Budget Consultation Forum 2019-2020 Division Administration Office – J.L. Milne Boardroom 1031 – 6 th Street Brandon, MB March 4, 2019 – 7:00 p.m. https://www.bsd.ca/board/consultations/budget/Pages/2019-2020-Budget- Preparation.aspx 1
AGENDA 7:00 – 7:05 Welcome and Introduction Dr. Linda Ross, Board Chairperson 7:05 – 7:30 2019-2020 Preliminary Budget Information Mr. Kevan Sumner, Finance and Facilities Committee Chairperson 7:30 – 8:00 Receive Public Feedback Mr. Kevan Sumner, Finance and Facilities Committee Chairperson (Moderator) 8:00 Closing Comments Dr. Linda Ross, Board Chairperson 2
• Ward 1 City of Brandon - 8 Trustees • Facilities • 22 School Buildings • Ward 2 Rural Area – 1 Trustee • 3 Additional Buildings • Total Staff Complement 1,200+ • 1,115,036 sq. ft. building space • Total Enrollment 8,922 (Sept. 30, 2018) • Transport 3,581 students • 45 School Buses • 13 Maintenance Vehicles 3
Proposed 2019-2020 Budget Outline 1. Budget Development Process 2. Funding Announcement Summary 3. Proposed 2019-2020 Operating Budget 4. Budget Enhancements 5. Special Requirement/Levy 6. Next Steps 4
1) Budget Development Process • Stakeholder meetings and budget preparation guidelines • Factors Impacting Budget Considerations • Comparison to the Manitoba Provincial Average and similar Divisions • Estimating Enrollment • Developing Staff Budget • Accumulated Surplus and Reserves 5
Finance and Facilities Committee • Stakeholder meetings • Establishment of budget preparation guidelines: – Motion 48/2017 – Motion 69/2018 6
Motion 48/2017 That in preparing the 2018-2019 and future budgets, the budget process will be amended to require all requests from Trustees for budget additions or reductions be made to the Office of the Secretary-Treasurer by October 31st, and that individual Trustee requests shall then be integrated with Senior Administrative requests in the final list of preliminary budget and sustainability requests only after being reviewed and endorsed by an appropriate committee of the Board. An exception to this process would be during an election year, where the deadline for the budget requests would be December 15th of that year. 7
Establishing Guidelines for the 2019-2020 Preliminary Budget Preparation Motion 69/2018 That the following guidelines be initiated for the 2019-2020 Preliminary Budget Preparation: a) Inflationary increases be provided as advised by suppliers for non- controllable expenditures e.g.: employee benefits, insurance, fuel/propane for school buses, taxes and utilities; b) a 2.4% inflationary increase be provided for controllable services and supplies; c) A 2.4% inflationary increase on the school instructional supply budget; d) A 2.4% inflationary increase be provided for the Capital and Maintenance Budget; e) The 2019-2020 Budget provide for expected enrollment growth. 8
Finance and Facilities Governance Goals for 2018-2022 • Implement a multi-year budget strategy to plan for future sustainability and attempt to limit the school property tax impact on a typical home to the sum of inflationary pressures plus enrollment growth. Ability to achieve this goal is dependent upon provincial guidelines and funding support. Continue to explore and develop the use of new and existing • learning spaces in Brandon School Division to support current and future programming, with an emphasis on safety, security and access. • To lobby the province for increased Tier II and Tier III support given the large and increasing needs of the student population in Brandon School Division. 9
Factors Impacting Budget Considerations • 2019-2020 Budget impact on the 2020 Special Levy • Enrollment Changes • Programs and infrastructure for increasing diversity of student learning needs • Provincial legislation • Infrastructure and Support for Program Delivery • Collective Agreement Costs • Uncertainty of Funding • Effects of population growth on Facility Sustainability • Contingency Funds and Reserves 10
Comparison to Provincial Average & Similar Divisions Provincial Seven Oaks Average SD St. James SD Brandon SD Brandon SD 2018-2019 FRAME BUDGET REPORT 2018-2019 2018-2019 2018-2019 2018-2019 2019-2020 Total Operating Expenses Related to Pupils $ 141,822,090 $ 107,407,529 $ 103,749,900 $ 105,345,000 K-12 F.T.E. Enrollment 11,233.0 8,351.5 8,594.0 8,673.5 Operating Fund Expenduiture/Pupil $ 13,284 $ 12,625 $ 12,861 $ 12,072 $ 12,146 ** 7th lowest in Province Pupil/Teacher Ratios - Regular Instruction 16.7 16.9 13.5 17.1 17.0 - Educator 13.1 13.7 13.6 12.8 12.8 Divisional Administration Cost/Pupil $ 456 $ 378 $ 440 $ 378 $ 361 Special Levy Mill Rate 13.6 16.5 12.8 15.0 15.0 Assessment Per Resident Pupil $ 433,310 $ 327,972 $ 610,145 $ 373,941 $ 376,633 11
Revenue By Source 2018-2019 2019-2020 Provincial Revenue By Source Seven Oaks St. James BSD BSD Average Provincial 59.3% 66.9% 51.8% 60.5% 60.3% Municipal 33.8% 30.2% 44.8% 38.0% 38.0% Federal 0.2% 0.6% 0.0% 0.0% 0.0% Other Divisions 0.5% 0.9% 0.6% 0.4% 0.4% First Nations 4.1% 0.5% 0.2% 0.2% 0.2% Private 0.8% 0.9% 1.9% 0.8% 0.8% Other 0.2% 0.0% 0.7% 0.2% 0.3% Municipal 38.0% Provincial 60.3% Federal 0.0% Other Divisions 0.4% Other First Nations Private 0.3% 12 0.2% 0.8%
Expense by Function 2018-2019 2019-2020 Provincial Expense by Function Average Seven Oaks St. James BSD BSD Regular Instruction 55.7% 59.0% 55.5% 59.8% 59.8% Student Support Services 18.6% 17.7% 22.2% 21.0% 21.0% Community Education 1.4% 2.0% 0.9% 0.4% 0.3% Divisional Administration 3.4% 2.9% 3.4% 3.1% 3.0% Instructional & Other Support Services 3.4% 4.1% 3.2% 3.2% 3.2% Transportation of Fiscal Operations & Pupils 1.7% Transportation of Pupils 4.4% 2.6% 2.6% 2.5% 2.5% Maintenance 2.5% Operations & Maintenance 11.5% 9.9% 10.6% 8.4% 8.4% 8.4% Fiscal 1.7% 1.8% 1.7% 1.7% 1.7% Instructional & Other Support Services 3.2% Divisional Administration 3.0% Regular Instruction Community 59.8% Education Student 0.3% Support Services 21.0% 13
Expense by Object 2018-2019 2019-2020 Provincial Expense by Function Average Seven Oaks St. James BSD BSD Salaries & Employee 83.1% 84.5% 82.3% 85.7% 85.7% Services 9.1% 7.0% 10.2% 6.4% 6.3% Supplies & Materials 6.1% 5.9% 5.4% 6.1% 6.1% Fiscal & Transfers 1.7% 2.6% 2.1% 1.8% 1.8% Salaries & Employee Benefits Services 6.3% 85.7% Supplies & Materials 6.1% Fiscal & Transfers 1.8% 14
Enrollment • Increase of 117 students from September 2017 to September 2018. • For budgeting purposes, we are projecting a 1.3% (115 students) growth in enrollment. 15
Enrollment 16
Summary of Staff (FTE) Teaching Support Staff Total Function 2018-2019 2019-2020 2018-2019 2019-2020 2018-2019 2019-2020 Regular Instruction 538.71 547.48 99.12 101.03 637.83 648.51 Student Support Services 142.43 140.83 247.80 258.70 390.23 399.53 Community Education and Services 0.75 0.75 3.00 3.00 3.75 3.75 Administration 2.00 2.00 24.15 23.15 26.15 25.15 Instructional & Other Services 16.25 16.13 7.64 7.64 23.89 23.77 Transportation - - 43.46 43.46 43.46 43.46 Operations and Maintenance - - 84.33 84.46 84.33 84.46 700.14 707.19 509.50 521.44 1,209.64 1,228.63 FTE = Full Time Equivalent 17
Accumulated Surplus and Reserves • Accumulated surplus as of January 31, 2019 is $2,843,868. • This is 2.73% of the 2018-2019 Operating Budget. • External Auditor recommends 5% • Manitoba Education mandates maximum 4% 18
Accumulated Surplus Operating Fund Projected Accumulated Surplus Accumulated Surplus – July 1, 2018 $3,849,565 Less: Transfers from/(to) Capital Reserve 0 Less: Designated Surplus (537,450) Less: Non-vested Sick Leave (468,247) Unallocated Accumulated Surplus as of January 31, 2019 $2,843,868 2018-2019 Operating Budget $104,279,300 % of Projected Unallocated Surplus on 2018-2019 Budget 2.73% 19
Capital Reserves – Projected Balances 20
2) Funding Announcement Summary • Increase of 0.5% or $6.6 million in Provincial Funding to public schools for 2019-2020. • Increase in total funding for BSD of 1.0% or $550,576 over the previous year. • The Province is continuing the phase out the Tax Incentive Grant (TIG) funding and is in the second year of the six-year phase-out at 1/6 per year. The Brandon School Division (BSD) TIG funding for 2019-2020 is reduced by $308,002 to $1,232,009. • Cap on the General Support Grant (GSG) remains unchanged and is based on December 31, 2018 payroll taxes. • Limit any increases to the Special Requirement to 2% 21
3) Proposed 2019-2020 Operating Budget The following Ministerial directions and guidelines have been used in developing the preliminary budget: • Provincial Guidelines for Bill 28 – The Public Services Sustainability Act. • Reduction in the Tax Incentive Grant (TIG) • Limit any increases to the Special Requirement to two per cent (2.0%). 22
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