5/29/2007 - Special Board Meetingr"
THAMES VALLEY DISTRICT SCHOOL BOARD
SPECIAL BUDGET BOARD MEETING.PUBLIC SESSION
2007 MAY 29,7:00 P.M.
BOARD ROOM,EDUCATION CENTRE
AGENDA
V-verbal
M -material
1.CALL TO ORDER V
2.APPROVAL OF AGENDA M
3.CONFLICTS OF INTEREST V
4.CHAIR'S ANNOUNCEMENTS V
5.DIRECTOR'S ANNOUNCEMENTS V
6.REPORTS FROM THE ADMINISTRATION
a.2007-08 Preliminary Budget M
(Material to be distributed at meeting)
7.REPORTS OF COMMITTEES
a.Committee of the Whole,In Camera,2007 May 29 V
8.ADJOURNMENT
THAMES VALLEY DISTRICT SCHOOL BOARD
SPECIAL MEETING,PUBLIC SESSION
2007 MAY 29
The Board met in special budget session on 2007 May 29 in the Board Room at the Education Centre,
meeting In public session from 7:05 p.m. to 9:35 p.m. The following were in attendance:
TRUSTEES
J.Bennett
F.Exiey
T.Grant
G.Hart
M.Hendrick (8:40)
ADMINISTRATION AND OTHERS
B.Bryce
B.Greene
0.Murphy
M.Sereda
J.Thorpe
D.Blair
K.Dalton
J.Emprlngham
Regrets:8.Doub
P.Jaffe
K. North (-8:50)
S.Peters
S.Polhlll
K.Havelka
8.Hughes
L.Hutchinson
B.Tucker
B.Wagner
K.Wilkinson
K.Bushell
T.Roberts
P.Sattler (Chair)
J.Stewart
R.Tisdale
J.Berkin
S.Christie
C.Dennett
P.Hearse
8.Macey
K.Meeson
J.Roth
W.Scott
1.CALL TO ORDER -Chair P.Sattler called the meeting to order.
2.APPROVAL OF AGENDA
The agenda was approved on motion of T.Roberts,seconded byG. Hart.
3.CONFLICTS OF INTEREST -No conflicts of Interest were declared.
4.CHAIR'S ANNOUNCEMENTS
Chair Sattler reminded Trustees that the Information Committee of the Whole meeting scheduled for
2007 June 05 to discuss the 2007-08 Budget has been cancelled Inlight of the June 11 Budget public
input session.
5.DIRECTOR'S ANNOUNCEMENTS
Director Bryce announced that PrincipalValerie Nielsen,East Oxford Central P.S.,(Woodstock)has
been appointed tothe position of Superintendent of Education effective 2007 August 01.Ms.Nielsen
was introduced and congratulated on her promotion.
The Director also announced that Sharron Christie,Supervisor,Corporate Services,has been
appointed as a member of the Privacy and Security Standards and Guidelines workgroup of the
provincial Privacy and Information Management Task Force. Ms.Christie was congratulated on her
appointment.
Director Bryce advised that on 2007 May28 the London Central 8.8.Senior Reach for the Top team
won the Canadian Championship held In Edmonton,Alberta.The students competed against many
other Ontario schools and emerged undefeated with the provincial Reach for the Top title before
going on to the finals. The students will be formally recognized fortheiroutstanding achievement at
the 2007 June 12 Board meeting.
The Director commented that the Cityof London has Identified Northbrae Public School as the next
Best Start Early Learning and Child Care Program site.The program will Incorporate the HUB
concept.
2007 May 29...2
6.REPORTS FROM THE ADMINISTRATION
a.2007-08 PRELIMINARY BUDGET
Budget Advisory Committee Chair T.Roberts introduced the draft 2007-08 Budget.He noted that
this is the first look at a deficit budget following a year of surplus.He extended appreciation to
this year's Budget Advisory Committee noting the participation ofa number of trustees who were
not members of the Committee.He extended thanks to the Administration and Exec.Supt. B.
Greene and the Business Services staff for the presentation noting its Importance in the process
to consider the administrative recommendations.He advised that a public Budget input session
has been scheduled for Monday,2007 June 11.He encouraged the trustees and community to
view the comprehensive,new Board Budget website.
Director Bryce introduced the presentation noting that many school boards have been facing
budget pressures similar to Thames Valley that began during the 2000-01 school year. This
year's draft budget presents serious challenges which must be addressed if the Board is to
remain healthy and progressive.He noted that revenues received from the province are fixed
and this year's expenditures are In excess of revenues.He stressed that the gap between
ongoing revenue loss because of declining enrolment and status-quo expenditures is not
manageable anylongerwithoutbudget reductions and restructuringof programs and the delivery
of services.
Set with the obligation of presenting a balanced budget to the province by 2007 June 30, the
Administration provided Trustees witha wide range of proposed solutions to address the shortfall
of approximately $7M.Director Bryce noted that Thames Valley is facing a loss of 1,521
elementary and secondary students in the next fiscal year equating to a grant loss of $9.3M.
Enrolment decline will not begin to leveloff until 2011-12 at which time Thames Valley schools
will have seen an overall decline of approximately 11,261 students or almost 14 percent of the
total enrolment.He emphasized that all of the projectioris to date have been accurate and that
the 2010-11 projections are based on children that have been born.
The 2007-08 draft Budget makes a number of recommendations Includingthe establishment of
a Multi-Year Budget Plan process with representation fromall areas of the system.Agroup of
administrative staff and trustees will work to develop a list of budget issues for review and a
process for discussion with employee groups and the Board's many education partners. The
objective will betofocus onthe needs of schools and students to ensure thatthe Boardismaking
the most effective use of all revenues.
DirectorBryce commented on the Minlstr/s specificfundingallocationsusing as an example the
hiring of 185 additional elementary teachers to address the Primary Class Size target of 20:1;
additional resources for First Nations students as well as support for maintenance and/or
enhancement of areas ofart,music,physical educationand outdooreducation. Hespoke briefly
about the proposed Targeted Interventions for LiteracyProgram designed to provide literacy
support to more students,a program whichwouldIncludethe services previously provided by
the Keys to Literacy and Partnerships for "Excellence programs. He summarized that the
Administration Is recommending the use of $1.7M In surplusfunds from the 2005-06 fiscal year,
reductions inthe supplies/services and furniture/equipment budgets as well as Administration and
Facility Services staffing levels. He expressed confidence that, through a concerted effort, the
Board can develop a balanced budget. He thanked Exec.Supts.Greene and Elliott,Manager
Roth and the Financial Services staff for their significant efforts in preparing the draft 2007-08
Budget.
B.Greene,Executive Superintendent,Business Services,provided an overview of the
development ofthe draft 2007-08 Budget. He explained that the 2007-07 budget process begins
with the preliminary Budget Assumptions,involves presentations by Administration,allows for
public input and provides for Trustee discussion and debate leading to Board approval and
submission according to the Ministry of Education timetable.
2007 May 29...3
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
The Budget Advisory Committee assisted in the development of the 2007-08 preliminary Budget
by providing information,advice and liaison between Trustees and staff charged v\/ith the
development of the annual budget.Recommendations will be prepared for consideration by the
Board and public input will be sought.It is anticipated that the Board will approve the 2007-08
budget at its 2007 June 26 meeting for submission to the Ministry by 2007 June 30.
Exec.Supt.Greene explained that in order to prepare a balanced budget,Trustees must consider
recommendations that Include the use ofa $1.7M In surplus funds from the 2005-06 fiscal year,
making reductions in Supplies and Services and Furniture and Equipment budget lines and
reducing Administration and Facility Services staffing levels.
Mr.Greene presented the following report and advised that the budget issues have been
presented to the trustees and are available on the Board's website:
Grants for Student Needs;
Declining Enrolment;
Special Education;
Facility Costs -Surplus Capacity;
Primary Class Size (PCS);
First Nations,Metis &Inuit Education Supplement;
Student T ransportation;
Energy,Utility Costs.
The Preliminary Budget status was presented as follows:
Projected Revenue (OOO's)
Grants for Student Needs $650 208
Other Revenue 11 208
$661 416
Projected Expenditures
Preliminary Expenditure Budget 668 195
Board Approved -2007 May 22
Special Education Staffing -2.67 FTE 232 668 427
Revenue Shortfall 7 011
Proposed New Initiatives 467
Potential Revenue Shortfall $7 478
Declininc Enrolment
Exec.Supt.Greene emphasized that the most serious issue facing the Board Is the continuing
drop in elementary and secondary enrolment levels.As previously stated,the Preliminary Budget
forecasts a loss of 1,521 students with a resulting loss of $9.3M in provincial grants.That is the
largest number of students the Board has lost in a single year since this period of decline began
in 2001-01.It is now forecasted that by the end of 2011-12,the total loss of students over this
period of decline will be 11,261 or 14 percent of total enrolment.Exec.Supt.Greene referred to
a recent article in the OPSBA Fast Reports regarding Ontario Demographic Trends and
Enrolment Projections noting that declining enrolment Is a provincial phenomena.
2007 May 29...4
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
Enrolment decline results in the following revenue loss:
(OOO's)
GSN's -Grant Loss $10 077
Declining Enrolment Grant Increase 744
Net Grant Loss $ 9 333
Multi-Year Plan
The gap between ongoing revenue loss because of declining enrolment and status quo
expenditures will continue to increase to 2010-11.As previously mentioned,the total decline in
enrolment from2000-01 to 2010-11 is 13.9 percent. Budgetreductions and restructuringofhow
student programs and Board services are delivered is unavoidable.Changes must occur and
can be accomplished over a four-year fiscal period starting with the 2007-08 Budget. The
Preliminary Budget recommends the establishment of a Multi-Year Budget Plan process with
representation fromall areas ofthe Board. This group will work alongside the Administrationand
the Trustees to develop a listof budget Issues to review,as well as a process of discussion with
employee groups and education partners.The issues identified are to be consolidated into the
Multi-year Budget Plan to be used in subsequent,annual budget processes.
J. Roth,Manager, FinancialServices, reportedthatthetotal elementary and secondary education
funding for 2007-08 Is $18.3B which is 4.3 percent,or a $781M increase over 2006-07.She
highlighted the criteria for three new grants for Program Enhancement,First Nations,Metis and
Inuit Education SupplementandSupportedSchools Allocation.She explainedthatThames Valley
does not qualify forthe elementary/secondary distance requirement within the Supported Schools
Allocation.
First Nation.Metis and Inuit Education Supplement
The First Nation,Metis and Inuit Education supplement supports the goal of improved
achievement as outlined inOntario First Nation,Metis and Inuit Education Policy Framework
document. The Ministry has allocated $10.5M new annual funding to replace the Native
Language component of Language Grant. Thames Valley's supplement for elementary and
secondary Native Languages and Native Studies is $335 000.
Program Enhancement Grant
The Program Enhancement Grant is new for2007-08 and supports programs and activities in
Arts,Music,Physicaland Outdoor Education.It maybe used tofundorenrich existingprograms
or to offer new programs and is calculated on a per-school basis of $7,500.
Special Education
The Special Education component with a 2007-08 net deficitof $3 589 000 was presented as
follows:
Expenditures (OOO's)2006-07 2007-08
Teachers $43 803 $44 888
Education/Instructional Assistants $27 069 27 973
Consultants/Coordinators 1 271 1 310
Professionals/Paraprofesslonal 6 049 6 210
Operating Expenditures 2 090 2 090
Project Deficit $(5 280) $(5 922)
Transfer from Reserves 1 555 0
Targeted Interventions Proposal 2 333
Net Deficit $ 3 725 $ 3 589
2007 May 29...5
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
Utilities
The School Operations Allocation is used to heat,light,clean and undertake ongoing
maintenance of schools.The 2007-08 Utility budget is set at $21 197 000.Utility costs are
projected to increase over 2006-07 with estimated actuals of $1 767 000 or 9.1 percent.The
School Operations Allocation Increase in non-salary component Is1 percent.As partofthe 2006-
07 Budget process,the Utilities Expenditure budget was increased onlybyan amount to match
the GSN increase of2 percent.Current projected expenditures inthis area indicate an estimated
over-expenditure of $1 367 000.
Declinino Enrolment Adiustment Grant
In 2002-03,the Government introduced a grant to assist boards with declining enrolment.All
costs do not decline proportionally to declining enrolment.Classroom teachers can be reduced
to adjust for reduced enrolment.Reduction inthe number of students does not immediately allow
for reduction of fixed costs.Heating,lightning and school maintenance costs do not change with
enrolment decline.The Board's Declining Enrolment Adjustment grant for 2007-08 is $3.3M.
Targeted Interventions for Literacy -New Model
L.Elliott,Executive Superintendent,Program Services,advised that the Government's target is
to have 75 percent of 12-year-old students reach the provincial standard on province-wide
reading,writing and mathematics testing by 2008.The introduction of a new Targeted
Interventions for Literacy program is recommended following a review of all current literacy
programs at work Inthe system (e.g.,Reading Recovery, Literacy Teachers,Keys to Literacy,
LiteracyCoaches and other support staff). Exec.Supt.Elliott explainedthatthe new,data-driven
program would focus on the 28 highest needs schools across the District and Is Intended to
provide support for student literacy that is focused,measurable and improves student
achievement.It was noted that additional resources may be funded that increase the number of
Literacy Coaches to support more schools.
Exec.Supt.Greene presented the proposed literacy staffing revisions as follows:
Net
Teaching Reduction Addition Reduction
Keys 13
TOSA's 8
Literacy 20
Reading Recovery 11.5
Literacy Coaches 4
Reading Support 28
52.5 32 20.5
Net
Other Reduction Addition Reduction
Learning Coordinator 1
Social Workers 2
Financial Analyst 1
Research &Assessment 1
Attendance Counsellors 3
Educational Assistants 12
School Support Counsellors 11.5
31.5 31.5
2007 May 29...6
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
New Initiatives
The Board approved the following motion from the Budget Advisory Committee on 2007 May
22:
That proposals for new initiatives or any aspect of increasing the 2007-08 Budget also
include where funding could be derived".
The 2007-08 Preliminary Budget Includes proposed new initiatives of $466 961.
The following items were Board referrals to the 2007-08 Budget process:
Trustee Budget -2007 Jan.23
That inthe budget preparation for 2007-08 consideration be giventosetting the Trustees'
Office budget at $65 000 as per Ministry Guidelines.
Oxford Technical Training Centre -2007 Jan.23
That the request for $10 000fromthe Oxford Technical training Centre be referred tothe
2007-08 operating budget process.
Thames VallevEducation Foundation - 2007 May22
That the recommendation to increase Thames Valley Education Foundation resources
be referred to the 2007-08 Budget process:
5 Year-Plan
2007-08 Staffing 1.5 FTE $85 874
2008-09 Consultant $70 000
The following Administration items were referred to the 2007-08 Budget process:
-Elementary Secretarial Suooort $14 234
To provide an additional 10 days of secretarial
Support to schools with more than 500 students.
Records Management Plan
Staffing 1.0 FTE 67 978
Supplies &Services 82 750 $150 728
Establishment of an Information and Records
Management Program Including an Information and
Records Management Officer position.
Capital Proiects
3.0 FTE Project Coordinators $198 725
To coordinate and supervise projects that have
been approved or proposed which are funded
from Good Places to Learn or contemplated In the
draft Capital Plan.
Capital Plan
Exec. Supt.Greene explained that the Board receives capital funding though the Pupil
Accommodation Grants.There are several components to the funding:enrolment pressures,
Good Places to Learn, Primary Class Size Accommodation,Prohibitive to Repair and School
Renewal.Pupil Accommodation funding is enveloped and protected.The restriction is intended
to ensure that boards dedicate these resources for school renewal repairs and accommodation
issues.These funds cannot be used for operating budgets or to balance the budget.
2007 May 29...7
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
The Board has established Accommodation Review Committees (ARC's)and approved Pupil
Accommodation Planing Guiding Principles.Issues of accommodation are not dealt with during
the 2007-08 Budget process.Public Inputfor the 2007-08 Preliminary Budget,scheduled for
2007 June 11,is not to address accommodation-related Issues.Those Issues should be referred
to the ARC process.
2007-08 Budoet Solutions
The Board must balance and submit the 2007-08 Budget by 2007 June 30. Declining enrolment
will continue with the loss of 5,391 PTE students from 2006-07 to 2010-11.Total decline In
system enrolment 2000-01 (Peak enrolment)to 2010-11 is 11.261 PTE students.The Board
cannot afford to maintain the status quo.Permanent ongoing savings must be found as the
Board deals with the major fiscal issues and declining enrolment.A Multi-year Budget Reduction
Plan must be developed for future budget years and starting with reductions in 2007-08.
The following 2007-08 Budget solutions were presented:
Potential Revenue Shortfall
Proposed Solutions
2005-06 Surplus (Reserve Funds)
Targeted Interventions for Student Literacy
Multi-Year Budget Reduction Plan (Year 1 of 4)
Administration and Facility Services
Staffing 19 FTE
Supplies &Services,Furniture &Equipment
Total Proposed Solution
The following Potential Staffing Revisions were presented:
(OOO's)
$7 478
$1 710
4 377
1 056
335
$7 478
Reduction Addition Net
Reduction
Classroom 32.5 32.5
Professional/Paraprofesslonal 16.5 16.5
Administration 9.0 2.5 6.5
Facility Services 13.0 3.0 10.0
71 5.5 65.5
Reserve Funds
The Board maintains the following two types of reserve funds:
Deferred Revenues -Externally Restricted Reserves
ExternallyRestricted Reserves ($8.0M)are set aside for specific purposes by legislation,
regulations or agreement.They may not be used for any other purposes.They Include such
items as Special Education,Proceeds of Disposition and Restricted Grants.The Special
Education Reserve Funds were completely used to reduce the 2006-07 Special Education
deficit.
2007 May 29...8
6.REPORTS FROM THE ADMINISTRATION -cont'd
a.2007-08 PRELIMINARY BUDGET -cont'd
Reserve Funds -Internally Restricted Reserves -cont'd
Reserve Funds -Internally Restricted Reserves
Internally Restricted Reserves ($17.4M)are set aside forspecific purposes as approved byBoard
motion. They includecapital and pupil accommodation whichmay notbe transferred to any other
category and school budgets which are carried over to the next budget year.
They IncludeWorking Fund Reserves from prior years'surplus.They were used to balance the
2006-07 budget and the remainder $1.7M Is part of the proposed solutions for the 2007-08
budget.This will eliminate ail of the Working Fund Reserves.
The budget time lines were presented as follows:
2007 June 11 Budget Advisory Committee - Public Input Session
2007 June 19 Special Board Budget -Discussion and debate
2007 June 25 Budget Advisory Committee
2007 June 26 Regular Board - Final Board Approval
2007 June 29 Submission to Ministry of Education
The Administration responded to questions posed by trustees.Exec. Supt.Greene advised that
the additional staffing Item under new Administration Initiatives are to be presented to the Budget
AdvisoryCommittee on 2007 June 11.He emphasized that in 2010-11,the Board, bymatching
spending to a multi-yearbudget model and If phased in properly,will result ina system that is
sustainable forthe long-term. DirectorBryce stated that this Isnot a new concern notingthat two
yearsago,Mr.Greene presented budget information regarding the projected lossof revenues f
and indicated then the challenging decisions that would be necessary related to declining
enrolment and accommodation Issues.
Trustee Jaffe asked about areas of the budget,e.g.,specialized programs that may be
considered bythe Thames Valley Education Foundation. He was advised that the Administration
will align these two Issues and report back to the Board. In response to a question regarding
outcomes should trustees not approve the new initiatives.DirectorBryceand Exec. Supt.Greene
provided the rationale for the new Administrative initiatives being submitted for deliberation
between now and 2007 June 26.The trustees requested more information related to student
transportation numbers and costs, as well as the salary gridfor those positions beingconsidered
for reductions.
Chair Sattler reaffirmed upcoming 2007-08 Budget meeting dates:2007 June 11 -Trustees
receiving public input on the Budget; 2007 June 19 - Budget deliberation and debate and 2007
June 26 - final Budget approval by the Board.
Exec. Supt.Greene recognized Exec. Supt.Elliot for her leadership role as well as the
contribution of the Financial Services staff during the preparation of the 2007-08 preliminary
Budget.
2007 May 29...9
7.REPORTS OF COMMITTEES
a.REPORT OF THE COMMITTEE OF THE WHOLE - IN CAMERA 2007 MAY 29
8.
MEMBERS PRESENT ADMINISTRATION AND OTHERS
J.Stewart(Chair)P.Jaffa B.Bryce S.Hughes
•J.Bennett S.Peters B.Greene L.Hutchinson
F.Exiey S. Polhill (5:40)C.Murphy W.Tucker
T.Grant T.Roberts M.Sereda B.Wagner
G.Hart P.Battler J.Thorpe K.Wilkinson
M.Hendrick R.Tisdale K.Dalton S.Christie
K.Havelka C.Dennett
Regrets:8.Doub
Absent:M.Hendrick
K.North
The Committee met in camera from 5:05 p.m.to 6:00 p.m.
1.APPROVAL OF AGENDA
The agenda was approved by motion.
2.CONFLICTS OF INTEREST -No conflicts of interest were declared.
3.Confidential personal matters were discussed.
4.RISE AND REPORT
A motion to rise and report was moved at 6:00p.m.and carried.
RECOMMENDATION:
That Valerie Nielsen be appointed to the position of Superintendent of Education with the
Thames Valley District School Board effective 2007 August 01.
JAMES STEWART
Chairperson
The recommendation was adopted on motion of J.Stewart,seconded by G Hart.
ADJOURNMENT
The meeting adjourned at 9:35 p.m. on motionof R. Tisdale,seconded byS.Peters.
CONFIRMED:
Chairperson
2007 May 29...10
RECOMMENDATION y
That Valerie Nielsen be appointed to the position of Superintendent of Education with the Thames
Valley District School Board effective 2007 August 01.