One of the challenges in this years budget discussions has been understanding the annual versus cumulative budget impacts. The table below attempts to sort all this out now that we know the ministries budget plans for next year.
- The forecast budget change is what impact the known revenue and cost changes will have relative to the previous years budget.
- The cumulative annual budget impact shows how the changes appear relative to the current 2009 budget, which is the baseline the district is working from as the district considers its cuts for next year.
- The cumulative funding shortfall adds these year over year deficits up to understand how much money in total is being cut from the system over the next three years.
- The Forecast Annual Budget is how much in total funding the District will have to pay for salaries and operations in the coming years.
When you look at this in the context of where the money is spent on staffing versus operational costs the impact of these cuts on staff and students is going to be significant. We see that in the
23 items the administration have come up with to cut costs for next year and we see it in the proposal to close schools. These are already deep cuts, where will the $3 million dollars in further cuts come from over the next two years?
| $ Millions | 2009 | 2010 | 2011 | 2012 |
|---|
| Forecast Budget Change (year to year) | | -$6.1 | -$2.4 | -$1.2 |
| Cumulative Annual Budget Impact (rel.2009) | | -$6.1 | -$8.5 | -$9.7 |
| Cumulative Funding Shortfall (rel.2009) | | -$6.1 | -$14.5 | -$24.2 |
| Forecast Annual Budget | $137 | $130.8 | $128.4 | $127.2 |
|
| Staffing Costs (salaries + benefits) | $123.5 |
| Supplies, Operations and Utilities | $12.9 |
| Capital Expenses | $0.6 |
A couple of points worth noting on the 2010/11 budget are
ReplyDelete1. AFG Impact. In the 2010/11 budget that was proposed back in December the district indicated that they would look to spend $1.5M of operating costs on 20101/11 and beyond on AFG related items, as the Ministry had taken this grant away. Now that the grant is back in place the district is currently forecasting that is will use $1.1M of $1.5M they have received for 2009/10, and then $3.3M in 2010. The $3.3M is split $1.8M AFG funded, and then an additional $1.5M from operating expenses. Now given that the district is cash strapped, the proposal to spend an extra $1.8M than the prevailing though just three months ago, without batting an eyelid is a little odd. These projects should be thrown into the mix with the other potential budget cuts.
2. Included in the 2010 budget there is also the additional of $750k of computer costs, and an increase in service and supplies costs of $0.5M. Again these costs should be thrown into the mix with the other proposed cuts so that the Trustees can decide where the priorities are.
In fact the current budget proposal proposes adding $9.15M in these types of costs alone in the next three years, whilst other more damaging cuts remain on the table. When it comes to a choice of new computers, or aides in the classroom, I am sure it is easy to guess what the preference would be.
As far as I can tell, by including them in the budget forecast these items are being put back on the table, as opposed to being left off entirely.
ReplyDelete..as long as these items are discussed for potential reduction ahead of potentially more damaging cuts I am good with that.
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