2019-20 Draft Budget Bluewater District School Board Business - - PowerPoint PPT Presentation

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 Announcement May 7, 2019 Public Consultation April 2, 2019 Draft Budget June 4, 2019 Final Budget June 18, 2019 Financial Reporting

Budget Recommendation (if needed) June 11, 2019

Overview of the 2019-20 GSN

$24.5 billion to $24.66 billion $12,246 per pupil Focus on investments in the classroom

KEY Changes

Effective use

• f tax dollars

Greatest impact on the classroom Committed to investments

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 budget Class size regulations Balanced envelopes

Effective Management

Services within budget Labour costs Partnerships Capital renewal needs Cash Management strategy

Financial Sustainability

Service & Program Delivery Reduce unsupported debt Maintain Reserves Balance budget without use

• f reserves

Balanced Budget

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

5,000 10,000 15,000 20,000 25,000 2016-17 2017-18 2018-19 Projected 2019-20 11,533 11,860 12,213 12,445 4,543 4,374 4,339 4,193 5,417 4,802 4,521 4,146

Elementary Secondary Surplus Space

School Utilization

16,638 80% 4,145 20%

Total Capacity 20,783 Spaces

Enrolment Vacant Spaces

The projected enrolment is based on total average daily enrolment (ADE)

1 2 6 27 7 5 10 15 20 25 30 0 - 25 25.1 - 50 50.1 - 65 65.1 - 95 > 95 Number of Schools Utilization Range

The School Utilization Rate compares the projected enrolment for 2019-20 in schools to the capacity of the schools

2019-20 GSN Changes

• Special education – behavior expertise
• Partnership and Priority Funding

New investments

• Grade 7 and 8 transition
• Capital investments
• Rural and Northern Education Fund
• Other implementation and funding changes
• Enveloping – program leadership allocation

Ongoing Discontinued

• Local Priority Funding
• 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 services

• Special Education
• Transportation
• School Operations
• Attrition Protection

Funding

Continued Pressure

• Technology
• Replacement costs
• Administration of changes
• Decrease in classroom

teacher funding

Managing the Pressure

Balanced budget Manage surplus spaces Align spending Reduce unsupported debt

Financial Summary of Budget

Budget 2018-19 Revised Estimates 2018-19 Draft Budget 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

Grants for Student Needs, 93.4% Tuition Fees 1.0% PPF (Priorities and Partnership Fund) 0.2% Deferred Capital Contributions 6.3% Other 1.0%

2019-20 Revenue

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) External Funding Other 1,434,449 677,882 (756,567) Capital & amortization - operating 16,407,326 17,597,195 1,189,869 Other 4,678,074 4,124,819 (553,255) Total 217,988,650 216,453,413 (1,535,237) Revised Estimates Budget 2019-20 Variance

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

• f the gsn and addressing pupil spaces in operations

Expenses

Classroom 65%

School Office, Principals, System Teachers 9% Transportation 7% Plant/Operations 14% Administration 3% Interest on Debt 1% Other 1%

2019-20 Expenses

Revised Estimates Budget 2019-20 Variance 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

High risk

Long term financial sustainability Deficit position Surplus & strong reserves

Financial Path

2017-18 Balance budget & build reserves 2019-20 GSN changes

Budget Process

Pre Budget Consultation February 5, 2019 GSN Announcement May 7, 2019 Public Consultation April 2, 2019 Draft Budget June 4, 2019 Final Budget June 18, 2019 Financial Reporting

Budget Recommendation (if needed) June 11, 2019

QUESTIONS