AD 360 Podcast: "Budgeting for Public Schools"

Host: Greg Vandermade
Co-host: Scott Rosenberg
Guest: Dennis Nelson (Athletic Director, Riverdale High School, NJ)
Date: January 16, 2025

Overview

This episode takes a deep dive into the unique world of budgeting for public high school athletic departments. Host Greg Vandermade and co-host Scott Rosenberg are joined by guest Dennis Nelson from Riverdale High School, NJ. The trio discusses the distinct challenges, timelines, and strategies involved in managing public school athletic budgets, contrasts with private school approaches, and offers practical guidance for both new and veteran athletic directors. The conversation covers collaboration with business administrators, handling community involvement, booster clubs, dealing with budgetary crises, and the importance of collegiality in navigating fiscal hurdles.

Key Discussion Points & Insights

1. The Budgeting Process in Public Schools

• Relationship with Business Administrators
  • Dennis emphasizes the central role of the business administrator (BA)—the equivalent of a CFO for the school district—in shaping budgets. He notes variation across districts in how BAs want ADs to submit budgets.
  • "In the public school setting, a person that you're going to work very closely with on this is the business administrator who essentially is like the chief financial officer for the school district." —Dennis Nelson [02:28]
• Budget Timeline and Projections
  • Athletic budgets are a part of a much larger school budget, composed primarily of taxpayer dollars and state aid.
  • The budget process often starts in November/December for a cycle that begins July 1 and predicts spending up to 18 months in advance.
  • Staying within a 2% growth cap is crucial to avoid needing public vote for budget approval.
  • "You're, in some respects, for the end of next year, 18 months ahead of where, you know, some actual spending could take place. So there's a good deal of speculation and projection." —Dennis Nelson [04:48]

Notable Quotes:

• "You have to have a good working relationship with your BA as an AD." —Dennis Nelson [06:27]
• "Those are the people to butter up early to make sure they're happy." —Scott Rosenberg [06:02]

2. Sport-by-Sport Financial Planning

• Coaches and the “Needs vs. Wants” Dynamic
  • Dennis solicits annual budget requests from coaches; ultimately, he mediates which requests make the final budget.
  • Coaches, due to a culture of “servant leadership,” often request less than what’s potentially available — an interesting contrast to private school environments.
  • Supplemental funding sources, like booster clubs, are necessary for wants beyond the essentials.
  • "I get coaches a lot of times asking me what's my number? And I never give them a number. I say, what do you need?" —Dennis Nelson [11:44]

Notable Quotes:

• "Coaches are willing and able to do more with less than probably people in most professions." —Dennis Nelson [12:40]

3. Adding New Sports: Considerations and Obstacles

• Feasibility and Sustainability
  • Financial hurdles are seldom the main issue; sustainability and impact on existing offerings are more significant.
  • Popularity growth and “keeping up with the Joneses” is a real factor, especially in regions like New Jersey.
  • "The bigger concern that I have is the impact it might have on the other sport offerings in the same season." —Dennis Nelson [13:41]

4. Community Fundraising & Booster Clubs

• Structure and Best Practices
  • Riverdale HS uses both individual team booster clubs and an overarching “Friends of Riverdale” club for major capital projects and school-wide needs.
  • The dual-club approach balances specific team needs and larger facility improvements.
  • "The secret sauce is to try and have both..." —Dennis Nelson [19:06]
• State-by-State Differences
  • New Jersey public schools have the luxury of taxpayer funding, leaving parents (not coaches) to typically lead fundraising. This astounds colleagues from other states.
  • "Really the people doing the fundraising are the parents that are in the program." —Dennis Nelson [21:51]

5. Sponsorships and Community Partnerships

• Limitations on Solicitation
  • In New Jersey, administrators must be careful not to actively solicit corporate sponsorships due to political and legal boundaries—policies vary widely even between neighboring districts.
  • Donations welcomed, but “cold calling” businesses is frowned upon. Many schools avoid corporate signage on fields or gymnasiums.
  • "Some districts are all about get as many corporate sponsors as you can... And others don’t do that... So it can be very different from town to town." —Dennis Nelson [29:15]
• Creating Win-Win Partnerships
  • Successful partnerships revolve around mutual benefit rather than handouts (e.g., events that drive business to local sponsors).
  • Local business owners are usually already community taxpayers.

Notable Quotes:

• "It's almost as if, if somebody comes to you and they want to do it, that's okay." —Dennis Nelson [29:57]

6. Budget Cuts and Crisis Management

• Real-World Challenges

  • The most severe crisis was a mid-cycle state funding cut that threatened to eliminate programs and staff.
  • Budget cuts forced hard choices—either spread pain across all programs or eliminate entire ones (e.g., middle school sports) to save others.
  • Temporary crisis sometimes resolved by restored funding, but the threat requires contingency planning.
  • "That's difficult when you already have the plan and then... the rules to the game change in the middle." —Dennis Nelson [25:11]

• Strategies for Cost-Cutting

  • Reducing number of games or scrimmages (impacts student experience).
  • Adjusting levels offered (e.g., combining freshman and JV into “frosh-soph”), using co-ops with other districts to maintain opportunities.
  • "There is going to be some impact. Regardless of what advice you can give..." —Dennis Nelson [35:43]
  • "Probably the number one compromise that's been made in New Jersey has been the change in level offerings..." —Dennis Nelson [37:57]

Notable Moment:

• "Those are not easy choices to be made... ultimately, the people that are suffering are going to be the kids that have opportunities taken away from them, the coaches that want to do what they love." —Greg Vandermade [27:22]

7. Wisdom for New Athletic Directors

• The Importance of Collegiality and Mentorship

  • Dennis and the hosts stress the necessity of leaning on more experienced ADs for advice, especially in areas like budgeting, scheduling, and hiring.
  • AD culture is uniquely communal and supportive, setting it apart from other admin roles.
  • "Athletic directors are the most collegial fraternal group of educators in the business. I don’t think there’s any question about that." —Dennis Nelson [41:14]
  • Veteran ADs are encouraged to proactively support and “wellness check” new colleagues, not just wait for them to ask for help.
  • "You shouldn't have to be asked to help." —Dennis Nelson [46:41]

• Monthly League Meetings: Building Relationships

  • Regular touchpoints at meetings foster support and knowledge-sharing, even among rivals.
  • "You may feel like you're going it alone because you may be the lone athletic administrator on campus, but you're not." —Greg Vandermade [42:25]

Memorable Moments & Quotes

• On Coaches and Budgets:
  "I think it's the nature of, of coaches' servant leadership and... they're willing and able to do more with less than probably people in most professions." —Dennis Nelson [12:40]
• On Crisis:
  "...in March, you kind of found out that money you thought was going to be there for next year was not going to be there... there's no way you can make those kind of cuts without cutting programs and without cutting personnel..." —Dennis Nelson [24:07]
• On Sponsorships and Community:
  "It's almost like I'm panhandling and given the money that we get, you know, my super... they don't want our student athletes out there begging for money either, you know, to, if I can use that term..." —Dennis Nelson [29:57]
• On AD Culture:
  "The willingness to help each other is second to none. It really is." —Dennis Nelson [44:14] "You may feel like you're going it alone...but you're not. There are people out there willing to share their knowledge." —Greg Vandermade [42:25]

Key Timestamps

• Main Budgeting Process – [02:28]
• Working with Coaches on Budgets – [09:43]
• Adding New Sports, Keeping Up with Neighbors – [13:41]
• Booster Clubs Structure – [19:06]
• Community Funding, Differences across States – [21:51]
• Sponsorships and Fundraising Rules – [29:15]
• Budget Cuts/Crisis Stories – [24:07, 25:11]
• Cost-Cutting Strategies – [35:43, 37:57]
• Advice to New ADs, Collegiality – [41:14, 42:25]

Conclusion

This episode offers a comprehensive look at public school athletic budgeting, highlighting the importance of adaptable planning, strong relationships with business administrators, clear communication with coaches, prudent use of booster clubs, and fostering both internal and external community. The collective wisdom and camaraderie of the AD community shine throughout—a must-listen for new and experienced athletic administrators alike.