Budget Badge #05 - Budget: Expenditures-Budget Badge #5

Video Transcription

Video Summary

This session in the WASBO Budget Badge Series focuses on budgeting school district expenditures, especially Materials, Supplies, and Operating Costs (MSOCs). Expenditures are charges that benefit the budgeted fiscal year, and the adopted budget provides the district’s legal authority to spend through appropriations. Spending is categorized by program (purpose), activity (function), object/NCES code (what is purchased), and location (site).<br /><br />Because salaries and benefits typically make up the vast majority of a district budget (about 83% in the example), MSOCs represent most non-personnel spending. Within MSOCs, purchased services (e.g., utilities, contracts) are usually the largest component, followed by supplies, capital outlay, and minimal travel.<br /><br />The transcript explains budgeting MSOCs at three levels: building budgets (often allocated per pupil and may include carryover rules), program/department budgets (based on historical costs, program changes, cycles like tech and vehicles, contract inflation), and district-wide “fixed” costs (utilities, legal, insurance, elections). For grants, districts must estimate revenues first, account for staffing commitments, and ensure MSOC charges are necessary, reasonable, and allowable.<br /><br />It also covers the required MSOC disclosure comparing state MSOC funding to budgeted MSOC spending, and recommends budgeting contingencies/reserves for unplanned grants, enrollment changes, or program needs to avoid budget extensions.

Keywords

school district budgeting

MSOCs (Materials Supplies and Operating Costs)

budget appropriations and expenditures

purchased services and utilities costs

program activity object location coding (NCES)

grant budgeting allowability (necessary reasonable allowable)

MSOC disclosure and contingency reserves