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5/19/2009 - Special Board MeetingTHAMES VALLEY DISTRICT SCHOOL BOARD SPECIAL BOARD MEETING,PUBLIC SESSION 2009 MAY 19,7:00 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.REPORTS FROM THE ADMINISTRATION a.2009-2010 Preliminary Budget M (Material to be distributed at meeting) 5.ADJOURNMENT THAMES VALLEY DISTRICT SCHOOL BOARD SPECIAL BOARD MEETING 2009 MAY 19 The Board met in Special session on 2009 May 19 Inthe Board Room at the Education Centre,meeting in public session from 7:00 p.m. to 8:55 p.m.The following were in attendance: TRUSTEES J.Bennett P.Jaffe S.Doub S.Peters F.Exley S.Polhill T.Grant T.Roberts G.Hart J.Rowe Absent:M.Hendrick ADMINISTRATION AND OTHERS B.Tucker M.Moynihan K.Dalton V.Neilsen L.Elliott M.E.Smith B.Greene B.Sonier M.Sereda P.Tufts C.Bourbonnais-MacDonald B.Wagner L.Griffith-Jones K.Wilkinson P.Sattler J.Stewart R.Tisdale L.Varghese S.Macey K.Meeson S.Young W.Scott 1.CALL TO ORDER. Board Chairperson J.Stewart called the meeting to order at 7:00 p.m. 2.APPROVAL OF AGENDA The agenda was approved on motionof,T. Grant seconded byF.Exley. 3.CONFLICTS OF INTEREST - No conflict of interest were declared. 4.a.2008-09 PRELIWIINARY BUDGET UPDATE Exec.Supt.B.Greene presented openingremarks regardingthe 2009-2010 Preliminary Budget update. He Introduced Business Services staff K.Meeson, J.Berkin,P. Hearse B.Hester, S. Macey,E.Grosvenor,D.Munro and J. Comeau and extended appreciationfortheirsupport in the preparation of the 2009-2010 PreliminaryBudget. Exec.Supt.Greene reviewed theprocess noting the impiications ofthecurrent budget,provision for public inputandthe decision making that tmstees will undertakeinorderto arrive atthe2009- 2010 Budget recommendations and decisions. He notedthat the globaleconomic outlook has deteriorated significantly resulting In the worst economic climate witnessed to date for the TVDSB.The Ontario government is projecting a deficitof $3.9 billion In2008-09, peaking at $14.1 billion In 2009-10 because of a significant deterioration in revenues and short-term measures to stimulate the economy. The government has laidout a plan to balance the budget by 2015-16. Exec.Supt.Greene reportedontheenhancementsunderthe Provincial Framework Agreements (PFA)noting that all collective agreements within TVDSB are now settled.As a result,this budget yearthe Board will notbe looking for funds for salaries and benefits (80%of budget). 2009 Mav19...2 4.a.2008-09 PRELIMINARY BUDGET UPDATE -cont'd K.Meeson,Manager,Financial Services,liighlighted the contents of the Ministryof Education Funding announcement of 2009 March 26 Memorandum 2009:B2 that included the Ministry's constraint measures and proposed solutions fortextbooks/learning materials,staff development, classroom computers and others. She advised that the enhancements to the Grants for Student Needs (GSN's)in order to keep up with costs include a 2 percent update to school operations benchmarks,increased focus on financial transparency and accountability through the establishment of audit committees/internal audit functions and consultation with sectors,reinstating 20 percent reduction to school renewal (announced 2008 October 23),proactive management approach of the impact on declining enrolment with adjustment modified in 2009-2010.Exec.Supt.Greene indicated that this criterion clearly equates to the Board no longer being able to maintain the status quo. A number of constraint Initiatives are proposed for 2010-2011 including Student transportation funding transition support which will be provided for only 50 percent of any funding decrease resulting from enrolment decline.In 2010-11,top-up funding will be reduced to 18 percent and further reduced to 15 percent in 2011-2012.Itwasnoted that this will not Impact top-up funding provided to schools deemed rural or supported.There will be a reduction infunding for Board administration beginning In 2010-2011. A line graft of the average daily total enrolment from 2000-01 to 2008-09 was explained. A staffing analysis based on declining enrolment projections for 2009-2010 of 1,479.84 students equates to teacher reductions of 34.35 full-time equivalent (FTE)elementary and 24.8 FTE secondary.Embedded withinthis analysis isthe Provincial Framework Agreements ofadditional elementary and secondary teaching staff,support staff,professionals/paraprofessional,and custodians and secretaries. Manager Meeson,continuing with the staffing analysis,referred to the Multi-YearPreliminary Budget issue sheets regarding proposed AlternativeEducation reductions and additions as well as reductions In elementary and secondary Special Education, Media Services,and the Distribution Centre.As well,another issue for review entitled "Attendance Management,was distributed to be added to the Multi-Year Preliminary Budget Review binder. Exec. Supt.Greene referred to the Ministry's"Out-Years" terminology, a five-year picture that after analyzing enrolment projections for 2009-2010 to 2013-2014,provides school boards with future years'budgets. Atthe TVDSB elementary level,the rate ofdecline diminishes each year witha total decline of 2,390 FTE. At the secondary level,as the decline moves from elementary to secondary,it increases in 2010-2011 and then declines remaining constant until2013-2014with a total decline of 3,482 FTE.The total System decline for five years is 5,872 or 8.1 percent. The financial impact of the five-yeardecline on a year-by-year basis was also provided. Exec. Supt.Greene summarized that the "Out-Years" picture indicates that declining enrolment will requirecontinued expenditure reductionsthat cannot be found inthe "other"category. He noted that the Declining Enrolment Adjustment (DEA)Is transitional funding and not intended to permanentlyreplace the decrease in revenue from a decline In enrolment. Charts depicting the GSNfunding component ofdecliningenrolment and a summary ofthe projected budget shortfall were reviewed. I .^ r 2009 May 19...3 4.a.2008-09 PRELIMINARY BUDGET UPDATE -cont'd The following summary of projected budget shortfall/solutions was presented: Impact of Declining Enrolment: Net Operating Grants for Student Needs (9.1) Reduced Requirements for Teachers 5.0 (4.1) Ministry Constraints: Staff Development (0.8) Computers (1.0) Textbooks f1.1)(2.9) Other: Casual Salary-"Forgiveness"(0.4) Continuing Education Prep. Time (0.2) Other Adjustments for Expenditures i 0.4) Projected Shortfall (B.0) Potential Solutions: Utility Savings 1.4 Budget Issue Sheet Tracl<ing (1.9) Less:Transportation Savings fO.7)1.2 One-time Budget Initiatives 0.5 Corresponding Reductions:0.8 Staff Development 1.0 Computers AA Textbooks 6.0 Total Potential Solutions Projected Shortfall f2.0) ManagerMeesonreferredto multi-year preliminary budget review issues. Shespoketotheissue pertaining to cost of newschools and additions ($2.0M)noting that itwas withdrawn on the recommendation of Administration because budget reductions to create this funding source cannot be identifiedgiven the pressures ofdecliningenrolment. The Energy Management Program Implemented in 2001 June that Included upgrades, replacement of lighting systems,building controls,HVAC equipment etc.has generated savings to repay the debt.Thetargeted payback period for measuresat time of implementation was 15 years. Manager Meeson reviewed the Special Education Analysis of Revenue and Expenditures with a projected deficit for 2009-2010 estimated at $5 488 629,noting that the deficit increased significantly because ofthe loss in SEPPAand high need amounts. The Transportation component of the budget was reviewed.Transportation Is provided by Student Transportation Services (STS),a four-board consortium.The multi-year budget review sheet identifies route efficiencies and savings of $705139 within existing policies.Asrequested by the Board on 2009 April 28,an analysis is being prepared by Edulog.Based on this infomnation.STS will presenta report onthe number ofnewstudents eligible,space on existing runs,newrun requirements,costs and an implementation plan. 2009 May 19...4 4.a.2008-09 PRELIMINARY BUDGET UPDATE -cont'd Exec.Supt.Greene advised that STS is negotiating with bus operators for the 2009-2010 school year.The STS Board of Directors has not approved the cost sharing formula or administrative budget at this time.It is awaiting the Capacity Building Report from the IVIinistry review team. This is a report to assist STS in preparing for the E&E review scheduled for 2010.Exec. Supt. Greene emphasized that there is a potential for transportation to be funded in its entirety if the Board is willing to seize the moment and harmonize the boundaries. Manager Meeson concluded the presentation with a review of the information contained on the Board's 2009-2010 Preliminary Budget website as well as the hypertext linkstooverview,budget timelines,key issues,Committee minutes and public input. Trustee Exiey,in his capacity as Chair of the Budget Advisory Committee,extended thanks to the Business Services staff for the budget presentation. The Administration responded to questions of clarification posed by trustees. Concem was expressed over the perception that the deliveryof programs and services for Special Education students are costing more than the amount funded.It was commented that Special Education is not a drain on the system and that resources are not being provided at the expense of other students.Exec.Supt.Greene described how Special Education is a cost accounting exercise and noted the ongoing discussions with the Board's Special Education Advisory Committee (SEAC). He indicated that it Is a reality that the funding formula is calculated on the total per pupil basis set by the Ministry and under SEPPA,this year's funding has decreased.Director Tucker indicated that the public perception of the Board's operating budget is important and that Special Education is not responsible for its overall deficit budget.He emphasized that the Board is committed to investing In special education as indicated by the number of professional/ paraprofessional staff employed over the funding formula. Exec. Supt.Greene advised that a more in-depth funding analysis will be brought to the Board as well as to SEAC. Chairperson Stewart asked ifa similar process to last year's budget deliberations would be used again this year. Exec. Supt.Greene advised that using an overhead Excel spreadsheet presentation,budget expenditures and transfers from multi purpose reserves will be tracked as trustees make decisions regarding the 2009-2010 Budget allocations.In response to a question regarding the daily flushing of water at all schools.Exec.Supt.Greene indicated that Manager Bushell will be asked to provide an update at a subsequent meeting. It was asked how effective the website is in helping the average parent determine what Is going on within a large,and complex budget with many issues,that finding a communication tool that is understandable and keeps the Board's business transparent Is a challenge.In the Board's attempt to obtain public input, italso must be clearly understood that 90 percent of the budget is locked in and that there are few discretionary areas.It was suggested that a preamble be included that provides parents/citizens with a better understanding of what is being considered and agreed upon. Director Tucker indicated that the TVDSB Budget website is easier to navigate this year; however, it may still need to be fine tuned along with the Budget process for next year.Key issues including a preamble that convey the Board's thoughts and encourage meaningful input would be beneficial.He advised that discussion related to this matter will be held at Administrative Council and with the Public Affairs and Community Relations Manager. 2009 May 19...5 4. a.2008-09 PRELIMINARY BUDGET UPDATE -cont'd Chair Stewart asked if more funding announcements are expected from the Ministry.Exec.Supt. Greene indicated thatthe Ministry sets aside newgovernment initiatives forrelease as theyear progresses with the most recent being 2009 May 14 and advised thattwo more restricted grants will be brought to Board.A summary of most recent grants is to be presented at the next meeting. Trustee Roberts emphasized that the impact of reductions should not affect students and classrooms but rather solutions must be found outside the classroom. 5.ADJOURNMENT The meeting adjourned at 8:55 p.m.on motion ofP.Sattler,seconded by F.Exiey. RECOMMENDATIONS:none CONFIRMED: rperson