2019-20 Budget Public Information Meeting April 16, 2019 1 1 - - PowerPoint PPT Presentation

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2019-20 Budget

Public Information Meeting April 16, 2019

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Guiding Principles

 Maximize the allocation of resources to support the goals & priorities in the Strategic Plan.  Commit to building a strong understanding of budget information through ongoing

communications.

 Maintain a three-year budget plan to ensure funding sources can support program initiatives.  Maintain surplus/reserve balances to respond to emergent needs.  Maintain strong fiscal management policies.

2019-20 Budget Guiding Principles

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2019-20 Budget Current Budget Forecast

Operating Fund (millions) 2018-19 Budget 2018-19 Forecast Total Revenue 186.9 188.2 Total Expense 189.8 189.0 Net Revenue (Expense) (2.9) (0.8) Interfund Transfers (1.0) (1.0) Surplus (Deficit) for Year (3.9) (1.8)

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2019-20 Budget Estimate of Year End Accumulated Surplus

Operating Fund (millions) 2018-19 Budget 2018-19 Forecast Accumulated Surplus (Deficit) Beginning 8.8 8.8 Surplus (Deficit) for Year (3.9) (1.8) Accumulated Surplus (Deficit) End of Year 4.9 7.0

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Operating Reserves (Accumulated Surplus)

– Indicator of financial health – Reserves are one-time funding sources that cannot sustain on-going services or programs. – Reserves are necessary to cover unexpected and unavoidable expenditures. – Recommended unrestricted accumulated surplus

• 2% to 3% of operating expenses ($3.8 M - $5.8 M)

2019-20 Budget Accumulated Surplus

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2019-20 Budget Accumulated Surplus - Details

Accumulated Surplus (Deficit) (millions)

Projected June 30/19

Internally Restricted 0.3 School District Restricted 3.1 Unrestricted Operating Surplus 3.6 Total Accumulated Surplus - Projected 7.0

Target Range $3.8-$5.8M

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Major Budget Assumptions

 Estimates based on projected enrolment showing 92 FTE student increase.  Province will fund actual September 30th enrolments at the published per student rates.  Classroom Enhancement Fund will fully fund actual costs for implementation of 2001 TCA,

including ongoing overhead costs.

 Unionized salary increases will be fully funded by the Provincial Government.  No significant programming or staffing changes.  No adjustments for inflationary factors, except for fuel costs.

2019-20 Budget Budget Assumptions

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Budget Considerations & Adjustments

 Supporting the Strategic Plan

 Review resources added in 2018-19 (not from reserves) $1.05M  Review additional resources required for 2019-20

 Eliminate allocations from Reserves/Accumulated Surplus

 Estimated special project allocation for 2019-20 was previously $250,000  Board funded Strong Start will continue, but funded from general operations

2019-20 Budget Budget Planning

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Budget Considerations & Adjustments

 Salary increases for unionized staff - 1% and 0.75% (ESD) as of May/19 ($2M)  Proposed staffing changes:

 Increase of 4 FTE teachers for enrolment increase ($390K)

(Note: increased FTE teachers for CEF have not been included – no net impact on operating budget)

 Increase of 7.0 FTE Support/Other staff ($380K)  4.0 Education Assistants (special education)  2.0 IT Department (IT security, school & web support)  1.0 FTE (exempt) in International student department  Support staff wage reclassification – estimates under review

2019-20 Budget Budget Planning

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Budget Considerations & Adjustments

 Improve equity in school allocations

 Adjustments to distribution of International student revenues, special allocations

 District contribution to new elementary school on Eagle Mountain

 $2.5 M (18-19: $600K, 19-20: $900K, 20-21: $1.0M)

 Balance operating budget without reliance on Accumulated surplus

2019-20 Budget Budget Planning

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Operating Grant (millions) 2018-19 Final 2018-19 Preliminary Change Enrolment Based Funding 147.45 149.22 1.77 Unique Student Needs 25.09 27.65 2.56 Other - Salary Differential 2.03 2.04 0.01 Other - Unique Geographic 2.65 2.76 0.11 Other- BC Ed Plan 0.39 0.39 0.01 Total 177.60 182.06 4.46

** $2.5M is related to funding changes & $2.0M is related to enrolment increases

2019-20 Budget Operating Grant

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2019-20 Budget Preliminary Budget Estimate

Operating Fund (millions) 2018-19 Forecast 2019-20 Budget Total Revenue 188.2 192.2 Total Expense 189.0 193.5 Net Revenue (Expense) (0.8) (1.3) Interfund Transfers (1.0) (0.9) Surplus (Deficit) for Year (1.8) (2.2)

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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.  2019-20 Preliminary Allocation

 110 FTE Teachers - $8.96 M  Overhead allocation - $0.49 M

2019-20 Budget Classroom Enhancement Fund (Spec.Purpose Fund)

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Budget/Financial Risks

 Funding shifts/changes (MOE funding review)  Unplanned enrolment changes  Staffing shortages  Depletion of Accumulated Surplus & Reserves  Unplanned major expenses  International program fluctuations (revenue risk)

2019-20 Budget Preliminary Budget Estimate

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Next steps in budget development

 Strategic Plan – Update operational plans  Finalize staffing estimates  Discretionary spending (schools & departments)  Eliminate projected operating deficit for 2019-20 (currently at $2.2M)  Complete budget estimates for all Funds

 Operating  Special Purpose  Capital

2019-20 Budget Preliminary Budget Estimate

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Upcoming Meetings

 April 23/19 – Finance Committee strategy & budget review  May 7/19 – Board Meeting – Preliminary Budget Review  May 28/19 – Board Meeting – Presentation of Preliminary Budget  June 18/19 – Board Meeting – Budget approval

2019-20 Budget Budget Planning

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Questions

www.abbyschools.ca

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