Selected policies and procedures in the administration of California school district budgets

330 Pages·013.463 MB·English

by  Wright, Frank Moore

SELECTED POLICIES MD PROCEDURES
IN TEE ADMINISTRATION OF
CALIFORNIA SCHOOL DISTRICT BUDGETS
A D issertatio n
Presented to
the Faculty of the School of Education
U niversity of Southern C alifornia
In P a rtia l Fulfillm ent
of the Requirements fo r the Degree
Doctor of Education
by
Frank Moore Wright
June 1950
UMI Number: DP25795
All rights reserved
INFORMATION TO ALL USERS
The quality of this reproduction is dependent upon the quality of the copy submitted.
In the unlikely event that the author did not send a complete manuscript
and there are missing pages, these will be noted. Also, if material had to be removed,
a note will indicate the deletion.
Dissertation Publishing
UMI DP25795
Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author.
Microform Edition © ProQuest LLC.
All rights reserved. This work is protected against
unauthorized copying under Title 17, United States Code
ProQuest LLC.
789 East Eisenhower Parkway
P.O. Box 1346
Ann Arbor, Ml 48106- 1346
This dissertation, written under the direction
of the Chairman of the candidatefs Guidance
Committee and approved by all members of the
Committee, has been presented to and accepted
by the Faculty of the School of Education in
partial fulfillment of the requirements for the
degree of Doctor of Education.
Date...
Dean
Guidance Committee
TABLE OF CONTENTS
CHAPTER PAGE
I. THE PROBLEM..................... ..................................... 1
S tate system of education • • • • • . • • • 1
Financial adm inistration . . .............................. 2
Statem ent of the problem . . . . . . . . . . 3
Purpose of the study .................... . . . . . . . 5
Procedure of study . . . . . 5
General plan of s t u d y ............................. 5
Survey of lite ra tu re ............................ 6 —
—. A nalysis of d is tric t b u d g e ts............................. . 7 —
County superintendents* questionnaire . . . 7
D istric t superintendents* questionnaire . . 9
Personal interview s . . . . . . .......................... 10
A nalysis of m a te ria l................................................ 11
Method of com putation . . . . . . .................... 12
Q uotations from the Education Code . . . . . 12 -
Sum m ary................................................ . 13
II . AUTHORIZATION FOR SCHOOL DISTRICT BUDGETS . . 14
Importance of budget . ............................................. 14
Employment of school superintendents . . . . 15
—F ilin g d is tric t budget ................................. 16
Budget approved by county superintendent . 17
D istric t resp o n sib ility 18
iv
CHAPTER 'PAGE
S tate and county resp o n sib ility . . . . • 19
Budget form . . . . . V ................................... . 20
Sum m ary................................................................................ 22
I I I . ANALYSIS OP BUDGETING SCHOOL DISTRICT
INCOME ......................... .................................. 24
Preparation of b u d g e t.................................. 24
\
Legal p ro c e d u re ......................................................... 24
R esponsibility of governing board . . . . 25
Sources of in c o m e .................................................... 28^
Items of income ............................................ 29
^Taxes on property . ...................................... 29
Income from unsecured property • • • • • 31
L istin g an ticip ated income • • • • • • . . 32
C ollection of unsecured income ......................... 34
County p o l i c y .................................. 38 \
E ffect of not lis tin g ineome . . . . . . . 39
D isposition of extra ineome • • • • • • • 40
Assessments in re la tio n to in c o m e .................... 42
Secured p ro p e rty • • • • 42
Unsecured property • ........................ 43
Equalized assessm ent r o l l .................................. 44
C ollection of taxes • • • • 44
Fixing the tax rate • • • • • • • . • • • 46
Summary ................................................ . 50
V
CHAPTER PAGE
IV. ANADTSIS GP BUDGETING FOR DISTRICT
EXPENDITURES ......................................................................... 54
The budget as an accounting d e v ic e .................... 55
Supplemental work sheet form . ....................* • 56
D istric t procedures . . . ....................................... 59
Records m aintained by d i s t r i c t s .................... 61
Use of tax r a t e ......................... . ............................ 62
Summary . .................................. 65
Y. ANALYSIS OP ENDING BALANCES IND RESERVES . . . 67
Source of ending balance . . . . . .................... 67
Extra tax co llectio n s • • • • • • • • . • • 67
Income not lis te d • • • • • . . • • • . • • 69
U ndistributed reserve . ...................................... 70
General reserve • • • • • • • • • • • • • * 70
✓
Unexpended budgeted item s . 71
Other incom e................................................ 71
Ending and beginning b a la n c e s .............................. 71
Factors affectin g size of net balance . . 72
Amount of ending b a la n c e ........................ • • • 74
Adequacy of beginning b a la n c e s........................ 90
Change in beginning balances • • • • • • • 91
Reserves . . . . . . . 98
Procedure follow ed 100
Vi
CHAPTER PAGE
U ndistributed reserve ....................................... 108
General reserve . • • • • ............................. 117
Total reserves • • • • • • • • . . • • 118
R elationship between reserves and ending
balances ............................. 119 -r
Reserve funds used to balance budgets . . • 126
Reserves in m ajor c la ssific a tio n s . . . . . 127
A single reserve . . . . . . ............................ 129
Summary ..................................................... 130
VI. ADMINISTRATION OP FUNDS RAISED IN EXCESS
OP STATUTORY LIMITATIONS .................... 134
Exceeding tax lim its • • • • • • . . . • • . 134
Funds raised by voted tax • ........................ • 135
Legal au th o rity . . . . . . . . . . • . • 135
Use of voted tax • • . • • • • • • . . • • 136
A dm inistration of funds exempt from tax
rate lim ita tio n . . . . • 139
Meals fo r needy children ................................... 139
Use of extra funds w ithout vote . . • . . • 139
Retirem ent funds .............................. 140
Budgeting extra tax funds . .............................. 142
Ending balances fo r extra funds . . . . • 142
Accounting fo r extra tax funds . . . . . . 144
v ii
CHAPTER PAGE
Child care center f u n d s .................................. . 146
Summary ..................... . . . 146
V II. BUDGET ADMINISTRATION BY THE COUNTY “
SUPERINTENDENT . . . 148 *
Legal resp o n sib ilitie s of county
superintendents . . . . . . . . 148
A uthority of governing board . ............................• 150
A ssistance to d is tric ts . . ................................ 152
Budget preparation by county
superintendents . . • • • • • • • . • • 157
Legal requirem ents of county
s u p e rin te n d e n ts............................................ . • 159
Accumulative building fund * . ♦ .......................• 161
Outstanding lia b ilitie s . . • • • • • • . . 163
Reporting p rio r year expenditures . . . . . 166
t
Procedures follow ed to meet d e fic it . . . . 169
Major c la ssifica tio n s ............................ 170
Budget tran sfers . ...................................................... 173
Sum m ary..................................................... 176
V III. PROPOSALS FOR REVISION OF BUDGET ACT . . . . . 179
Expenditures p rio r to budget adoption • . • 179
Budget preparation . . . . . 179
Assessed valuations . . . . . . ....................... 182
v iii
CHAPTER PAGE
Good budget procedure . . . . . . . . . . . 184
Chang© in average d aily attendance
reporting year . . . . . . . . . . . . . . 186
Proposed budget procedure 187
Budget h e a rin g ...................................... 191
Summary 195
IX. LEGAL INTERPRETATIONS OF BUDGET ACT . . . . . 197
Local rulings • • • • • • • • ............................. 198
S tate rulings .................... . . . . . . . . . . 199
General reserve . .................................................... 201
Budget tran sfers • 206
Adoption of budget • .... • . • . . . . . . . 208
Budget hearings • 211
Penalty fo r v io latio n of budget act . • 212
Summary . . . . . . . . . . . . . . . . . . 214
X. SUMMARY AND CONCLUSIONS................................................. 217
General conclusions • • • • • • • . • • • • 218
Influence of county superintendent
of sc h o o ls........................................... 218
A dm inistratively strong d is tric ts
independent • . . • • • • • • • • • • • 220
Confusion in the Education C o d e ..................... 221
Revision of sta te budget form . . . . . . 221
ix
CHAPTER PAGE
Assessments and tax co llectio n s • . . • * 222
E lim ination of tax ra te lim ita tio n • • • • 223
Specific conclusions * . . . . . .................... • 225
Estim ating income . . . ...................................... 226
Supplemental breakdown f o r m ......................... • 226
Records m aintained by d is tric ts . . . . . 227
Ending balances • .................... . . . . . . . 228
R eserv es............................................. ............................. 229
faxes above leg al lim its ....................................... 230
A dm inistration of budgets by county
s u p e rin te n d e n ts........................................... 232
Budget tran sfers ........................ 233
W ithholding of assessed valuations . . . . 235
Change in basic budget procedure . . . . . 236
Legal in terp retatio n of le g isla tio n . • • 237
XI. RECOmiENDATIORS ......................... 239
Recommendations in procedure and
adm inistration ...................................... 240
Work sheet form ........................ 240
E stim ating income from unsecured
property • • • • • • • • • • • • • • • • 241
Control of voted tax• • . • • • • • • • • 241
Control of funds raised fo r sp ecific
purposes ..................................................... 242