2019-20 Draft Budget Bluewater District School Board Business Committee of the Whole June 4, 2019
Procedural Information Recommendation on the Floor Options to go forward Alternate Recommendation
Agenda Budget Process Overview Changes for 2019-20 Budget Impact Looking Forward
Budget Process Pre Budget Consultation February 5, 2019 GSN Financial Announcement Reporting May 7, 2019 Public Final Budget Consultation June 18, 2019 April 2, 2019 Budget Recommendation Draft Budget (if needed) June 4, 2019 June 11, 2019
Overview of the 2019-20 GSN Focus on $24.5 billion to $12,246 per investments in pupil $24.66 billion the classroom
KEY Changes Greatest Committed Effective use impact on to of tax dollars the investments classroom
Points to Consider Focus on student success and well-being Fiscal reality – prescribed funding, unfunded costs Expense pressures Align services with funding Maintain a path to long-term financial stability
Additional Priorities and Goals Compliance Balanced Effective Management Budget Balanced budget Financial Sustainability Services within budget Class size regulations Service & Program Delivery Labour costs Balanced envelopes Partnerships Reduce unsupported debt Capital renewal needs Maintain Reserves Cash Management strategy Balance budget without use of reserves
2019-20 Budget Overview Developed with BWDSB strategic priorities Consultation with the public, staff and union Class size and ratio changes and attrition protection Special Education investments in behavior expertise Cont’d implementation of 2017 -19 central labour agreements Ongoing implementation and other changes Capital investments
Enrolment & Surplus Space 25,000 20,000 4,521 5,417 4,146 4,802 4,193 4,339 4,374 15,000 4,543 10,000 12,445 12,213 11,860 11,533 5,000 0 2016-17 2017-18 2018-19 Projected 2019-20 Elementary Secondary Surplus Space
School Utilization 30 Total Capacity 20,783 Spaces 27 25 Number of Schools 20 15 4,145 20% Enrolment 10 7 6 5 2 Vacant Spaces 1 16,638 0 80% 0 - 25 25.1 - 50 50.1 - 65 65.1 - 95 > 95 Utilization Range The projected enrolment is The School Utilization Rate compares based on total average daily the projected enrolment for 2019-20 in enrolment (ADE) schools to the capacity of the schools
2019-20 GSN Changes New • Special education – behavior expertise • Partnership and Priority Funding investments • Grade 7 and 8 transition • Capital investments Ongoing • Rural and Northern Education Fund • Other implementation and funding changes • Enveloping – program leadership allocation • Local Priority Funding Discontinued • EPOs • Human Resource Transition Supplement
Class Sizes, Ratios and Attrition Protection Secondary class size moving to 28:1 from 22:1 over 4 years ECE ratio moved from 1.14 to 1:1 per classroom teacher Secondary programming 1.02 per 1000 ADE eliminated New Attrition Protection Allocation for up to four years to protect front-line staff Funding to avoid any related layoffs with class size change 5% Attrition funding to support continuity of programs
2019-20 BWDSB Investments Increase in school budgets Technological investments for students and staff Update to multi year strategic plan Increase in principals/vice principals Late busses at secondary schools
School Budget Investments Increase of 2.2% for school supplies and services Continued late busing Rural and northern education funding: school supplies and services health and safety repairs – playgrounds and tech shops
Capital Investments Capital Funding $12.4 M School Renewal ~ $3.5 M School Condition Improvement ~ $8.9 M 2018-19 = $12.3 M School Renewal = $3.5M SCI = $8.8M
Budget Impact Continued support and Continued Pressure services • Special Education • Technology • Transportation • Replacement costs • School Operations • Administration of changes • Attrition Protection • Decrease in classroom Funding teacher funding
Managing the Pressure Align Balanced spending budget Manage Reduce surplus unsupported spaces debt
Financial Summary of Budget Budget Revised Estimates Draft Budget 2018-19 2018-19 2019-20 Operating Revenue $ 216,028,569 $ 217,988,650 $ 216,453,413 Operating Expenses (215,562,255) (217,963,829) (216,007,202) Carry-forward for committed projects - 966,155 - (Increase) / Decrease in reserves (466,314) (990,976) (446,211) Net Change in Operating Position $ - $ - $ -
Revenue Drivers Ongoing GSN funding and new investments Enrolment and utilization Continuing implementation of collective agreements Community partnerships International students
Revenue Tuition Fees PPF (Priorities and 1.0% Partnership Fund) 0.2% Deferred Capital Contributions 6.3% Other 1.0% Grants for Student Needs, 93.4%
2019-20 Revenue Revised Budget Variance Estimates 2019-20 Pupil Foundation 90,972,612 86,874,911 (4,097,701) School Foundation 13,315,714 13,869,061 553,347 Special Education 25,116,986 25,819,835 702,849 Rural and Northern Education Fund 1,133,585 1,171,370 37,785 Learning Opportunity 4,806,071 2,906,666 (1,899,405) Continuing Education 309,511 420,637 111,126 Qualification and Experience 13,660,367 16,301,572 2,641,205 Transportation 14,043,039 14,632,924 589,885 Administration & Governance 6,636,975 6,498,491 (138,484) School Operations 19,092,952 19,099,575 6,623 Other 6,380,989 6,458,474 77,485 Sub-Total: GSN 195,468,801 194,053,517 (1,415,284) 1,434,449 677,882 (756,567) External Funding Other 16,407,326 17,597,195 1,189,869 Capital & amortization - operating 4,678,074 4,124,819 (553,255) Other Total 217,988,650 216,453,413 (1,535,237)
Revenue Future Outlook Certainty of continued GSN investments Benchmarks do not fully fund costs (benefits, technology, supplies, absences) Reduced technology funding Prudent and balanced approach required Further balancing of envelopes, generating revenue outside of the gsn and addressing pupil spaces in operations
Expenses Administration Interest on Debt Other 3% 1% 1% Plant/Operations 14% Transportation 7% Classroom 65% School Office, Principals, System Teachers 9%
2019-20 Expenses Revised Budget Variance Estimates 2019-20 Classroom $ 140,412,151 $ 137,944,922 $ (2,467,229) School Office, Principals, System Teachers 17,757,411 17,673,515 (83,896) Transportation 14,189,266 14,787,111 597,845 Operations and Maintenance 29,866,228 31,087,251 1,221,023 Continuing Education 720,304 741,593 21,289 Administration 6,433,536 6,573,814 140,278 Interest on long term debt 3,417,681 3,187,488 (230,193) Amortization of retirement gratuities 3,278,722 2,622,978 (655,744) Other 1,888,530 1,388,530 (500,000) Total $ 217,963,829 $ 216,007,202 $ (1,956,627)
2019-20 Expenses Increase in Enrolment Student Support and Success: GSN investment: Special Education, Mental Health, Student Support Reinvestment in schools and technology Continued Pressure of Labour Related Costs Absence costs, ELHT, retirement gratuities Continued Alignment of Funding to Expenditures
2019-20 GSN Flexibility Prescriptive Funding Model Expenses must align to funding envelopes There is no extra money in GSN; must look to: Continued cost efficiencies - innovations Reduction in unfunded absence costs Non-grant revenue growth Reduction in unsupported debt
Financial Path 2017-18 High Balance budget risk Deficit & build reserves position Long term 2019-20 financial Surplus & GSN changes sustainability strong reserves
Budget Process Pre Budget Consultation February 5, 2019 GSN Financial Announcement Reporting May 7, 2019 Public Final Budget Consultation June 18, 2019 April 2, 2019 Budget Recommendation Draft Budget (if needed) June 4, 2019 June 11, 2019
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