Our budget is set up with many line items. We add or delete items each May depending on what has been used. We then try to fundraise to meet the budget, we have been able to do this well and have increased our budget over the years, it has gone up about $5,000 the couple of years but we are just trying to give the money back to the kids. In additon, depending on money, we buy extras beyond the budget such as computers or t-shirts or the like. We fully fund our fun events, field trips etc. This gets voted on in May for the following year.
Our schooll is K-5 & I have a 4th grader. Since I've been here, we have done all of our fundraising for the following year. (I.e. we started this year with our full budget amount in the bank.) Since it's been done this way consistently, basically, the 5th grade parents are supporting the kindergarteners, just as it was done when their kids started kindergarten. We haven't made it highly publicized, but it's pretty obvious by looking at the budget. Also, our bylaws state the the Ways & Means Comm. will devise ways to raise funds for the following year's budget.
I thought it was a little weird at first, but I must confess I like having the "cushion". We put excess money in a CD account to earn a little more interest.
I'll second much of what JHB says, with these additional points:
We budget at a much finer level of detail, with no "discretionary" budget totaling over $1500. That way, we avoid emotional pleas for money based on personal agendas later in the year. We are realistic, however, that not everything can be projected, and we have the flexibility to reallocate budget money with the approval of the membership at any monthly meeting.
Our PTO serves 450 students. We are required by our Bylaws to carryover at least $1000 to the next year. Lately, the philosophy in our K-1 school has been to spend as much of the rest of our money as we can, since the students are at our school for such a short time. We pay for all school assemblies ($3500), all field trip buses ($2500) and give every teacher a $115 allowance to spend on classroom expenses; plus many other expense items.
Regarding your point that you're "not sure the parents are aware" -- yikes! We present our proposed budget line by line at the first meeting of the schoolyear and we cannot transact any financial business until the members approve it. Each month, the treasurer presents a detailed report of what we spent $ on, and how much is left in each budget.
Our budget is developed during the summer and approved at a general meeting in August. It is an expectation of our revenues and expenses for the year. Since we aren't saving for any large projects (like a playground), we expend all our funds except the $2000-$3000 we reserve at the end for start up the following year.
Our budget has line items for administration, hospitality (teacher appreciation), specific events, etc. I'll admit we take the easy way out in that we simply add a general line item for other disbursements for school programs. This is basically our projected revenue minus the budgeted categories (admin, hospitality, Breakfast with Santa, Spring Fling, etc.) minus the balance we want to keep at the end.
So, say we budget there will be $10,000 available beyond specifically earmarked programs. We decided as we go along during the year, based on school needs, if those funds are used to buy computers, pay for field trips, bring in arts programs, etc.
A key point for us is that the parents and children generating the revenue deserve to benefit. So, yes, we spend the current year's funds on current years' classes.
I'm the PTO secretary and am having a disagreement with the other PTO officers on how the PTO budget was set up. The PTO president, rather than the treasurer, set up the budget... she started with the balance we had at the beginning of the year and listed budgeted expenses that would spend only that money. We recently had our fall fundraiser and she didn't include the money earned from that in her budget. She thinks we have to leave all of the money earned in this school year in the account for next year, even though the money isn't earning interest and the spring fundraiser will provide more than enough money to cover next year's expenses.
What is the current philosophy on budgeting for a PTO? I think it makes more sense to put the money back into the classrooms immediately... to budget in a manner that makes sense with the timing of the fundraiser income. Is is correct to be putting aside the money from the fall fundraiser like this? I'm not sure that the parents are even aware that this is being done - I would have assumed that the money was being used immediately had I not looked at the numbers carefully.
I appreciate any input on this. The PTO officers are going to be meeting soon to discuss this matter, among others and I'd like to find out how other PTO's budget their money.
