Viability Requires More Than Money

“Economics” is commonly defined as the study of how people allocate scarce resources. Educators, school finance professionals, and Board members in Jewish Day Schools live that definition – not just daily, but year after year. Schools can neither raise tuition dramatically to cover rising costs; nor can they say “yes” to every new initiative. With a few computer keystrokes, one can balance a budget, but good people might lose their jobs, dreams of educational upgrades will be put on hold, and donors and parents will either be thrilled or upset (or both!).

In addition to building endowments, it is no wonder that Jewish communities around the country have also been looking at state and federal funding for day schools to give them not just some breathing room, but opportunities to expand their programs and increase salaries and benefits for teachers.

Depending on the size of the endowment, and the amount and duration of government funding, a school’s budget process will continue to require leaders to make some tough decisions moving forward. As they make these decisions, they must carefully consider their impact on the school’s immediate needs and long-term viability.

One way to set a direction for that discussion is to ask one seemingly simple question: “Who is our most important constituency or stakeholder?” People usually point to their current students or parents. I would argue that the answer should be: The school in 25 years.

Most schools find it difficult to think about the next 2-5 years. Why even think about 25 years from now?! And why 25 years? According to various studies, that’s when today’s Kindergarten students will become parents for the first time (individual results may vary) and will, one hopes, begin thinking about schooling for their children. Based on the concept of “generational equity,” schools must be ready to ensure an excellent Jewish education (whatever that looks like in 25+ years) for today’s K students.

If school leaders want a solid, vibrant school in 25 years, the school’s mindset, as well as its budget process, must be less about surviving and more about thriving in the long term.

This long-term mindset requires leaders to regularly put aside the budget, and take a careful look at the school’s mission, program elements, admissions practices, staffing realities, school culture, and internal systems. Are they aligned? Are they measured often enough? Do they create or weaken connections to the school? Do they lead to long-term student and teacher retention?

Admissions decisions, for example, influence far more than tuition revenue. They affect school culture, teachers’ lives, and each child’s school experience. Is the school prepared to meet the needs of all the children it admits? Does the school accept children whose families do not fully understand and support the school’s specific “Jewish Mission”?

A school’s systems are also crucial. Do scheduling, communication, response protocols, procedures, and processes ensure effectiveness and positively impact everyone in the school community?

Similarly, is the school’s culture carefully curated, encouraging teachers, students, and parents to feel comfortable, supported, engaged, and inspired? Given their investment of time, money, and emotional commitment, all members of the school community are relying on the lead educators and board members to protect and strengthen their school’s culture.

Of course, annual budgets matter. And an influx of government and endowment funds can do a lot for schools. But a school’s long-term viability requires attention to its core mission, values, uniqueness, systems and, most of all, its culture. The good news? This part does not cost all that much – just time and attention. Investing the time to monitor and protect these important aspects of a school will convince this, and future, generations of parents and teachers to keep choosing “their” school for years to come.

Rabbi Jim Rogozen

 

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