Building a case for school budgets: It’s all about the audience

On average, just over 13% of school budgets are federally funded, with another 43% funded by local taxes and 44% by state taxes. With increasing financial uncertainty at all levels of government, it’s more important than ever for school districts to show a solid business case for their budgets and clearly communicate their budget to key stakeholders.

The school budget—and accompanying process—provides school districts and their leaders with an opportunity to justify the collection and expenditure of public funds. Schools need to consider the following questions when communicating to stakeholders: What is the story? Who is the target audience? How should we connect?

The narrative depends on the audience

Transparency and intentionality should be the backbone of any communication about district budgets. This means presenting information in a way that is understandable to the intended audience. Depending on who the audience is, communicators may want to include context and history. For instance, when speaking at a public forum for parents and voters, more context is needed before diving into the numbers.  In contrast, a school board that meets regularly may already understand the history and details involved in the budget. 

Budget numbers only hold meaning when they are aligned with a strategic plan that reflects the priorities and expectations of students, staff and the community. Additional elements worth sharing include financial forecasting projections, capital improvement plans, facility studies and demographic insights.

Districts should also communicate what the future may hold, including decreasing (or increasing) enrollments, inflation, and other factors that could affect financial resiliency. Transparency also involves sharing measures of success; this could be in the form of outcomes and services, key performance indicators, performance metrics and fund balancing. Lastly, districts should regularly report on budget actuals, making it a point to hold conversations about finances on a quarterly or monthly basis, or even weekly in larger districts.

Connecting with audiences

Part of the budget collaboration process involves using tools that the audience can understand.  For many, spreadsheets can be overwhelming. Charts, graphs and illustrations can help tell a compelling financial story in a more accessible way, and the public has come to expect them.  Presenters should also be prepared to explain any accounting terms or acronyms they use. For example, does the school board know what it means to go into a negative or structural imbalance? Does the voting public understand the difference between a CPI (capital improvement plan) and routine costs?  And do they understand the rationale behind budgetary decisions?