Budget advisory committees: making sense of complex issues: administrators from four very different districts in California offer their perspectives on how to work successfully with budget advisory committees

Leadership, March-April, 2003 by Leslie Goldring

In January; legislators returned to the lane to resolve the huge deficit remaining in this year's budget. This mid-year reevaluation is one indication of the abnormal budget cycle first experienced in 2000-01. The Legislative Analyst's Office predicts that the state may continue to face annual operating deficits of $12 billion to $16 billion as a result of the continued imbalance between revenues and expenditures. The reality of increasingly limited resources invites districts to review expenditures and the value of each educational program, and sharpen their best decision-making tools.

In order to address the complex relationships involved in school finance, school boards and district administrators often commission budget advisory committees as advisory tools to deal with the gap between the financial support districts plan to receive and what arrives courtesy of the state budget.

Four associate superintendents for business services--from distinctly different Northern California school districts--who have helped to create or guide their committees offer their insights here. These administrators serve in elementary and K-12 districts. Some have previous experience with financial crisis.

Financial pressure

Districts are familiar with the difficulty of balancing a budget with limited resources. These chief financial advisors say it is no different for them. Los Altos Elementary District is facing a $1.5 million budget imbalance. Vallejo City Unified continues to work diligently on its financial plan to recover a 3 percent reserve, and San Juan Unified is concerned with the effect of rising health benefits on its budget. Oakland Unified will continue to work under the guidance of the Financial Crisis and Management assistance Team reward financial recovery.

Decision architecture

All four associate superintendents agreed with the finding from research that group decisions surpass those of individuals. The diverse background and beliefs of members, as well as their expertise in some cases, are the reason these associate superintendents found committees fit the current needs of their district.

Each budget committee serves in an advisory capacity, either directly to the Board or indirectly through the associate superintendent. This allows recommendations from a group that has taken time to study issues at some depth to inform Board decisions. An advisory committee can provide an alternative meeting format for what Peter Senge called a "learning board."

Paul Desario, assistant superintendent for business services in San Juan Unified, a district with more than 50,000 students, appreciates the experience and influence of his committee of site managers. "Committee meetings allow principals to state what it is they need to run the school, as well as what they don't need. Principals have knowledge about programs that we don't have at the district office." He is referring to information regarding program implementation or success that doesn't show up on a balance sheet.

In a large district, this committee also helps to reduce the isolation between the central office and sites. All budget advisory committees meet monthly, either throughout the year or synchronized with the January through June budget cycle.

Committee membership

Randy Kenyon, working in Los Altos Elementary, a district with fewer than 4,000 students, said committee membership for his small district includes representatives from all bargaining units, one or more elementary and middle school principals, three parent representatives, and central office administrators including the superintendent and himself.

Since the committee has been dealing primarily with recommendations for budget cuts, this broad representation not only is used for initial recommendations to the Board, but also has resulted in sufficient trust between members to support administrative mid-year cuts without reconvening.

Districts may also separate their immediate and long-range financial needs by committee. The Los Altos Elementary school board charges a second committee, the Citizens Advisory Committee for Finance, to look for long-range local support for their district. Parents, community members, the associate superintendent for business services and the superintendent belong to this second committee.

Frank Remkiewicz has found that the Budget Advisory Committee in the Vallejo City Unified District has provided some of the best thinking for working with the budget in his district of more than 20,000 students. "The meetings provide a forum where all can listen with attention. It provides some great ideas for us. We tend to throw controversial things their way." Remkiewicz is referring to the fact that an advisory committee has the luxury of isolating and debating the financial aspects of decisions that are politically charged.

Schools needing intervention

Oakland Unified School District is subject to the typical stressors of urban districts. In the case of Oakland, this is compounded by factors that contribute to fiscal instability and lack of organizational focus, according to the executive summary of FCMAT'S Comprehensive Audit. FCMAT's list of conditions most commonly found in districts requiring intervention provide a planning guide in an era where districts struggle to remain solvent.