Compensatory Education - GASB 34 Search the Guide 2.11 Financial Forecasting and Planning Financial forecasting is the practice of projecting the quantitative impact of trends and changes in a school district's operating environment on its future operations. It is, therefore, an integral part of a school district's ongoing planning efforts.
Financial forecasting is important for several reasons.
Thus, budgetary priorities may be evaluated based upon their long-term impacts. Finally, forecasting enhances decision making at all levels of district and school administration. Forecasts provide valuable insight into the future issues that may affect the school district allowing administrators to deal with them proactively, rather than reactively. It creates the framework for anticipatory management of the school district.