Differentiating “cost savings” from “expenditure reduction”
Today, it’s time for a little School Finance 101, clarifying the difference between what is a “cost savings” versus what is an “expenditure reduction.”
Cost savings means finding ways to reduce expenditure while still addressing the same range of objectives (goals, intended outcomes) and while still achieving the same level or quality of outcomes with respect to each objective.
Expenditure reduction typically means choosing not to address some objectives, goals or intended outcomes.