School budgets are essential tools that outline funding plans for the upcoming academic year, detailing revenue sources, expenditures, and program allocations. Public schools typically manage three budgets simultaneously: finalizing past budgets, operating current ones, and planning future budgets. Unlike many organizations, schools allocate a significant portion—80-85%—of their budgets to personnel and benefits.
A school budget serves to justify the use of public funds, translating educational goals into actionable plans. It facilitates discussions about resource allocation among competing priorities.
Budgets are funded primarily through local (43.9%), state (47.6%), and federal (8.5%) contributions. Federal funding, often associated with specific programs like Title I and IDEA, is less reliable and carries additional reporting requirements.
Budgets are spent throughout the year, with federal funds following a 'first in, first out' rule, meaning previous fiscal year funds must be exhausted before new allocations can be used.
Budgeting is a complex piece of school district operations and may differ by district and state. For further information, read the full resource report over at AASA for additional insights into the school budgeting processes.
