School District 47’s provisional budget for next year shows a deficit of $161,000, but officials say the books will look different when the district’s financial plan is revisited in the fall.
Powell River Board of Education trustees approved the status quo draft budget for the upcoming year at their most recent meeting, Tuesday, June 16.
The district’s total expenses, compared to this year, will increase by 0.47 per cent to $22,053,773, while its revenue will increase by 1.56 per cent to $21,892,528.
Steve Hopkins is secretary treasurer and is responsible for the school district’s accounting and forecasting.
Hopkins reported to the board that the budget reflects a plan to maintain service levels at the current level with minimal teacher layoffs and some movement of support services in special education between schools.
Hopkins has been reporting to the school board for the past several months that the district is ahead in its spending and the secretary treasurer expects, in line with previous years, to have a small surplus of about two per cent of the budget or about $400,000 once final analysis is completed.
“We don’t normally budget a surplus this early, but rather than make reductions beyond the enrolment decline, we’re balancing it with the surplus because I expect we’ll come up with that number no problem,” Hopkins said in an interview with the Peak.
The district, however, will receive between $300,000 to 400,000 less next year from the province because it is in funding protection which ensures that districts receive 95 per cent of the previous year’s funding. In the years since entering the government program, the district has had to work with close to $1 million less in funding, he said.
Higher costs with utilities as well as teacher and support staff salaries and jumps to medical Services Plan and Canada Pension Plan premiums account for the increase to expenses.
The draft budget shows a 1.98 per cent increase of $345,612 for district salaries and benefits.
While the budget is being balanced using rolled over surplus, this is not a long-term solution, Hopkins said. “Typically we only use our surplus to fund projects, not core expenses,” he added.
According to student enrolment forecasting, the district expects student numbers to level out within the next two to three years. The impact of declining enrolment is currently being felt most at Brooks Secondary School as the population bubble passes through the high school. With the “natural decline” of student numbers, Hopkins said two fewer teachers will be required at the school next year. Other staffing and administration will remain roughly at the same level, he said. About 81 per cent of the district’s total expenditure covers the salaries of teachers, administrators and staff.
While the provincial government said it would fund the recently negotiated contracts with teachers and support staff, in April it announced, on the heels the BC Budget, a two-year administrative savings plan for all school districts. Under that plan, School District 47 is required to find $236,315 in savings. Hopkins said those requirements have been satisfied with $258,970 of savings found from building upgrades which lower energy costs and administrative salary savings by not making new hires for staff who have left their positions.
