PAD 505 1

Topics: Maryland, Costs, Cost Pages: 10 (1729 words) Published: May 27, 2015


Part 1: The Operating Budget for the State Department of Education Strayer University
PAD 505- Public Budgeting and Finance

Operating Budget for the State Department of Education
As a budgeting and finance administrator for the State of Maryland Department of Education, I will be analyzing, examining, proposing, and preparing the Department of Education’s budget for the next five years. I will first give an introduction by providing background information about the Department’s mission, goals, objectives, departments, and strategic plan. I will then give a budget overview which will address the agency’s financial summary, revenue, and expenditures, department budgets, funding, capital projects, and debt administration. I will then complete a cost analysis which will include fixed costs, step-fixed costs, and variable costs. I will also discuss budget challenges, offer budget recommendations, and lastly disclose the agency’s most recent budget/plan. Agency Introduction

In 1812, the State began to raise money for a Free School Fund. Eventually a uniform system of primary school education for Maryland was attempted in 1825. The 1825 Act called for a Superintendent of Public Instruction to prepare a statewide plan for education and make sure it was implemented. (“State Department of Education,” 2015). This was the beginning of public education in the State of Maryland. The main departments within the Department of Education include the State Board of Education, Finance & Administration, School Effectiveness, Teaching & Learning, Library Development & Services, Special Education & Early Intervention Services, and various other subunits within these departments. The mission of the State Department of Education is to “provide leadership, support, and accountability for effective systems of public education, library services, and rehabilitation services.” (“Department of Education,” 2015). In Maryland, the primary objective of the State Department of Education is the general care and supervision of public education. This is carried out by the State Superintendent of Schools, appointed by the State Board of Education, and the professional staff employed by the Board to assist the Superintendent. (“State Department of Education,” 2015). Their strategic plan consists of focusing on priorities regarding public education, division of library development and services, and rehabilitation services. Budget Overview

Financial Summary, Revenue and Expenditures
Currently, MSDE remains a top priority in Maryland. MSDE’s operating budget has increased by 30% since Governor O’Malley took office. The State’s record investments in K-12 are showing good results. (“Department of Education,” 2015). According to Chen (2009), revenue refers to any money coming to a government or other entity for its own expenditures. Revenue and other non-revenue sources for Maryland public elementary and secondary education per year now exceed $13.4 billion. Ten years ago the total annual revenue was just over $8.4 billion. (“Selected Financial Data Maryland Public Schools,” 2015). I attribute revenue increase to population growth and the need for infrastructure changes. Expenditures (in millions) include headquarters 298.2, aid to education 6,561.6, children’s cabinet interagency fund 24.5, funding for educational organizations 27.0, and Maryland Longitudinal Data System Center 0.0 all totaling 6,911.3 for fiscal yr 2012. These expenditures are considered operating expenditures and according to the text operating expenditures are considered consumed when spent. (Chen, 2009). Department Budgets

The budget for the department includes $206.2 million increase to aid to public schools. Direct aid totals $5.18 billion, $26 million increase for school lunch and breakfast programs, total funding for school nutrition programs to $276.4 million. (“Department of Education,” 2015). Within the $276.4...

References: Better Choices for Maryland Public Education and our 21st Century Workforce. (n.d.). Retrieved January 29, 2015, from http://www.dbm.maryland.gov
Capital Budget Summary. (n.d.). Retrieved January 28, 2015, from http://mgaleg.maryland.gov/pibs/budgetfiscal/2015fy-budget-docs-capital-RA01-maryland-state-department-of-education.pdf
Chen, G., Forsythe, D., Weikart, L., & Williams, D. (2009). Budget tools: Financial methods in the public sector. Washington, D.C.: CQ Press.
Eggers, W. (2002, September 2). Ten Strategies for Cutting State Budget Deficits. Retrieved January 30, 2015, from http://www.insideronline.org
STATE DEPARTMENT OF EDUCATION. (n.d.). Retrieved January 28, 2015, from http://msa.maryland.gov/msa/mdmanual/13sdoe/html/13agen.html
Selected Financial Data Maryland Public Schools. (n.d.). Retrieved January 28, 2015, from http://www.marylandpublicschools.org
The Fact Book. (n.d.). Retrieved January 30, 2015, from http://www.marylandpublicschools.org
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