Agenda. Background Budget Information Sources of Revenue Provincial Funding Budget Highlights

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1 May 10, 2018

Agenda Background Budget Information Sources of Revenue Provincial Funding Budget Highlights 2018/2019 Base Budget Budget Timelines Budget Guiding

2 Agenda Background Budget Information Sources of Revenue Provincial Funding Budget Highlights 2018/2019 Base Budget Budget Timelines Budget Guiding Principles Base Budget Factors 2018/2019 Base Operating Budget Three Year Projected Operating Budget Projected Operating Fund Balances Budget Issues

Sources of Revenue for School Boards The majority of school district grants come from provincial grants through the Ministry of Education s funding

3 Sources of Revenue for School Boards The majority of school district grants come from provincial grants through the Ministry of Education s funding allocation system Richmond School District has local revenues from international student fees, rental of facilities, investment income, continuing education, etc.

4 Budgeted Sources of Revenue International Education Program 9.1% Other Fees and Revenues, 2% Ministry of Education Grants 88.9% Source: Ministry of Education Table /18 Amended Annual Budgeted Sources of Operating Revenue

5% Other Revenue 7.2% Operating Surplus 2.

5 School District Sources of Revenue Richmond Provincial Average Provincial Grants 88.9% Other Revenue 11.1% Operating Surplus 0.0% Provincial Grants 90.5% Other Revenue 7.2% Operating Surplus 2.3% Source: 2017/2018 Amended Annual Budget Source: Ministry of Education Table /2018 Amended Annual Budgeted Sources of Operating Revenue

Provincial Funding Ministry of Education establishes an annual budget for all of their responsibilities Part of their budget is for provincial operating grants to public schools Richmond receives

6 Provincial Funding Ministry of Education establishes an annual budget for all of their responsibilities Part of their budget is for provincial operating grants to public schools Richmond receives $174 million in operating grants or approximately 3.4% of the total provincial operating grants School Year Operating Grants ($ Billion) Lift from Previous Year 2017/2018 $5.039 $115 million 2018/2019 $5.170 $131 million 2019/2020 $5.170 $ /2021 $5.170 $0

Allocation of Provincial Operating Grant The funding system provides for: Student base allocation of $7,423 per school-age FTE regular, continuing education and alternate school student Student base

7 Allocation of Provincial Operating Grant The funding system provides for: Student base allocation of $7,423 per school-age FTE regular, continuing education and alternate school student Student base allocation of $6,100 per school-age FTE Distributed Learning student (no change) Student base allocation of $4,696 per Adult FTE student Unique student needs: ELL ($1,420), aboriginal education ($1,230), special education Level 1 ($38,800), Level 2 ($19,400), Level 3 ($9,800) Supplement for Vulnerable Students Teacher salary differential between districts Unique geographic factors Summer Learning Supplement for the BC Education Plan Enrolment Decline and Funding Protection

8 School District Operating Spending School Districts allocate their spending between 4 key functional areas: Instruction Operating and Maintaining Buildings District Administration Transportation

9 School District Operating Spending Richmond Instruction 82.3% Operations & Maintenance 13.8% District Administration 3.2% Transportation 0.7% Source: Ministry of Education Table /18 Amended Annual Budgeted Operating Expenditures by Function Provincial Average Instruction 82.6% Operations & Maintenance 11.6% District Administration 3.9% Transportation 1.9% Source: Ministry of Education Table /18 Amended Annual Budget Operating Expenditures by Function

10 School District Operating Spending Richmond Salaries 71.8% Employee Benefits 18.7% Supplies & Services 9.5% Source: Ministry of Education Table /18 Amended Annual Budgeted Operating Expenditures by Object Provincial Average Salaries 70.1% Employee Benefits 17.4% Supplies & Services 12.5% Source: Ministry of Education Table /18 Amended Annual Budgeted Operating Expenditures by Object

Salaries Budget by Employee Type Support Staff, 14.8% Educational Assistants, 7.8% Other Professionals, 3.7% Substitutes, 5.5% Principals/VP, 8.2% Richmond Teachers, 60.0% Support Staff, 12.

11 Salaries Budget by Employee Type Support Staff, 14.8% Educational Assistants, 7.8% Other Professionals, 3.7% Substitutes, 5.5% Principals/VP, 8.2% Richmond Teachers, 60.0% Support Staff, 12.9% Other Professionals, 3.5% Substitutes, 4.5% Educational Assistants, 10.3% Province Principals/VP, 7.8% Teachers, 61.0% Source: Ministry of Education Table /18 Amended Annual Budgeted Operating Expenditures by Object

12 2018/2019 Base Budget

Budget Timelines February 20 Provincial government budget announcement March 14 Ministry Announcement of 2018/2019 Preliminary Operating Grant April 25 Preliminary draft budget proposals presented to

13 Budget Timelines February 20 Provincial government budget announcement March 14 Ministry Announcement of 2018/2019 Preliminary Operating Grant April 25 Preliminary draft budget proposals presented to Board Draft Base Budget presented to Board May 3 Budget Advisory Working Group meeting May 9 Final Base Budget presented to Board Potential draft budget proposals presented to Board May 10 Public budget meetings input from stakeholders and public May 23 Committee of the Whole Budget Discussion June 13 Board Approval of 2018/2019 Annual Budget

Budget Guiding Principles The budget will support and align to the Board s strategic plan and priorities and reflect the Board s commitment to responsible long term fiscal planning Budget processes

14 Budget Guiding Principles The budget will support and align to the Board s strategic plan and priorities and reflect the Board s commitment to responsible long term fiscal planning Budget processes will be inclusive, transparent and will encourage stakeholder and community input All budget decisions will be focussed on creating and maintaining educational programs and services for students which maximize opportunities for learning Budget decisions will support a culture of innovation and responsiveness to system change, while maintaining cost effectiveness and long term sustainability Business and operational services and systems required to support schools and students will be based on best practices and maintained in an efficient and cost effective manner Budget decisions will be based on accurate, relevant data and information

15 Base Budget Factors Based on District s projected student enrolment for 2018/19, 2019/20 and 2020/21 Maintain current service levels and programs Includes 2018/2019 Ministry of Education Operating Grant announced March 14 Includes projected increases/decreases to other revenues Includes all known and projected cost pressures on all expenditure categories Development of 3 Year Base Budget

16 Base Budget Factors Revenues Ministry of Education funding: Operating Grant revenue adjusted for projected enrolment and per pupil increases No provision for changes to funding formula International Education program revenues 2018/2019 no change in projected revenues from 2017/ / Student Fee increase from $14,000 to $15,000; enrolment increase 35 FTE; 40 FTE for 2020/2021 Rental revenue projected CPI rate increase and increase in other lease revenue Investment Income projected investment average rate increase from 2.2% to 2.6%

17 Base Budget Factors Salaries Teacher salary increments $500, /19, 2019/20 and 2020/21 Additional EA positions 5.94 FTE (enrolment growth) 2018/19, 2019/20 and 2020/21 Salary increases:

18 Base Budget Factors Employee Benefits

19 Base Budget Factors Services and Supplies Inflation /CPI factor on most services & supplies 2.2%, 2%, 2% Utilities Electricity 3%, 3%, 3% PST reduction on Electricity 50% reduction Jan 1/18, elimination April 1/19 Natural Gas / Propane 2%, 2%, 2% Water/Sewer 5%, 5%, 5% Waste Management 3%, 3%, 3% Carbon Tax Offset 16.67%, 14.29%, 12.50% Insurance (ICBC vehicle) 6.4%, 5%, 5%

20 Projected Student Enrolment

21 Projected Student Enrolment Source: Ministry of Education final operating grant SD38 School-Age FTE Enrolment

22 Ministry Operating Grant Highlights Status quo announcement with no significant changes to the funding formula or allocation Labour settlement wage increases for Teachers and CUPE fully funded Basic per pupil funding and Unique Student Needs per student categories increased for labour settlement costs Enrolment growth has been funded with a commitment to fully fund increased growth if higher than projection Admin Savings clawback and Return of Administrative Savings grant eliminated; net effect $0 Other grants No change in funding levels for Community LINK, LIF, Pay Equity and Student Transportation supplement CEF preliminary funding announced only for staff allocation (stage 1) $20.5 million ($24.7 million 2017/18) February / May operating grant updates

23 Classroom Enhancement Fund (CEF)

24 Ministry Operating Grant Other Ministry Grants Other Fees & Revenues Ministry Operating Grant, 87.8%

25 Other Ministry grants Other Ministry Grants, 1.2% Other Fees & Revenues Ministry Operating Grant

26 Other Ministry Grants Other Fees & Revenues, 11% Other Fees and Revenues Ministry Operating Grant

27 Salaries and Benefits Services & Supplies 10% Salaries & Benefits 90%

28 Services & Supplies Services and Supplies Salaries & Benefits 90%

29 Base Budget Budget 3 Year

30 3 Year Projected Fund Balance (EXAMPLE ONLY) Prior to any approved budget adjustments Projected surplus from 2017/2018 estimated at $5 million

31 Budget Issues Planned carry forward of projected $5 million operating fund balance Balancing the 2018/2019 budget; current base budget shortfall $0.4 million and 3 Year budget Budget impact of Classroom Enhancement funding, recruitment & retention, remedy, TTOC shortages Impact of educational changes resulting from the implementation of new curriculum Impact of Funding Model Review for 2019/2020 Continued demand for Education Assistants to meet Special Education student enrolment growth Continued focus on ensuring student/staff safety and environmental stewardship Cost pressures including teacher increment costs, inflation on employee benefits, utilities and other supplies and services Aging infrastructure requiring investment - technology, PA systems, fleet vehicles Potential operating budget impact of the LRFP

32 QUESTIONS? Thank you

Burnaby Board of Education Budget Presentation April 22, 2014

Burnaby Board of Education Budget Presentation April 22, 2014 Burnaby School District s Budgeted Sources of Revenue Other Provincial Grants 0.8% Other Fees & Revenue 1.9% International Education 6.1% Surplus