Generally speaking, you will have both.
See Is the structure of the project correct? - #2 by KenWhitesell as a model of what your directory structure should look like. (Note that the model showing an app1 directory inside of the app’s static directory is not required. It is only helpful when you are creating a system using multiple apps. See the Template namespacing note box.)
Please show the output of a dir /s /w of your blog directory, along with the contents of your apps.py file that is in that directory.