A significant outcome of the financial planning process with the City was an agreement to allow the Board
to rollover individual general education Community School District and High School surpluses. As was the
case last year, these funds can be used to bolster local instructional programs. Please be mindful,
however, that the Board's budget, as a result of the adoption process, created significant unfunded
liabilities. Accordingly, use of rollover funds will be subject to prior review. Also be reminded
that the rollovers displayed in this document are projections, subject to revision when actual expenditures
are finalized in the fall. Superintendents are cautioned to target surplus carryovers, where possible,
for non-recurring uses.
Starting in FY01, as a result of implementing the new Special Needs/AIS formula, CSD Special
Education/Special Needs tax levy accruals can be rolled as well, provided that compliance with
providing mandated pupil services and contractual obligations are maintained. After consultation
with the Superintendent's Budget Committee, compliance criteria for rolling these accruals has been
developed. Where districts have shown an increase in the number of newly-recommended students not
placed after 60 days, the level of the surplus roll will be reduced when actual surpluses are known.
Starting in FY02, tax levy accruals associated with the HSS Special Needs formula may be rolled over.
All rolled accruals are considered a one-time resource.
For the close of FY00, we established a new OTPS roll policy, where CSDs and HSSs were asked to confirm
their projected OTPS surpluses by the end of May. Those established balances were "locked;" actual OTPS
balances in excess of the final projections were not available for CSDs or HSS. This policy continues to
be in effect for FY01 OTPS surplus rolls.
The "differentiated approach" that we introduced five years ago in terms of budget oversight remains
in place for the CSDs. Assessments for FY02 have not yet been made. Districts will be notified, on an
individual basis, of any group change from the previous year.
School Based Reporting
Central staff has been issuing School Based Budget and Expenditure Reports since 1996 to prepare school
communities for school budgeting. These reports detail planned and actual expenditures, at the school
level, according to functional categories, such as "Classroom Instruction," or "Instructional Support
Services." Budget jargon is therefore set aside, and school spending plans are more readily understood
School budget reporting greatly increases the need to schedule budgets in an accurate and timely
manner, and to reflect in the Board's accounting system all funds allocated to and spent by every
school. The reports are only as accurate as the data provided through the Employee Information System
(EIS), the Financial Accounting Management System (FAMIS) for both budgeting and accounting information,
Automate the Schools (ATS), other data systems, and Galaxy. Specifically, accurate school budget
timely schedulization of all budgets;
entry of jobs into EIS with accurate school work locations and funding sources;
entry of all non-EIS and OTPS budgets supporting direct services to school spending plans to the
greatest extent possible; and
transfer of all staff out of the invalid ("nines") account at the beginning of the school year.
By taking these actions, the accuracy of the school budget reports for the coming school year will be assured.
Community School Board Budget
The governance structure enacted in December, 1996 transferred responsibility for expense budget matters
from the Community School Board to the Community Superintendent and the schools. Therefore, the initial
budget submissions no longer include a Community School Board approval. Superintendents, however, should
still consult with the Community School Board in formulating the budget for Community School Boards'
own expenditures (i.e., budget code 4101).