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VALUE-BASED BUGDETING: DOES IT HAVE A PLACE IN THE ANCHORAGE SCHOOL DISTRICT BUDGET PROCESS? Ashley Carter Robert Heide Abbey Jackson Greg Stocker OBJECTIVE This evaluation of the Anchorage School District explores the benefits of value based budgeting and its potential impact on the district’s budget process. ANCHORAGE SCHOOL DISTRICT ASD in top 100 largest school district in country Alaska largest tax collection per capita Alaska smallest tax burden on residents per capita ASD budget recently limited at 1.5% increase for inflation by MOA Tax cap susceptibility GROWING BUDGET IS A GROWING CONCERN LARGEST PORTION OF ASD BUDGET, GENERAL FUND LOCAL FUNDING WITH NO ASD CONTROL ASD BONDS Most recent Bond elections April 2011 • Prop 1 Failed, Renovation of Service High • Prop 2 Failed, Building life extension district-wide • Prop 3 Passed, Improve and expand Technical and Vocational Education programs Since 2002 it has been a 50/50 split between pass/fail school bonds in MOA. PREVIOUS ATTEMPTS 2010-2011 ASD faced $12 million budget shortfall The federal Education Jobs Bill further reduced the gap by $7.6 million Other cuts were made including: • Elimination of elementary summer school • Elimination of two assistant principals • Reduction of library media aides Increased fees to help reduce shortfall PREVIOUS ATTEMPTS 2004-2005 ASD faced $26 million shortfall Task force assembled to come up with solution Larger class sizes Higher fees Long list of programs and personnel cuts OTHER CUTS IN 2004-2005 Community Schools cut Seventh-period class in middle schools cut 54 less teaching positions 10 percent cut to department’s supply and equipment budget OTHER SOLUTIONS Private schools help • The number of people you need to service, the less money you have to spend • Anchorage does not have a large private school contingency, unlike many other cities similar in size and public school budget Across-the-board cuts • Union representation makes it difficult, due to the long contract-approval process VALUE-BASED BUDGETING Also known as performance budgeting or results oriented budgeting Definition History Defensible v. Justifiable funding Current economic climate and accountability ASD GOALS & OBJECTIVES All students will graduate from high school prepared for postsecondary academic/vocational/career opportunities. The achievement gap between racial, ethnic and economic groups in the highly diverse ASD will be eliminated through education that is accessible, culturally responsive, supportive of students and safe. ASD will partner with parents and the community for greater educational success for our students. ASD will manage effectively and efficiently all financial and human resources. All ASD departments will support the mission of the District with good customer service, both internally and externally. PERFORMANCE BUDGETING IN ASD 2011-2012 was first budget developed using value based budgeting strategies Carol Comeau’s perspective School board objectives Community involvement No Child Left Behind/Recovery Act IMPLEMENTATION Key aspects of implementation Decision Making: Governmental Accounting and Standards Board • • • • • setting goals and objectives planning program activities to accomplish these goals allocating resources to these programs monitoring and evaluating the results modifying program plans to enhance performance” WHY IS IT IMPORTANT? There are many benefits to implementing Performance Based Budgeting: 1. Provides accountability to the public 2. Compares cost effectiveness between programs 3. Drives redesign of programs and improves understanding of crosscutting programs 4. Helps rationalize budget allocations 5. Helps align government (or other entity) spending with overall goals WHO IS DOING IT? Performance based budgeting is not a new concept New York Experiment • Outcome • Popularity CMSI group WHO IS DOING IT? (CONT.) Many K-12 schools and colleges across the country are very interested in this budgeting technique that has become very popular States: • • • • • New York Alaska New Hampshire Chicago, Illinois Milwaukee , Wisconsin Colleges DOES IT WORK? K-12 Colleges ALASKA ASD Marie Laule RECOMMENDATIONS Thorough and consistent implementation in conjunction with other budgeting strategies • Increase/maintain stakeholder participation and input Two conditions necessary for successful performance based budgeting • • • Forward budgeting Integration of measures throughout the fundamental management process Commitment to make performance relevant in each phase of the budget cycle Program goals consistent with ASD mission/objectives WORKS CITED "Alaska Seal." State Symbols. Web. 11 Apr 2011. <http://www.statesymbolsusa.org/Alaska/Seal.html>. "Alaska State Flag." World Map Maps of World Your Window to the World. Web. 11 Apr 2011. < http://www.mapsofworld.com/usa/stateflags/images/alaska-flag.gif>. "ASD." SCCS – Anchorage School District. Web. 11 Apr 2011. <http://alaskaice.org/school-climate/sccs-anchorage-school-district/>. "CMSi." Curriculum Management Systems, Inc.. Web. 11 Apr 2011. <http://www.curriculumsystems.com/about-cmsi>. "Illinoise State Flag." Flags Unlimited Inc. Web. 11 Apr 2011. <http://www.usflags.com/products/Chicago-Flag-City-of.asp>. "Important." Thumbtack Note Important clip art. Web. 11 Apr 2011. <http://www.clker.com/clipart-15998.html>. "Milwaukee State Flag." Mayors of U.S. Cities. Web. 11 Apr 2011. <http://www.worldstatesmen.org/US_Mayors2.html>. "New Hampshire State Flag." World Map Maps of World Your Window to the World. Web. 11 Apr 2011. <http://www.mapsofworld.com/usa/state-flags/images/alaska-flag.gif>. "New York State Flag." World Map Maps of World Your Window to the World. Web. 11 Apr 2011. < http://www.mapsofworld.com/usa/state-flags/images/alaska-flag.gif>. "Thinking." Knowledge of Public Administration. Web. 11 Apr 2011. <http://userwww.sfsu.edu/~ccole/knowledge.html>. "Thinking Man." Mattcredible. Web. 11 Apr 2011. <http://mattcredible.wordpress.com/>. Kelly, J. M., & Rivenbark, W. C. (2011). Performance Budgeting for State and Local Government. Amronk: M.E. Sharpe, Inc. QUESTIONS?