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5/31/2011 - Special Board MeetingTHAMES VALLEY DISTRICT SCHOOL BOARD SPECIAL BOARD MEETING 2011 MAY 31, 7:00 P.M. BOARD ROOM, EDUCATION CENTRE AGENDA V verbal M - material 1. CALL TO ORDER - O'CANADA V 2. APPROVAL OF AGENDA M 3. CONFLICTS OF INTEREST V 4. PRESENTATION OF THE 2011-2012 PRELIMINARY BUDGET V 5. ADJOURNMENT V THAMES VALLEY DISTRICT SCHOOL BOARD SPECIAL MEETING, PUBLIC SESSION 2011 MAY 31 The Board met in regular session on 2011 May 31 in the Board Room at the Education Centre, meeting in public session at 7:03 p.m. to 9:26 p.m. The following were in attendance: TRUSTEES ADMINISTRATION AND T. Grant (Chair) P. Jaffe OTHERS M.E. Smith J. Bennett B. McKinnon (Via B. Tucker B. Sonier R. Campbell teleconference) K. Dalton P. Tufts J. Daniels S. Polhill L. Elliott K. Bushell J. Coghlin T. Roberts B. Greene S. Macey W. Huff P. Sattler M. Sereda K. Meeson R. Tisdale C. Bourbonnais - MacDonald K. Aitken Regrets: G. Hart, J. Todd K. Edgar D. Rajala B. Murray L. Griffith -Jones K. Young S. Hughes J. Berkin M. Moynihan V. Nielsen 1. CALL TO ORDER - 0 CANADA Board Chair T. Grant called the meeting to order at 7:03 p.m. 2. APPROVAL OF AGENDA The agenda was approved on motion of J. Coghlin, seconded by J. Bennett. CONFLICTS OF INTEREST Trustee Jaffe declared a conflict on Professional Support Staff citing spousal employment. 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET Budget Advisory Committee Chair, T. Roberts, opened the discussion on the 2011-12 preliminary budget. He noted that this year marks the end of a four-year agreement on collective bargaining and reminded trustees that fiscal restraints on salary and benefits will follow. Trustee Roberts asked that detailed questions be submitted in written form to the Business Department by Friday, 2011 June 3. Exec. Supt. B. Greene introduced the Finance staff who played a key role in the development of the budget. He presented a brief overview of the budget for 2011-12 noting that the government will provide funding for this year's budget for Full Day Kindergarten (FDK) only, with significant caps for years three and four. He anticipated that this year's budget appears to be stable. Finance Manager K. Meeson presented the Grants for Student Needs (GSN) highlights. a. Grants for Student Needs Timelines • Details released March 31, 2011 • Subsequent to Provincial Budget • EFIS and Technical Paper released 2011 April 21 • Funding regulation 2011 May 12 • Principals and Managers • Meeting 2011 May • Details of GSN announcement • Provided input to budget process 2011 May 31...2 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET - confd b. Preliminary Budget Proiected Enrolment 2011-2012 Projected 2010-2011 Approved Budget Difference JKISK Non FDK 3,665.00 3,861.75 (196.75) Grades 1-3 14,798.00 1.4,614.50 183.50 Grades 4-8 25,909.00 26,063.50 (154.50) Elementary 45, 313.50 45,128.00 185.50 Secondary 24,275.76 24,955.80 (680.04) Total Enrolment 69,589.26 70,083.80 (494.54) c. Average Daily Enrolment - Elementary & Secondary Manager K. Meeson described two graphs that included the actual 2000-01 to 2010-11 and the projected 2011-12 to 2012-15 average daily enrolment numbers for both elementary and secondary students. d. Revenues • Operating Revenue • Pupil Foundation • Effect of Declining Enrolment • Effect of Benchmark Changes • Transportation • School Operations • Learning Opportunities Grant (LOG) • First Nations M6tis Inuit (FNMI) e. Expenses • One Year Budget Initiatives • 2011-12 Budget Assumption Expense Adjustments 2011-12 Expense Cost Pressures • 2011-12 Ministry Restraints • 2011-12 Preliminary Budget System Initiatives f. Additional Budget Considerations First Nations, Mdtis, Inuit • Through the Budget Advisory Committee, Trustees and Administration have identified the continuation of First Nations' programming as a high priority Hazardous Waste Management • Contract to ensure the correct identification, removal and disposal of hazardous wastes • Changing environmental legislation requires expertise to ensure Board is protected 2011 May 31... 3 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET - cont'd g. Thames Valley Regional Athletic Association (TVRAA) Budget 2011-12 - Exec. Supt. Greene described the cost details associated with TVRAA. Total Expenses 421,713.00 Revenues/Recovenes 7VDSB Contributions (295,915.00) Recoveries from Other Boards (105,798.00) Gate Receipts (20,000.00) (421,713.00) Total Revenue/Recoveries Net Amount 0 h. Capital Funding Exec. Officer K. Bushell reviewed the Capital Funding in detail. He noted that there are four major announcements in the budget from the Grants for Student Needs. Temporary Accommodation Allocation • Used for portable classroom moves, purchase or lease for instructional space • Only receive funding for actual expenditures • 2011-12 allocation $700,000 School Condition Improvement • $150M per year for the next three years • Additional funding to address School Renewal needs • Funding must be used on School Renewal projects that meet the requirements to be capitalized • 2011-12 allocation $4,838,378 New Schools, Additions and Retrofit/Renovations • $600M over the next three years • Allocations based on business cases submitted through the Capital Priority Program • Focus on accommodation pressure, facility condition andlor facility utilization in conjunction with FDK funded projects • Includes purchase of sites for new schools • Allocations to be announced in the near future Full Day Kindergarten (FDK) • $450M allocated to date for accommodation needs for the first three years of FDK • Year 3 FDK allocation $7,822,515.00 • Additional allocation of $10,000.00 per funded FDK classroom for first time equipping and minor renovations 2011 May 31... 4 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET - cont'd. i. Special Education Manager Meeson outlined the Special Education revenues based on the per pupil amount. She also reviewed the High Needs Amount (HNA) and the Behaviour Expertise Amount (BEA) and Other. Special Education Per Pupil Amount (SEPPA) Effect of Declining Enrolment Elementary — JK to Grade 3 311,773 Elementary — Grades 4 to 8 (88,393) Secondary (322,061) (98,681) Effect of Benchmark Changes Elementary —JK to Grade 3 2,540,203 Elementary — Grades 4 to 8 2,622,008 Secondary 1,706,516 6,868,727 Net Increase to SEPPA 6,770,046 Special Equipment Amount (SEA) Per Pupil Amount - Effect of Declining Enrolment (11,392) Effect of Benchmarks Increase 711,479 Net Increase to SEA Per Pupil Amount 700,087 Note: On May 26, 2011 the per -pupil amount for SEA for 2010-11 was increased from $14.39 to $22.60 to relieve budget cost pressure in 2010-11. Special Equipment Amount (SEA) Claims Based $454, 961 Note: In 2011-12, an amount is to be budgeted for claim based revenues which offset by an equal amount in the expenses for these specific equipment purchases. Full -Day Kindergarten (FDK) Supervisor of Financial Support Services B. Hester described the Full -Day Kindergarten financial summary. He advised that the first half of the day for FDK is funded through the GSNs and the second half through EPO and indicated that FDK is maxing out on funding through the EPO grant. 2011 May 31... 5 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET - cont'd j. Full -Day Kindergarten (FDK) - cont'd He provided detailed information on the summary of revenues. • Staffing • School Operations • Other Support Staff and Materials • Special Education Supervisor Hester also reviewed the summary of expenses and noted that the estimated revenue is based upon the Board's Year 1 and 2 maximum funding allocation of 1,820 pupils. • Teacherexpenses • ECE expenses • Other expenses k. Educational Programs - Other (EPO'S) (Restricted Grants) • 2011:136 Funding In Addition to Grants for Student Needs • Funding of other education initiatives outside GSN's to advance student achievement ($1.9M) 1. Accounting Changes Public Sector Accounting Board (PSAB) Reserves (Formerly) • Accumulated Surplus (current and prior year surplus) or Deferred Revenue (external restriction) Tangible Capital Assets • Use reflected over useful life (amortization) as operating expense (2010-11) • Grants received to offset amortization recognized through deferred capital contributions DCC) • Effect of Board financed approved capital projects Vacation Liability • Recognition of 50% value of accrued vacation liability balance as of August 31, 2011 • Remaining 50% to be recognized in 2012-13 • Recognition of in -year change in calculation of accrued vacation liability m. Budget Approval • School boards still required to approve a balanced budget • In -year deficit permissible if accumulated surplus available • Use of accumulated surplus cannot exceed the lesser of. 1. Accumulated surplus for previous year 2. 1 % of Board's operating revenue Amounts exceeding this calculation requires approval of the Minister of Education prior to Board approval. Senior Administration's approach for the 2011-12 budget development was to minimize the use of accumulated surplus as this solution is not sustainable long term. The 2011-12 preliminary budget as presented does not exceed either of the amounts and does not require approval from the Ministry. n. Preliminary Surplusi(Deficit) (000's) Included in Budget Detail • Operating (2,413) 0 FDK (933) 2011 May 31...6 a 4. PRESENTATION OF THE 2011-12 PRELIMINARY BUDGET - cont'd n. Preliminary Surplusl(Deficit) (0001s) - cont'd Not Included in Budget Detail • Vacation Accrual (1,696) • Estimated Amortization (Capital) (1,000) o. Total Preliminary Deficit (6,042) Potential Solution (000's) Balance Comment Mercer Balance 2,000 Required to maintain a minimum Projected Operating Efficiencies 2010-11 2,000 Estimated, depends on current operating results Review of Internally Appropriated Balances 1,500 Depends on current and future budget requirements p. Important Dates June 07 - Public Input June 21 -.Finalize Budget June 28 - Budget Approval June 30 - Ministry of Education Submission The Administration responded to Trustees' questions. Trustee Roberts questioned the Director as to _- whether the preliminary budget would generate layoffs within the system. Director Tucker confirmed that none were anticipated for 2011-12. Trustee Bennett indicated that she would like more information on system initiatives. Trustee Roberts expressed his appreciation for the amount of interest in the preliminary budget and 'looked forward to receiving public input at the next meeting on 2011 June 07. 5. ADJOURNMENT The meeting adjourned at 9:26 p.m. on motion of R. Tisdale, seconded by P. Jaffe. Confirmed: Chairpers