The procedure for developing a school budget includes provisions for cost cutting. Each department within an individual school and each school itself submits an annual budget. This request relies upon the needs of the school and past years’ budgets. Each school's budget then becomes part of a school district's budget. Budgets then face public review and input, which provides an opportunity for suggestions for ways to cut costs. The budget then goes to the appropriate public body for approval, where final cuts are made to meet predetermined dollar amounts.
Schools purchase many items, and that fact presents opportunities to save money. Examples are bulk purchases and negotiating discounts based upon those large expenditures. Having schools use the same supplies allows for these bulk purchases, instead of each teacher or school using a different product. Entering into long-term contracts to secure those bulk prices is one more procedure to cut costs in purchasing.
Many expenditures go from year to year without examination. An example is phone service. It is a major expense for a school, and one that needs to be reviewed periodically to determine if cost savings are available. Another procedure is to implement an electronic document system to replace paper as much as possible. The savings from this procedure add up.
One procedure for cutting costs involves laws enacted by state legislatures. An example is the four-day school week, which has been approved for use in more than states as of 2011. The school day is lengthened to make up for the lost day. In each state, each school district has the authority but is not required to enact this idea. The basis for the idea is saving money primarily in utility costs, lunchroom expenses and school bus expenditures.