ALLOCATION OF RESOURCES 2009-10 BUDGET 2009-10 REVENUE PROJECTIONS May 5, 2009 Presented by: J. A. Sabo, Associate Director - Leading Services & Treasurer.

ALLOCATION OF RESOURCESALLOCATION OF RESOURCES2009-10 BUDGET2009-10 BUDGET

2009-102009-10REVENUE PROJECTIONSREVENUE PROJECTIONS

May 5, 2009

Presented by:J. A. Sabo, Associate Director - Leading Services & Treasurer of the Board

Presented by:J. A. Sabo, Associate Director - Leading Services & Treasurer of the Board

OBJECTIVEOBJECTIVETo present a review of the 2009-10 Preliminary Revenue Module dated May 5, 2009

2009-10 REVENUE PROJECTIONS2009-10 REVENUE PROJECTIONS

2009-10 REVENUE PROJECTIONS2009-10 REVENUE PROJECTIONS

REVIEW – to includeREVIEW – to include• Support Material

• Highlights of 2009-10 Grant Changes

• Process to develop revenue estimates

• Revenue Summary

• Areas of concern and pressure points

• Potential adjustments to revenue projections

• Next Steps

OPERATING REVENUE SUMMARYOPERATING REVENUE SUMMARY

2008-09 Revised Estimates

2009-10 Preliminary

Revenue

Increase (Decrease)

$ %

Grants for Student Needs $ 451,265,313 $ 469,486,798 $ 18,221,485 4.04

Other Grants 1,000,000 500,000 (500,000) -50.0

Other Revenue 4,845,436 4,313,000 (532,436) -10.99

Continuing Education 3,940,700 3,997,264 56,564 1.44

TOTAL (Excluding Transfers from Reserves)

$ 461,051,449 $ 478,297,062$

17,245,6133.74%

Transfer from Reserves 3,391,132 tbd (3,391,132)

TOTAL (Including Transfers from Reserves)

$ 464,442,581 $ 478,297,062 $ 13,854,481 2.98%

2009-10 REVENUE PROJECTIONS2009-10 REVENUE PROJECTIONS

Revenue SummaryRevenue Summaryas per May 5, 2009 Moduleas per May 5, 2009 Module

Operating Revenue Projections (millions) %

Provincial Grants $ 469.49 98.16

Other Grants .50 .10

Other Revenue 4.31 .90

Continuing Education-other 4.00 .84

TOTAL $ 478.3 100.00

PLUS: Transfer from Reserves ? ?

TOTAL ?? ??

2009-10 REVENUE PROJECTIONS2009-10 REVENUE PROJECTIONS

REVENUE MODULEREVENUE MODULE• 47 pages

• Intended to “drill-down” on all sources of revenue available to the board for 2009-10 (Operating as well as Non-operating)

• Provides details of key assumptions e.g. enrolment and other grant drivers

• References all grant announcements to date

2009-10 REVENUE PROJECTIONS2009-10 REVENUE PROJECTIONS

Grants for Student Needs (GSN)

Analysis of Increase/Decrease

• Details of “adjustments” outlined in 2009:B2 memo March 27, 2009

• Adjustments are comprised of both increases (Enhancements) and decreases (Constraints)

• Majority of Enhancements are in support of previously announced PFA’s

• Constraints (decrease in grants) are a new approach for 2009-10 and are estimated at approximately $ 2.5 million

• Decreases in grants are “buried” within various grant categories

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

ANALYSIS OF GRANT CHANGE-OperatingANALYSIS OF GRANT CHANGE-Operating2008-09 Revised Estimates vs. 2009-10 Projections2008-09 Revised Estimates vs. 2009-10 Projections

Total Increase $ 18,221,485 4.04%

Resulting from: (estimated)

Enhancements (PFA & Other misc) $ 15,685,473 3.48%

Constraints (2,466,000) (0.55)%

Net Funding increases (before growth) $ 13,219,473 2.93%

Growth increase 5,002,012 1.11%

$ 18,221,485 4.04%

Grant increase amount is equivalent to new grants calculated without enrolment growth. Enrolment growth amount represents grants resulting from increased enrolments. Amount is “estimated” as the grants are subject to teachers qualification and experience grant/placement changes etc.

SUPPORT MATERIALSUPPORT MATERIAL

MINISTRY OF EDUCATION Data/Memoranda MINISTRY OF EDUCATION Data/Memoranda •Distributed at the March 31, 2009 Board Meeting (and included in Allocation of Resources binder)

o Report to Board March 31, 2009: Grants for Student Needs 2009-10

o Highlights of the 2009-10 Grants for Student Needs March 26, 2009

o Kathleen Wynne letter to Education Partners March 26, 2009

o Details of 2009-10 Enhancements – Provincial Totals

oMinistry 2009:B2 Memorandum to Directors/Secretary Treasurers March 27, 2009

oProjected School Board Funding York Catholic District School Board (42)

oProjected School Board Funding Provincial

SUPPORT MATERIALSUPPORT MATERIAL

MINISTRY OF EDUCATION Data/Memoranda –MINISTRY OF EDUCATION Data/Memoranda –cont’dcont’d

• Distributed with Allocation of Resources binder

•2009:B3 2009 Funding in addition to Grants for Student Needs

•2009:B4 Education funding regulations for 2009-10

•2009:B5 Energy Efficient Schools Funding

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGESHIGHLIGHTS OF GRANT CHANGES

Grants for Student Needs (GSN) includes funding towards the costs of implementing new collective agreements as per the Provincial Framework

Highlights including: 3% increases to salary benchmarks

Elementary supervision

Secondary programming

Professional learning for Elementary teachers

Additional preparation time/specialist teachers elementary

Grades 4 – 8 additional staffing

Note: as per Ministry B4 memorandum “ a board must fulfill the conditions of the PFAs to benefit from the enhancements described in the PFAs”

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGESHIGHLIGHTS OF GRANT CHANGES (cont’d)(cont’d)

2% to non-salary components of the School Operations grant for energy and other costs

Funding Special Education High Needs Amount at 95% PLUS a new Measure of Variability (MOV)

School Renewal

20% Constraint has been REMOVED

Audit Capacity (marginal $$’s yet to be determined)

GSN will include a component “…to help establish audit committees and internal audit functions”

“Boards will be encouraged to establish audit committees with external representation”

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGES (cont’d)HIGHLIGHTS OF GRANT CHANGES (cont’d)

CONSTRAINT MEASURES $ 2.46 million decrease

Pupil Foundation Grant

Textbooks funding reduced $ 700,000

Classroom computers funding reduced $ 700,000

Staff Development funding eliminated $ 600,000

Student Transportation – 1% route reductions targeted $ 166,000

Special Education and Learning Opportunities (staff development component) $ 300,000

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGES (cont’d)HIGHLIGHTS OF GRANT CHANGES (cont’d)

FUTURE CONSTRAINT MEASURES 2010-11

Student Transportation

50% factor applied to growth

School Operations & Renewal Top-up

[2010/11 -2%] [2011/12 – 5%]

Excludes new schools for first five years

Board Administration 1%

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGES (cont’d)HIGHLIGHTS OF GRANT CHANGES (cont’d)

Grants OUTSIDE the GSNGrants OUTSIDE the GSN

• The Ministry has indicated that it will “sustain its supports to priority initiatives” and will continue support in 2009-10 outside of the Grants for Student Needs.

For further details, “Memorandum 2009:B3 2009-10 Funding in Addition to Grants for Student Needs” is attached.

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

HIGHLIGHTS OF GRANT CHANGESHIGHLIGHTS OF GRANT CHANGES (cont’d)(cont’d)

CAPITALCAPITAL

New Energy Efficient Schools Funding Announcement (2009:B5 Memorandum)

No other known changes at this time (other than communicated re NPP/Growth Schools etc.)

Grants for Student Needs (GSN)Grants for Student Needs (GSN)

REPORTING AND ACCOUNTABILITYREPORTING AND ACCOUNTABILITY

• The reporting deadlines for submission of the Board’s financial reports are as follows:

• 2009-10 Estimates

June 30, 2009

• 2008-09 Financial Statements

November 13, 2009

• 2009-10 Revised Estimates

December 15, 2009

• Sept 1, 2009 to Mar 31, 2010

May 15, 2010

DEVELOPMENT OF REVENUE PROJECTIONSDEVELOPMENT OF REVENUE PROJECTIONS

SOURCES OF REVENUESOURCES OF REVENUE

•Grants for Student Needs (G.S.N.’s)•Grant calculations according to new 2008-09 funding

•Other Income•Tuition Fee Revenues (visa students)•Community Use and Accommodation Rental

•Continuing Education •Grant programs•Non-grant programs

•Transfers from Reserves •Board established•Ministry required

DEVELOPMENT OF REVENUE PROJECTIONSDEVELOPMENT OF REVENUE PROJECTIONS

•DETERMINE ESTIMATED ENROLMENT PROJECTIONS

• Planning Department Information• Human Resources/S.O.’s Principals

•ESTIMATE GRANTS FOR STUDENT NEEDS (GSN)• Growth (increased enrolments)• Increased funding• New Funding• “Restricted/Linked” funding

•ESTIMATE OTHER REVENUES (non-grant)

Enrolment Impact

re: Revenue vs. Expenditures

PLAN for Projections

BUT

COMMIT TO Actuals

OBJECTIVE is to:

ENROLMENT PROJECTIONSENROLMENT PROJECTIONS

2008-09 Revised Estimates

2009-10 Projections

Increase (Decrease) %

ELEMENTARY

Students of the Board 34,376.79 34,330.31 -46.48 -.13%

Visa 56.00 56.00

TOTAL ELEMENTARY 34,432.79 34,386.31 -46.48 -.13%

SECONDARY

Students of the Board 17,419.02 17,848.19 429.17 2.46%

Visa 70.00 70.00

TOTAL SECONDARY 17,489.02 17,918.19 429.17 2.45%

TOTAL 51,921.81 52,304.50 382.69 .74%

Revenue SummaryRevenue Summaryas per May 5, 2009 Moduleas per May 5, 2009 Module

Operating Revenue Projections (millions) %

Provincial Grants $ 469.49 98.16

Other Grants .50 .10

Other Revenue 4.31 .90

Continuing Education-other 4.00 .84

TOTAL $ 478.3 100.00

PLUS: Transfer from Reserves ? ?

TOTAL ?? ??

98.16%

0.84%

0.90%

0.10%

Prov Grants Other Grants Other Revenue Con Ed Other

98.16%

0.84%

0.90%

0.10%

Prov Grants Other Grants Other Revenue Con Ed Other

OPERATING REVENUEOPERATING REVENUE

Revenue SummaryRevenue Summary

GRANTS FOR STUDENT NEEDSGRANTS FOR STUDENT NEEDS

– Represents the calculated grant estimates based on projected enrolments for 2009-10

– Grant data is based on the March 27, 2009 Ministry announcements

Note: Any new information received after March 27, 2009 will impact revenue calculations.

GRANTS FOR STUDENT NEEDSGRANTS FOR STUDENT NEEDS

2008-09 Revised Estimates

2009-10 Preliminary Revenue

Increase (Decrease)

$ %

Pupil Foundation $233,513,914 242,531,060 $ 9,017,146 3.86

School Foundation 30,702,780 32,501,403 1,798,623 5.86

Primary Class Size 11,756,368 12,297,973 541,605 4.61

Languages (ESL & FSL) 8,894,973 9,043,026 148,053 1.66

Special Education 56,732,457 58,883,300 2,150,842 3.79

Program Enhancement 936,050 955,350 19,300 2.06

Learning Opportunities 6,585,692 6,630,991 45,229 .69Admin & Governance 13,076,538 13,497,067 420,529 3.22

Qualifications & Experience 22,192,198 23,019,697 827,499 3.73

Transportation 16,486,293 16,435,369 (50,924) (.31)

School Operations 44,800,698 47,832,852 3,032,154 6.77

Safe Schools Supplement 797,803 829,012 31,209 3.91

New Teachers Induction 380,000 435,128 55,128 14.51

Metis, First Nation, Inuit 45,745 47,465 1,720 3.76

Community Use 785,954 691,339 (94,615) (12.04)

TOTAL $ 447,687,463 $ 465,631,032 $ 17,943,569 4.01

Continuing Education Grant 3,577,850 3,855,766 277,916 7.77

TOTAL $ 451,265,313 $ 469,486,798 $ 18,221,485 4.04

OTHER GRANTSOTHER GRANTS

Other grants are outside of the Grants for Student Needs (GSN)

Typically one-time and based on a specific program initiative

Not intended as “budget balancing” funds

Ministry has yet to release all anticipated grants for 2009-10

Miscellaneous GrantsMiscellaneous Grants• For 2009-10 the Ministry has made the following changes

to the Grants for Student Needs

• Transferred INTO the GSN

• Parent Engagement Grant

• Transferred OUT of the GSN

• Outreach Coordinator (Community Use)

• The Ministry has indicated that it will “…sustain its support to priority initiatives” and will continue to support in 2009-10 outside of the Grants for Student Needs. (refer Memo 2009:B3 2009-10 Funding in Addition to Grants for Student Needs).

OTHER GRANTSOTHER GRANTS2008-09 Revised

Estimates

2009-10 Revenue

Projections

Increase (Decrease)

$ %

Other Grants expected to be distributed

$ 1,000,000 $ 500,000 (500,000) (50.0)

TOTAL $ 1,000,000 $ 500,000 ($ 500,000) (50.0)

Other grants are outside of the GSN, non-recurring, and NOT intended for funding regular on-going operating expenditures. Other grants are normally targeted to specific program initiatives with a pre-determined time frame. For preliminary planning purposes $ .5 million is included in the Revenue projection at this time.

OTHER REVENUEOTHER REVENUE

Other revenue includes:

o Tuition fees

(visa students)

o Rental

Community Use

Child care centers

o Other Miscellaneous

Transportation recoveries (Admin./PPU)

Interest Revenue

Other

OTHER REVENUEOTHER REVENUE2008-09 Revised

Estimates

2009-10 Revenue

Projections

Increase (Decrease)

$ %

Tuition Fee Revenue $ 1,556,800 $ 1,582,000 $ 25,200 1.62

Rental & Other Income 3,288,636 2,731,000 (557,636) (16.96)

TOTAL $ 4,845,436 $ 4,313,000 ($ 532,436) (10.99)

Tuition Fee Revenue up slightly based on fee increase . Other income is based on latest information available or level similar to 2009-10

ADULT AND CONTINUING EDUCATIONADULT AND CONTINUING EDUCATION

Estimates are as submitted by the Continuing Education department.

Include grant programs (included under GSN) and non-grant programs

Revenue module contains re-sorting based on organization of GSN grant calculations and con-ed revenue groupings

ADULT AND CONTINUING EDUCATIONADULT AND CONTINUING EDUCATION2008-09 Revised

Estimates

2009-10 Revenue

Projection

Increase (Decrease)

$ %

Grant Programs $ 3,577,850 $ 3,855,766 $277,916 7.77

Non-grant Programs 3,940,700 3,997,264 56,564 1.44

TOTAL $ 7,518,550 $ 7,853,030 $ 334,480 4.45

Adult and Con Ed projections are based on data as provided by the Continuing Education department.

INCREMENTAL EXPENDITURES VS. INCREMENTAL EXPENDITURES VS. INCREMENTAL REVENUESINCREMENTAL REVENUES

Examples of programs requiring additional expenditures not currently fully covered by new grants:

• Alt Ed (Alternative Education Program Costs)

• Specialized Teacher Allocation

• Program Resource Teachers/Consultants

• Reading Recovery Teachers

• Special Education (e.g. CODE)

• MISA (Managing Information for Student Achievement) Staffing Allocations

TRANSFERS FROM RESERVESTRANSFERS FROM RESERVES

Preliminary Revenue Estimates EXCLUDE any provision for Transfers from Reserves

Dependent upon Budget Balancing Process

Further Revenue updates will include Transfers from Reserves as required

2008-09 Operating Budget2008-09 Operating BudgetRESERVE POSTION as at August 31, 2008RESERVE POSTION as at August 31, 2008

Worker’s Safety Insurance Board $ 1,666,303

Employee Benefits Rate Stabilization 537,288

Information Technology Initiatives 195,272

Retirement Gratuities 1,801,133

Transportation 323,570

Total “Unprotected” $ 4,523,566

Alternate Accommodation Reserve $ 906,829

G.S.B. 800,776

School Council Reserve 77,171

Scholarship Reserve 10,492

Total “Protected” $ 1,795,268

TOTAL $ 6,318,834

RESERVE POSITIONRESERVE POSITION Balance as at August 31, 2008 $ 6,318,834

–Less protected 1,795,268

–Available amount $ 4,523,566

Available amount will be required to fund:

– Year-end 2008-09 as per Revised Estimates $ 3.39 million

– Budget 2009-10 TBD

CONCERNS AND PRESSURE POINTSCONCERNS AND PRESSURE POINTS

• Legislative requirement under section 231 of the Education Act for boards to submit a BALANCED budget

• Section 286: Directors of Education and other supervisory officers are responsible to the Minister of Education for the performance of their duties in accordance with the ACT and the regulations

• Other school boards are at various levels of financial “health” (surplus and deficit)

• Ministry has and will continue to intervene in the management of school board financial affairs if deemed necessary

CONCERNS AND PRESSURE POINTS (cont’d)CONCERNS AND PRESSURE POINTS (cont’d)

• Projected expenditures are expected to exceed projected revenues

• One-time funding cannot sustain permanent staffing

• As previously mentioned, use of reserves to balance the budget is not sustainable (Unless permanent expenditure reductions are made or permanent new revenue is generated)

• GSN’s did not provide significant additional dollars; in fact for 2009-10 they have made REDUCTIONS

• Achieving a “York Catholic Solution”

NEXT STEPSNEXT STEPS

•Budget review/presentations – May & June

• Internal Staff Review

• Board Review

• Public Input/Budget Review

• Scheduled meetings May 26, 2009 & June 16, 2009

• Final budget review/presentation (including finalized Revenue projections)

• targeted for June 16, 2009

• Final budget approval June 30, 2009

QUESTIONS re Revenue Projections