© Education Resource Strategies, Inc., 2013© Education Resource Strategies, Inc., 2014

Student-Based BudgetingIs it Right for Your District?

April 3, 2014

Today’s Presenters

David Rosenberg

Manager

Jonathan Travers

Partner

John Scanlan

Chief Financial and Administrative Officer

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Agenda

About ERS

Student-Based Budgeting: a quick recap

Lessons from Cleveland

SBB in a national context

Questions and discussion

Education Resource Strategies (ERS)is a non-profit organization

dedicated to transforming how urban school systems organize resources

(people, time, technology, and money) so that every school succeeds for

every student.

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Our vision of school district transformation

StandardsTeaching

School Design

Leadership

School SupportFunding

Partners

Where we work

Los Angeles

Oakland

SaintPaul

Chicago

Cincinnati

Atlanta

Philadelphia New York City

Syracuse

Rochester Providence

Baltimore

Prince Georges County MDWashington DC

Charlotte-Mecklenburg

Duval County

Boston

Denver

Georgia Districts• Fulton County• Hall County• Vidalia City• Treutlen County• Marietta City

Cleveland

Austin

Albuquerque

Michigan

Tennessee

Waterbury, CT

Aldine

NewarkSacramento

District work State work

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Agenda

About ERS

Student-Based Budgeting: a quick recap

Lessons from Cleveland

SBB in a national context

Questions and discussion

Flexibility

School leaders define the resources they

need to drive student achievement

“Principals own their budgets”

Student-Based Budgeting aims to strengthen the funding system

Equity

Resources are distributed equitably

based on student need

“Dollars follow the student”

Transparency

Clear and easily understood rules for where, how, and why

dollars flow

“The formula tells you what you get”

Source: ERS

“Weighted Student Funding (WSF)”

“Student-Based Budgeting (SBB)”

“Fair Student Funding (FSF)”

Traditional vs. SBB Funding Systems

Traditional Student-Based-Budgeting

Schools receive funds based on…

District-wide staffing and resourcing ratios

A formula based largely on individual student needs

School budgets include…

Specific staff positions plus a targeted set of prescribed resources

Dollars spent on resources to implement the school’s instructional model, plus categorical/centrally controlled funds

School leaders actively control… <5% of school budgets 50-70% of school budgets

Source: ERS

Tied to real student need, requiring additional resources to address effectively

Objective and quantifiable

Schools should not have direct control or agency over the metric

Present in at least 3-5% of, but not all, students

Exist at more than one school, with variation across schools

Key decision: what student attributes to weight?

Source: ERS

Relevant

Measurable

Independent

Significant

Diversified

Weighted attributes should be:

SBB implies a big shift in how schools and districts work together

Source: ERS

Increased strategic responsibility for school leaders

District office assumes a “customer service” role

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Agenda

About ERS

Student-Based Budgeting: a quick recap

Lessons from Cleveland

SBB in a national context

Questions and discussion

Per-Pupil Funding to Support School Autonomy

CMSD Portfolio Implementation

Setting the Stage for SBB

Cleveland Plan—Defined the goals, set context Portfolio District Quality is a measure

HB 525—Created the work conditions CBA —Created some flexibility CEO Driver—Faster…clock is ticking Designing the solution

We believe….

When school leaders control their resources, they serve children better

Control Time (Master Schedule and Collective Bargaining Agreement)

Control Treasure Student-Based Budgeting (SBB) Control Talent TDES and Hiring

All leaders have the right to these tools Don’t need to earn autonomy All schools are accountable for student achievement

SBB

Weights Base lower than most districts Literacy Lo and Hi, Graduation rate, Grade (K-3) Mobility SPED, ELL

Formula Driven by district strategies… Increase literacy, fix HS in

Elementary, manage special needs Be aware of all stakeholder expectations

The Devil is in the Details, and You Need Tools to manage the Devil

Transition Strategies

Soft Landing—Temporary policy to ease into or soften the transition to SBB

Average Salaries Baseline Service Measure Communicate Clear Flexibilities Revised Planning and Budget Cycle Redesigned Central Office Pilot or No Pilot

Learning

Talent Strategy-Work force composition is key driver TDES Differentiated Compensation Creating a performance driven culture

Integration and interdependency issues TRAIN, TRAIN, TRAIN—“It’s only real when it’s real.” Don’t forget CO In or Out People don’t like change, and this is change

Support

NST GUIDE BOOK SEMINARS TOOL KIT DESIGN TEMPLATES MODELS

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Agenda

About ERS

Student-Based Budgeting: a quick recap

Lessons from Cleveland

SBB in a national context

Questions and discussion

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Top lessons for SBB design and implementation

It’s about academics, not finance Make it worth your while…or don’t make it Details matter…a lot Central’s cheese should move at least as much as

schools’ Ground design AND stakeholder engagement in “the

why” Roll out + revenue decline = Extra-special challenge The work is never “done”

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Agenda

About ERS

Student-Based Budgeting: a quick recap

Lessons from Cleveland

SBB in a national context

Questions and discussion

If you’d like to ask a question…

If you want to talk:

Raise your hand

To pose a question:

Type it here

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How do you account for student risk factors in SBB?

What impact does SBB have on

financial reporting?

What is the impact on student

achievement?

Thank you for joining us!

For more information:

www.erstrategies.org

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