Impact Assessment Results-Based Budgeting

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Results-Based Budgeting (RBB) MSDF Impact
Assessment
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What is RBB?

• RBB stands for Results-Based Budgeting
• RBB is a budgeting process that accounts for all
  expenses associated with school operations.
  Budgets are allocated to and managed by school
  sites. RBB focuses on four key elements which
  include equity, transparency, accountability and
  site-based decision making.
• Equity
• Allocation of funds are based on actual students
  versus staff allocations
• Schools have more control over the direction of
  their resources
• Transparency
• Easier to understand budgets for community and
  parents
• Reflects true cost to operate instructional
  program for schools
• Accountability
• RBB tied directly to schools strategic plans
  (SPSA)
• School Site Council (SSC) oversight of
  categorical funds
• Site-based decision making
• Schools have more control over their budgets

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What is RBB?

• RBB is a process by which sites are allocated
  revenues in accordance with the number and type
  of students in their program
• It replaces expenditure-formula budgeting,
  whereby sites were allocated specific line items
  in their budget rather than top-line revenue
• Once the revenue is allocated to the sites, the
  sites have the flexibility to spend this revenue
  in the way that gets the best results given their
  program needs (hence RESULTS-Based Budgeting)
• Flexibility in spending is subject to Union
  contract guidelines

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How does RBB work?
By charging schools the actual cost of teachers,
a school with more novice educators has more
money left over to pay for training, supplies, or
another teacher and thus reduce class sizesall
of which could make a school more attractive to
new teacher candidates, as well as students and
families.
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How does the RBB process work?

• Linear, step-by-step process where each step
  builds on the one that came before it
• Site Information
• Projected Revenues
• Projected FTE Requirements
• Projected FTE Expenditures
• Allocation to Resources
• Non-Salary Expenditures
• Final Review

Revenues
Expenditures Labor
Expenditures Non-Labor
Expenditures vs. Revenues
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Revenue not allocated to salaries REMAINS at the
site and is available for any other site use
professional development, books, materials,
supplies, consultants, contracted services, and
capital improvement
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RBB Results

• Streamlining of strategic planning and budgeting
  process allows principals to focus on effective
  resource use at the site
• Principals and community leaders interviewed in
  2008 had a strong preference for RBB over
  previous budgeting system
• Equity of spending has increased for elementary
  schools, but not as much for secondary schools
• OUSD continues to increase transparency at
  Central Office/district-wide levels
• Operation Support coaching has been a very
  positive innovation
• RBB has helped to make way for a culture shift
  away from pure compliance to innovative planning
  to address the needs of students