Budgeting in Education

Budgeting in education refers to the planning of expenses within the context of education. It could refer to an individual budgeting for completing their education, an educational institution planning on its objectives, or a nation budgeting for education. It includes methods of achieving it and streamlining available resources.

Budgeting involves careful estimation of available resources and estimating the addition or reduction of resources for achieving a future objective. The process may involve the evaluation of existing methods and strategies to extract optimal output from the implemented or to-be-implemented plans. This saves the institution and individual time, money, and effort.

Budgeting in education refers to the estimation of resources and plans for a future period in numerical terms pertaining to education through a document or statement. It is accounting for every dollar spent. In the case of institutions and nations budgeting for education, it helps them coordinate planning and delegation of authority without loss of control and maintain orderliness. This is achieved by tracking all previously spent expenses, the incoming revenue, and the actual plan requirement for the current period. The process helps streamline operations and achieve objectives and revenue. In the case of an individual, it helps them plan for the immediate and near future by controlling their expenses. 

The estimation and allocation of expenses shall be done carefully. However, it should be simple. There shall be autonomy given in certain areas with just a general allocation; this not only helps to be detail-oriented but prevents over-budgeting. Allocating efficiently helps manage time efficiently. The whole estimation should be prepared, taking into consideration future requirements.

In educational institutions, estimation shall be done while keeping in mind additional requirements such as hiring a teacher, buying additional computers, etc. In a nation, the accounting for the requirement of building schools or colleges can be taken into consideration. Similarly, in the case of an individual, making room for expenses on a new tuition can be done.

Some of the strategies for budgeting include:

1. Forming a budgeting committee: This would be appropriate and better suited for nations and institutions. A budgetary committee that is constituted of subject experts can help in efficient budget planning. This will help control costs, manage the efforts of the team, and lead them in the right direction.
2. Research: Individuals, institutions, or economies, all parties require execution or proper research before budgeting. The research reveals the gaps to be covered in the upcoming budget by looking at past mistakes. Research helps in understanding if there are other factors to look into while making an effective plan and hence proves crucial.
3. Evaluation: The selection of appropriate evaluation metrics helps in assessing the budget. This also helps in understanding the gaps between the necessary step and the path that is laid down for achieving it. Therefore, periodic evaluation is critical.

Generally speaking, the education budgeting process can be categorized into four significant steps. Reviewing, planning, forecasting, implementing, and evaluating. 

1. Reviewing: Irrespective of whether it is a nation, an institution, or even an individual, a review of past performance through past budgets is crucial. The exercise reveals the past performance, the efficiency of the metrics employed, and whether the money was overspent or underspent.
2. Planning: The previous step is gathering past data and analyzing it. The next step involves proper planning to seal the gaps of past occurrences and frame steps to go to the next stage of progress. In the case of a nation or an institution, there shall be evaluation based on requirements such as recruitment of skilled personnel and infrastructure. In an individual's case, it may resort to the reduction of expenses and anticipation of prospective expenses. Some factors to consider while planning include accommodation expenses, sample size for institutions and nations, potential price increases, procurement of materials, storage, and maintenance.
3. Forecasting: Forecasting involves predicting future requirements. It could be for a year, 3 or 5 years. However, institutions and economies will need help in evaluating the changes in the target population, the costs required to fulfill necessities, and the level of funding. The institution and economy can anticipate changes in curriculum, salary, material cost increases, future development plans, etc. In an individual's case, the courses may demand additional stationary or technological upgrades on devices, etc.
4. Implementation and evaluation: In the case of an institution, the approval has to come from the board or management, and in the case of a nation, the governing body. The individuals, in most cases, do not need approval. Once budgets are approved, implementation and evaluation of the budget are critical. Proper implementation not only saves time and effort, it also saves money. Periodic evaluation ensures that the process is going as planned and the desired outcome is achievable within the stipulated time.

Let us look into some examples to understand the concept.

Example #1

Suppose ABC School is an educational institution that is closed for summer holidays. The school plans to open a reading club to promote reading habits among its students. The aim is to cultivate the habit so that children grow up with a hobby devoid of technology and, at the same time, think innovatively. The school management took a survey from the students and parents through an online survey and spoke with the board regarding the same. However, it had previously started an art club, and the response was lukewarm. 

They hence decided to reduce the amount spent initially and use it to buy furniture at the same time, allocating some amount away in anticipation that the readers will grow every year. This fund will then be used to purchase an additional number of books according to the syllabus and student requirements. The school smartly avoids spending money on unwanted books but at the same time allocates some amount for future demand. These are, hence, a part of the budgeting in educational management. 

Example #2

The paper by Ezeugbor Carol talks about the importance of budgeting and its role in the achievement of educational objectives. It states that the achievement depends wholly on efficient planning and management of school funds. Furthermore, it states that the factors that should be considered in preparation include creating a plan, an expenditure plan, a draft budget, and a final budget to make it efficient.

Below are some of the reasons why budgeting is essential in education:

• It helps in the estimation of expenses 
• It saves time and resources.
• It streamlines efforts.
• It helps in understanding the future requirements.
• It sets the path for progress.
• It helps in achieving educational objectives. 
• Achievements of educational objectives help in the growth and development of the economy. 
• It helps in better control and improves accountability.
• Results in the effective use of resources.
• Ensures stability.

Some of the best practices that can be adopted while preparing a budget are given as follows:

1. Creation of a calendar: The purpose of creating a budget calendar is to serve as an index that helps to track progress. 
2. Starting at the appropriate time: Budgeting is planning, and it is important to plan at the right time, early enough or not too late. In the case of an institution of a nation, the estimation of developing infrastructure, payment of labor, and staffing may vary drastically in a given period. However, this can be anticipated by taking into consideration the growth rate and retirement rate.
3. Prioritization: Budgeting involves the step of cutting down unwanted expenses. This may also include allocating higher amounts to a cause or project by cutting down in another less critical area. 
4. Involvement of interested parties: Budgeting in educational planning must be able to cater to the interests of various stakeholders, including parents, teachers, students, and administrators; the budget planning should be made in such a way that there is room for accommodation for all concerns. 
5. Alignment: The budgeting in educational planning should be in alignment with the original vision and mission of the educational institution. The planned budget shall be synchronized with the goals and long-term aspirations of the institution. This helps prioritize the efforts put into managing resources.
6. Categorizing critical expenses and implementing cost-cutting measures: Categorizing critical expenses such as investing in advanced technology, long-lasting furniture, and good quality wood may be a heavy initial expenditure, but in the long run. Unnecessary expenditures can be evaluated and eliminated according to individual instances through budgeting in educational planning. This requires cost-cutting measures. It may extend to negotiating with book manufacturers to provide a discount, etc.