Money and Schools

by Thompson, David C.; Wood, R. Craig

• ISBN13: 9781930556171
• ISBN10: 1930556179
• Edition: 2nd
• Format: Hardcover
• Copyright: 2001-01-01
• Publisher: Eye on Education

Author Biography

Professor David C. Thompson is a tenured full professor in the graduate school and chair, Department of Educational Administration and Leadership, and co-director of the University Council for Educational Administration's (UCEA) Center for Education Finance at Kansas State University. Professor R. Craig Wood is a tenured full professor and the B.O. Smith Research Professor at the University of Florida, and co-director of the University Council for Educational Administration's (UCEA) Center for Education Finance.

Table of Contents

About the Authors	iii
Acknowledgments	v
Foreword to the Second Edition	xv
Part I: Overview Of Broad Concepts
Schools, Values, and Money	3	(16)
The Context of Public Education	3	(2)
What Are Schools Becoming?	5	(11)
Where Did Schools Come From?	5	(2)
What Should Schools Be Doing?	7	(2)
What Are Schools Capable of Doing?	9	(1)
What Is the Effect of Money on Schools?	9	(5)
What Happens When Schools Get More (or Less) Money?	14	(2)
Where Public Schools May Be Headed	16	(1)
Suggested Follow-up Projects	17	(2)
Funding Schools: A Policy Perspective	19	(54)
A More Expansive View	19	(1)
What Is the Scope of Education Finance in America?	19	(4)
Fiscal Growth and Expenditure	20	(3)
How Are Education and Economics Related?	23	(14)
Economics Defined	23	(1)
Education as an Economic and Social Good	24	(1)
Education and Human Capital	24	(1)
Education and National Economic Health	25	(1)
Education and Individual Benefits	26	(1)
Social and Economic Efficiencies of Education	27	(1)
Returns on Educational Investment	28	(1)
Education and Economic Growth	29	(1)
Rate-of-Return Studies	30	(3)
Education and Socioeconomic Investment	33	(1)
Recent Economic Thought	34	(3)
What Is the Structure of School Governance in America?	37	(7)
Brief Historical Roots of American Education	37	(3)
Development of School Organization in America	40	(4)
From Where Do Schools Derive Fiscal Support?	44	(15)
Federal Support for Schools	44	(1)
Federalism and Defense Education	45	(1)
Federalism and Higher Education	46	(1)
Federalist Justice and Education	47	(3)
State Support for Schools	50	(1)
Education as the State's Responsibility	50	(5)
Local Support for Schools	55	(1)
Features of Local Support	56	(3)
What Constitutes Adequate and Equitable Funding for Schools?	59	(11)
Origins of School Funding Challenges	59	(1)
Federal Origins	60	(1)
The Early Federal Case	61	(1)
The Rodriguez Case	62	(1)
Subsequent Federal Litigation	63	(1)
State Origins	64	(1)
Early State Cases	65	(1)
Subsequent State Litigation	65	(1)
Failures	66	(1)
Successes	67	(2)
The Long View	69	(1)
Can Schools Serve Economics, Equality, Productivity, and Liberty?	70	(1)
Suggested Follow-up Projects	71	(2)
Basic Funding Structures	73	(32)
The Context of Funding	73	(1)
Revenue for Schools	74	(1)
What Is the Overarching Tax System?	74	(7)
What Is the Federal Tax System?	75	(1)
What Is the State Tax System?	76	(3)
What Is the Local Tax System?	79	(1)
Tax System Summary	80	(1)
Funding for Schools	81	(1)
What Are State Aid Formulas?	81	(1)
Where Did Aid Formulas Come From?	82	(15)
What Is a Fair Formula?	85	(1)
Flat Grants	85	(1)
Equalization Grants	86	(2)
Multi-tier Grants	88	(1)
Full State Funding Grants	89	(3)
Adjustments to Basic Formulas	92	(1)
Need Equalization	92	(5)
Cost Equalization	97	(1)
How Do States Fund Schools?	97	(2)
Are There Innovations on the Horizon?	99	(1)
Suggested Follow-up Projects	100	(5)
Part II: Operationalizing School Money
School Funds Accountability and Professionalism	105	(34)
Setting the Stage	105	(1)
School Funds Accountability	106	(1)
What Is Accountability?	106	(11)
What Are Fiduciary Responsibilities?	107	(3)
How Does the Accounting Process Help?	110	(1)
What Are the Purposes of Accounting?	111	(2)
How Is School Money Set Up?	113	(1)
Fund Structure	113	(1)
Governmental Funds	114	(1)
Proprietary Funds	115	(1)
Fiduciary Funds	115	(1)
Account Groups	116	(1)
An Intermediate Overview	116	(1)
How Does School Money Get Tracked?	117	(18)
Revenue Structure	117	(3)
Expenditure Structure	120	(7)
The Accounting Transaction	127	(3)
Auditing	130	(1)
Types of Audits	130	(1)
Internal Audits	130	(1)
External Audits	131	(3)
State Audits	134	(1)
Special Audits	134	(1)
A Final Word About Professionalism	135	(1)
Suggested Follow-up Projects	136	(3)
Budget Planning	139	(38)
Budgets and Schools	139	(1)
Conceptualizing Budgets	140	(3)
What Are the Basic Budget Concepts?	140	(3)
Organizing for Budgeting	143	(8)
What Are the Common
Approaches to Budgeting?	143	(1)
Incremental Budgeting	144	(1)
Line-Item Budgeting	145	(1)
Program Budgeting	145	(1)
Program, Planning, and Budgeting Systems	146	(1)
Zero-Based Budgeting	147	(1)
School-Site Budgeting	148	(1)
What Is a Good Budget Framework?	149	(2)
Constructing Budgets	151	(25)
What Is the Budget Model?	151	(2)
What Is the General Budget Process?	153	(1)
Estimating Revenues	154	(3)
Envisioning Educational Programs	157	(1)
Estimating Expenditures	157	(9)
Balancing the Budget	166	(1)
Increased Revenue	167	(1)
Static and Declining Revenue	168	(3)
Completing the Budget Process	171	(1)
How Are Individual Schools Funded?	171	(3)
What Is the Role of Stakeholders?	174	(2)
Suggested Follow-up Projects	176	(1)
Budgeting for Personnel	177	(34)
The General Landscape	177	(1)
The Personnel Function	178	(9)
What Is the Scope of the Personnel Function?	179	(1)
Determining Staffing Needs	180	(4)
Recruitment and Selection	184	(2)
Other Personnel Budget Issues	186	(1)
Personnel Compensation Policies and Procedures	187	(14)
What Is the Role of Compensation?	187	(1)
General Issues	188	(4)
Negotiations	192	(1)
Basic Elements	192	(2)
Costing-Out Salary Proposals	194	(6)
Impasse Resolution	200	(1)
Other Issues of Personnel Budgeting	201	(7)
What About Merit Pay?	201	(3)
What About RIF and Other Dismissals?	204	(3)
What About Due Process?	207	(1)
What Is the Role of Stakeholders?	208	(1)
Suggested Follow-up Projects	209	(2)
Budgeting for Instruction	211	(26)
The Big Picture	211	(1)
The Planning Function	211	(2)
What Is Instructional Planning?	212	(1)
District Mission and Goals	212	(1)
School Mission and Goals	213	(1)
Organizational Options	213	(4)
How Are Schools Organized?	214	(1)
Centralized Structure	214	(1)
Management Teams	214	(1)
Site-Based Management	215	(2)
Instructional Budget Concepts	217	(12)
What Are Instructional Budgets?	218	(3)
What Are the Sources of Revenue?	221	(1)
External Sources	221	(1)
District Revenue Structures	222	(2)
School Revenue Structures	224	(1)
What Are the Elements of Budgeting for Instruction?	224	(1)
Needs Assessment	225	(1)
Determining Revenues and Educational Plans	225	(2)
District Coordination	227	(1)
What Does an Instructional Budget Look Like?	227	(2)
Wrap-up	229	(1)
Suggested Follow-up Projects	230	(7)
Budgeting for Student Activities	237	(16)
Activities and Schools	237	(2)
What Is the Role of Activities?	238	(1)
Budgeting for Activities	239	(10)
What Are Activity Funds?	239	(1)
Student Activity Funds	240	(1)
District Activity Funds	241	(1)
What Are the Controls on Activity Funds?	241	(1)
Lines of Authority	242	(1)
Suggested Activity Fund Policies	243	(1)
General Policies	243	(1)
Segregation of Duties	244	(1)
Internal Controls on Cash	244	(1)
Disbursement Procedures	245	(2)
What About Nonactivity Funds?	247	(1)
Fee Funds	247	(1)
Sales Tax	248	(1)
Petty Cash	248	(1)
What Does an Activity Fund Report Look Like?	249	(1)
A Final Word of Caution	249	(2)
Suggested Follow-up Projects	251	(2)
Budgeting for School Infrastructure	253	(36)
Physical Needs in Perspective	253	(1)
Nature and Size of School Infrastructure	253	(23)
What Is the Role of School Infrastructure?	254	(1)
The Condition of Schools	255	(11)
How Is School Infrastructure Aided?	266	(2)
Full State Funding	268	(1)
Equalization Grants	268	(1)
General Fund Aid	269	(1)
Matching Grants	269	(1)
Flat Grants	270	(1)
State Loans	270	(1)
State or Local Authorities	271	(1)
How Is the Local Cost Share Funded?	271	(1)
Current Revenues	272	(1)
Sinking Funds	272	(1)
Bonded Indebtedness	273	(1)
The Bonding Process	274	(2)
Facility Planning and Maintenance	276	(10)
What Is the Role of Facility Planning?	276	(1)
Demographic Planning	277	(1)
Capital Program Planning	278	(1)
Facility Planning and Programming	279	(1)
Architectural Planning	280	(1)
Construction Planning	280	(2)
What Is the Role of Maintenance and Operations?	282	(1)
Organizing for M&O	282	(2)
Determining Maintenance Needs	284	(1)
Conducting Facility Operations	285	(1)
Wrap-up	286	(1)
Suggested Follow-up Projects	286	(3)
Budgeting for Transportation and Food Service	289	(28)
Setting the Stage	289	(1)
The Role of Auxiliary Services	290	(1)
The Transportation Function	290	(15)
What Are the Origins and Purpose?	291	(2)
What Is Transportation Law?	293	(4)
How Is Transportation Funded?	297	(5)
What Other Issues Are Relevant?	302	(1)
Owning or Contracting	302	(1)
Computerizing Transportation Services	303	(1)
Purchasing Buses	304	(1)
Maintenance and Safety	304	(1)
The Food Service Function	305	(9)
What Are the General Issues?	305	(1)
How Is Food Service Funded?	306	(1)
Federal Support	306	(1)
State Support	307	(1)
The Local Role	308	(1)
What Other Issues Are Relevant?	309	(1)
Broad Compliance Requirements	309	(2)
Organizing for Food Service	311	(1)
Management Companies	311	(1)
In-House Operations	312	(1)
Financial Management	313	(1)
Wrap-up	314	(1)
Suggested Follow-up Projects	315	(2)
Legal Liability and Risk Management	317	(30)
Modern Realities	317	(1)
The Law and Schools	317	(1)
What Does the Law Have to Do with Schools?	318	(4)
The Derivation of School Authority	319	(1)
Federal Constitution	319	(1)
Congress	320	(1)
Federal Judiciary	320	(1)
State Constitutions	321	(1)
State Legislatures	321	(1)
State Judiciary	321	(1)
State Boards of Education	322	(1)
Local Authority to Act	322	(1)
What Is the Origin of Liability?	322	(21)
Sovereign Immunity	322	(3)
Proprietary Acts Exception	325	(1)
Nuisance Exception	326	(1)
Eleventh Amendment Exception	326	(2)
Tort Liability	328	(1)
Intentional Torts	328	(1)
Negligence	329	(5)
Civil Rights	334	(2)
Defamation	336	(1)
Educational Malpractice	337	(2)
Contracts	339	(1)
Recovery Under Contracts	340	(3)
What Does All This Mean?	343	(1)
Suggested Follow-up Projects	344	(3)
part III: A View of the Future
Site-Based Leadership	347	(20)
Pulling It Together	347	(1)
The Site Concept	347	(2)
Framework for Implementation	349	(16)
What Is the Strategic Concept?	349	(1)
Assessment	350	(1)
Implementation	350	(1)
Accountability	351	(3)
What Is the Role of the Principal?	354	(1)
What Is the Role of Central Office?	355	(1)
What Is the Role of the Site Council?	356	(1)
Organization	356	(1)
Membership	356	(2)
Legitimate Control	358	(2)
What Are the Budget Issues?	360	(1)
Basic Knowledge	360	(1)
Site Knowledge	361	(2)
Revisiting a Sample District	363	(2)
Final Comments	365	(1)
Suggested Follow-up Projects	366	(1)
Future Trends in School Funding	367	(12)
The Big Picture	367	(1)
What Are the Issues?	367	(10)
Lessons from this Book	368	(3)
Future Issues in School Funding	371	(1)
Politics of Money	372	(1)
The Economy	373	(1)
Equity, Excellence, Adequacy, and Efficiency	374	(1)
Educational Choice	375	(2)
Devolution of Governance	377	(1)
A Final Word	377	(1)
Suggested Follow-up Projects	378	(1)
Index	379