The considerations of the superintendent in the development of the school budget during times of fiscal constraint: A case study

THE CONSIDERATIONS OF THE SUPERITENDENT IN THE DEVELOPMENT OF THE SCHOOL BUDGET DURING TIMES OF FISCAL CONSTRAINT: A CASE STUDY Jeffrey R. Witt, Ph.D. A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy at Virginia Commonwealth University Virginia Commonwealth University, 2012 Director: Dr. Charol Shakeshaft Department of Educational Leadership School of Education John Smith is the superintendent of Green Hill Public Schools. This case study follows John through the whole budget process from July 2011 to July 2012. An interpretative perspective was used to tell his story. Ten interviews were given from October 2011 to July 2012. Newspaper articles and the minutes from meetings were analyzed and used as discussion items in the interview questions. This study was an analysis of how he made his budget decisions in a time of fiscal constraint and the role values played in the budget decision making. The budget year started out normal with John doing an analysis of the 2011/2012 budget during the month of July. A hurricane hit in August and it delayed the school year. The Governor’s budget was released in December and it caused the school division to scramble to figure how to cover the VRS and health insurance increase which amounted to $1.8 million. The budget from the General Assembly was delayed until April it confirmed that the VRS increase was to be implemented. The school division looked to the Board of Supervisors to fund $1.8 million. The Board of Supervisors claimed they did not have the money so a tense negotiation occurred. The school division ended up receiving $1.277 million from the Board of Supervisors. This study looked at the decision making process of the superintendent during a time of fiscal constraint. John had a budget team that he worked with that help him with this decision making. John had to display flexibility throughout the budget as unexpected expenses occurred during the process and deadlines were not followed. Values were used by John during his decision making. The first value was his compliance with the rules. He believed that the Standards of Quality dictated his decision making. The second value was keeping the quality of education high. John valued protecting the quality of education for the students. The third value was relationships and trust. This budget process was tense and many relationships were damaged during the process. The final value was transparency. John believed in a budget process that was open so the public could see what was going on. Chapter 1: Introduction Introduction Sudden changes in the economy can have an impact on the functioning of a school division. A recession hit the United States in 2008 and there was a reduction in funds available for school budgets (Salmon, 2010). Nevertheless, school divisions still had to produce a budget that met the needs of the students. As the leader of the school division, the superintendent must take responsibility for producing the budget (Carlson & Eller, 2009; Dlugosh, Norton, Sybouts, & Webb, 1996; Edwards, 2007). Determining what gets cut in the budget during times of fiscal constraint is one of the responsibilities of the superintendent. A Description of How Schools are Funded in Virginia School divisions in Virginia are fiscally dependent on the local, state, and federal governments for money. The school divisions do not have taxing authority in Virginia unlike the majority of other states (Johnson, 2009). Instead, Virginia uses the Standards of Quality as a framework upon which the funding is built. According to Virginia Constitution, article VIII, § 2, Standards of Quality for the several school divisions shall be determined and prescribed from time to time by the Board of Education, subject to revision only by the General Assembly. The General Assembly shall determine the manner in which funds are to be provided for the cost of maintaining an educational program meeting the prescribed