MOOSE JAW — Prairie South School Division has been deficit-budgeting for several years and using reserves to cover that overage, but one trustee wants to cap those deficits since they are becoming unsustainable.
Trustee Shawn Davidson introduced a motion during the board’s April meeting requesting that once division administration knows how much grant funding the province would provide for next year, it prepare a budget with a deficit no greater than $2 million.
“We have been deficit budgeting for a number of years and we’ve been fortunate to have the means to be able to do so to maintain programming around our school division … ,” he said.
A recent financial report showed that the division is facing a deficit this year of $2.4 million, which is lower than the initial projection of $3.5 million and better than the $4.5 million deficit last year, Davidson continued.
“We have to, in a very controlled manner, be cautious about how much we draw down our reserves,” he stated, pointing out that the budget this year for instruction (teachers’ salaries) is $69 million, nearly $5 million more than last year.
“So this board has made a very significant investment in the classroom (and) it shows in the supports that are available in Prairie South,” Davidson said. “I (also) think we’ve done a very good job of putting students first … .”
The trustee added that capping the deficit for next year should allow the board to continue supporting students without facing a budget that escalates in a long-term, unsustainable manner.
Trustee Lew Young questioned the deficit cap’s upper limit and wondered if the board would have the opportunity to adjust it based on the data that administration provided.
In reply, Davidson said the $2 million was a “hard top-end cap,” while trustees would have to make another motion if they wanted to exceed that amount.
The board then voted 9-1 to approve the motion, with Young opposed.
Second-quarter update
Ron Purdy, superintendent of finance, presented a second-quarter forecast and budget update during the meeting.
As of Feb. 28, the division’s operating revenues were $2.3 million more than budgeted, based on more funding for areas such as preventative maintenance and renewal (PMR) of school buildings, higher enrolment, nutrition and social services activities and extra early learning spaces.
Meanwhile, operating expenses were $1.3 million over budget, as more than half was dedicated to PMR projects, the report said.
Furthermore, the division projects expense areas like instruction to be over budget by $100,000 and external over budget by $497,000 because of associate schools, concession costs and driver’s education.
Purdy said the division has changed how it reports capital funding for the new school to ensure budget documents are more accurate, as it moved $1.89 million in road construction revenues to expenses. Moreover, it will report other capital funding income as separate expense items.
Meanwhile, some remaining uncertainties this year included higher CPP and EI contributions for the new teachers’ contract, unfunded wage grid increases for teachers, the carbon tax, and equipment, supplies, trips and professional development, the report said.
Overall, the division expects to finish the year with a deficit of $2.39 million, compared to the budgeted $3.4 million, while it plans to cover that hole through reserves and amortization, the document added. Also, the projected cash drawdown this year is $728,610 less because revenues are higher than expenses.
Trustee Patrick Boyle said the “one glaring thing” in the budget was the carbon tax, considering the division could see full-year savings of roughly $600,000 if it disappeared. Moreover, he pointed out that its elimination would reduce the expected cash drawdown to $128,610.
“… We’re almost at balance budget without that (tax),” he added.
Tenders
Prairie South issued $480,248 worth of tenders between March 1 and 31, including:
- $69,000 to Duncan Roofing to replace King George School’s roof
- $14,319 to Cattan for Google Chrome OS licences
- $183,394 to Gen X to upgrade computers and notebooks
- $10,370 to Grand and Toy for charging carts
- $5,245 to Konica Minolta for computer monitors
- $86,064 to PC Corp for new Chromebooks
- $52,817 to Staples Professional for 11th generation iPads
- $59,309 to Madera Playscapes/Blue Imp for the supply and installation of playground equipment at Prince Arthur School
The next PSSD board meeting is Tuesday, May 13.
