Budget Forecasting and Integrated Strategic Planning for Leaders

ArXiv ID: 2510.26035 “View on arXiv”

Authors: Matt Salehi

Abstract

This study explored how advanced budgeting techniques and economic indicators influence funding levels and strategic alignment in California Community Colleges (CCCs). Despite widespread implementation of budgeting reforms, many CCCs continue to face challenges aligning financial planning with institutional missions, particularly in supporting diversity, equity, and inclusion (DEI) initiatives. The study used a quantitative correlational design, analyzing 30 years of publicly available economic data, including unemployment rates, GDP growth, and CPI, in relation to CCC funding trends. Results revealed a strong positive correlation between GDP growth and CCC funding levels, as well as between CPI and funding levels, underscoring the predictive value of macroeconomic indicators in budget planning. These findings emphasize the need for educational leaders to integrate economic forecasting into budget planning processes to safeguard institutional effectiveness and sustain programs serving underrepresented student populations.

Keywords: community colleges, budgeting, economic indicators, GDP, CPI, education

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 6.0/10
• Quadrant: Street Traders
• Why: The paper employs standard quantitative statistical methods (correlational analysis) on publicly available economic data, which is moderately rigorous and empirical, but the mathematics involved is basic and lacks advanced formulas or derivations.

  flowchart TD
    A["Research Goal<br/>Analyze impact of economic indicators<br/>on CCC funding and strategic alignment"] --> B["Methodology<br/>Quantitative Correlational Design"]
    B --> C["Data Inputs<br/>30 Years: GDP Growth, CPI,<br/>Unemployment Rates, CCC Funding"]
    C --> D["Computational Process<br/>Correlation Analysis & Trend Modeling"]
    D --> E{"Key Findings<br/>Outcomes"}
    E --> F["Strong positive correlation<br/>GDP ↑ → Funding ↑"]
    E --> G["Strong positive correlation<br/>CPI ↑ → Funding ↑"]
    E --> H["Strategic Implication<br/>Integrate economic forecasting<br/>into budget planning"]