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Public Information Meeting March 3, 2016
2016-17 Budget - Information Meeting Agenda
Agenda – Welcome & Introductions – Strategic Plan
• Creating Alignment • Measuring Success
– The Budget & Financial Picture • Current Year Budget and Financial Position • How we Compare • Outlook for 2016-17
– Questions
Mission
Vision
Strategic Themes
Operational Plans
School Plans
Measures and Targets
Strategic Initiatives/Actions
High Altitude District/Board Level
Ground Level Classroom Level
2016-17 Budget - Information Meeting Strategic Plan
Board of Education’s Role Administration’s Role Set Goals (Strategic Plan) Develop a budget that aligns with
Strategic Plan and Board Goals
Obtain community feedback Provide information to Board and community
Monitor budget process and approve budget
Develop budget process and provide information as required
Ensure high quality planning Develop long-term and sustainable plans
2016-17 Budget - Information Meeting Strategic Plan
2016-17 Budget - Information Meeting Strategic Plan
Abbotsford Board of Education Strategic Plan 2014-2018
Aligning Budget & Strategic Plan
Budget Planning & Development
School Plans + Operational Plans
Strategic Plan
Student Success
Progressive Workforce
Optimized Resources
Engaging Opportunities
2016-17 Budget - Information Meeting Strategic Plan
40
50
60
70
80
90
100
2009/10 2010/11 2011/12 2012/13 2014/15
Grade 3 Reading Proficiency
2016-17 Budget - Information Meeting Our Results
76
78
80
82
84
86
88
90
92
2010-11 2011-12 2012-13 2013-14 2014-15
Perc
enta
ge
Six-Year Graduation & Completion Rates
Abbotsford Province
2016-17 Budget - Information Meeting Our Results
20
30
40
50
60
70
80
2009/10 2010/11 2011/12 2012/13 2013/14
Post-Secondary Transition
Abbotsford Provincial Avg Fraser Valley
2016-17 Budget - Information Meeting Our Results
Evaluation Planning
Preparation
Approval
Implementation
January – March •Budget Estimates & Forecasting
March - May •Staffing Estimates •Program/Service Review •Operating Budget Estimates •Approval – by June 30th
•School Budget Allocations •Distribution of Information
•Financial Statements •Budget Analysis
By February 15th •Enrolment projections
March 11 Funding Announcement
Budget Planning Cycle
2016-17 Budget - Information Meeting Planning Cycle
($millions) 2015-16 Budget
Total Revenue 169.4
Total Expenditures 173.9
Surplus (Deficit) for Year (4.5)
Accumulated Surplus, Beginning of Year 12.1 Distribution of School Budget Carry-Fwds (0.4)
Planned Use of Surplus for Strategic Initiatives (1.5)
Operating Deficit 2015-16 (2.6)
Accumulated Surplus, End of Year 7.6
2016-17 Budget - Information Meeting Current Year Budget (2015-16)
Provincial Grants 95.7%
Tuition 3.01%
Other Revenue 0.9%
Rentals & Leases 0.2%
Investment Income
0.2%
BUDGETED REVENUE 2015-16
2016-17 Budget - Information Meeting Current Year Budget (2015-16)
$169.4 M
School Operations
72%
Centralized Education &
Learning 16%
Facilities & Transportation
10%
Administrative Services
2%
School Operations Costs for direct instruction and all school-based services. (Principals, VPs, teachers and support staff, and school supplies & services)
Centralized Education & Learning Services Curriculum, student services, district special education, early learning, aboriginal education, careers, technology, international students.
Facilities & Transportation Custodial services, building maintenance, student transportation, capital planning, grounds, & IT services.
Administrative Services Board of Education, Strategic & District Planning, Finance, HR & Payroll, Purchasing
2016-17 Budget - Information Meeting Current Year Budget – Internal Allocations
$173.9 M
Total Accumulated Surplus (beginning of year) 12,106,598
Required in 2015-16 School Budget Carryovers 362,712
Strategic Initiatives 1,516,422
Unfunded Operating Deficit 2,599,133
Total Operating Deficit for Year 4,478,267
Total Accumulated Surplus (end of year) 7,628,331
2016-17 Budget - Information Meeting Accumulated Surplus
Board Supported Strategic Initiatives 2015-16 – Board funded StrongStart – After-School programs – Explozone – Rick Hansen science and business school – Middle Years Career Develop programming – Internal Pay-Equity support
– Total for 2015-16 = $1.5M – Planned for 2016-17= $1.0M
2016-17 Budget - Information Meeting Current Initiatives Funded from Surplus
0
2
4
6
8
10
12
14
16
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(est)
Mill
ions
Accumulated Surplus Balances (in millions)
2016-17 Budget - Information Meeting Accumulated Surplus
2016-17 Budget - Information Meeting Operating Reserves
Operating Reserves (Accumulated Surplus) – Reserves are a one-time funding source that cannot
sustain on-going services. – Reserves are necessary to cover unexpected and
unavoidable expenditures. – The Board should determine Net Accumulated Surpluses. – Ernst and Young: 2% to 3% of operating expenses.
– Target for Abbotsford SD - $3.5 M - $5.5 M – Estimated Balance at end of this year
• Unrestricted = $1.4 M • Internally restricted = $6.2 M
How do we compare to other similar sized school district’s & to the provincial averages?
2016-17 Budget - Information Meeting How we Compare
INSTRUCTION DISTRICT ADMIN O & M TRANSABBOTSFORD 84.4% 3.2% 10.5% 1.9%PROVINCE 82.7% 3.6% 11.7% 1.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Comparison of 2014-15 Spending in Abbotsford SD to Provincial Average
2016-17 Budget - Information Meeting How we Compare
Source: 2014-15 Audited Financial Statements
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Instruction Administration Operations &Maintenance
Transportation
Change in Spending over last 5 years
2016-17 Budget - Information Meeting How we Compare
Source: Audited Financial Statements
80.0%
81.0%
82.0%
83.0%
84.0%
85.0%
86.0%
87.0%
Instruction
2016-17 Budget - Information Meeting How we Compare
Source: 2014-15 Audited Financial Statements
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Operations & Maintenance
2016-17 Budget - Information Meeting How we Compare
Source: 2014-15 Audited Financial Statements
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
District Administration
2016-17 Budget - Information Meeting How we Compare
Source: 2014-15 Audited Financial Statements
How well have school districts managed the cost of administering the public education system?
– BC has the lowest per pupil district administration cost in Canada. (Statistics Canada)
– In 2013/14, BC spent 30% less on district administration per pupil than other provinces:
• BC - $306.95 per pupil • Alberta - $395.47 per pupil • Manitoba - $402.58 per pupil • Saskatchewan at $500.52 per pupil
2016-17 Budget - Information Meeting Administration Costs
Source: Review of the Administration Costs & Operating Reserves for BC Public Schools, December 2015
2016-17 Budget - Information Meeting Administration Costs - Comparisons
Douglas College 7.69% University of Victoria 3.55% Fraser Valley Health Authority 4.89% Okanagan College 5.11% Manitoba School Districts 3.49% Alberta School Districts 3.74%
District Administration Spending as a Percentage of Total Operational Spending
School District Average:
2014/15 3.19%
Source: Review of the Administration Costs & Operating Reserves for BC Public Schools, December 2015
• Provincial Budget for K-12 – $4.861B (Operating Grant Funding)
– $100M Learning Improvement Fund ($2M increase)
– Funding unionized wage increases $52M (includes $17M for ESD)
– Reduction of additional $25M (“administrative savings”) Note – With the decrease of $29M in 15-16 the total Administrative Savings grant reduction = $54M
– Net increase in funding of $27M – Provincial Budget Pressures
• General economic conditions • Healthcare costs
2016-17 Budget - Information Meeting Provincial Budget for Education
K-12 funding established in Provincial Budget ($4.861 billion)
A funding formula allocates these funds to Boards of Education.
Student base allocation plus supplementary grants. (Unique student needs, Enrolment Decline, Salary Differentials, Unique Geographic Factors, etc.)
Boards manage and allocate grants based on local priorities - STRATEGIC PLAN
2016-17 Budget - Information Meeting Provincial Budget for Education
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
480,000
500,000
520,000
540,000
560,000
580,000
600,000
Provincial Funding Compared to Enrolment
Funding Enrolment
2016-17 Budget - Information Meeting Provincial Budget for Education
Preparing for 2016-17
29
2016-17 Budget - Information Meeting Budget Pressures
Budget Principles – Commit to building a reasonable understanding of budget
information through ongoing communications. – Maintain a three year budget plan to ensure funding
sources support program initiatives. – Maintain surplus/reserve balances to respond to emergent
needs. – Maintain strong internal fiscal management policies.
2016-17 Budget - Information Meeting Budget Principles
Budget Objectives 2016-17 – Maintain support for strategic priorities. – Ensure reasonable use of accumulated surpluses for
• planned program spending • to limit current year spending reductions.
– Review discretionary program spending.
2016-17 Budget - Information Meeting Budget Objectives
STUDENT ENROLMENT The forecast of enrolment determines and influences
the financial estimates in the budget.
REVENUES Student Enrolment determines approximately 99% of all operating revenues. - Operating Grants - International Student Revenue
EXPENDITURES Enrolments influence the allocation of staff, school supplies and facility requirements.
2016-17 Budget - Information Meeting Enrolments
18,400
18,600
18,800
19,000
19,200
19,400
19,600
19,800
20,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Enrolment (FTE)
Forecast
2016-17 Budget - Information Meeting Enrolments
34
Budget Pressures Amount
Estimated Operating Deficit from 2015-16 ($4.5M)
Reduction in Operating Grant – Administrative Savings (Total of $1.80M in 16-17)
($0.8M)
Possible funding shift to re-establish $50M grant holdback ($1.75M)
Increase in Exempt Salaries (unfunded) ($0.45M)
Cost for NGN (Next Generation Network) ($0.55M)
Employee Benefit increases (MSP, EBP) ($0.05M)
Reduced Teacher Pension costs $1.0M
Total Estimated Budget Pressures ($7.1M)
2016-17 Budget - Information Meeting Budget Pressures
Addressing Budget Pressures • Potential revenue increases
– Facility Rentals – Other Fees – International student revenues
• Administrative services reductions • Reduced transportation services (Transportation Review underway)
• Re-evaluation of spending from accumulated surplus • Reductions in centralized departments & school allocations • Other discretionary spending reductions (supplies, services,
professional development, equipment, etc)
35
2016-17 Budget - Information Meeting Budget Pressures
Risks & Emerging Issues – Uncertain funding (changes/reductions) – Provincial economic conditions – Compensation challenges – Reduction in services provided to schools – Reduced discretionary spending – Implementation of new curriculum (IT v. 2.0)
2016-17 Budget - Information Meeting Risks
2016-17 Budget - Information Meeting Next Steps
Preliminary Budget estimates • March 8th Board Meeting • April 5th – Finance Committee • April 12th – Board Meeting • April 26th – Finance Committee • May 3rd – Board Meeting (Approval) • Presentations to ADTA, Teamsters, APVPA • Ongoing staff reviews
Finalize Student Enrolment Information
Estimate Operating Revenues (Grants, other)
Set Allocations to Schools and Departments (Estimates of staffing &operating costs)
Balance Operating Budget
2016-17 Budget - Information Meeting Next Steps
Questions?
What questions do you have? What additional information would you like?
For more information: www.sd34.bc.ca