What document must specify school expenses when budgeting?

The correct choice indicates that a separate section of the budget must explicitly specify school expenses when budgeting. This requirement stems from the need for transparency and accountability in municipal finance, especially when allocating public funds for education. School expenses are typically significant portions of municipal budgets, and having a dedicated section allows for clear delineation of these costs, making it easier for stakeholders, including taxpayers and school officials, to understand how resources are being allocated to education.

By creating a specific section for school expenses, municipalities ensure that these expenses are not only clearly outlined but also that they can be independently reviewed and scrutinized. This structure helps promote better financial management and ensures compliance with regulations regarding budgeting, especially as they pertain to educational funding.

When a municipality presents its budget, transparency regarding school funding is crucial, as it can significantly affect how resources are distributed across various educational programs and initiatives. This approach ultimately facilitates a better understanding of the financial requirements of schools and aids in strategic planning and funding decisions for municipal officials.

The other options do not provide the same level of specificity and focus on school expenses, which is why they are less suitable in the context of budgeting for educational costs.