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2012-2013 Budget Presentation

2012-2013 Budget Presentation

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2012-2013 Budget Presentation

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  1. 2012-2013 Budget Presentation June 4, 2012

  2. Overview • Budget timelines • Planning assumptions • Major changes to budget • Budget challenges • Enrolment • Budget consultation • Budget risks • Budget overview • Revenue projections • Expense determination • Accumulated Surplus • Staffing changes • 2012-13 Budget reductions • Planning Areas • Future Focus • Summary and Motions

  3. Budget timelines • Budget planning is a 5 month process • Once the process begins, timelines are tight to satisfy stakeholder and budget holder criteria in order to meet the Ministry deadline • The Ministry will impose penalties for late filings • The BAC was engaged through this process, though the information we could give to them was limited due to our struggle to balance the budget

  4. Planning Assumptions • Ministry Requirements • The overall budget must be balanced and compliant (no unsustainable use of reserves) • Targeted funds must be used for specific initiatives (e.g. Early Learning) • Administration and Governance expenditures cannot exceed allocation • Compliance with legislation

  5. Planning Assumptions Continued... • Our Requirements • Presented budget must be balanced • While reductions must be made and the impacts felt by all, impact at the student desk will be minimized • B5 Funding Memo from Ministry will be used for grant and expense calculations (wages, sick days, gratuities) • A conservative enrolment projection will be used • Compliance with legislation, accounting regulations and contractual agreements • Compliance with Board policies, specifically IV 007

  6. Major Changes to Budget • Efficiency and Savings Measures per Ministry • Continued savings measures: • 1.5% Administration revenue reduction • Information Technology • Professional Development • 1% Student Transportation for Boards who do not receive a “high” efficiency rating

  7. Major Changes to Budget continued… • New savings measures: • Salaries frozen • Reduction to sick leave plans and retirement gratuities • Reduction in Curriculum and Teaching Specialists • 2013-14 anticipated savings measures: • Adjusting grants for small and under-utilized schools • Implementation of a 4 year high school program • School board amalgamations

  8. Major Changes to Budget continued… • Increased funding in the following areas: • Elementary teacher prep time (10 minutes) • Elementary teachers to reduce class sizes in grades 4-8 • Grade 7 & 8 Student Success and Literacy and Numeracy teachers • Secondary programming • OMERS contributions • Utility costs

  9. Budget Challenges • Challenges faced with the 2012-13 budget preparation: • Ministry restraint measures - $2.4 M • Reduced funding yet Board costs do not always decline • Difficult to project impact of some changes (sick leave plan) • Collective agreements • Uncertainty surrounding unionized contracts open for bargaining • Continued declining enrolment - $5.3 M • Special Education needs increasing every year • Balancing within available funds

  10. Enrolment • The Board enrolment decline is slowly steadying in elementary but secondary will be affected for the next 4 years • Enrolment is a key driver for most of the grants we receive from the Ministry • Enrolment projections are difficult to anticipate as actual results will vary

  11. Enrolment continued… • Projected enrolment for 2012-13 was: • Prepared by our Planning Department with a high, moderate and low scenario • Presented to the Budget Advisory Committee for final decision on which scenario to use • The BAC decided to use a low scenario to ensure our budget would be prepared conservatively

  12. 2012-2013 Enrolment • Board enrolment continues to decrease with a reduction of 665 students (3.3%) projected for 2012-2013 over this time last year. Note: Early Learning and VISA students are not included in above totals as they are funded outside of the GSN

  13. Enrolment trends

  14. Budget Consultation and Survey Results

  15. Budget Advisory Committee (BAC) • BAC consists of Trustees, Senior staff and Principal representatives • Work completed by the committee: • Reviewed and decided on enrolment • Input into budget presentation • Provided budget reduction suggestions • Provided a front line perspective

  16. Budget consultation • Full consultation process is outlined in the binder • Online survey was the only consultation tool used to solicit feedback • 1055 responses received to targeted questions asked

  17. Budget Consultation Results Continued…

  18. Budget Consultation Results Continued...

  19. Budget Consultation Results Continued...

  20. Budget Consultation Results Continued...

  21. Budget Consultation Results Continued...

  22. Budget Consultation Results Continued...

  23. Budget Consultation Results Continued...

  24. Budget Consultation Results Continued...

  25. Budget Consultation Results Continued...

  26. Budget Consultation Results Continued...

  27. Budget overview Balanced Budget

  28. Budget overview continued…

  29. Revenue calculation • 92.5% of revenue is generated by enrolment through the Grants for Students Needs (GSNs) • We also receive Extra Programming Other (EPO) grants for specific Ministry initiatives • Other revenues such as VISA student tuition, rental, interest income etc. are derived from known sources as well as projections based on historical trends

  30. Total Revenues

  31. Total Revenues by Planning Area

  32. Expense determination • Expenses are determined from legislative and contractual requirements, the Board Improvement Plan, Strategic Directions, Board Policy and other known infrastructure needs • Budgets are prepared based on a zero base meaning there are no flat-lined budgets from previous years – everything requires justification and review by others

  33. Total Expenditures

  34. Total Expenditures by Planning Area

  35. Total Expenditures by Category

  36. Accumulated Surplus (Reserves) *Note: 2011-2012 reflects Ministry adjustment of accumulated surplus

  37. Staffing Changes

  38. Budget Risks • Enrolment projections vary from actual results • Low risk given conservative approach applied • Utility costs are subject to further pricing fluctuations • Conservative approach taken in development of budget • Proposed sick leave model impact unknown • Impact on supply costs and salary costs • Uncertainty of new collective agreements

  39. Budget reductions • Budget reductions were necessary in order to balance the budget within available funding • Reduced items include: • Staffing reductions relating to enrolment decline • Change in Special Education delivery model • Overall professional development • Deferral of technology projects and new resources • Deferral of maintenance equipment renewal • Cancellation of non-binding contracts and projects

  40. Budget reductions continued… • Changes in current practice • Shuttering classrooms not in use • Shutting down phantom loads over breaks • Elementary VPs teaching an additional section • Restructuring of administrative staff • Combining of consultant positions

  41. Budget Binder • Dashboard report • Summary of Revenue and Expenditures – Total allocation • Summary of Revenue and Expenditures – By Planning Area • Copy of Budget Presentation • Monitoring Report on Board Policy IV007 – Financial Planning and Budgeting • Copy of Stakeholder budget survey • Board Improvement Plan for Student Achievement • Strategic Direction • Ministry budget presentation • Planning area details

  42. Planning Areas

  43. Planning Areas

  44. Planning Areas continued… • Further details can be found in the binder for each of the areas: • Administration • Transportation • Operations • Capital • Learning Services

  45. Capital

  46. Capital

  47. Capital continued... • $12.0 M in depreciation • $6.1 M in interest costs related to capital spending

  48. Capital continued... • School Condition Improvement funding ($1.5M) will be received again in 2012-13 to address renewal needs in older schools (built prior to 2007) • Board continued commitment to dispose of surplus real estate assets: Sacred Heart, St. Joseph K, Monsignor Gleason, any ARC closures • Continued Full Day Kindergarten implementation – more sites now requiring capital in order to accommodate program • Board has applied for Capital Priorities Funding from Province

  49. Capital continued... • Areas of focus for the upcoming year: • FDK capital renovations* • Guelph Avenue school* • Our Lady of Fatima addition* • St. Paul renovation • School Condition Improvement and renewal spending to address system infrastructure needs • Solar projects • Accommodation reviews *Note: project costs are not included in the budget as they will be financed once complete

  50. Administration