SCHOOL FINANCE BUDGET REDUCTION PLAN AND JUSTIFICATION Essay

SCHOOL FINANCE BUDGET REDUCTION PLAN AND JUSTIFICATION - Essay Example It is the duty of the principal to go back to their respective campuses and then collaborate with their school leadership teams in order to develop a comprehensive plan regarding how to accomplish such budgetary reductions from their existing operating budget. The objective of the study is to plan the budget cut from given information and justify the items chosen to remove or reduce from the school budget in order to meet the district requirements. Budget Reduction Plan The most challenging task of budget cut is to determine the primary sources of revenues and expenditure and then to allocate scarce resources according to requirements. It is general that in a high school, the majority of school budget is allocated towards the benefits and compensations of their staff. In such a scenario it is very important to keep in mind that any significant reduction in the compensation of core teachers and most important staff might lead to de-motivation of staffs and unrest in the campuses. In order to avoid such disputes, the rest of the budget allocations have to be re-planned and prioritized in such a manner so as to help the districts meet goals and standards of the students’ academic performance (Williamson, 2011, pp.1-5). The annual budget is a statement of expenditures and revenues that are likely in a high school during the fiscal. It has to be determined at a prior stage whether the school would have enough funds to pay for the necessary activities by ensuring optimum resource allocation matching school priorities. The budget has to be realistic in the sense that all items of reduction have to be justified to respective departments when cuts will be introduced. All minute details must be highlighted such as any probable error in estimating teaching staff requirements in case any staff leaves the school. Also, it must be ensured that all regulatory and statutory requirements have been complied with. A realistic school budget will ensure financial stability by lowering financial crisis risk during the year; educational excellence by hiring the best teachers available at attractive packages; and reputation and image of school reflected from the relationship between the authority, pupils, and staffs. T he first stage of budget reduction plan is to identify the primary sources of revenues and expenditures (Hechinger Institute, 2011, pp.1-9). Identification of Primary Sources of Revenues The expenditures of a high school are generally divided into three categories namely, salaries and employee benefits, materials and supplies and capital expenditures. In addition, the states also collect expenditure data of school by transportation, operations, debt service and maintenance. It is important to note that the schools hire instructional staffs, custodians, and cafeteria workers in addition to licensed staff members such as administration and teaching staffs, librarian, counselors, etc. Thus, the biggest expenditures in a school are consumed by the personnel. During the 1950s, the teachers’ constituted almost 74% of total school staff and the numbers have been reducing since then as the percentage of instructional staff has been increasing. In the 20th century the percentage of te achers dropped by almost 33% and they have been replaced by instructional aides. The teachers’ salaries are compensated by most districts under single salary schedule where teachers are compensated on the basis of their educational level and total years of experience in teaching profession (Serwach