Essay Sample on Current Cuts on School Funding in Oklahoma

The chairperson of the board of management of the Tulsa Public Schools Ms. AB was interviewed. The interview sought to get insights on how district schools are coping up with current cuts on school funding in Oklahoma, United States. She has worked on the board as the secretary and currently as the chairperson. She holds a Bachelor of Education and a Master's in Education Curriculum, Teaching, and Learning Studies from the University of Maryland. She also holds a Diploma in Finance Management and a Bachelors in Public Finance and Planning. Before joining the board of management of the school district, Ms. AB worked as a principal in several schools before joining the finance sector as a strategist, serving one of the largest banking institutions in Oklahoma. As a financial strategist, she received several awards as a result of her outstanding performance in financial management. She also received state recognition for being the best financial strategist in a state-owned enterprise. She also boasts of more than ten awards for her distinguished roles in improving academic standards in the schools she worked.

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As chair of the board of trustees, she holds the necessary experience to guide the school's financial planning process. Her knowledge in finance will guide her in making informed decisions. Ms. AB holds a diploma and degree in finance management and planning. This means that she understands financial management guidelines and strategies that can be adapted to help schools to effectively manage with limited resources while maintaining the quality of education offered. MS. AB has a wide experience in education management since she not only has knowledge of education management from her career but also has experience managing several schools. She also understands the challenges that schools are facing concerning finance.

The good side of the story is that she worked for some time as a school principal during had financial times and still improved education standards in the respective schools she headed. Her position as the chairperson of the board of trustees is of benefit since she is in a position to guide the board on strategies to manage using limited funds in meeting the needs of learners. She is likely to do this by sharing her experience and the exact mechanisms she used in managing the little funds.

Demographic Characteristics

Tulsa Public Schools is a combination of schools located in the Northeastern part of Oklahoma. It is the second-largest school district in Oklahoma with a student population of 39,609, with 87 schools in three categories; elementary, middle, and high schools (Tulsa, 2019). The school district is headed by an elected board serving for four years, with each board member representing a geographical location. The board makes policies, approves and manages budgets, and hires superintendents. Out of the total student population, 34%, 34%, and 3% are Hispanic, African American, and Asians, respectively (Tulsa, 2019). Whites, American- Indians, and Multi-racial ethnicities make up to 24%, 5%, and 10% of the total student population, respectively (Tulsa, 2019). Also, 78%, 21%, and 19% of students are economically disadvantaged, multilingual learners, and are disabled, respectively (Tulsa, 2019). The district's population is diverse.

Summary of Interview Content

The interview focused on financial management in the education sector. The United States of America is currently facing financial shortages in most of its sectors, education included. The respective states are feeling the changes. Oklahoma is one of the states facing financial hardships in education systems, calling for stakeholders in the education sector to devise ways of managing the situation while keeping education standards unaffected. The interview sought to establish possible causes of the financial shortage and its implications on schools.

Causes of the Budget Crisis in Oklahoma

Oklahoma is among states that have adversely been affected by the budget crisis due to cuts in funds disbursed by the federal governments. The interview established that the budget crisis is a result of over-reliance on one sector. According to Bosworth, McElwee, and Smith (2015), the development of a nation is dependent on the degree of diversification of its industries, which are sources of GDP. The US relies on the health sector since it provides many job opportunities and contributes significantly to the GDP. In so doing, a substantial amount of funds is spent in modernizing the sector at the expense of other sectors. It is argued that the health sector played a role in helping the nation to recover from the 2007-2008 financial crisis. The sector is reported to generate almost 2.6 million jobs between 2006 and 2016, contributing immensely to the growth of the national GDP (Dill & Morgan, 2018). Therefore, the US government has focused on the development of the sector, leaving others such as education, construction, and transport lagging. The result of this approach has been financial shortages since the health sector alone cannot generate the funds required to run the economy.

The interview established that the budget crisis in school districts is caused by inadequate revenue from taxes. The US tax system imposes taxes on consumer goods and not on services rendered. One principle of taxation is that taxes should be diversified. According to Onyinyechi (2019), diversification allows the collection of adequate revenue, which helps in meeting the financial demands of a state. The move reduces dependence on one sector.

Also, taxes should be spread by all sectors to reduce the tax burden on citizens (Preez & Stiglingh, 2018). The study affirms interview sentiments that low tax revenue has greatly influenced the budget crisis in Oklahoma. Therefore, there is a need for the government to diversify its taxation system to improve revenue collection to address the budget crisis.

Critical Components of a Successful Budget

The interview aimed to establish essential aspects of an effective budget as understood by the interviewee. Results of the interview can confirm that the board chairperson has a good understanding of good budgeting. For instance, the interviewee reported that expenses within the budget must be proportional to expected revenues. This argument is in line with that of Kim & Lee (2016), who state that negative deviations must be avoided in the budgeting process by ensuring that revenues are either equal to or more than expenses. The study warns that firms must refrain from operating on deficits. The interviewee also reported that a good budget is one that avoids unnecessary expenses and sticks to the priorities of the organization. Her arguments are also aligned with the principles of public finance, which states that expenses must be planned.

Strategies for Maximizing Revenues and Minimizing Expenditures

The interview also aimed at establishing the degree to which the interviewee understood the possible strategies that can be put in place to maximize revenues and minimize expenditures in the school district. Ms. AB reported that school districts should implement a cash management system which will help in investment decisions to ensure that projects generate extra revenue to spend on school projects. She reported that the district earned $914,000 as interest from investments opportunities. Ms. AB also stated that the school district's board must develop strong purchasing policies and establish a positive relationship with vendors to get maximum discounts on purchases.

Ms. AB stated that creation of consumer partnerships with other school districts would help in sharing purchasing costs, thus reducing expenses. According to her, ensuring an equitable ratio between students and teachers will help the school district from employing excess staff, who are the cause of extra expenses incurred by schools. Her argument is in line with the principle of proportionality of expense and revenues and guidelines of reduced spending on projects. Her arguments confirm that she is aware of cash management policies that can be adopted in ensuring that funds allocated to the schools are put into productive projects.

Revenue Maximization Recommendations

School districts have several strategies they can choose from to maximize revenues.

Engagement in Income Generating Activities

Addition of complimentary services apart from teaching in schools will be effective in generating extra revenue. Schools are located within local communities, and the provision of extra services will have a ready market. The area has a large population, and the provision of consumer commodities will be a feasible venture for the school. Also, the location receives a considerable number of tourists visiting the area for scenic features such as mountains, wild animals, and other historical monuments. The schools can consider investing in the hotel industry since visitors coming into the area is forced to travel for long distances in search of accommodation facilities.

Marketing

Some of the schools have few students. For instance, demographic reports indicate that the school district has 39,609 students. The education system in these schools is not free since the learners are required to some pay fee to aid in operations. It is challenging for a school district of that size to effectively run when revenue collected from learners plus that provided by the government cannot help meet its needs. Marketing of schools in the will help attract more students, particularly foreigners. An increased student population is an assurance that the revenue collected will be high.

Diversify Learning

Most school districts teach learners a formal curriculum only. The result is limited revenue and lack of educational diversity. The board of trustees under consultation with other stakeholders must consider diversifying the learning process to include technical courses such as hairdressing, computer courses, and home economics. The move will help the institution to tap into a new clientele. The strategy will not only help in raising the required revenue but will also equip to equip students with relevant life and professional skills.

Reduction of Fees Charged

One possible factor that may be contributing to the low enrollments in the school district is the high cost of education in some of the institutions. Even though the government makes partial payments for all learners, students are still required to pay a substantial amount of money to cater for their education. Those who cannot afford to pay the remaining fee are forced to drop out of school or fail to enroll totally. According to Guo & Jiang (2016), reducing the cost of services will attract a large pool of consumers. Reduction of the fee is likely to attract more students, enabling the district to increase its revenue base.

Modernize Facilities

Adequate facilities are likely to accommodate a high number of students. The school district should consider building more facilities such as classrooms, hostels, and laboratories in schools as this will encourage enrollment. Modernizing current facilities and integrating state-of-the-art technology will improve the status and marketability of the schools.