Board Discusses 2024-25 Budget

Funding from the Ministry, coupled with known costs, means School District No. 83 (North Okanagan-Shuswap) trustees are looking at cost saving measures to balance the District’s 2024-25 budget.

At a Committee of the Whole meeting on Wednesday at the District Education Support Centre (DESC), Secretary-Treasurer Dale Culler took the trustees through the district’s budget.

He explained the bulk of the district’s funding comes from the Ministry. For the upcoming year the District’s preliminary operating grant is $87,586,555.

He noted the per pupil amount the district receives basically has two components – the rate (the per pupil funding amount) and the district’s enrolment. He added that this year there is an increase to the rate as the labour settlements from last year are now part of the per pupil funding.

“We are projecting a reduction in enrolment of $1.15 million and that we will be up about $1.45 million on the rate change, which leaves us with an overall increase of about $307,000.”

He said when they did the analysis of what they do know, based on the way the district is staffed, long established process, and looking at student enrolment change, the net change is approximately $1.5 million, which far exceeds the $300,000 the district will be receiving.

“We are facing some real pressures,” he added. Culler and Director of Finance Jeremy Hunt went through cost pressures including a substantial increase in benefit costs, replacement costs, and insurance.

Hunt added that benefit costs have gone up over $600,000 from last year. Over the past number of years replacement costs have jumped from approximately $2 million in 2015 to close to $4 million projected for 2024 (Teacher sick leave costs were approximately $1.5 million in 2017/18). He told trustees that these increased costs are not just being seen in our district, but are province-wide.

To try and bring the district to sustainable levels, Culler said he is asking all departments to determine their ‘zero base’ or must dos. “This is our base. What we absolutely need to operate and the amounts that are identified as strategic initiatives.” Then service level changes will be considered.

He noted supplies, dues and fees, utilities, services, contracts, and software licences are all going to be looked at.

With utilities, Culler explained a couple of budget cycles ago the district’s utilities were much higher than budgeted. “These last three budgets have been more consistent.” He noted that the district has some control over consumption – although weather plays a huge part – but the district has no control over what the rate is set at.

Director of Operations Travis Elwood explained to trustees that the district has partnered with an energy manager under the umbrella of BC Hydro. This program is designed to help public sector organizations monitor and manage their energy consumption.

Elwood noted the program requires a lot of data, but it is helping the district understand where electric, gas, and propane consumption is higher than it should be, which allows them to help priorize projects, to be as energy efficient as possible.

The two also discussed the district’s “white fleet” which are the vehicles used by Operations and Tech staff to conduct their work. Elwood noted that the district has a fleet of 37 vehicles, with 21 of them being more than 10 years old. Board Policy is to have a regular replacement program at 10 years or 300,000 km. “Older vehicles cost more to maintain and are less energy efficient,” commented Elwood.

He investigated the option at transferring the fleet over to a lease, but said that comes at a cost as well. “It is a newer fleet with lower maintenance and fuel costs but you lose your flexibility. It is a fixed cost and a legal agreement.”

Culler added that the district loses the ability to defer, which is what is being considered this year. He cautioned trustees that there is a cost to deferring and said it was not a sustainable solution.

After the Committee of the Whole meeting a public question and answer period was held, with those in attendance asking for clarification on certain areas, including an explanation about the restricted and unrestricted accumulated surplus, local capital, school budgets, and budget pressures because of sick leave and sick days being taken.

The Board will continue discussing the budget at the Board of Education meeting on May 21 at 6 p.m. at the DESC, as well as at another Committee of the Whole meeting on May 30 starting at 4 p.m, also at the DESC. This session is open for the public to attend and there will be a public question and answer period immediately after the meeting.

Under the School Act the Board must develop and approve an annual balanced budget prior to June 30 for the following fiscal year. The annual budget is based on projections for enrolment, staffing, funding, and other amounts.
The Board must also develop and approve an amended annual budget, which is approved by Feb. 28 for the current fiscal year and is based on actual enrolment, staffing, funding and costs.