1 Budget Committee Budget 05 March 2009

Budget Projection In $Millions

3

Preliminary Grant and Non Grant Revenue In $Millions

5 Cause of $8.0 million Shortfall

Teacher Grids

7 Salary Grid Comparison

8 Salary Grids for Non Teaching Staff Majority of salary grids for non teaching staff are 7 steps Select grids are 4 steps Ministry does not provide any funding for progression on grid Estimated cost of progression for is $1.1 million

9 Staffing Based on Revised Budget

10 Spending Based on Revised Estimates

11 RESTRICTIONS ON BUDGET DECISIONS Information based on Approved Budget In $Millions

12 Uncommitted costs for include the following: In $Millions

13 Risk Factors Average Daily Enrolment projection contingent on construction of new schools Retirement gratuities and salary differential Cost of benefits and type of coverage Expected utility savings Expected increase in refuse and recycling costs Insurance premiums and claims Funding in addition to Grants for Students Needs Expected revenue from Qualifications and Experience grant Expected revenue from Declining Enrolment grant

14 EMERGING BUDGET PRESSURES Benchmark for salaries and benefits Special education funding model Incremental grants for high risk students New school construction, renovations and building maintenance Schools in high growth areas Transportation Research and analysis Client services, communications and consultation Amount of reporting Changing student demographics Changing expectations Class size: grades 4 – 8 Full day kindergarten implementation Cost of running new schools without closing existing space

15 Fixed versus Variable

16 Scenario 1 In $Millions

17 Scenario 1 The in year projected deficit of $8.0 million is a permanent annual problem. Costs go up by this amount each year. Solving does not solve This permanent ongoing shortfall will reappear in (and each following year) and has been increased by 3.0% to reflect contractual obligations for a total of $8.3 million One time available reserves of $5.0 million could be used to balance the budget As reserves are a one time source of funding, expenditures will have to be reduced by $5.0 million to stay within available funding unless new revenue is found for Projected shortfall for includes: cost increase of $8.3 million for plus $5.0 million of spending that no longer has a funding source for a total of $13.3 million – if there is no funding source, expenditures must be reduced to stay within available funding

18 Reserves In $Millions

19 Scenario 2 In $Millions

20 Scenario 2 This scenario assumes the same $8.0 million shortfall and use of reserves for “Phantom cuts” means ignoring the funding problem and approving reductions to balance the budget that would likely not actually be able to happen Doing this would likely result in a $3.0 million deficit in which have to be repaid in the budget year Projected shortfall for includes: cost increase of $8.3 million for plus $5.0 million of spending that no longer has a funding source plus $3.0 million for the deficit recovery for a total of $16.3 million

21 Scenario 3 In $Millions

22 Scenario 3 This scenario assumes the projected shortfall for is revised to $5.0 million Projected shortfall for includes: cost increase of $5.2 million for plus $5.0 million of spending that no longer has a funding source for a total of $10.2 million

BUDGET PROCESS  Budget Projection  Students, staffing, programs and projections  Consultation  Grant Announcement  Budget Proposal  Consultation  Budget Debate  Consultation  Final Budget

24 BUDGET SCHEDULE Assuming Ministry grant package is received by mid March BUDGET SCHEDULE Assuming Ministry grant package is received by mid March