BUILDING TRUST IN YOUR BUILDING TRUST IN YOUR COMMUNITY AROUND SCHOOL COMMUNITY AROUND SCHOOL

FINANCE ISSUESFINANCE ISSUES

David Carlson, DirectorDavid Carlson, Director

School Financial Services School Financial Services TeamTeam

May 3, 2007May 3, 2007

MotivationMotivation

Florence was a crisis of community Florence was a crisis of community trust as much as it was a financial crisistrust as much as it was a financial crisis

Personal observationsPersonal observations ““Budgeting by Referendum” and Budgeting by Referendum” and

“Budgeting for Referendum”“Budgeting for Referendum” The new reality for many districts may be The new reality for many districts may be

that the current school finance system that the current school finance system makes referenda a required source of district makes referenda a required source of district revenues for operational purposesrevenues for operational purposes

MethodologyMethodology

Interview administrators, business Interview administrators, business officials, and others who may have officials, and others who may have insights into building trust within insights into building trust within communitiescommunities

Outcomes: identify Outcomes: identify elements/dimensions of trust and elements/dimensions of trust and best practices that are applicable to best practices that are applicable to the school settingthe school setting

MethodologyMethodology

““How have you built trust or how do How have you built trust or how do you build trust in school you build trust in school communities?”communities?”

““What are some best practices that What are some best practices that you have implemented?”you have implemented?”

What is Trust?What is Trust?

““Assured reliance on the character, Assured reliance on the character, ability, strength or truth of some one ability, strength or truth of some one or something”or something”

Word derivation of trust is related to Word derivation of trust is related to the word “truth”the word “truth”

A product of trust is the ability to A product of trust is the ability to influence behaviorinfluence behavior

New ParadigmNew ParadigmBudgeting by ReferendumBudgeting by Referendum

Community support is even more Community support is even more critical to a districts’ ability to provide a critical to a districts’ ability to provide a quality educationquality education

New “financial” decision makersNew “financial” decision makers Poses new challenges to administrators, Poses new challenges to administrators,

staff, board as it affects their ability to staff, board as it affects their ability to carry out their responsibilitiescarry out their responsibilities

Some believe community participation Some believe community participation is goodis good

New ParadigmNew ParadigmBudgeting by ReferendumBudgeting by Referendum

“ “All superintendents need to All superintendents need to understand school finance as most understand school finance as most board meetings are now related to board meetings are now related to budgeting”budgeting”

“ “Advocates for school finance Advocates for school finance change”change”

Building TrustBuilding Trust

“ “It’s not like a light switch. Hard to turn on It’s not like a light switch. Hard to turn on but easy to turn off”but easy to turn off”

“ “Giuliani affect” – district is judged by Giuliani affect” – district is judged by memorable eventsmemorable events

“ “Not what you do but how you do it. We Not what you do but how you do it. We were planning on this. Now the time is were planning on this. Now the time is here.”here.”

Building TrustBuilding Trust

“ “Trust is built on how the community Trust is built on how the community feels you are using its money”feels you are using its money”

“ “What you say and what you do must What you say and what you do must match up”match up”

“ “Credibility is built 1-2 people Credibility is built 1-2 people removed from you”removed from you”

Building TrustBuilding Trust

“ “Community understands that it will Community understands that it will not always be accommodated but not always be accommodated but expects to be listened to”expects to be listened to”

“ “Citizens will buy what they want, not Citizens will buy what they want, not what they need”what they need”

Building TrustBuilding Trust

“ “A referendum should not be a A referendum should not be a referendum on the superintendent”referendum on the superintendent”

“ “Our biggest problems are solved best Our biggest problems are solved best when they are small”when they are small”

“ “Chicken Little” doesn’t workChicken Little” doesn’t work

Building TrustBuilding Trust

“ “Reasonably intelligent people given enough Reasonably intelligent people given enough time and information will reach the same time and information will reach the same conclusion”conclusion”

“ “Build your votes one at a time”Build your votes one at a time”

“ “Communities cannot think creatively until Communities cannot think creatively until they have expressed their fears and they have expressed their fears and concerns”concerns”

Building TrustBuilding Trust

Pick “Low Hanging Fruit”Pick “Low Hanging Fruit”

““Spread the butter”Spread the butter”

““No electric pencil sharpeners” No electric pencil sharpeners”

Building TrustBuilding Trust

“ “Superintendent as Trustee”Superintendent as Trustee”

“ “Are you talking about today or Are you talking about today or tomorrow?”tomorrow?”

“ “No surprises”No surprises”

So What? – Now What?So What? – Now What?

The following are suggestions that The following are suggestions that those interviewed believe are best those interviewed believe are best practices for them and their attempt practices for them and their attempt to build trust. It’s about to build trust. It’s about communication and building communication and building relationshipsrelationships

So What? – Now What?So What? – Now What?

The BoardThe Board Board members share their plan to Board members share their plan to

comprehensively “listen” to comprehensively “listen” to communitycommunity

Board has regular listening/learning Board has regular listening/learning brainstorming sessions beyond the brainstorming sessions beyond the routine and usual businessroutine and usual business

So What? – Now What?So What? – Now What?

The BoardThe Board Board has public relations committee Board has public relations committee

of the boardof the board

““Boards must agree to disagree Boards must agree to disagree without being disagreeable”without being disagreeable”

So What? – Now What?So What? – Now What?

Superintendent/Business OfficialSuperintendent/Business Official Require administration staff to Require administration staff to

participate in community organizationsparticipate in community organizations When hiring key staff, consider their When hiring key staff, consider their

ability to communicate with the ability to communicate with the communitycommunity

Emphasize the positives of the districtEmphasize the positives of the district

So What? – Now What?So What? – Now What?

Superintendent/Business OfficialSuperintendent/Business Official Use fiscal audit to demonstrate good Use fiscal audit to demonstrate good

stewardshipstewardship Require auditor to meet with BoardRequire auditor to meet with Board Establish accounting system that Establish accounting system that

provides easy access to district dataprovides easy access to district data Every major project/initiative has a Every major project/initiative has a

communications plancommunications plan

So What? – Now What?So What? – Now What?

Superintendent/Business OfficialSuperintendent/Business Official

Demystify the “black box” of school Demystify the “black box” of school finance finance

Have open book policy of financesHave open book policy of finances Hold finance workshops for community Hold finance workshops for community Link expenditures to programs for kidsLink expenditures to programs for kids Create a district finance website for Create a district finance website for

community (Finance team can help)community (Finance team can help)

So What? – Now What?So What? – Now What?

Superintendent/Business OfficialSuperintendent/Business OfficialDemystify the “black box” of school financeDemystify the “black box” of school finance ““You should be planning the 2008-09 You should be planning the 2008-09

budget now. The 2007-08 budget should budget now. The 2007-08 budget should be done because of prior planningbe done because of prior planning

Use technology to engage community such Use technology to engage community such as website, community television stations, as website, community television stations, listserves, newsletters, appearanceslistserves, newsletters, appearances

So What? – Now What?So What? – Now What?

Superintendent/Business OfficialSuperintendent/Business Official ““Feed the eagles”Feed the eagles” Create strategy to communicate with Create strategy to communicate with

key communicatorskey communicators For referenda, don’t allow For referenda, don’t allow

superintendent or consultants to superintendent or consultants to presentpresent

Understand district demographicsUnderstand district demographics

ConclusionsConclusions

New paradigm needs further study; New paradigm needs further study; this presentation is just an this presentation is just an introductionintroduction

Complexity of issues create incredible Complexity of issues create incredible challenges but also opportunitieschallenges but also opportunities