I've just listened to the Race don't Chase podcasts and had a couple of questions.
We are a public School District (K-12). Obviously non-profit. Our income is based on Tax revenues and Student body.
We have to have budgets done by the end of the fiscal year (July 1). THey get approved and processed by September. But in November we can get another cut that will take effect in January. Here's an example:
We develop our IT budget starting in March.We base our budget on personnel and projects. We do not know ou r target number yet so we use last year's. We finalize ouf IT Budget at 35M. We're then told (in June) to reduce it by 10% based on information coming from the state. Our final number comes in around 31M. Then in November (Tax assesment time) we get a reduction in the actual amount of money comming from the state. This year it's approximately 20M district wide. This'll translate to about 7-8M just for IT.
How does Race Don't Chase apply to this kind of scenario? Should we be budgeting based on the fact that we know that the state will reduce our funding in November? I can't see doing that too much because if we don't ask for it we don't get it and they'll still reduce our money later. Do we knowingly pad the budget (I don't really like the word pad in this case) and ear mark certain line items as expendable "if" the cut comes?