The Basics of Managing the Athletic Department Budget

The mere mention of the words budget, budget proposal or managing the budget may bring a feeling of dread to some athletic administrators. This process is a little like going to the dentist. It needs to be done at times throughout the year, but it isn’t usually a lot of fun, and it can be daunting, tedious and time consuming. How do you get started?

To answer that question, three veteran high school athletic directors offered some thoughts about using information from previous years and involving other individuals in the initial planning stages.

“Over the years, I’ve learned to save all of the research and data from the previous years as a reference guide,” said Doug Marchetti, director of athletics at Norwalk (Connecticut) High School. “After reviewing these documents, I can then start planning for all of the items that must be covered such as officials, transportation and required safety equipment. When these items are covered, I can then get to the needs and wants of the coaches of our various sports.”

“In my 18 years, I always start by meeting with our business manager – and we have had nine different individuals over this time,” said Jim Quatromoni, director of athletics for the Hingham (Massachusetts) Public Schools. “It is important to hear what and how this individual wants the proposal prepared, what the percentage increase or decrease will be in effect for the year, and how specific the line items have to be listed. Also, it is important to ascertain if and how much flexibility there will be moving funds around for the line items after the budget is adopted.”

Sean Dowling, director of athletics at North Plainfield (New Jersey) High School, pointed out that you need to work collaboratively with your coaches due to the current economic challenges in order to meet the needs of your overall program. “I first sit down with my coaches and explain exactly what is involved in Zero- Based Budgeting. I may also invite our business administrator to join the meeting to assist with this educational effort.

“It is important for your coaches to have an up-to-date, accurate inventory of all equipment and unforms for their sport,” Dowling continued. “With this document, you and the coaches sit down to prioritize what is absolutely essential for the next year. We use a three-level system: a number one is noted for necessary items; a two is for things that will enhance teaching and playing, but not essential; a three is assigned for luxury equipment. In addition, you should also have an existing uniform replacement schedule for all teams, and this might amount to it taking every three to five years to complete the rotation.”

In the Zero-Based Budgeting approach that Dowling uses with his coaches, all proposed line items start with no allocated money. A written justification has to be attached to each proposed purchase explaining why it is needed. On the other hand, an incremental budget system is another commonly used process in which the previous yearly budget allotment is given a percentage increase or decrease to apply to all line items. Also, some school districts may use a hybrid version of preparing a budget proposal by using the incremental model for standard, existing items, and utilize the Zero-Based approach for anything that is new such as funding for uniforms, equipment, transportation, officials and coaching salaries for a sport being added to the program.

With regard to dealing with a potential smaller budget due to the economy, Marchetti said, “I try to be realistic, and I always reassure my principal that I do not include a lot of fluff in my proposal. What is included is necessary to operate our program. But if I am asked to sacrifice and make cuts, I will try to do so in areas that have the least impact. The last thing that I want to affect are programs and sub-varsity teams. To make ends meet, I might be able to trim some funds from supplies, equipment and transportation, and we may have to resort to some fundraising.”

Although Quatromoni indicated he was fortunate not to have had to raise additional funds often to meet the needs of his program, he added, “If we faced a major budget cut, we would first look to limit purchases of equipment, and reducing the number of games might be an option. While our booster club does a fairly good job of raising money for extra things, their efforts may also present a fair amount of Title IX guidance, monitoring and paperwork.

“If you need a considerable amount of money to provide the operational needs of your program, you should strengthen your partnership with your booster club and try to conduct one big fundraiser per season. Time and effort spent on a bigger, single project usually produces higher returns.”

Once the essential items are included in his proposal, Dowling said, “Our next step is to assess what additional items, labeled as “wants” we might be able to include, if any. You probably won’t be able to accommodate all sports, and it is a good idea to keep a record and rotate teams year to year in order to create equity.”

“I try very hard not to say ‘no’ to any reasonable request from a coach,” Marchetti said. “Our communication starts at the end-ofthe- season meeting and trying to ascertain what may be needed for next year.”

Quatromoni uses a system in which seasonal needs have to be submitted three weeks before a season starts, and wish list items must be completed in the spring prior to the end of the fiscal year. Nothing is ordered unless a coach meets these deadlines.

With regard to advice for athletic administrators perplexed and daunted by the budgeting process, Quatromoni said, “Develop a spreadsheet that allows you to categorize spending and to be able to sort it by team, gender or level. Become an expert and be in command of your budget, and this will provide credibility and confidence that you will administer the funds responsibly.”

“Utilizing a Zero-Based approach is a great way to ensure that all of your athletic teams are funded fairly and effectively in order to offer a first-class education-based program,” Dowling said. In addition, Marchetti noted the importance of relationships with key people.

“It is critical to develop relationships with your principal, central office personnel, booster club and vendors so that you can get the best advice and assistance,” Marchetti said. “If you have been honest, transparent and straight-forward, they will be much more likely to help you in times of need.” In addition, Dr. William Penn, a former graduate-level college professor, offered some wisdom to summarize the budgeting process.

“The only difference between your personal checking account and your athletic budget is the number of zeros that follow the first number,” Penn said. “The key to managing your budget is that you can’t spend more than you have or face serious problems. Only spend what you have and be fair and careful about it.”