Running head: INTERVIEW

Interview
Lynn M. Rush
University of New England
Spring, 2015

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2
Abstract

Business Managers have the important job of overseeing school

budgets. The function of a budget is a policy document, a financial
plan, an operation guide, and a communication tool (Odden & Picus,
2014). Budgets are comprised of three components, revenue,
expenditures, and program (2014). This paper is comprised of
questions to a business manager in a small school system in Northern
Maine and the answers she provides in assisting with the
understanding of budgets and the budget process.

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Interview
Budget preparation, as described by Odden and Picus (2014), is a
fluid activity that involves developing, approving, and implementing a
spending plan for the district. It is a complex and important process
(pg. 237). Holly Vining, business manager, provided thoughtful
answers for eleven questions regarding budgetary process.
Questions and Answers
Please describe the process used in developing the school
budget. What are the steps? When does the process begin?
The process used in developing school budgets is multifaceted.
The process begins with developing a budgets based on needs and
wants for the educational benefit of the students. Next the edited
budget is presented to the school board. After this step, the budget is
presented to the community, which includes a vote on articles.
Following this is the referendum. If approved at the polls, then the
process of the operation of the budget for the new school year begins
and if not approved then the process cycles through the previous steps
until the budget is approved at the polls. However, during all the steps
stated, the operation of the present budget is still being implemented
and monitored. It is a complex and fluid process with the goal of
always staying within the financial plan of the district.

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In January the superintendent requests a budget for supplies and

needs from each administrator. By March the budget is presented to
the school board and by April town hearings begin providing
opportunities to discuss budgetary needs. Other factors that impact
this process are subsidy print out and contractual issues. Based on the
funding impact and the towns response, the budget is either scaled
back or the process can proceed to a referendum.
During the budget development process, what is the most
difficult step(s) for administrators to deal with?
One of the most difficult aspects of budget development is
making cuts especially if staffing is involved. In small communities,
when cuts are made the impact is personal because everyone knows
everyone and it might be a relative, a friend, or a neighbor that is no
longer employed. Unemployment also has a negative impact on the
local businesses. When people are unemployed they spend less in the
community thus impacting the financial wellbeing of the communities
economy.
The process of pairing down the budget from ideal to affordable
is a complicated process. Interest groups impact decisions (taxpayers,
students, employees, and parents). The goal of trying to keep
education first without burdening the community is a delicate and
difficult balance.

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Who are the others involved that have a large role in the
development of the budget?
There are many people that are directly and indirectly involved in
the development of the budget. Within the school system, the
administrators, principals and special education director, are involved
in the development of the budget. First, administrators get input from
personnel, teachers, and contracted services regarding operational
needs, educational needs, and visions. Next, the administrators make
decision of staffing, material, and programs based on what is needed
and necessary for present needs and long-term program plans. Often
the personnel have to consider how the educational system, in an
economically deprived area, can get by with what the district can
afford. This is another area of difficulty for administrators.
What steps does the school go through to reach final approval
of the budget?
Once the board adopts a budget, there are laws regarding
timelines for the budget process. There is a budget development
timeline. There needs to be a budget validation vote no more than 30
days after Budget Meeting. The town clerks verify results within 24
hours of the vote. As soon as results have been returned to the board,
the school declares the vote. A special board meeting is needed to
adopt the proposed budget. A special board meeting is needed to sign
the warrant. Within three days of board meeting, and 14 days prior

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referendum, warrants and absentee ballots are distributed. The

budget is available seven days prior to the budget meeting. The towns
have to post warrants at least seven days prior to the meeting. There
is another budget meeting, which is no more than 30 days prior to the
budget validation vote. Delivery of adopted amounts needs to be
delivered to clerks. The clerks may accept absentee voting no earlier
than a day after budget meeting
Once approved what is the role of management in oversight of
expenditures?
Once the budget is approved, there is a purchase order system.
Administrators oversee the individual budgets and monitor spending.
There is a process. Teachers bring the request with needed
information to secretaries. Next the secretary sends the information to
the administration for approval. If the administrator approves the
purchase, then the request is sent to the superintendent. If the
superintendent approves the purchase, the request is sent to the
business manager for payment.
The requisition process is electronic. Some internal controls are
set up within the process. For example, there are budget categories
and if the category is maxed, then the request is automatically denied.
However, Special Education is one area were budgets need to be
altered as needed in order to follow the IEP determinations.

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In the management of the budget, what is the most difficult or

time-consuming activity?
The most time consuming activity is human resource
management, because staffing is 75% of budget so it takes the most
time (H. Vining, personal communication, February 13). One can have
an understanding of the need, but the need changes continuously. If
unexpected things come up than things have to be adjusted. Payroll
needs to be done every other week. To complete this task takes
approximately four days out of a two-week period. The process is done
electronically and could be completed within two days, but there are
always unexpected interruptions within the process that need to be
addressed. Another factor that affects the routine of this process is
payroll for substitutes.
Who else is involved the oversight to a large extent and what
are their specific responsibilities?
Secretaries and administrators also assist with the oversight of
the budget. Secretaries help develop the budget as well as monitor it.
The administrators also help control in the financial system and
prevent going beyond the constructs of the budget. The only area that
is fluid is Special Education. This area differs from regular education
because childrens services cannot get interrupted.
What portion of personal time is spent on dealing with the
system budget?

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Vining (personal communication, February 6, 2015) shared that

personal time spent on the budget is high because of the aspect of
being apart of a small community. There is a lot of shop talk about
the budget because she has many friends that work at the school, and
both her mother and sister work at school.
Vining (personal communication, February 6, 2015) explained
that September through Dec it is not bad because the budget has been
established and the focus is on school. The Spring of the year brings a
lot of questions about budget because the new budget is being
established and nerves at times are heightened due to possible
reduction in staff. She also gets some questions from community
members. She explained that the majority of questions come from the
board to the superintendent.
What advice in the area of finance and budgeting is
recommended for aspiring superintendents?
Vining (personal communication, February 6, 2015) recommends
that superintendents listen to all constituents in order to have a strong
understanding of what the community considers important and values.
She stated this is very important in the decision making process and
not to base decision simply on what the superintendent thinks is best
for the school. This can reduce conflict. Another important point
Vining (2015) made is to always plan for the following year as well as
to think about how money can be raised. She stated it is important to

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live by the budget as much as possible. She said the one

Superintendent she worked for many years would state that
superintendents can make many mistakes, but if they mess up the
money they are fired.
What is the problem that causes the most concern in the
process of management or development of the budget?
The biggest problem is over spending the budget and unforeseen
expenditures (H. Vining, personal communication, February 6, 2015).
One area of unforeseen expenditures is Special Education. It is
comprised of fluid expenditures. She explained that there are
unexpected expenditures all the time with special education and some
can be considerable. She shared that if a student needs to be placed
out of district, the expense can be equivalent to the salaries of two
teachers.
Is there anything else regarding a future school
administrators involvement in the budget process that has
not been covered in this interview?
Vining (personal communication, February 6, 2015) stated public
relations and the importance of keeping community informed is very
important consideration for future school administrates to be aware of.
She shared that a willingness to meet with town managers and
selectman can be very beneficial. Being transparent and educating
community assists with fiscal responsibility and transparency.

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Reference:
Odden, A. and Picus, L. (2014). School finance a policy perspective.
New York, New

York: McGraw Hill Company.

H. Vining, interview of budgets and budgetary process (personal

communications, February 6 and 13, 2015).