MISSOURI ASSOCIATION of SCHOOL BUSINESS OFFICIALS

1. MISSOURI ASSOCIATION ofSCHOOL BUSINESS OFFICIALS Budget Decisions in Difficult Times William T. Rebore, Ph.D. Saint Louis University

2. Sources of Financial Distress There are many issues that could precipitate a financial crisis if not recognized and prepared for in advance. Some of the most prominent include: Flat state funding. Despite recent surges in tax receipts, officials in many states “remain concerned Stagnant or falling property taxes. The slowdown in the housing market could have ramifications Rising pension and healthcare costs. Health care costs for current and former employees now Escalating fuel costs. A confluence of factors may conspire to increase fuel prices.

3. Financial Decisions Mission (Core Values) Market Trends Program Costs Marketing

4. What do we do in Public Education? Service: “A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.” (Kotler, 2003, p.444) Education fits the following service requirements: it is people-based, it requires the client to be present, and it meets a personal need. (Kotler)

5. CORE PURPOSEAn Organization’s Reason for Being To solve unsolved problems innovatively A collaborative learning community guided by a relentless focus to ensure each student achieves maximum growth To give unlimited opportunity to women To preserve and improve human life To give ordinary folk the chance to buy the same things as rich people To make people happy 3M Hazelwood School District Mary Kay Cosmetics Merck Wal-Mart Walt Disney Mission Organization

6. CORE PURPOSEAn Organization’s Reason for Being We will provide a quality education for all students and enable them to realize their full intellectual potential All students will have the knowledge, skills, abilities and attitudes to become productive citizens and lifelong learners in a changing global society. The School District strives to develop in all its children the strength of character, the skills, the knowledge and the wisdom necessary to build creative, productive lives and to contribute to a global society. Realize Full Intellectual Potential. Productive Citizens and Lifelong Learners. To Build Creative, Productive Lives. Mission Core Values

7. Relationship of Program Costs to Mission

8. Relationship of Market to Competencies

9. Resource Allocation

10. Quadrant/Sector Mapping Results

11. Why marketing for public schools? External Threats (vouchers, private schools, etc.) Government Expectations Public (Parental) Expectations Influence Legislation Image Building Obtaining Resources

12. Understand your school’s setting and client needs and wants Design a school-driven marketing strategy that involves all related persons Construct a program that delivers premium value Build meaningful relationships and create client happiness Capture value from clients to enhance client loyalty Plan Steps Define your Business Define your Clients Define your Plan = Sustained Client Loyalty

13. Your Marketplace Map your bus routes Know the ethnicity of your marketplace Socio-economic back drop The businesses The major employers Civic groups Gauge their expectations

14. References • Strategic Financial Analysis for Higher Education, Sixth Edition. Prager, Sealy & Co. LLC., 2005. • Hardy III, Samuel B, “Marketing Plan for Public Schools” Augusta State University, 2007.