Four Steps to Promote Savings in School (town) Spending
Dr. Armand A Fusco, via email
There is one harsh and undeniable fact that must be accepted with school (and town) spending: There is no strong incentive to save dollars. Unlike schools, the business world’s incentive to save is driven by the “bottom line.” Unfortunately, there is no “bottom line” in school operations because, with rare exception, there is always more money provided every year regardless of productivity or results. Yet, even though the business world has a strong incentive, the American Productivity and Quality Center, estimates that there is still 20%-30% waste in time and money.
Waste is defined as “Anything that adds cost without adding value.” This, of course, is assessed more easily in business organizations; however, it is rarely a consideration in schools. For example, in job descriptions it would be unusual to find any mention that an employee is responsible for controlling and cutting costs; in addition, it is not part of any evaluation process or even as a policy statement. An exception was found in Ann Arbor, MI, and if all superintendents’ job descriptions followed this example, it would have a powerful and meaningful impact on fiscal accountability.
Step One: Job Description
The Superintendent (1) shall diligently identify opportunities to reduce costs and improve operating efficiency in all areas of district operations (2) is charged with the responsibility of seeking ways to reduce costs and improve efficiency while maintaining the organization’s mission and performance (3) will provide guidelines to support constant and continual improvement in the organization (4) will ensure that promoting savings will be a part of every employees’ and department’s yearly evaluation (5) shall regularly inform new and current employees that finding more efficient and economical ways to accomplish the district’s educational mission and that it is an implied component of every job description (6) may call on any employee to assist in a formal investigation to identify more efficient operations and/or cost-reduction opportunities (7) will establish a program through which employees may make suggestions relating to more efficient operations and/or cost-reduction opportunities, and be recognized for such efforts (8) will ensure that department heads shall continually monitor their areas to identify any potential cost reduction and/or efficiency improvement and will report quarterly on specific efforts made to promote savings through controlling or cutting costs, as well as, the process or procedure that was used to determine the savings calculation and (9) shall present such findings to the Board and community on a quarterly basis.
Step Two: Policy Adoption
However, the job description and evaluation process is not enough. The BOE must adopt a policy that will clearly establish a culture of fiscal accountability. The following example is edited from Greenwich, CT:
1. The District shall not engage in the mismanagement of financial, physical and human resources and Shall not fail to act as a good fiduciary for all taxpayer assets.
2. Taxpayer assets, including but not limited to, all facilities, equipment, materials, tax dollars, and all other sources of funds may not be inadequately maintained, unnecessarily risked, wasted, or allowed to deteriorate
3. The District shall not fail to maintain procedures and systems to control management of resources, including, at a minimum, accounting; budgeting; data management; purchasing; ordering goods and services; inventories of equipment and supplies, and record retention.
Step Three: A Pledge
All officials, upon election or appointment, shall pledge verbally and in writing the following:
“It is my sworn duty and obligation to manage all physical, human, and financial resources in the most effective, efficient, economical and ethical manner. Furthermore, I will support the establishment of a Citizen’s Performance and Review Audit Committee (CPRAC) to provide independent and objective oversight to ensure that the commitments made for fiscal responsibility will be followed in spirit and action. I will demonstrate my support to the CPRAC by providing all requested public documents and information at no cost and without FOI requirements.”
Step Four: The CPRAC
The committee will consist of local volunteers who will be trained in best financial and management practices and will be self governing. The author of this op-ed piece, a retired school superintendent, will provide the orientation, materials and training at no cost: fusco.a@comcast.net. Such committees have already been established in several communities.
These simple steps only require action on the part of a BOE (the town can do the same) and will have no budgetary implications.
Why would any official refuse to implement such a simple process?
Dr. Armand A. Fusco, 1563 Durham Rd, Guilford, CT
Name Dr. Armand A. fusco
E-mail: fusco.a@comcast.net
Telephone 203-453-1301
Submit Submit