
DECEMBER 23, 2020
BUDGET DEVELOPMENT PROCESS
Communit
y Members

Board
Student
Member
s s
Stakeholder
s

Staf Parents
f
B UD GET C OM P O NENTS
2 0 1 9-2 0 2 0

Total Revenue 2019-2020

$3,348,509.93

• Federal Funds
$597,642.54

• Local Funds
$1,071,680.27

• State Funds
$1,679,187.11
BUDGET OPERATIONS
 Salary/Insurance/Benefits  Instructional Supplies
 Instruction (Teachers) $2,291,140.37  Supplies Gr 5-8 $20,000.00
 Support Services (Support Staff) $991,537.06  Supplies- Sp. Ed. $5,000.00
 Supplies- Fine Arts/PE $3,000.00
 Transportation $5,000.00
Funds Allocated

Teacher
1%
0%
1%
Support Services
30% Instructional Supplies
Technology
Office
Events
68%
BUDGET OPERATIONS CONTINUED
Technology
Office
 Computers $10,000.00
 Paper $3,200.00
 Software Instruction $10,000.00
 Copier $1,000.00
 SMARTboard $4,500.00

Funds Allocated

Teacher
0%
1%
1%
Support Services
30% Instructional Supplies
Technology
Office
Events
68%
BUDGET OPERATIONS CONTINUED
Events
 Grandparents Day $500.00
 Honor Roll Breakfast $2,000.00
 Awards Ceremony $200.00 Funds Allocated

Teacher
0%
1%
1%
Support Services
30% Instructional Supplies
Technology
Office
Events
68%
BUDGET CONSIDERATIONS
Fixed Costs Variable Costs
Mortgage Electricity
Insurance Water
Building Maintenance Gas

*The Fixed and Variable Costs of the building operations have been omitted from the sample
budget.
REVISED BUDGET
Problem Statement:
School District is proposing a 10% reduction in budget and to cut one teaching position.

Adjusted Operating Budget with 10% Reduction: $3,013,658.94

Total Savings: $334,850.99

Goal:
Remove $334,850.99 from the budget while still aligning to the school mission statement.
REVISED BUDGET

Line Item Funds Allocated Adjusted Funds Allocated

Teacher Salary/Benefits $2,291,140.37 $1,956,289.38
Support Staff $991,537.06 $991,537.06
Instructional Supplies $33,000.00 $33,000.00
Technology $24,500.00 $24,500.00
Office $4,200.00 $4,200.00
Events $2,700.00 $2,700.00
TOTAL $3,347,077.43 $3,012,226.44
Deficit/Surplus -- $1,432.50
 Option 1:

• Reduce Number of
Teachers
POTENTIAL
SOLUTIONS
Option 2:

• Reduce Teacher
Pay/Benefits
* Due to the fact that 68% of the budget is in Teacher Pay/Benefits, the most logical place to
reduce the budget is in this area.
PROS & CONS

• Option 1: Reduce Number of Teachers • Option 2: Reduce Teacher Pay/Benefits

– Pros – Pros
• Only adjustment needed for the budget • Do not have to get rid of anyone
• Not all teachers will be affected • Keeps class size down
• Teacher Pay/Benefits are unchanged – Cons
– Cons • Teachers lose money
• All teachers are necessary • Potential effects to teacher morale
• Class size numbers will increase
• Potential effects to teacher morale
PROPOSED SOLUTION

• 68% of the budget is teacher compensation. Since it is the largest percentage of the budget by
far, it is the optimal place to reduce.
• In order to reduce the budget by $334,850.99, the school would have to cut 9 teachers.
• This is too large of a cut to make and still align with the school's mission.
• The best solution is to reduce all of the teachers pay and benefits by 10.5%
• This will allow all other programs within the budget to remain the same, as they are necessary
to the success of the students.
COMMUNITY RESOURCES
Dream Center Peoria
Common Place
Boys and Girls Club
Big Brothers and Sisters
STUDENT NEEDS

• Class sizes will not increase

• Effective and engaged teachers
• Diversity of community
• Technology Use
POLITICAL INITIATIVES & EMERGING
TRENDS
• Technology is an ever-evolving resource that is highly utilized within the classrooms. With the
switch to computer based standardized testing, it is important to keep the technology budget
intact.
• Adjusting the technology budget is therefore not an option.
RATIONALE

• Although the solution would be to reduce teachers' salaries, this would have a negative impact
on the students, school performance, climate and culture within the school.
• The average middle school teacher salary within Peoria Public Schools is between $26,000 and
$47,000. The average middle school teacher salary in Illinois is $60,946.00
• Peoria Public School teachers are already making significantly less than the rest of the state, on
average. Reducing the pay would just create a larger divide.
• Teacher morale is essential for creating a learning environment for our students. If the teacher's
spirits are down, we can not expect our students to be successful.
REFERENCES

Sorenson, R., & Goldsmith, L. (2018). The Principal's Guide to School Budgeting: Third Edition.
Thousand Oaks, CA: SAGE Publications.

Creating Budgets with Stakeholders in Education. (2017, April 19). Retrieved from
https://study.com/academy/lesson/creating-budgets-with-stakeholders-in-education.html.

Weishart, J.E. (2014). Transcending Equality Versus Adequacy. Stanford Law Review, 477-544.