4/17/2019 2019-20 Budget Public Information Meeting April 16, 2019 1 1
4/17/2019 2019-20 Budget Guiding Principles 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. 2 2
4/17/2019 2019-20 Budget Current Budget Forecast 2018-19 2018-19 Operating Fund (millions) Budget 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) 3 3
4/17/2019 2019-20 Budget Estimate of Year End Accumulated Surplus 2018-19 2018-19 Operating Fund (millions) Budget 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 4 4
4/17/2019 2019-20 Budget Accumulated Surplus 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) 5 5
4/17/2019 2019-20 Budget Accumulated Surplus - Details Projected Accumulated Surplus (Deficit) (millions) June 30/19 Internally Restricted 0.3 School District Restricted 3.1 Target Range $3.8-$5.8M Unrestricted Operating Surplus 3.6 Total Accumulated Surplus - Projected 7.0 6 6
4/17/2019 2019-20 Budget Budget Assumptions Major Budget Assumptions Estimates based on projected enrolment showing 92 FTE student increase. Province will fund actual September 30 th 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. 7 7
4/17/2019 2019-20 Budget Budget Planning 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 8 8
4/17/2019 2019-20 Budget Budget Planning 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 9 9
4/17/2019 2019-20 Budget Budget Planning 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 10 10
4/17/2019 2019-20 Budget Operating Grant 2018-19 2018-19 Operating Grant (millions) Final Preliminary Change 1.77 Enrolment Based Funding 147.45 149.22 2.56 Unique Student Needs 25.09 27.65 Other - Salary Differential 2.03 2.04 0.01 0.11 Other - Unique Geographic 2.65 2.76 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 11 11
4/17/2019 2019-20 Budget Preliminary Budget Estimate 2018-19 2019-20 Operating Fund (millions) Forecast 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) 12 12
4/17/2019 2019-20 Budget Classroom Enhancement Fund (Spec.Purpose 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. 2019-20 Preliminary Allocation 110 FTE Teachers - $8.96 M Overhead allocation - $0.49 M 13 13
4/17/2019 2019-20 Budget Preliminary Budget Estimate 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) 14 14
4/17/2019 2019-20 Budget Preliminary Budget Estimate 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 15 15
4/17/2019 2019-20 Budget Budget Planning 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 16 16
4/17/2019 Questions www.abbyschools.ca 17 17
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