Abstract
The Problem. School district expenditures have risen while income, in many cases, has not increased proportionately, particularly in districts facing declining enrollment. This study (1) described and analyzed the decision making processes used to develop budgets over a period of over eight years in two districts experiencing declining enrollment, (2) generated hypotheses pertaining to budgetary decision making to be tested in future studies, and (3) identified factors that were perceived to affect the budgetary decision making process. Research Methodology. Using a case study approach, data collected through an archival study and semi-structured interview of selected Board of Education and staff members in two Southern California school districts experiencing serious declining enrollment were described and analyzed in a narrative presentation. Findings. Major findings included the following: (1) The budgetary process in both districts changed annually depending upon external forces. (2) Twenty-one factors, including declining enrollment, were perceived to affect the budgetary decision making process. (3) Decisions on budgetary reductions and related problems appeared to be better received by community and staff when the process included a "study" by a representative group, a widespread communication effort, and an adequate amount of time given to hearings and deliberations prior to final decisions. (4) The degree of participation and the ability to arrive at defensible recommendations, rather than the specific decision making techniques utilized, were used by the interviewees when rating the effectiveness of a process. (5) Long-range planning, district goals, and leaders trained in budgeting and decision making processes all appeared to be essential to the development of an effective budget process. (6) Declining enrollment, while causing a reduction in general funding, provided districts with new opportunities to reorganize, gain new funds, and change directions. Conclusions and Recommendations. Ten hypotheses for future studies were proposed on topics related to decision making and budgeting; e.g., the influence of external pressure on the budgetary process, the relationship of wide representation and adequate decision making time with perceived effectiveness, the relationship of participant groups' size and perceived effectiveness.