What is meant by "fiscal transparency" in school finance?

Fiscal transparency in school finance refers to the practice of openly sharing financial information with stakeholders, which includes parents, teachers, administrators, and the community. This transparency allows stakeholders to understand how funds are being allocated, spent, and monitored, promoting accountability and trust in the financial operations of the educational institution.

By providing clear and accessible information about budgets, expenditures, and financial planning, stakeholders can engage more effectively in discussions about school finance and advocate for necessary resources. This level of openness aids in fostering a sense of collaboration and shared responsibility among all parties involved in the educational process.

In contrast, keeping financial information private limits the ability of stakeholders to understand or question financial decisions, while reporting budgets without detail may fail to provide the necessary context needed for understanding fiscal health. Limiting communication to only major financial changes ignores ongoing financial activities and decisions, which can lead to confusion and distrust over time. Hence, fiscal transparency entails a proactive approach to sharing comprehensive financial information rather than restricting it.