There have been a number of changes to the way funding is determined this year, with the Ministry touting increases to education funding but the reality is that the increases have not kept up with costs. Making this worse is that the ministry is shifting even more of the funding this year to be provided on a per student basis. On the surface this appears reasonable but in effect it disconnects the funding from the real costs of local education such as salaries, staff, maintenance, utilities and buildings all of which go up every year.
This budget forecast takes into account a number of changes coming into effect in the next 3 years.
- New ministry funding formula
- Enrollment decline grant and teacher reductions
- Teacher salary increases (2%)
- Pension increases (1%)
- MSP + WCB increases
- Annual facilities grant reinstatement ($1.5m of prior $3m)
- All day kindergarten implementation funding ($200,000)
- Ridgeway Annex & Balmoral closure savings
This year, 2009/2010 the school districts budget was $137 million a year, with $123 million of that being staffing costs.
- In 2010/2011 the budget needs to be cut to $131 million a year.
- In 2011/2012 it will be $128.5 million a year
- In 2012/2013 it will be down to $126 million per year.
It is very true that the funding formula changes from year to year make the budget difficult to decipher. However, the shortfall as projected is also due to the district’s desire to add costs to the operating expenses that were not even in the 2009 budget.
ReplyDeleteIncluded in the projections is more than $9M of additional costs, additional service and supplies, and additional capital costs. Some increase should be anticipated as the district was running lean this year, however, this is an outrageous increase when schools and essential programs are on the chopping block. It is essential that the Trustees get the opportunity to add these proposed increases the list of budget cuts considerations, so that they can be considered alongside closures of schools and reductions in program support.
I don't think the $9 million of added costs is accurate.
ReplyDeleteThe forecast changes for next year include re-instatement of $1.5m in facilities maintenance, $750,000 for computer costs and $500,000 in supplies and services.
I'm not certain but what this forecast appears to do is revert to the baseline 2009 budget by reinstating some of the items that were originally in the 2009 budget but taken out to deal with the elimination of the AFG this year. These can of course be included in the cuts that will be implemented as part of the $6m in cuts for next year.
I should have said $9M over three years...based on the items you have noted.
ReplyDeleteOne potential error the district has here is the computer costs would likely be capital costs, so only the amortization would be included in the operating costs.
It does indeed claim to revert back to the 2009 budget, but given the current climate and the reduction in projected enrolment desire to go back to the same level of spending as 2009 may not be appropriate