I am assuming that you as the Principal have control of the whole budget and how it is spent. You will have other persons to include in the decisions about spending such as members of the School Board. It is vital that the teachers be part of the consultations about how the budget is spent even though they may not have the final say. The students, if old enough, can also be consulted where deemed appropriate.
The two main spending streams are recurrent and capital costs. The most expensive recurrent item will be salaries. As part of medium and long term planning there are likely to be capital expenditures on say buildings.
Every cent that is spent needs to pass the the test of how it is likely to improve the learning of the students. This is not just academic learning but refers to the development of the whole student. Student wellbeing is vital.
There needs to be built into the School Development Plan evaluation measures that are applied to ascertain the effectiveness of the spending. (See earlier posts in this blog re-The School Development Plan.)
You may be Principal of a large school that has a bursar type accounting person who keeps a close eye on budget recording and auditing. You will need to spend regular time with the Bursar keeping up with budget detail, The smaller the school you as the Principal will have a very hands on situation with day by day budget management.
Balancing the important budget tasks with being the educational leader of the school community is all part of apportioning your time in being an effective Principal. It is not an easy job but is so challenging and rewarding.
May the Force be with you!
GD
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