topleft CSBA.org >  Services >  Governance Technology > 

Elk Grove USD  |  BP  3100  Business and Noninstructional Operations

Budget   

arrow Previous bar Next arrow

The Governing Board recognizes its critical responsibility for adopting a sound budget for each fiscal year which is aligned with the district's vision, goals, priorities, and comprehensive plans for all funds operated by the district. The district budget shall guide administrative decisions and actions throughout the year and shall serve as a tool for monitoring the fiscal health of the district. The Superintendent or designee shall oversee the preparation of a proposed district budget for approval by the Board and shall involve appropriate staff in the development of budget projections.

The district budget shall be prepared annually utilizing board-approved budget guidelines, budget priorities based on identified district needs and goals and the best possible estimates of available resources provided by the district administrative staff The board-approved budget guidelines shall be reviewed every year by the Board to ensure that the formulas and allocations in the guidelines best align with the district's goals as outlined in the district local control and accountability plan (LCAP). Appropriate consolidation shall occur as the budget progresses through the various levels of administrative review established by the Superintendent or designee. The annual budget preparation shall reflect policies that are compatible with the LCAP and long-range goals of the district. The Superintendent or designee shall determine the manner in which the annual budget shall be prepared and issue instructions to the staff. The Superintendent or designee shall also establish a time schedule for the preparation of the budget in accordance with legal time requirements. (See Exhibit 3100)

The Board may establish other budget assumptions or parameters which may take into consideration the stability of funding sources, legal requirements and constraints on the use of funds, anticipated increases and/or decreases in the cost of services and supplies, categorical program requirements, and any other factors necessary to ensure that the budget is a realistic plan for district revenues and expenditures.

The budget shall provide that funding received through state supplemental and concentration grants pursuant to Education Code 42238.02 and 42238.03 shall be used in accordance with regulations adopted by the State Board of Education (SBE) for schoolwide or districtwide purposes to increase or improve services for students who are English learners, eligible for free or reduced-price meals, and/or foster youth at least in proportion to the increase to the district's revenue generated from such funds. (Education Code 42238.07)

(cf. 0460 - Local Control and Accountability Plan)

Preparation

Under the single budget adoption process (Education Code 42127(i)), the Board must adopt and submit, by July 1, a "final" budget which subsequently may be amended within 45 days after the state budget is adopted. The budget will be prepared so that it shows a complete plan and itemized statement of all proposed expenditures and estimated revenues for the ensuing fiscal year, together with a comparison of estimated revenues and expenditures for the prior fiscal year.

It is the intent of the Board that the principles of Program Budgeting be followed. The working budget shall be a clear and concise statement of all costs and all income relating to each of the district's programs. The budget format will isolate program expenditures and income so that detailed cost-effectiveness analyses are feasible and can be performed as simply as possible.

Education Code 42126 requires the district's final budget to be submitted to the County Superintendent in a format prescribed by the Superintendent of Public Instruction. The California Department of Education (CDE) requires districts to use the Standardized Account Code Structure. The budget that is formally adopted by the Board shall be in the format prescribed by the Superintendent of Public Instruction. The Superintendent or designee may supplement this format with additional information as necessary to effectively communicate the budget to the Board, staff, and public. Standards and criteria for fiscal accountability adopted by the SBE shall be used when developing the budget. (Education Code 33129)

The budget shall also include the appropriations limit and the total annual appropriations subject to limitation as determined pursuant to Government Code 7900-7914. (Education Code 42122).

The Superintendent or designee shall establish an annual budget development process and calendar in accordance with the single budget adoption process described in Education Code 42127(i). He/she shall annually notify the County Superintendent of Schools of the district's decision to use the single budget adoption process in the subsequent year. (Education Code 42127)

The Board shall adopt the budget only after a LCAP developed pursuant to Education Code 52060-52077 or an annual update to the LCAP is in place for the budget year. Expenditures necessary to implement the LCAP or the annual update during the subsequent fiscal year shall be included in the budget. (Education Code 42127)

Public Hearing on Proposed Budget

The Board encourages public input in the budget development process and shall hold a public hearing on the proposed budget in accordance with Education Code 42103 and 42127.

The Superintendent or designee shall notify the County Superintendent of Schools of the location, dates, and times at which the proposed budget may be inspected, as well as the location, date, and time of the public hearing, in sufficient time for the County Superintendent to publish such information in a newspaper of general circulation at least 10 days but not more than 45 days before the hearing as required by Education Code 42103.

Before adopting the district budget for the subsequent fiscal year, the Board shall hold a public hearing. The agenda for this hearing shall be posted at least 72 hours before the hearing and shall indicate the location where the budget may be inspected. The proposed budget shall be available for public inspection at least three working days before this hearing and shall be available online on the district's website in an electronic format. This hearing shall be held at the same meeting as the public hearing to solicit public input on the Local Control and Accountability Plan (LCAP) or the annual update to the LCAP. (Education Code 42103, 42127, 52062)

The public hearing on the budget will conclude when there are no requests for further hearing on file. The adoption of the budget shall not take place until the hearing is concluded.

Adoption of Budget

After the public hearing, at a public meeting held on a different date, the Board shall adopt the district budget following adoption of the LCAP at the same meeting. The budget shall not be adopted if an approved LCAP or annual update to the LCAP is not in effect for the budget year. (Education Code 52062)

The Superintendent or designee shall file the adopted budget with the County Superintendent no later than five days after adoption or by July 1, whichever occurs first. The budget and supporting data shall be maintained and made available for public review. (Education Code 42127)

45 Day Revision

No later than 45 days after the Governor signs the annual Budget Act, the Superintendent or designee shall make available for public review any revisions in budgeted revenues and expenditures which are consequently necessary. (Education Code 42127)

If the County Superintendent disapproves the district's budget, the Board shall review and respond to his/her recommendations at a public meeting on or before September 8. The response shall include any revisions to the adopted budget and any other proposed actions to be taken as a result of those recommendations. (Education Code 42127)

Fund Balance

The district shall classify fund balances in compliance with Governmental Accounting Standards Board (GASB) Statement 54, as follows:

1. Non-spendable fund balance includes amounts that are not expected to be converted to cash, such as resources that are not in a spendable form (e.g., inventories and prepaids) or that are legally or contractually required to be maintained intact.

2. Restricted fund balance includes amounts constrained to specific purposes by their providers or by law.

3. Committed fund balance includes amounts constrained to specific purposes by the Board.

For this purpose, all commitments of funds shall be approved by a majority vote of the Board. The constraints shall be imposed no later than the end of the reporting period of June 30, although the actual amounts may be determined subsequent to that date but prior to the issuance of the financial statements.

4. Assigned fund balance includes amounts which the Board or its designee intends to use for a specific purpose.

5. Unassigned fund balance includes amounts that are available for any purpose.

Long-Term Financial Obligations

The district's current-year budget and multi-year projections shall include adequate provisions for addressing the district's long-term financial obligations, including, but not limited to, long-term obligations resulting from collective bargaining agreements, financing of facilities projects, unfunded or future liability for retiree benefits, healthcare costs for current employees, and accrued workers' compensation claims.

(cf. 4141/4241 - Collective Bargaining Agreement)

(cf. 4143/4243 - Negotiations/Consultation)

The Board shall approve a plan for meeting the district's long-term obligations to fund non-pension, other postemployment benefits (OPEBs). This plan shall include a specific funding

strategy and the method that will be used to finance the district's annual fiscal obligations for such. The Board reserves the authority to review and amend the funding strategy as necessary to ensure that it continues to serve the best interests of the district and maintains flexibility to adjust for changing budgetary considerations.

Budget Controls

A system of budget controls shall be established to govern the administration of the budget and the expenditure of funds.

The Superintendent or designee shall not permit expenditures of funds to exceed the related major budget classification allowances. The Superintendent or designee shall set up and operate budget controls for all schools and departments and administer the budget in conformity with legal requirements and the actions of the governing board.

The Superintendent or designee, shall check the legality of all expenditures and shall ascertain that all expenditures recommended for approval are legal expenditures.

Transfers

Transfers may be made from the designated fund balance or the unappropriated fund balance to any expenditure classification or between expenditure classifications at any time by a majority vote of the Board approving a resolution that is filed with the County Superintendent of Schools and the county auditor. (Education Code 42600)

Whenever revenues and expenditures change significantly throughout the year, the Superintendent or designee shall recommend budget amendments to ensure accurate projections of the district's net ending balance. When final figures for the prior-year budget are available, this information shall be used to update the current-year budget's beginning balance, projected revenues or expenditures.

Legal Reference:

EDUCATION CODE

1240 Duties of county superintendent of schools

33127-33131 Standards and criteria for local budgets and expenditures

42103 Public hearing on proposed budget; requirements for content of proposed budget

42122-42129 Budget requirements

42130-42134 Financial certifications

42140-42141 Disclosure of fiscal obligations

42238-42251 Apportionments to districts, especially:

42238.01-42238.07 Local control funding formula

42602 Use of unbudgeted funds

42610 Appropriation of excess funds and limitation thereon

45253 Annual budget of personnel commission

45254 First year budget of personnel commission

52060-52077 Local control and accountability plan

GOVERNMENT CODE

7900-7914 Appropriations limit

CODE OF REGULATIONS, TITLE 5

15060 Standardized account code structure

15440-15451 Criteria and standards for school district budgets

15494-15496 Local control funding formula, expenditures

Management Resources:

CALIFORNIA DEPARTMENT OF EDUCATION PUBLICATIONS

California School Accounting Manual

New Requirements for Reporting Fund Balance in Governmental Funds, January 7, 2011

FISCAL CRISIS AND MANAGEMENT ASSISTANCE TEAM PUBLICATIONS

Fiscal Oversight Guide for AB 1200, AB 2756 and Subsequent Related Legislation, September 2006

GOVERNMENT FINANCE OFFICERS ASSOCIATION

Best Practice: Appropriate Level of Unrestricted Fund Balance in the General Fund, 2009

GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS

Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, March 2009

Statement 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions, June 2004

Statement 34, Basic Financial Statements and Management's Discussion and Analysis - For State and Local Governments, June 1999

WEB SITES

CSBA: http://www.csba.org

Association of California School Administrators: http://www.acsa.org

California Department of Education, Finance and Grants: http://www.cde.ca.gov/fg

California Department of Finance: http://www.dof.ca.gov

Fiscal Crisis and Management Assistance Team: http://www.fcmat.org

Government Finance Officers Association: http://www.gfoa.org

Governmental Accounting Standards Board: http://www.gasb.org

School Services of California, Inc.: http://www.sscal.com

Policy ELK GROVE UNIFIED SCHOOL DISTRICT

Adopted: October 15, 1984 Elk Grove, California

Revised: September 18, 1989

Revised: November 6, 1989

Revised: June 9, 2015