School Spending Profiles: A Framework to Enlighten Resource Allocation Decisions^*

Abstract

Despite improved fiscal accounting systems, many district leaders continue to struggle with how to report and use fiscal data for the purpose of strategic resource decisions. This paper proposes the creation and use of school spending profiles as a way to communicate more complete and comparable school spending information. The proposed school spending profile provides not only a complete picture of school expenditures reflecting real costs, but it also indicates spending relative to each school's mix of student needs. Data from Denver Public Schools (DPS) illustrate how profiles can provide dashboard indicators useful for district leadership. Key assumptions and implications are considered.

Decision Making, Dashboard Displays, and Human Performance in Service Systems

“…School districts have also used dashboard indicators to gain understanding of resource allocation across schools (Rosa, & Swartz, 2007). Strategic decisions were aided by the use of spending profiles with dashboard indicators.…”

Examining the lived experiences of Vermont superintendents developing budgets for newly restructured districts

“…In attempting to make fiscal decisions based upon equity, Roza and Swartz (2007) urge leaders to examine (a) spending at each school in the district, (b) make spending transparent for all student groups, (c) compare spending across different types of schools in the same district, and (d) evaluate spending patterns in the context of stated district strategies (p. 71). School spending profiles can help provide needed insight into how funds are used across schools.…”

“…When schools in a system have different or competing needs, superintendents can and should see if "categorical funds are used to supplement equitable distributions of basic noncategorical funds, or instead used to offset inequities in these resources" (p. 83). In the budgeting process, having a clear spending profile for each school in a district allows for comparison and as a means to counter factors that may influence allocation and lead to inequity (Roza and Swartz, 2007).…”