School District 57 Lays Out Financial Reality and Options
By 250 News
Tuesday, September 22, 2009 09:08 PM
Prince George, B.C. – School District 57 has painted the full picture of its financial challenges for the current and coming school years.
The School District was already facing a deficit and earlier this year had accepted a plan that would balance the books over three budget years, but that was before the loss of the facility grants, the introduction of the HST, the green house gas targets, increases to the Medical Services Plan and the introduction of all day Kindergarten.
To add insult to injury, the enrolment is down more than expected with 13350 students registered and it had been expected the enrolment would be 13500. Fewer students means reduced dollars from the Ministry of Education.
Here are some of the estimates of what the Board is facing:
Annual Facility Grant: $4.1 million includes $1.8 million already committed to repairs and contracts and $2.3 million in planned projects
Greenhouse gas reduction targets: The School Districts are supposed to be carbon neutral by 2010, but that is not possible for School District 57 which heats schools with fossil fuels and busses students. The catch 22 is that without the facility grants, they cannot afford to upgrade facilities or vehicles to reduce their greenhouse gas emissions, so, it will be forced to buy carbon credits from a new Crown Corporation to the tune of $200 thousand a year.
Medical Services Plan: The announced increases to the premiums to be paid to the Medical Services Plan will add $84 thousand dollars to the School District’s budget next year, and twice as much in the year after that.
Harmonized Sales Tax: There has been no discussion or indication that School Districts will see any exemption for the Harmonized Sales Tax. At this point it would appear it will add at least $914,000.
Full Day Kindergarten: There has been no indication if there will be any funding at all for additional space, or staff or how the full day Kindergarten will be phased in.
Enrolment Holdback recovery: The Province is pulling back $103,000
Funding Protection Grant: There is an expectation this grant will be lost and that is another $450,000.
The bottom line ? Additional financial concerns will add $5.8 million (plus costs associated with full day Kindergarten) to the already cash strapped School District.
There are some options:
The Board could take back the surplus it had planned to use in future years to balance the books. That means there would be about $2.6 million available
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The Board could apply for a deficit in the Annual Facility Grant fund ($2.3 million) but Board Superintendent Brian Pepper says that means everything will have to be approved by the Ministry “Right now, if a roof blows off a school tonight, we have to obtain Ministry approval before we could do anything.” The School District staff will bring a recommendation on applying for that deficit to the next Board meeting.
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The Board may eliminate all planned facility grant projects for 2010-2011,
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Resize the school district staffing to coincide with declining enrolment
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Eliminate intermediate class size allocation in school organization
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Initiate school closure process
Trustees expressed frustration and anger over trying to prepare three year operating when the rules keep changing “We are being asked to make a decision based on incomplete information” says Trustee Roxanne Ricard.
Trustee Sharel Warrington says this is not the time to make decisions about anything, “We have to look at all ramifications before we come to a conclusion for an action.”
To start, the School District will send a letter to the Ministry outlining the unique situation this School District faces. Trustees say the District has been underfunded for several years and the Ministry needs to be aware of those unique factors which cause significant challenges.
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1) the number of babies being born in our school district have dropped dramatically
2) the school district has seen families move away
Therefore, this problem isn't going to get any better. The options are:
1) do as they are proposing and hope that the provincial government grants them amnesty
OR
2) Close schools. John McInnis and Lakewood Jr are no longer required. PGSS, the new Duchess Park and College Heights can absorb those students.
Option 1 puts off making the hard decisions and removes the school districts reserve funds
Option 2 means some sort of public out cry, but saves SD 57 a significant amount of money. Plus, then they have the added benefit of being able to sell off the buildings/land.
So, the question is, do we have people on School Council that have the fortitude to do what makes sense and is necessary?
We'll know soon enough if it's all about bashing the government, or if it's about doing what's right and best for the kids.