School Business Insider: Building Better Budgets - Detailed Summary

Podcast Information:

• Title: School Business Insider
• Host: John Brucato
• Description: ASBO International's official podcast where school business professionals and industry experts share their stories and explore pertinent topics in school business.
• Episode: Building Better Budgets: Insights for School Business Leaders
• Release Date: February 25, 2025

1. Introduction of Guest: Bob Saul

John Brucato welcomes Bob Saul, the Business Administrator and Board Treasurer at East Penn School District in Pennsylvania. Bob brings a wealth of experience in budgeting, financial planning, and communicating complex financial information to various stakeholders.

Notable Quote:

John Brucato [00:01]: "Budgeting in a school district isn't just about balancing the books. It's about making strategic decisions that support student success, maximize resources, and ensure long term financial stability."

2. Bob Saul’s Professional Journey

Bob shares his career trajectory, starting in a small rural Pennsylvania school district with a $20 million budget, progressing to East Penn School District with a $200 million budget. His tenure includes significant involvement with the Pennsylvania ASBO and ASBO International, enhancing his leadership and collaborative skills across various committees.

Notable Quotes:

Bob Saul [02:06]: "I served in that school district a total of 17 years... I was the business administrator there for 14 and a half years."

John Brucato [06:24]: "You have the least amount of control over your revenue. Your expenditure budget on the other side of the House is where you have the most control."

3. Foundational Principles of Building a Strong Budget

Bob emphasizes that budgeting is fundamentally about creating a spending plan for the future. He discusses aligning the budget with the district’s mission, vision, and values, using guiding principles to prioritize spending effectively.

Key Points:

• Alignment with Mission: Ensuring the budget supports the district’s educational goals.
• Hierarchy of Priorities: Preserving the educational program, maintaining operations, meeting student population growth, implementing new initiatives, and addressing long-term facility needs.

Notable Quote:

Bob Saul [07:01]: "The first foundational principle is ensuring that you have some guiding principles and guiding... use the mission vision values to create guiding principles for budgeting."

4. The Rule of Three in Budgeting Adaptation

Bob introduces the "Rule of Three," a concept where:

1. Year One: New school business official follows existing processes to avoid disruption.
2. Year Two: Begins to understand the intricate details of the budgeting process.
3. Year Three: Achieves mastery and can implement personal enhancements to the budgeting process.

Notable Quotes:

Bob Saul [13:19]: "I think there's the rule of three in anything we do... it just really takes three."

John Brucato [14:29]: "Rule of three, over and over."

5. Common Budgeting Mistakes and Their Avoidance

Bob identifies major budgeting mistakes, including:

• Using one-time funds for recurring expenses.
• Lack of transparency leading to erosion of community trust.
• Inadequate long-term financial planning.

Notable Quote:

Bob Saul [15:39]: "Some of the monumental mistakes are using one-time money for recurring expenses."

6. Importance of Transparency and Building Trust

Both hosts stress the critical role of transparency in maintaining community trust. Bob shares his experience dealing with a watchdog group by implementing transparent budgeting practices, such as detailed long-range fiscal planning and open communication.

Key Strategies:

• Early and Open Communication: Sharing budget changes and reasons promptly.
• Consistent Presentation Formats: Using templates to create familiarity and ease of understanding.
• Simplifying Financial Jargon: Relating complex financial terms to everyday concepts.

Notable Quotes:

Bob Saul [21:12]: "Being transparent with the community is so important... we've put in things like long range fiscal planning documents and sort of putting everything out there."

John Brucato [25:01]: "You never know who's watching and who's tuning in... being transparent in everything we do."

7. Effective Communication Strategies for Budget Presentations

Bob and John discuss techniques for presenting budgets clearly:

• Use of Templates: Ensuring consistency and ease of comparison across years.
• Addressing Common Questions Proactively: Anticipating and answering potential queries during presentations.
• Utilizing Visual Aids: Infographics and dashboards to simplify complex data.

Notable Quotes:

Bob Saul [27:18]: "Using plain language and relating to what people can understand... building parallels like a mortgage for debt service."

John Brucato [30:15]: "I always preface... 'you probably heard this before, but bear with me, it's worth reviewing again.'"

8. Managing Financial Constraints and Staffing Cuts

Facing inflationary pressures and rising operational costs, Bob outlines strategies to manage budgets:

• Cutting Non-Essential Expenses First: Consolidating services, optimizing routes, reducing energy costs.
• Staffing Adjustments: Using attrition and strategic layoffs only when necessary.
• Maintaining Core Educational Programs: Protecting student-focused initiatives as top priority.

Notable Quote:

Bob Saul [39:14]: "70 to 80% of our budget is staffing and benefits... we try not to go to that core, but sometimes you have to."

9. Navigating Political Challenges and Board Relations

Bob discusses the delicate balance between serving the board and adhering to personal moral standards. He highlights the importance of making data-driven decisions and maintaining a student-centered approach when facing pushback from stakeholders.

Notable Quotes:

Bob Saul [52:33]: "Delivering the hard news... you're never going to please everybody."

John Brucato [54:06]: "Maintaining those relationships with your union and not just being transparent with your board and your community."

10. Tools and Best Practices for Effective Communication

Bob shares practical tools and practices that enhance budget communication:

• Electronic Budget Books: Providing accessible and detailed budget information.
• Infographics and Dashboards: Visual tools to simplify financial data.
• Consistent Long-Range Planning: Linking budgeting to strategic plans for transparency and foresight.

Notable Quote:

Bob Saul [58:01]: "I really wish I was better at using infographics and dashboards... sometimes there's just not enough time to implement those."

11. Advice for Aspiring School Business Officials

Bob offers valuable advice for newcomers in the school business field:

• Find a Mentor: Seek guidance from experienced professionals.
• Ask Questions: Embrace curiosity and seek clarity on complex issues.
• Challenge the Status Quo: Innovate and improve existing processes thoughtfully.

Notable Quotes:

Bob Saul [59:38]: "Find a mentor, ask a lot of questions. No question is too stupid."

John Brucato [60:34]: "Seek first to understand, then to be understood."

12. Conclusion and Final Thoughts

John thanks Bob for his insightful contributions, emphasizing the value of his experiences and strategies in improving budgeting practices within school districts. Both speakers reflect on the emotional and professional challenges of adapting to new roles and districts, underscoring the importance of resilience and continuous learning.

Notable Quote:

Bob Saul [57:40]: "Sometimes you have to push the envelope a little bit and not be afraid to challenge that status quo."

Overall Insights:

• Strategic Planning: Effective budgeting aligns with educational goals and long-term planning.
• Transparency: Open communication fosters community trust and mitigates opposition.
• Adaptability: Embracing change and continuous improvement is essential for mastering budgeting processes.
• Emotional Intelligence: Navigating political dynamics and personal relationships is crucial for success.

This episode offers comprehensive strategies and real-world experiences to empower school business leaders in building robust, transparent, and effective budgets that prioritize student success and financial stability.