Thriving educators lead to students who thrive
A great school CFO is not just about balancing budgets; they are essential for investing in the future of education. They ensure that every dollar is utilized effectively to support student learning and growth. A great superintendent knows the questions to ask to ensure their district is on the right financial path.
- Can you provide me the estimated ending fund balance (equity) as a percentage of actual expenditures for this school year? What was it in the prior two years? (You are looking for three years of trend to determine if you have been consistently deficit spending, stable, or in a surplus.)
- Does our fund balance/reserve meet Board requirements and community expectations? (Most common in this case would be a minimum fund balance policy enacted by the Board of Directors, as an example.)
- What percentage of our current budget spending is on salary and benefits? (When 85% or more of your budget is dedicated to personnel costs; it’s time to re-evaluate your staffing levels and overall personnel expenses. Most, if not all, districts that have become insolvent in recent years had staffing expenses at 85%+).
- Can you provide me with ten years of enrollment data? Five historical and five projected years would be ideal in this situation. Tip: For comparative purposes choose either the October enrollment numbers, or the annual average full-time equivalent (AAFTE).
- Does our District have staffing goals or ratios it must meet? If so, what are they, and are the goals or ratios proscribed by a collective bargaining agreement, set by the Board of Directors, or by management?
- Is the District in compliance and maximizing State funding allocations? (This differs by state. For Washington, think K-3 class size, or physical, social, and emotional support funding.)
- Will you provide me with all our current collective bargaining agreements, and the expiration dates? Are the agreements serving the district well, and if not, what are the issues, and can they be fixed? (This request will lead to many other questions, but it is a starting point. Ultimately, you will want the basic finances for each agreement. For example, how much is a 1% pay raise or the cost of a workday for the bargaining unit.)
- Can you provide me a listing of our current taxing measures? If they are levies, how much per year, when does the measure expire, and what are we using it to pay for? If the District has bond funding or a capital/technology levy, you will want to request the list of projects or items that were or are to be funded.
- What are our District’s key demographic percentages as it relates to finances? Specifically, what are our current low-income, ELL, and special education percentages? Are we currently subsidizing any of our federally required programs with local levy funds, and if so, by how much? (This question will open the door for conversations on special education and ELL programming.) A secondary question, but highly important, is to request how many IEPs are out of compliance and therefore not receiving funding.
- As the Superintendent, what don’t I know that you want me to? Also, what can I do to partner with and support you as we manage the finances going forward?