When teaching an introductory school finance class to aspiring administrators, I ask, “What is a budget?” Some of the more comical responses I received included: “A wallet diet,” “A list of things you want to purchase,” “A document that proves you are not as rich as you thought,” My favorite is “A way to convince yourself you have the money.” Joking aside, budgets are vital because they act as a framework for allocating the funds to provide services. As County Superintendent of Schools, one of my primary duties in the State Constitution is to maintain responsibility for the fiscal oversight of each school district in the county. Otto Von Bismarck said, “If you like laws and sausages, you should never watch either one being made.” The same can be said about public budgets that are often messy, unappetizing, and complex.
The best explanation I have heard is that a budget is a process rather than a product. Recall the sausage making? One colleague describes the budget as a combination of phases: the development of the Governor’s Budget, the Legislature’s enactment of a budget, and the executive branch’s administration of the funds. Each phase contains all the ramifications and influences of political interactions, relationships with federal and local governments, public input, natural events, legal issues, the economy, initiatives, and legislation. In short, the state budget is a complex, multi-faceted, and ever-changing process.
Our California State Constitution requires that the governor submit a balanced budget to the Legislature by January 10. One interesting requirement is that if the proposed expenditures for the budget year exceed estimated revenues, the governor must recommend the sources for the additional funding. As the chief financial advisor to the governor, the director of finance directs the effort to prepare the Governor’s Budget. Under the governor’s policy direction, the director of finance issues instructions and guidelines for budget preparation to agencies and departments.
Even though terms such as “zero-based budgeting,” “management by objectives,” and “total quality management” are used by the administration, the process is essentially incremental budgeting with some lobbying added for good measure. The current departmental level of funding is considered a base amount to be adjusted up or down by change proposals. According to the Department of Finance, the general goal is to resolve budget issues at the lowest level possible. Departments should clear their proposals through agency-level hearings, and the Department of Finance generally attends them. For non-agency departments, proposals are presented directly to the Department of Finance. Issues that are not resolved between departments and Finance staff are discussed at hearings conducted by the director of finance, and the most sensitive issues are ultimately presented to the governor for a decision.
Once the decisions are finalized, the Department of Finance coordinates printing the Governor’s Budget Summary, containing goals and objectives for the following year. The State Constitution also requires that the Governor’s Budget be accompanied by a budget bill itemizing recommended expenditures introduced into each house of the Legislature, to be passed by June 15. This year, education continues to be one of the most significant items in the California State Budget. A modest Cost of Living Adjustment (COLA) is budgeted; teacher recruitment & professional development are planned; and funding for special education, support for mental health, school nutrition, school facilities, career and technical education, early childhood education, and several other related areas are all included in our state budget proposal. There is additional language on fiscal accountability/transparency, grants for closing the achievement gap, vaping, and wildfire mitigation.
It is an honor to serve as your County Superintendent of Schools.
