To determine the amount of last year's budget (let's call it \( a \)), we can set up the equation based on the information provided.
From the problem, we know:
- The school plans to spend twice the amount it did last year on its winter dance, which is \( 2a \).
- They are deducting the cost of the disco ball, which is $150.
- The total amount being spent this year is $1,500.
Thus, we can write the equation as follows:
\[ 2a - 150 = 1500 \]
This equation can be used to solve for \( a \), the amount of last year's budget.