VALUE-BASED BUGDETING: DOES IT HAVE A PLACE IN THE ANCHORAGE SCHOOL DISTRICT BUDGET PROCESS?

Ashley CarterRobert Heide

Abbey JacksonGreg 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

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.

ASD BONDS

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 public2. Compares cost effectiveness between programs3. 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• Forward budgeting

Increase/maintain stakeholder participation and input Two conditions necessary for successful performance

based 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

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http://www.mapsofworld.com/usa/state-flags/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?