GLOSSARY OF TERMS RELATED TO SCHOOL FINANCE
1. A budget is a financial plan for a future period. In school finance, the period is typically one year.
2. An object of expenditures budget is one within which expenditures are classified according to specifically identified services or commodities. Teacher salaries would be classified as an object of expenditure in such a budget.
3. A functional budget is one within which expenditures are classified according to functional activities. Instructional services would be classified as a function in such a budget.
4. An operational unit budget is one within which expenditures are classified according to specific cost generating centers. An individual school could be classified as an operational unit in such a budget.
5. A program budget is one within which expenditures are classified according to specific programs. Elementary education and education for handicapped students could be classified as programs in such a budget.
6. A tax base consists of the assets which are subject to a specific tax. Land and improvements within a jurisdiction may constitute a tax base, or personal income within a jurisdiction may constitute a tax base.
7. Intergovernmental aid consists of funds collected by a senior jurisdiction which are subsequently transferred to a junior jurisdiction. Thus, federal aid to education represents intergovernmental aid, and state funds provided to local school districts represents intergovernmental aid. 8. Per pupil spending refers to total expenditures for a specific educational program or educational jurisdiction divided by the number of pupils receiving the educational services of the program or jurisdiction.
9. The flat grant is a method of distributing financial aid from a senior jurisdiction to a junior jurisdiction. Under the flat grant approach, a state may award a set amount of money per pupil to a local district, regardless of th...