5 Funding Sources for Buying in a Budget Crunch

Lately, we’ve heard members of our educational community discuss the challenges of trying to find money for new products and services in times of a budget crisis. This is a common dilemma for districts of all demographics and can cause frustration and disappointment during budget reviews. We hope these common, and not-so-common, sources will help you find adequate funds to support your students at the highest possible level.  

Where’s the Money?

You’ve got options when it comes to funding. While some funding sources are obvious, others are lesser known and require a bit more creativity. Any combination of the funding sources below used at just the right time can help you maximize your district and school budgets.

District Department Budgets

Our customers are usually most worried about the district budget, which has line item amounts from which most major initiatives in a department are funded. What happens when that budget is reduced? What if the district budget is too small from the onset? The funding sources below offer alternatives to bridge that gap.

Title Money

Title money may be new to you if you are new to administration. Title money typically represents a significant portion of the district budget, but these funds have extensive stipulations and requirements from the federal government. For more detailed information, speak to someone in your district's finance department or visit the U.S. Department of Education website. You can find information on Title I, the largest and most common type of educational funding, here.

State and Federal Grants

Occasionally the federal government and state governments offer grant opportunities for schools and districts. Although these grants are good funding sources, they are short term, usually 2-5 years, and come with multiple regulations and requirements. The most common use for these grants is to begin a program or initiative for proof of concept and educational return on investment (ROI). Once the program or initiative has proven its worth, local funding options are typically more accessible. You can find information about multiple grant opportunities here.

Local Grants

These options require local footwork and community engagement skills and are often overlooked because they entail reaching out to unknown entities. Your district may have access to small level funding options from the local court or municipal government, the chamber of commerce, institutions of higher education, and even local industries. These opportunities expand funding sources for your school district while strengthening your bond with the community. Do not discount the impact of this option!

School Level Discretionary Budgets

Schools within your district each have their own piece of the budget pie. School budgets contain “discretionary funds” that principals and other school leaders can use to purchase products that impact their students. District level employees may not have direct access to these budgets and convincing schools to support and pay for your initiative may seem daunting. Collaborating with local school staff and clearly communicating the benefits of your program or initiative can build support at the school level.

Strategies for Putting It All Together

Now that you know where to look for money, let’s review your options for putting it all together for success.  

Timing

Timing is everything when coordinating funding through district and school budgets. Although the money may not be in your budget now, it could be at the end of the year. As soon as you know there are funds left over, have that purchase order ready and lock it down! Having the quote and vendor pre-approved can expedite payment for next year’s service using remaining funds from the current year. In some cases, you may even be able to pay for part of the service with current year funds and pay the balance when the fiscal year rolls over. What matters most is finding an option that works for your district to give students and staff access to the valuable service.

Supplementing

The most common way to fund initiatives is to supplement the district budget with school discretionary funds. In this situation, the district pays a portion of the software fee and the schools pay the remainder. This is a great way to ensure buy-in because everyone has “skin in the game” but it also creates some extra work on the financial end to ensure the funds flow from the appropriate locations.

Split Funding

Split funding is asking each school to provide funding for the entire purchase by paying their share. Many districts use this option when district funds have already been earmarked but the schools have local money to fund a program or initiative. The best path to success is to find a champion at each school and take a collective approach to getting the software approved and purchased.  

While these ideas give you a roadmap to get started, the best funding pathway is the one that meets your district’s unique needs. My best advice is to not to be afraid to ask for funding! Securing funding sources to expand opportunities for your students and staff is a natural part of the education process.  Keep the people you serve at the forefront of every decision and keep pushing forward! Lately, we’ve heard members of our educational community discuss the challenges of trying to find money for new products and services in times of a budget crisis. This is a common dilemma for districts of all demographics and can cause frustration and disappointment during budget reviews. We hope these common, and not-so-common, sources will help you find adequate funds to support your students at the highest possible level.  

Where’s the Money?

You’ve got options when it comes to funding. While some funding sources are obvious, others are lesser known and require a bit more creativity. Any combination of the funding sources below used at just the right time can help you maximize your district and school budgets.

District Department Budgets

Our customers are usually most worried about the district budget, which has line item amounts from which most major initiatives in a department are funded. What happens when that budget is reduced? What if the district budget is too small from the onset? The funding sources below offer alternatives to bridge that gap.

Title Money

Title money may be new to you if you are new to administration. Title money typically represents a significant portion of the district budget, but these funds have extensive stipulations and requirements from the federal government. For more detailed information, speak to someone in your district's finance department or visit the U.S. Department of Education website. You can find information on Title I, the largest and most common type of educational funding, here.

State and Federal Grants

Occasionally the federal government and state governments offer grant opportunities for schools and districts. Although these grants are good funding sources, they are short term, usually 2-5 years, and come with multiple regulations and requirements. The most common use for these grants is to begin a program or initiative for proof of concept and educational return on investment (ROI). Once the program or initiative has proven its worth, local funding options are typically more accessible. You can find information about multiple grant opportunities here.

Local Grants

These options require local footwork and community engagement skills and are often overlooked because they entail reaching out to unknown entities. Your district may have access to small level funding options from the local court or municipal government, the chamber of commerce, institutions of higher education, and even local industries. These opportunities expand funding sources for your school district while strengthening your bond with the community. Do not discount the impact of this option!

School Level Discretionary Budgets

Schools within your district each have their own piece of the budget pie. School budgets contain “discretionary funds” that principals and other school leaders can use to purchase products that impact their students. District level employees may not have direct access to these budgets and convincing schools to support and pay for your initiative may seem daunting. Collaborating with local school staff and clearly communicating the benefits of your program or initiative can build support at the school level.

Strategies for Putting It All Together

Now that you know where to look for money, let’s review your options for putting it all together for success.  

Timing

Timing is everything when coordinating funding through district and school budgets. Although the money may not be in your budget now, it could be at the end of the year. As soon as you know there are funds left over, have that purchase order ready and lock it down! Having the quote and vendor pre-approved can expedite payment for next year’s service using remaining funds from the current year. In some cases, you may even be able to pay for part of the service with current year funds and pay the balance when the fiscal year rolls over. What matters most is finding an option that works for your district to give students and staff access to the valuable service.

Supplementing

The most common way to fund initiatives is to supplement the district budget with school discretionary funds. In this situation, the district pays a portion of the software fee and the schools pay the remainder. This is a great way to ensure buy-in because everyone has “skin in the game” but it also creates some extra work on the financial end to ensure the funds flow from the appropriate locations.

Split Funding

Split funding is asking each school to provide funding for the entire purchase by paying their share. Many districts use this option when district funds have already been earmarked but the schools have local money to fund a program or initiative. The best path to success is to find a champion at each school and take a collective approach to getting the software approved and purchased.  

While these ideas give you a roadmap to get started, the best funding pathway is the one that meets your district’s unique needs. My best advice is to not to be afraid to ask for funding! Securing funding sources to expand opportunities for your students and staff is a natural part of the education process.  Keep the people you serve at the forefront of every decision and keep pushing forward!

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