Board of Education Meeting
May 30, 2017
2017-18 Budget
Strategic Plan
2017-18 Budget
Consolidated Budget Estimates
2016-17
Budget
2017-18
Budget
Revenues
Provincial Grants
Tuition
Other Revenue
Rentals and Leases
Investment Income
Amortization of Deferred Capital Revenue
Total Revenue
179.15
5.55
7.37
0.39
0.34
7.21
200.01
189.66
5.55
7.89
0.36
0.35
7.25
211.07
Expenses
Instruction
District Administration
Operations and Maintenance
Transportation and Housing
Total Expense
Net Revenue (Expense)
166.24
5.56
28.52
3.31
203.63
(3.62)
176.77
5.64
29.08
3.40
214.88
(3.81)
Budgeted Allocation of Surplus (Deficit)
0.91
0.96
Budgeted Surplus (Deficit), for the year
(2.71)
(2.85)
(2.71)
(2.85)
Consolidated Budget (millions)
Budgeted (Deficit), for the year comprised of:
Capital Fund Surplus (Deficit)
3
2017-18 Budget
Consolidated Budget Estimates
EXPENDITURES
District
Administration
2.6%
Operations &
Maintenance
13.5%
Instruction
82.3%
Transportation
1.6%
4
2017-18 Budget
Budget Assumptions
Major Assumptions & Key Factors
Operating Fund
– Estimates are based on enrolment projections for September 30th, showing an
increase of approximately 140 students.
– Province will fund actual September 30th enrolment at the current published per
student rates.
– International student revenues, along with other revenues will remain constant.
– Decrease of $30,000 in rental revenues. (Up to 5 pre-school contracts not renewed due to
implementation of 2002 Collective Agreement provisions.)
– Salary increases of $1.1M for unionized employees are covered by operating
grant increases.
– Additional teacher staffing increase totaling $0.8M for projected enrolment
increase.
– Slight adjustments to Support Staff – reductions of approximately 11 FTE
educational support staff positions and an increase of 1 FTE custodial position.
2017-18 Budget
Budget Assumptions
Major Assumptions & Key Factors
Operating Fund
– Continued support for IT Plan 2.0 initiatives and increased support to continue
management of IT security and privacy.
– Increased costs of exempt salaries to move to the next step in the approved
salary grids ($0.4M)
– Estimates for employee benefits costs remain unchanged.
– Utility costs will remain constant (rate increases, PST phase out, energy managment).
– No adjustment for inflationary factors, as increases will be absorbed within
existing budgets.
– Budget measures from 2016-17 remain in place. (balanced budget)
– Continued participation in Service Delivery Projects designed to increase system
efficiency.
2017-18 Budget
Budget Assumptions
Budget Assumptions & Key Factors
Special Purpose Fund
– The newly created Classroom Enhancement Fund (CEF) will cover all costs
related to implementation and maintenance of the restored teacher Collective
Agreement provisions from 2002. (approx. 79 FTE)
– Estimates for the CEF, for Collective Agreement compliance and the resulting
increased teacher costs, are based on the District’s estimates of “best efforts”
to achieve compliance.
– Increased exempt salary costs from CEF Overhead allocation to cover
increased administrative costs for managing restoration of the 2002 Collective
Agreement provisions.
– Learning Improvement Fund (LIF) continues for support staff.
2017-18 Budget
Emerging Issues & Budget Pressures
Emerging Issues & Budget Challenges
– Facility improvements to support increased classroom requirements.
– Management of enrolment pressures at various schools throughout the
district.
– Staffing changes/shortages.
– Technology costs related to improved data protection & security.
– Increased administration required to manage and provided oversight of
re-instated 2002 Collective Agreement provisions.
8
2017-18 Budget
Enrolments
Enrolment Information
Enrolment (September)
School Aged
Alternate Ed
Adults
Distributed Learning
Total
Unique Student Needs:
ELL
Aboriginal Education
Special Education:
Level 1
Level 2
Level 3
Enrolment (February)
Total
Enrolment (May)
Total
Total Funded Students
2015-16
2016-17
2017-18
2018-19
2019-20
18,557.0
232.4
7.1
157.9
19,025.6
245.6
6.9
159.6
19,166.0
245.0
6.0
160.0
19,255.0
245.1
160.0
19,347.0
251.0
160.0
18,954.4
19,437.7
19,577.0
19,660.1
19,758.0
2,099.0
1,994.0
2,237.0
2,023.0
2,280.0
2,052.0
2,324.0
2,082.0
2,368.0
2,110.0
16.0
614.0
323.0
18.0
681.0
369.0
18.0
710.0
375.0
18.0
750.0
440.0
18.0
785.0
475.0
132.8
132.5
131.0
131.0
131.0
106.1
101.5
101.0
101.0
101.0
19,193.2
19,671.7
19,809.0
19,892.1
19,990.0
2017-18 Budget
Budget Estimates
• Strategic Initiatives – Board Approved
– Previously approved $250,000
• RHSS School Project - $100,000
• Innovation Centre (Explozone) - $150,000
– Renewed 3 year commitments:
• Board Funded StrongStarts ($80,000/yr - $240,000)
• Internal Pay Equity ($300,000/yr - $900,000)
– Initiatives for 2017-18:
• Learning Commons – Facility improvements at 15 sites ($300,000)
• Future Science Leaders Program - $5,000 yr1, $7,000 yr2
10
2017-18 Budget
Budget Estimates – Operating Fund
2016-17
Budget
2016-17
Forecast
2017-18
Budget
170.05
5.55
2.18
177.78
170.06
5.97
3.07
179.10
173.90
5.55
2.68
182.13
EXPENSE
Total Salaries
Employee Benefits
Total Salary & Benefits
Services & Supplies
Total Expense
Net Revenue (Expense)
125.83
32.07
157.90
20.67
178.56
124.61
31.08
155.69
22.08
177.77
130.99
33.61
164.60
18.49
183.09
-0.78
1.33
-0.96
Total Interfund Transfers
-0.12
-0.12
-
Surplus (Deficit) for Year
-0.91
1.21
-0.96
Operating Fund Budget
REVENUE
Provincial Grants
Tuition
Other Revenue
Total Revenue
(millions)
11
2017-18 Budget
Budget Estimates – 3 Year Plan
2017-18
Budget
2018-19
Budget
2019-20
Budget
REVENUE
Provincial Grants
Tuition
Other Revenue
Rentals & Leases
Investment Income
Total Revenue
173.90
5.55
1.97
0.36
0.35
182.13
176.02
5.60
1.97
0.36
0.35
184.29
177.82
5.60
1.97
0.36
0.35
186.10
EXPENSE
Total Salaries
Employee Benefits
Total Salary & Benefits
Services & Supplies
Total Expense
130.99
33.60
164.60
18.50
183.09
132.54
33.80
166.33
18.60
184.93
133.52
34.05
167.57
18.80
186.37
Net Revenue (Expense)
-0.96
-0.64
-0.26
Surplus (Deficit) for Year
-0.96
-0.64
-0.26
Operating Fund Budget
(millions)
12
2017-18 Budget
Budget Estimates
2017-18 Operating Budget
Revenue History
2017-18 Budget
2016-17 Forecast
2015-16 Actual
2014-15
2013-14
2012-13
2011-12
130.0
140.0
150.0
160.0
170.0
180.0
190.0
MILLIONS
Operating Grants
Tuition
Other Revenue
13
2017-18 Budget
Special Purpose Fund
2016-17
Budget
2017-18
Budget
REVENUE
Provincial Grants
Other Revenue
Total Revenue
6.49
5.92
12.41
13.20
5.92
19.12
EXPENSE
Teachers
Principals & Vice-Principals
Education Assistants
Support Staff
Other Professionals
Substitutes
Total Salaries
Employee Benefits
Total Salary & Benefits
Services & Supplies
Total Expense
2.30
0.01
1.28
0.27
0.10
0.05
4.01
0.92
4.94
7.47
12.41
7.06
0.15
1.20
0.35
0.24
0.04
9.04
2.27
11.31
7.81
19.12
-
-
Special Purpose Fund
Net Revenue (Expense)
Special Purpose Fund
– Classroom Enhancement
– Learning Improvement
Fund
– Strong Starts
– Community Link
– Ready Set Learn
– Annual Facility Grant
– School Generated Funds
– Other funding with
restricted use.
14
2017-18 Budget
Classroom Enhancement Fund
• Classroom Enhancement Fund (CEF)
– Reported in “Special Purpose Fund”
– Used to cover costs associated with implementing the class size and
composition provisions from the 2002 Teacher Collective Agreement.
• FTE Teachers - $8,650,889 (to be revised based on Ministry submission)
• Overhead allocation - $960,473
– MOA between Provincial Government and BCTF
• Broadly outlines how to implement the 2002 restored language.
• Some changes to allow for restoration within the current educational
context.
2017-18 Budget
Implementation of 2002 Collective Agreement
• Compliance Provisions
– District to make “best efforts” to achieve full compliance with the CA
provisions regarding class size & composition.
• Follow provisions addressing “minimum” class size
• Consideration of boundary changes or forced catchment changes – Unable
to give consideration due to timelines.
• Additional instructional spaces:
– To date, 11 portables have been approved by Ministry of Education
• Re-capture rented instructional spaces (Rentals to Pre-schools/Before & After school programs).
– Potentially cancel 5 rental agreements
– Remedies available for “non-compliance”.
• Additional prep time, additional teachers
• Formula based on # of students over maximum.
2017-18 Budget
Budget Summary
EXPENDITURES
Teachers
46%
Employee
Benefits
18%
Supplies &
Services
10%
Salaries
72%
P/VP
5%
Substitutes
4%
Other
Professionals
2%
EA's
8%
Support Staff
7%
17
2017-18 Budget
Risks
Risks
– Unanticipated funding changes
– Unplanned enrolment increases that create
capacity utilization issues
– Staffing shortages
– International program fluctuations (revenue risk)
2017-18 Budget
RECOMMENDATION
• That the Board Approve the 2017-18 Annual Budget
Bylaw totalling $214,880,375