BUDGET REVENUE PROJECTIONS May 6, 2008 Presented by: J. A. Sabo, Associate Director - Leading Services & Treasurer of the Board

OBJECTIVE To present a review of the Preliminary Revenue Module dated May 6, 2008 To discuss future potential revenue “adjustments”

REVENUE PROJECTIONS REVIEW – to include Support Material Highlights of Grant Changes Process to develop revenue estimates Revenue Summary Areas of concern and pressure points Potential adjustments to revenue projections Next Steps

REVENUE SUMMARY Revised Estimates Revenue Projections Increase (Decrease) $% Grants for Student Needs$ 420,863,847$ 432,507,725$ 11,643, Other Grants2,428,2591,000,000( ) Other Revenue6,022,7605,586,400(436,360)-7.25 Continuing Education7,436,7257,061,521(375,204)-5.05 TOTAL (Excluding Transfers from Reserves) $ 436,751,591$ 446,155,646$ 9,404, Transfer from Reserves2,696,287(2,696,287) TOTAL (Including Transfers from Reserves) $ 439,447,878$ 446,155,646$ 6,707, REVENUE PROJECTIONS

Revenue Summary as per May 6, 2008 Module OPERATING REVENUE (millions) % Provincial Grants$ Other Grants Other Revenue Adult & Continuing Education Transfer from Reserves0.00 TOTAL OPERATING REVENUE$

Miscellaneous Grants For the Ministry has incorporated the following grants into the Grants for Student Needs: Safe Schools Supplement$ 797,074 New Teacher Induction Program420,000 Total1,217,074 These grants were previously reported as part of the Miscellaneous Grants report and accounted for separately, outside of the general operating budget.

Grants for Student Needs (GSN) ANALYSIS OF GRANT INCREASE-Operating Revised Estimates vs Projections Total Increase $ 11,643, % Resulting from: (estimated) Fold in Miscellaneous Grants$ 1,217,074.29% Funding increases7,269, % Growth increase3,157,784.75% $ 11,643, % Grant increase amount is equivalent to new grants calculated without enrolment growth. Enrolment growth amount represents grants resulting from increased enrolments. Amount is “estimated” as the grants are subject to teachers qualification and experience grant/placement changes etc.

Grants for Student Needs (GSN) ANALYSIS Funding Increase 1.73% Funding increase (from previous slide) $ 7,269, % The above increase included pre-committed salary adjustments effective August 31, 2008; approximate impact.7% Approximate “NET” impact of funding increase excluding fold-in, growth and pre- commitment 1.00%

SUPPORT MATERIAL MINISTRY OF EDUCATION Data/Memoranda Distributed at the April 15 th, 2008 Board Meeting Ministry of Education Letter, March 25, 2008 Ministry Memorandum 2008 B2: Education Funding for Grants for Student Needs – Overview Projected School Board Funding for (42) York Catholic DSB DRAFT Revenue Projections- GSN Analysis Report GSN Preliminary Projections compared to Revised Estimates GSN Preliminary Projections with/without growth Comparison of Ministry projections to Board preliminary projections.

REVENUE MODULE SUPPORT MATERIAL Introduction, notes and Revenue Summaries (pink) – Revenue Estimates Module(green) Detailed Revenue Summaries Detailed Grant Calculations Other Revenues, Adult/Con Ed, Transfers from Reserves

Grants for Student Needs (GSN) HIGHLIGHTS OF GRANT CHANGES  Grants for Student Needs (GSN) DO NOT include funding to support new collective agreements.  Reallocation of existing Miscellaneous Grants into the GSN   Safe Schools Supplement  New Teachers Induction Program

Grants for Student Needs (GSN) HIGHLIGHTS OF GRANT CHANGES (cont’d)  Benchmark for Utilities increased by 1%  1% for non-salary benchmarks to assist boards with textbooks, learning materials, classroom supplies, computers and school office supplies.  Student Transportation Grant: includes 3.5% increase to support costs of transportation.

Grants for Student Needs (GSN) HIGHLIGHTS OF GRANT CHANGES (cont’d) CAPITAL  Growth school grant criteria extended to planned schools for , , ,  Details for GPL 3 for was announced separately and intended to support facility renewal needs.  GPL4 expected for , but in total one half of GPL3 or $250 million provincially.

Grants for Student Needs (GSN) HIGHLIGHTS OF GRANT CHANGES The policy changes for the Grants for Student Needs were announced March 25, 2008 The reporting deadlines for submission of the Board’s financial reports are as follows: EstimatesJune 30, Financial StatementsNovember 14, Revised EstimatesDecember 12, 2008 Sept 1, 2008 to Mar 31, 2009May 15, 2009

Grants for Student Needs (GSN) HIGHLIGHTS OF GRANT CHANGES Grants Outside the GSN “…the government continues to support other important initiatives with $ 270M in investments outside the GSN,……Further information about funding outside the GSN will be provided in the near future.” NOTE: A $1.0 million “placeholder” has been included in the Preliminary Revenue Estimates

DEVELOPMENT OF REVENUE PROJECTIONS SOURCES OF REVENUE Grants for Student Needs (G.S.N.’s) Grant calculations according to new funding Other Income Tuition Fee Revenues (visa students) Community Use and Accommodation Rental Continuing Education Grant programs Non-grant programs Transfers from Reserves Board established Ministry required Amount subject to budget balancing exercise.

DEVELOPMENT OF REVENUE PROJECTIONS DETERMINE ESTIMATED ENROLMENT PROJECTIONS Planning Dept. Information Human Resources/S.O.’s Principals ESTIMATE GRANTS FOR STUDENT NEEDS (GSN) Growth (increased enrolments) Increased funding New Funding “Restricted/Linked” funding ESTIMATE OTHER REVENUES (non-grant)

Enrolment Impact re: Revenue vs. Expenditures PLAN for Projections BUT COMMIT TO Actuals OBJECTIVE is to:

ENROLMENT PROJECTIONS Revised Estimates Revenue Projections Increase (Decrease) % ELEMENTARY Students of the Board34, , Visa TOTAL ELEMENTARY 34, , SECONDARY Students of the Board16, , Visa TOTAL SECONDARY 16, , TOTAL51, ,

Revenue Summary OPERATING REVENUE (millions) % Provincial Grants $ Other Grants Other Revenue Adult & Continuing Education Transfer from Reserves0.00 TOTAL OPERATING REVENUE$

OPERATING REVENUE Revenue Summary

GRANTS FOR STUDENT NEEDS – Represents the calculated grant estimates based on projected enrolments for – Grant data is based on the March 25, 2008 Ministry announcements Note:Any new information received after March 25, 2008 will impact revenue calculations.

GRANTS FOR STUDENT NEEDS Revised Estimates Revenue Projections Increase (Decrease) $% Pupil Foundation $ 219,702,457$ 225,285,146$ 5,582, School Foundation 28,842,29029,827,467985, Primary Class Size 11,121,48711,461,986340, Languages (ESL & FSL) 8,414,6448,660,952246, Special Education 54,662,24055,315,544653, Program Enhancement 727,500936,050208, Learning Opportunities 6,376,4196,385,6009, Admin & Governance 12,499,87812,823,836323, Qualifications & Experience 19,234,77219,268,13433, Transportation 15,667,86916,486,293818, School Operations 43,109,06244,023,101914, Metis, First Nation, Inuit 30,14830, Community Use 475,081785,954310, TOTAL $ 420,863,847$ 431,290,651$ 10,426,

OTHER GRANTS  Other grants are outside of the Grants for Student Needs (GSN)  Typically one-time and based on a specific program initiative  Not intended as “budget balancing” funds  Ministry has yet to release for – budget estimates include $ 1,000,000

OTHER GRANTS Revised Estimates Projections Increase (Decrease) $% OPA$ 408,000$ (408,000)- CODE110,000(110,000)- MEMO 2007 B:6 (14/08/07)1,576,202(1,576,202)- Other Grants expected to be distributed 334,057$ 1,000,000665,943- TOTAL$ 2,428,259$ 1,000,000(1,428,259)(58.81) Other grants are outside of the GSN, non-recurring, and NOT intended for funding regular on- going operating expenditures. Other grants are normally targeted to specific program initiatives with a pre-determined time frame. For preliminary planning purposes $ 1.0 million is included in the Revenue projection.

OTHER REVENUE Other revenue includes: o Tuition fees  (visa students) o Rental  Community Use  Child care centers o Other Miscellaneous  Transportation recoveries (Admin./PPU)  Interest Revenue  Other

OTHER REVENUE Revised Estimates Projections Increase (Decrease) $% Tuition Fee Revenue$ 2,291,500$ 2,348,800$ 57, Rental & Other Income3,731,2603,237,600(493,360)13.2 TOTAL$ 6,022,760$ 5,586,400$ (436,360)(7.25) Tuition Fee Revenue up slightly based on fee increase. Other income is based on same levels as

ADULT AND CONTINUING EDUCATION Estimates are as submitted by the Continuing Education department.  Include grant programs and non-grant programs  Revenue module contains re-sorting based on organization of GSN grant calculations and con-ed revenue groupings  Some revenues in Con Ed module are included under GSN revenue in the Revenue Module.

ADULT AND CONTINUING EDUCATION Revised Estimates Projections Increase (Decrease) $% Grant Programs$ 6,388,160$ 6,269,701$ (118,459)(1.85) Non-grant Programs1,048,565791,820(256,745)(24.49) TOTAL$ 7,436,725$ 7,061,521$ (375,204)(5.05) Adult and Con Ed projections are based on data as provided by the Continuing Education department.

INCREMENTAL EXPENDITURES VS. INCREMENTAL REVENUES Examples of programs requiring additional expenditures not fully covered by new grants: Alt Ed (Alternative Education Program Costs) Specialized Teacher Allocation Program Resource Teachers Reading Recovery Teachers Special Education (e.g. CODE, OPA)

ALTERNATIVE EDUCATION NEW programs over last four years. Previously included as part of Regular Day School Expenditures included as regular day program costs NEW Expenditures Salaries Supplies Rent/Lease for alternate spaces

TRANSFERS FROM RESERVES  Preliminary Revenue Estimates EXCLUDE any provision for Transfers from Reserves  Dependent upon Budget Balancing Process  Further Revenue updates will include Transfers from Reserves as required

Operating Budget RESERVE POSTION as at August 31, 2007 Worker’s Safety Insurance Board$ 1,678,717 Employee Benefits Rate Stabilization788,927 Retirement Gratuities2,258,472 Transportation365,304 Total “Unprotected”$ 5,091,420 G.S.B.$ 914,980 Infrastructure Technology542,254 School Council Reserve66,022 Scholarship Reserve10,492 Total “Protected”1,533,748 TOTAL$ 6,625,168

RESERVE POSITION   Balance as at August 31, 2007$ 6,625,168 –Less protected1,533,748 –Available amount$ 5,091,420  Available amount will be required to fund: – Year-end TBD – Budget TBD  Estimated net amount available (subject to year-end) will approximate $4.6 million for

RESERVES

Accumulated Deficit History 1988–2004 Projected (INCLUDING USE OF RESERVES re ) Amounts reflect Audited Financial Statement figures ( 1992 is net of Undue Burden Grant) based on estimated financial position. The Accumulated deficit was eliminated in the year ending August 31, Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August 31

Amounts reflect Audited Financial Statement figures ( 1992 is net of Undue Burden Grant) Based on Projected Year-end transfer of $4.6 M from Reserves The Accumulated deficit was eliminated in the year ending August 31, Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August reflects amounts drawn from reserves each year. Accumulated Deficit History 1988–2004/Projected (EXCLUDING USE OF RESERVES re ) accumulated deficit (excluding reserve drawdown)

CONCERNS AND PRESSURE POINTS Legislative requirement under section 231 of the Education Act for boards to submit a BALANCED budget Section 286: Directors of Education and other supervisory officers are responsible to the Minister of Education for the performance of their duties in accordance with the ACT and the regulations Other school boards are at various levels of financial “health” (surplus and deficit)

CONCERNS AND PRESSURE POINTS (cont’d) Projected expenditures are expected to exceed projected revenues One-time funding cannot sustain permanent staffing As previously mentioned, use of reserves to balance the budget is not sustainable (Unless permanent expenditure reductions are made or permanent new revenue is generated) GSN’s did not provide significant additional dollars There are no additional funds to pay for ANY proposed increased level of service Attaining a “York Catholic Solution”

AREAS OF POTENTIAL REVENUE ADJUSTMENTS Provision of additional enrolment projections without additional staffing requirements Other miscellaneous placeholders Other miscellaneous grants i.e. MISA Q & E adjustments Increased expectations of additional grants? Use of Capital/Non-operating revenues?

NEXT STEPS Budget review/presentations – May & June Internal Staff Review Board Review Public Input/Budget Review Scheduled meetings May 6, 2008 & May 27, 2008 Final budget review/presentation (including finalized Revenue projections) targeted for June 17, 2008 Final budget approval ? (tbd by Executive)

QUESTIONS re Revenue Projections