Tuesday, 27 April 2010 12:51
Recently, The New York Times published an article on expected school budget cuts in the upcoming year that includes unprecedented teacher and staff layoffs, school closings, and elimination of programs. District budget planning for this past year and for the upcoming fiscal year has made it very clear that financial resources – local, state, and federal – will to be reduced significantly. In fact, given the economic severity of the recession, it is likely this financial fallout will last for many years, coinciding with steadily increased accountability measures and the potential for an implementation of national standards. In order to meet their goals, school districts will need to be even more strategic and smart in the way that budget reductions and resource allocations are being made for the long run. We at DMC have devoted a great deal of time over the past two years developing strategic approaches to long-term strategic resource allocation that can help districts significantly reduce their cost structure while maintaining – even improving – student outcomes in these uncertain times.
• Develop longer term strategic plans. Instead of focusing mostly on the financial losses in the upcoming annual budget, now is the opportunity to proactively develop longer term strategic plans, projecting out five or even ten years from now. This will provide longer term context for the cuts being made today and prepare the district to be in a position to benefit in the future.
• Prioritize initiatives (and strategically abandon non-priority items). As part of the long term strategic planning exercise, districts should prioritize all the programs and initiatives that have been added over the years. Are the initiatives still meeting the original goals? Should they be abandoned and resources used elsewhere? These priorities should fit within the context of the long-term strategic plan.
• Develop multiple scenarios. No one can be certain of the future, but one can be in control and better prepared by creating multiple scenarios that outline several plausible versions of the future. By proactively planning responses for each outcome, school districts can develop a framework in which to adjust plans and resources.
• Innovate. The only way to address such severe budget cuts is to accomplish more with less. This may be an opportunity to to improve efficiency and productivity so that loss of certain resources is not nearly as dire. DMC has gathered examples of districts doing more with less. Additionally, if by increasing dramatically productivity and innovation, a district is more likely to receive state and federal grants that reward such successful thinking.
In sum, DMC encourages school districts to make smart decisions around budget planning, using the financial crisis as an opportunity to cut ineffective resources and focus the most valued resources, maximizing their use to drive district innovation.
Bringing Innovation to Education
