Budget Dilemma Activity

Your dilemma:

You have been asked to reduce your operating budget by $15000.00 from

$284,764.00 to $269,764.00. Your expenditures are listed below.

- Where will you cut back?

- How? Why?

- What are the implications of your cuts?

Consider the following budget:

Rent $ 25,000

Utilities $ 9,000

Telephone $ 500

Insurance $ 1,000

Program Equipment

- permanent $ 2,500

- consumable $ 1,500

Food $ 12,000

Salaries ** (see below) $ 230,264

Accountant $ 500

Professional Development $ 2,000

Office Supplies $ 500

_________________________________

Total $ 284.764

**Salary Information: $230,264**

Preschool Room (16 children) - RECE Head Teacher $ 45,748

- Unqualified $ 29,913

Toddler Room (12 children) - RECE Head Teacher $ 45,748

- RECE $ 38,142

- Unqualified $ 29,913

1 part-time person (4 hours per day) $15,400

Cook part-time (4 hours per day) $15,400

Housekeeper part-time (4 hours per day) $10,000