School District No' 40 New Westminster

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• School District No. 40 (New Westminster)
• 2009/10 Preliminary Budget
• Public Information Session
• May 7, 2009

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2009/10 BUDGET PROCESS
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BUDGET SUBMISSION PROCESS
Spring
Board Priorities Data Collection Enrolment Costing
Info
Fall
Using estimated enrolments
Recalc Funding Announced in December
Funding Announced In March
Using Sept. 30 enrolments
Board Adopts Budget In May
Board Adopts Amended Budget in February
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BUDGET SUBMISSION OVERVIEW

• Boards required to adopt a budget bylaw by June
  30th
• (School Act, Section 113)
• Board adopts the budget bylaw in May
• To facilitate staffing planning for the new
  fiscal year
• Budget is prepared using estimated student
  enrolment
• Enrolment estimate prepared in February
• Ministry funding amended in December
• Based on September actual student enrolments
• Ministry funding amended further in February and
  June
• Feb special needs/DL/refugees May DL
• Final grant not known until June 30th

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REVENUES
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Sources of Revenue for School Districts

• The majority of school district operating grants
  come from provincial grants through the funding
  allocation system.
• In addition, grants are provided for
  CommunityLINK, early learning initiatives, etc.
  Many of these grants are targeted or held as
  trust amounts.
• School districts have small amounts of local
  revenues from interest revenue on short-term
  deposits, international students, etc.

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Provincial Operating Funding

• The funding system provides for
• Student Allocation of 5,851 per FTE student
  (SD40 receives 35,282,000)
• Allocation of 250 per homeschooler
• Unique student needs ESL (1,174) aboriginal
  education (1,014) special educ. Level 1
  (32,000) Level 2 (16,000) Level 3 (8,000)
  and adult educ. (3,919) (SD40 receives
  6,808,000)
• Teacher salary differential between districts
  (SD40 receives 749,000)
• Unique geographic factors of climate, school
  district size (SD40 receives 992,000)
• Transportation and Housing allocation (SD40
  receives 19,000)
• Wage lift funding (6,590,000 for 2006/07
  2007/08 2008/09 2009/10)

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School District Sources of RevenueA Provincial
Picture
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NEW WESTMINSTER SCHOOL DISTRICTREVENUES
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EXPENDITURES
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School District Operating SpendingA Provincial
Picture
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NEW WESTMINSET SCHOOL DISTRICT EXPENDITURES (by
Function)
New Westminsters expenditures on instruction
(87) are 4 higher than the provincial average
of 83.
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NEW WESTMINSTER SCHOOL DISTRICT EXPENDITURES (by
Type)
88 of New Westminsters budget is comprised of
salaries and benefits costs.
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NEW WESTMINSTER SCHOOL DISTRICT SALARIES (by Type)
Over 85 of salary expenditures are for
school-based positions that directly support
students.
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2009/10 PRELIMINARY BUDGET
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2009/10 PRELIMINARY BUDGETOverview

• 55.0 million operating budget
• Provides programs services to gt6,000 students
• Enrolment is projected to be stable
• Employs over 700 full and part-time employees

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2009/10 PRELIMINARY BUDGETHighlights

• Balanced budget revenues equal expenditures
• Address structural deficit
• Board required to submit a balanced budget
• Deficit mitigation strategies
• Return school district to sound fiscal position
• Restore programs and services in the future

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2009/10 PRELIMINARY BUDGETGuiding Principles

• Balance between educationally sound and fiscally
  responsible
• Focus on achieving the best possible learning
  outcomes for all students, within available
  resources
• Examine the operations of the school district to
  maximize effectiveness and to achieve
  efficiencies
• Equity across the district to the greatest extent
  possible.
• Keep the student at the center of the organization

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2009/10 PRELIMINARY BUDGETStructural Deficit

• 2009/10 structural deficit - 3.1 million
• Structural deficit caused by a number of factors
• Internal
• External

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2009/10 PRELIMINARY BUDGETStructural Deficit
Internal Factors

• Special Education expenditures vs. funding
• Spend 2.3 times funding received
• Consistent with other school districts
• Delay in proceeding with capital projects
• Need to continue with leased facilities -
  880,000
• Operating savings from new schools not available
• Transportation expenditures vs. funding
• Spend over 200,000 more than funding received

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2009/10 PRELIMINARY BUDGETStructural Deficit
External Factors

• MOE funding changes
• Elimination of enrolment capacity grant - 1
  million
• Elimination of GAAP supplement - 360,000
• Per course funding for grade 10-12 students
• MOE funding factors not adjusted for inflation
• Base per pupil amount unchanged since 2006/07
• Special needs supplements unchanged since 2004/05
• ESL Aboriginal supplements unchanged since
  2006/07
• Adult ed. per pupil amount unchanged since
  2002/03
• Transportation supplement unchanged since 2002/03

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2009/10 PRELIMINARY BUDGETStructural Deficit
External Factors

• MOE funding factors not adjusted for inflation
  (cont)
• Supplement for TOC costs unchanged since 2006/07
• Labour settlement funds based on 2006 staffing
  levels
• Labour settlement funds do not include salary
  increments

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2009/10 PRELIMINARY BUDGETStructural Deficit
External Factors

• Other provincial initiatives
• Introduction of carbon tax in 2008
• Introduction of carbon-offset tax in 2010 (next
  year)
• Other external factors
• World economic slowdown
• Impact on International Education Program
• Impact on Interest Income (lower interest rates)

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2009/10 Operating BudgetBudget Assumptions

• Includes
• 2008/09 base services in 2009/10 dollars
• Salaries
• Wage cost increases
• Projected 2009/10 enrolments up 3 FTE
• Projected IEP enrolment decrease of 22 FTE (to
  143 FTE)
• Salary lifts / MOE funding - salary lifts not
  fully funded
• No new MOE funding for other initiatives
• Lower investment income - lower interest rates
• Amount for restructuring costs

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2009/10 PRELIMINARY BUDGETOverview
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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies
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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies

• Teaching
• Increase in student-teacher ratio at secondary
• Staffing adjustments in non-enrolling categories
• School-based district
• Review of alternative programs/pathways
• Recovery of TOC costs for non-instructional
  activities
• Potential Impact 631,000 (14-18 FTE)

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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies

• Support Staff
• Reduction of clerical staffing levels and
  realignment of duties to create full-time
  positions
• Move most custodial staff to an afternoon
  schedule
• Reduction of special education staffing, possible
  through implementation of a case management
  approach to services
• Recovery of costs as provided in collective
  agreement
• Potential Impact 997,000 (20 to 25 FTE)

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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies

• Exempt Staff/Administration
• Reduction in administrative time for school-based
  administrators
• Reductions in staffing for non-core activities
• Non-replacement of vacant positions
• Potential Impact 624,000 (6 to 9 FTE)

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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies

• Services Supplies
• Review of service contracts with outside agencies
• Review of transportation subsidies
• Review of supplier agreements
• Potential Impact 296,000

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2009/10 PRELIMINARY BUDGETDeficit Mitigation
Strategies

• Revenue Generation
• Designation of Sigma as an alternate school
• Recoveries for community use of facilities
• Contribution from SD40 Business Company
• Potential Impact 522,000

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2009/10 PRELIMINARY BUDGET2008/09 Deficit
Carry-Forward

• Board requested approval to incur deficit in
  2008/09
• Amount of 1,038,000
• Senior staff discussing recovery of deficit with
  MOE
• Recovery of deficit not included in preliminary
  budget
• Recovery would be a one-time cost (not structural)

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2009/10 PRELIMINARY BUDGETTimeline

• April 28, 2009 1st 2nd reading of the annual
  budget bylaw
• May 7, 2009 Special Public Budget Information
  Meeting (tonight)
• 700 p.m. at NWSS Library
• May 19, 2009 - Open Board Meeting, NWSS Library
• 3rd final reading of the annual budget bylaw