School+Finance-Week+4

Part 1 As the accountability of finances the FIRST system is designed to give structure so schools can better manage their finances. The three most important areas are purpose, reporting, and financial exigency. §109.1001. Purpose of Financial Accountability Rating System. The purpose of the financial accountability rating system is to ensure that school districts and open-enrollment charter schools will be held accountable for the quality of their financial management practices and achieve improved performance in the management of their financial resources. (TEA website) §109.1005. Reporting. (a) Each school district and open-enrollment charter school is required to report information and financial accountability ratings to parents and taxpayers §109.1101. Financial Solvency Review. Financial solvency--When used to describe a school district or open-enrollment charter school, the condition in which a school district or open-enrollment charter school either is generally paying its debts as they become due, unless such debts are the subject of a bona fide dispute, or is able to pay its debts as they become due. ([])

Part 2
 * Detail Area || Dist1 || Dist 2 ||
 * Total Revenue Per pupil || $10,529 || $10,316 ||
 * Total Operation Expend. per pupil || $8,611 || $8,908 ||
 * Avg. Teacher Salary || $39,771 || $50,307 ||
 * # Schools || 3 || 45 ||
 * Avg. # Students per campus || 277 || 718 ||

At first glance the two districts appear to parallel each other in total revenu per pupil and total operation expendatures per pupil. There is a drastic difference in the average teacher salary, but due to the size of the community in District 1 I would assume the cost of living would be less than in District 2. Based on lecture notes, the economy of scale is a concept relating to the increasing size of the organization can result in lower per unit production cost. The larger the orgainization the more you get for your money. After analyzing the number of schools in the districts and the average number of students per campus, it is apparent that District 2 would be the beneficiary of the economy of scale concept. Based on my calculations District 1 spends on average $2,385,247 per campus where District 2 is able to spend on average $6,395,944. Some of this cost will be offset by the difference in teacher salary, but overall District 2 has close to $3million dollars more per campus to spend than District 1. This allows for the increase salary and more benefits in the types of programs offered to students.

Total Students/# Campuses=Avg # Students per Campus Avg. # Students per Campus*Total Operational Expendatures per Student=Avg. $ Per Campus

Group 1- Economy of Scale Total Revenue Per PupilDistrict 1 - $10,529District 2 - $10,316Total Operational Expenditures Per PupilDistrict 1- $8,611District 2 - $8,908Average Teacher Salary in Each DistrictDistrict 1 - $39,771District 2 - $50,307 Economy of Scale may be represented by a larger district spending less money to educate a student than a smaller district. As a district becomes larger, it may be able to reduce to amount of spending for operational costs. After analyzing the two districts, the economy of scale is clearly obvious. Although District 1 has a revenue per pupil that is $233 more than District 2, District 2 has a total operational expenditures per pupil of approximately $297 less than District 1. Because District 1 is a smaller district, it has to spend more per student than District 2 to provide an equitable education to its students. The average teacher salary in District 2 is more than $10,000 higher than in District 1. It would appear that District 2 would be able to hire and retain better teachers, but after examining both, District 1 has fewer teachers with 5 or fewer years of experience. The percentage of students passing the TAKS is somewhat comparable in both districts. This is also evidence to support economy of scale.

Part 3 I struggle to understand the concept of differentiated instruction, and how exactly it becomes a cost saving concept. Two years ago we had specialists for each subject area and for the various grade levels. We had data clerks for various portions of PEIMS. We had enough paraprofessionals to provide inclusion services to each grade level with ease. This system allowed my campus to have specialized individuals focus on specific needs of each student. I believe we produced a better product of learning, and certainly had the ability to keep cleaner data. However, due to budget cuts we have had to reduce the number of individuals hence reducing the quality of learning we produce. If we are able to put class size ratios and other state requirements aside, I can see where certain duties performed by certified professionals could be divied up between paraprofessional staff, which would result in higher quality time on task. Clerical duties would be at the top of the list. Much like the nurse that takes a patient’s vitals, a clerical clerk could take attendance, lunch counts, input lesson plans, submit required reports, grade papers and record scores in the gradebook, etc. This would allow the certified teacher the time to devote to differientiation and instructional focus.

Group 1- Differentiated Staffing

 Because districts nationwide are experiencing the downward spiral of our economy, differentiated staffing is probably occurring in schools at a rate that exceeds our expectations. Where one individual used to be assigned to one assignment, we are seeing that same one individual working two or three assignments. I see it happening in the district in which I work.  What I have observed in my district is when a secretary retires, the records clerk or the financial clerk has to assume the responsibilities of that position along with their previous responsibilities. The employees don’t appreciate this gesture, but they don’t complain because it insures their employment. I have also observed this district-wide with teaching positions. In the past, most teachers were assigned to teaching one subject for the duration of the school day. Due to budget cuts, the district is operating with fewer teachers, and teachers are teaching larger classes and more than one content area. In several instances, teachers are required to teach up to four subjects. Some teachers have to teach more subjects if they are certified in several content areas.  Being an educator used to be one of the most secure occupations in our country. Our nations’ population steadily increased, and that meant job security. We saw an influx of engineers, accountants, business men and women seeking employment in the world of education because of a lack of employment opportunities in their elected fields of study. It meant that they all had to return to school to acquire their certifications in education, but to them it was worth it.  Although I don’t particularly agree with differentiated staffing, it does make economic sense. It results in creating a significant savings in a district’s operational cost. I think this concept will continue to grow at substantial rates.