Three Elements of Strategic Budgeting

Strategic budgeting involves creating a multi-year financial plan that supports the long-term goals and vision set by a school district. This financial plan represents the district’s strategic plan in action—it pinpoints the resources a district needs to achieve its goals. This plan also includes measurable metrics to assess the success of these goals over time.

Strategic budgeting helps school districts use their resources effectively and efficiently to improve student learning. Below are three key elements of strategic budgeting.

1. Insights from instructional staff

For resources to reach students in the best way possible, CFOs and finance managers need insights from those who interact daily with students. This collaboration allows the district to glean academic performance insights that will guide the strategic budgeting process. Engaging instructional staff will help the district develop successful budgeting processes that are likely to be upheld long after the budget season is over.

2. Goals in your chart of accounts

For many school districts, the strategic plan is created in conjunction with the Superintendent, the school board, and other stakeholders and communicate the district’s high-level priorities over several years. However, a strategic plan is only half of a plan; districts also need to establish a corresponding financial plan that assigns resources to the goals outlined in the strategic plan.

When a district embeds the strategic plan within the chart of accounts, spending can be tracked against the district’s goals and the district can ensure intentional and strategic spending.

3. Pathways for sustainable finance operations

Beyond connecting a district’s high-level priorities with the resources needed to achieve those priorities, CFOs and finance managers should develop operational goals that will help your district tackle administrative challenges proactively and address roadblocks that impede sustainable financial management practices.

Operational goals often relate to one of five pathways:

1. Site-level Autonomy
2. Management
3. Alignment of Spending to Goals
4. Resource Equity
5. Transparency

Try to group your goals into their corresponding pathway and see if you observe any recurring or common trends. These insights can help you further shape your district’s strategic plan and develop specific, measurable outcomes to advance your district’s efforts.

Your financial plan is a roadmap

Establishing goals and connecting them to spending create a common vision for change. Your district’s strategic financial plan should be the roadmap your district uses to accomplish its priorities. A strong financial infrastructure, and a systematic way to tie spending to goals, will enable a deeper understanding of the overall efficacy of the district’s spending. This practice will lead to fruitful and frequent academic ROI analysis and program evaluations that maximize opportunities for your students.