2011-2012 Budget Overview COSC. Agenda Current Situation Provincial Government Budget Overview Budget Process Budget Assumptions.

2011-2012 Budget OverviewCOSC

Agenda

Current SituationProvincial Government Budget OverviewBudget ProcessBudget Assumptions

Current Situation

Reserve to Expense ratio

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

2006-07 2007-08 2008-09 2009-10 Projected 10-11

Rese

rves

To

Expe

nse R

atio

School Year

EIPSAvg of all Jurisdictions

Days of Operation

0.00

5.00

10.00

15.00

20.00

25.00

2007-08 2008-09 2009-10 Projected 2010-11

Res

erve

Day

s of

Ope

ratio

n R

atio

School Year

EIPSAvg of all Jurisdictions

Provincial Budget Highlights

• Basic grant funding increase of 4.4%– 4.4% is AB Ed anticipated increase in teachers’

salaries; currently AAWE is at 4.56%• Class size funding for grades 4-6 has been

eliminated• Relative Cost of Purchasing reduced 50% and

eliminated in 2012/13• Stabilization Funding reduced 50% and

eliminated in 2012/13• Alberta Initiative for School Improvement

reduced 50%

• Innovative Classroom Technology grant completed and not renewed

• CTS Evergreening grant completed and not renewed

• Growth and Decline funding eliminated• Intra-Jurisdiction Distance funding eliminated• Enhanced ESL funding eliminated• Remaining funding allocations remain

unchanged (PO&M, IMR, Severe Disability, etc.)

(Assumes static enrolment)Alberta Education Revenue 2010/2011 2011/2012 Change % ChangeECS-Grade 12 Basic Instruction Grant 98,000,800 102,312,835 4,312,035 4.4%Class Size Funding: ECS 870,504 908,806 38,302 4.4% Grades 1-3 4,690,705 4,897,096 206,391 4.4% Grades 4-6 970,224 - (970,224) -100.0% Tier 2 15,698 16,389 691 4.4% Tier 3 479,971 501,090 21,119 4.4% Sub-total Class Size Funding 7,027,102 6,323,381 (703,721) -10.0%

Relative Cost of Purchasing (RCPA) 1,291,753 645,877 (645,877) -50.0%Stabilization Funding 1,174,280 587,140 (587,140) -50.0%Growth & Decline 71,982 - (71,982) -100.0%Intra-Jurisdiction Distances 99,511 - (99,511) -100.0%Enhanced ESL 51,510 - (51,510) -100.0%Severe Disabilities 7,787,945 7,787,945 - 0.0%Alberta Initiative for School Improvement (AISI) 2,202,450 1,101,225 (1,101,225) -50.0%Student Health Initiative (SHIP) 282,701 282,701 - 0.0%Complex Needs 105,288 105,288 - 0.0%Transportation 8,891,804 8,891,804 - 0.0%Plant Operations & Maintenance 12,911,701 12,911,701 - 0.0%Infrastructure Maintenance Renewal (IMR) 2,958,721 2,958,721 - 0.0%Innovative Classroom Technology 548,229 - (548,229) -100.0%CTS Evergreening Enhancement 309,945 - (309,945) -100.0%Total Revenue Change 143,715,722 143,908,617 192,895 0.1%

Impact on EIPS

• Revenue is unchanged from 2010/11• Salaries and benefits are expected to increase

approximately 4.2%• EIPS has used reserves to mitigate the impact

of very challenging education budgets for the last few years

Impact on EIPS

• The use of reserves is not sustainable• There is a $1,871,000 shortfall in

unsustainable reserve spending

Budget Shortfall

Estimated Increase in Salaries & Benefits: (Assumes current staffing levels)2010/2011 2011/2012 Change % Change

Certificated Salaries 82,391,603 86,016,834 3,625,231 4.4%Certificated Benefits 9,064,699 9,245,993 181,294 2.0%Classified Salaries 25,686,285 26,816,482 1,130,197 4.4%Classified Benefits 6,502,537 6,697,613 195,076 3.0%Total Salaries & Benefits Cost (est.) 123,645,124 128,776,921 5,131,797 4.2%

Total Reserve shortfall (unsustainable reserve allocation from previous yr) 1,870,682

Total Shortfall 7,002,479

Total Incremental Revenue 2011/12 192,895

Net Shortfall (6,809,584) -3.9%

EIPS Budget Principles

• Equitable distribution of funds• Budget aligned with the strategic priorities

established by the Board• Transparent allocations

Budget Process

• Board strategic priorities established September

• AB ED funding overview (February/March)• Financial Projections (February/March)• Budget Assumptions(February/March)• Draft budget (February/March)• Detailed budget review – mid May• Budget presentation – late May

Budget Assumptions

Budget Assumptions

• Student transportation, Plant Operations & Maintenance funding will be spent in the respective areas

• Enrolment is estimated to be 16,386 (increase of 30 students or .2%)

• Classified staff receive the same percentage increase as certificated staff for salary

• Trustee remuneration will increase by the AAWE as per past practice

• AISI program reduced to match funding

Budget Assumptions

• Maintain current reserve levels of 1.8% (discretionary reserve only)

• Standard cost of $98,000– Increase of 5.1%– Increase due to salary increases, benefit increases

and grid movements

• Classified standard cost increases range from 3.22% - 7.34% depending on staff mix– Average increase is 5.15%

Budget Assumptions

• Alberta Average Weekly Earnings is currently at 4.56%, while Alberta Education has provided an increase of 4.4%. The budget assumes Alberta Education will fund the actual AAWE once it is finalized.