MISSOURI ASSOCIATION of

SCHOOL BUSINESS OFFICIALS

Budget Decisions in Difficult Times

William T. Rebore, Ph.D.Saint Louis University

There are many issues that could precipitate a financial crisis if not recognized and prepared for in advance. Some of the most prominent include:

Flat state funding. Despite recent surges in tax receipts, officials in many states “remain concerned

Stagnant or falling property taxes. The slowdown in the housing market could have ramifications

Rising pension and healthcare costs. Health care costs for current and former employees now

Escalating fuel costs. A confluence of factors may conspire to increase fuel prices.

Sources of Financial Distress

Mission (Core Values)

Market Trends

Program Costs

Marketing

Financial Decisions

Service: “A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.”

(Kotler, 2003, p.444)

Education fits the following service requirements: it is people-based, it requires the client to be present, and it meets a personal need.

(Kotler)

What do we do in Public Education?

CORE PURPOSEAn Organization’s Reason for Being

Mission Organization

To solve unsolved problems innovatively

A collaborative learning community guided by a relentless focus to ensure each student achieves maximum growth

To give unlimited opportunity to women

To preserve and improve human life

To give ordinary folk the chance to buy the same things as rich people

To make people happy

3M

Hazelwood School District

Mary Kay Cosmetics

Merck

Wal-Mart

Walt Disney

CORE PURPOSEAn Organization’s Reason for Being

Mission Core Values

We will provide a quality education for all students and enable them to realize their full intellectual potential

All students will have the knowledge, skills, abilities and attitudes to become productive citizens and lifelong learners in a changing global society.

The School District strives to develop in all its children the strength of character, the skills, the knowledge and the wisdom necessary to build creative, productive lives and to contribute to a global society.

Realize Full Intellectual Potential.

Productive Citizens and Lifelong Learners.

To Build Creative, Productive Lives.

Q3

Important

Q1

Critical

Q4

Less Important

Q2

Very Important

Relationship of Program Costs to Mission

Mission

Program Costs

Program Costs

S3

Important

S1

Critical

S4

Less Important

S2

Very Important

Relationship of Market to Competencies

Internal Competencies

Market Trends

Q3

Important

Q1

Critical

Q4Less

Important

Q2Very

Important

S3

Important

S1

Critical

S4Less

Important

S2Very

Important

Resource Allocation

Mission

Program

Costs

Internal Competencies

Market Trends

Q 1 Q 2 Q 3 Q 4

Sector 1 Drives the School

Reassess Operating

Model

Consider OverallFocus

Assess Commitment

toPrioritization

Sector 2 Requires External

View

Defines the School

Plan ExitStrategy

ReconsiderResource

Deployment

Sector 3 Requires Investment

Invest in Competencies

Provides Resources

Tighten Implementation of Priorities

Sector 4 Requires Change

Reassess theMission

Plan ResourceDeployment

Drains Resources

Quadrant/Sector Mapping Results

External Threats (vouchers, private schools, etc.)

Government Expectations

Public (Parental) Expectations

Influence Legislation

Image Building

Obtaining Resources

Why marketing for public schools?

Plan Steps

Understand your school’s setting and client needs and wants

Design a school-driven marketing strategy that involves all related persons

Construct a program that delivers premium value

Build meaningful relationships and create client happiness

Capture value from clients to enhance client loyalty

Define your Business Define your Clients

Define your Plan = Sustained Client Loyalty

Map your bus routes

Know the ethnicity of your marketplace

Socio-economic back drop

The businesses

The major employers

Civic groups

Gauge their expectations

Your Marketplace

Strategic Financial Analysis for Higher Education, Sixth Edition. Prager, Sealy & Co. LLC., 2005.

Hardy III, Samuel B, “Marketing Plan for Public Schools”Augusta State University, 2007.

References