2008-09 BUDGET

1. 2008-09 BUDGET REVENUE PROJECTIONS May 6, 2008 Presented by: J. A. Sabo, Associate Director - Leading Services & Treasurer of the Board

2. OBJECTIVE • To present a review of the 2008-09 Preliminary Revenue Module dated May 6, 2008 • To discuss future potential revenue “adjustments”

3. 2008-09 REVENUE PROJECTIONS • REVIEW – to include • Support Material • Highlights of 2008-09 Grant Changes • Process to develop revenue estimates • Revenue Summary • Areas of concern and pressure points • Potential adjustments to revenue projections • Next Steps

4. 2008-09 REVENUE PROJECTIONS

5. Revenue Summaryas per May 6, 2008 Module

6. Miscellaneous Grants • For 2008-09 the Ministry has incorporated the following grants into the Grants for Student Needs: • Safe Schools Supplement $ 797,074 • New Teacher Induction Program 420,000 • Total 1,217,074 • These grants were previously reported as part of the Miscellaneous Grants report and accounted for separately, outside of the general operating budget.

7. Grants for Student Needs (GSN) 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.

8. Grants for Student Needs (GSN)

9. SUPPORT MATERIAL • MINISTRY OF EDUCATION Data/Memoranda • Distributed at the April 15th, 2008 Board Meeting • Ministry of Education Letter, March 25, 2008 • Ministry Memorandum 2008 B2: Education Funding for 2008-09 • 2008-09 Grants for Student Needs – Overview • Projected School Board Funding for 2008-09 (42) York Catholic DSB • 2008-09 DRAFT Revenue Projections- GSN Analysis Report • 2008-09 GSN Preliminary Projections compared to 2007-08 Revised Estimates • 2008-09 GSN Preliminary Projections with/without growth • Comparison of Ministry projections to Board preliminary projections.

10. REVENUE MODULE SUPPORT MATERIAL • Introduction, notes and Revenue Summaries(pink) • Revenue Estimates Module (green) • Detailed Revenue Summaries • Detailed Grant Calculations • Other Revenues, Adult/Con Ed, Transfers from Reserves

11. Grants for Student Needs (GSN) • HIGHLIGHTS OF GRANT CHANGES • Grants for Student Needs (GSN) DO NOT include funding to support new collective agreements. • Reallocation of existing Miscellaneous Grants into the GSN • Safe Schools Supplement • New Teachers Induction Program

12. Grants for Student Needs (GSN) • HIGHLIGHTS OF GRANT CHANGES (cont’d) • Benchmark for Utilities increased by 1% • 1% for non-salary benchmarks to assist boards with textbooks, learning materials, classroom supplies, computers and school office supplies. • Student Transportation Grant: includes 3.5% increase to support costs of transportation.

13. Grants for Student Needs (GSN) • HIGHLIGHTS OF GRANT CHANGES(cont’d) • CAPITAL • Growth school grant criteria extended to planned schools for 2008-09, 2009-10, 2010-11, 2011-12. • Details for GPL 3 for 2007-08 was announced separately and intended to support facility renewal needs. • GPL4 expected for 2008-09, but in total one half of GPL3 or $250 million provincially.

14. Grants for Student Needs (GSN) • HIGHLIGHTS OF GRANT CHANGES • The policy changes for the 2008-09 Grants for Student Needs were announced March 25, 2008 • The reporting deadlines for submission of the Board’s financial reports are as follows: • 2008-09 Estimates June 30, 2008 • 2007-08 Financial Statements November 14, 2008 • 2008-09 Revised Estimates December 12, 2008 • Sept 1, 2008 to Mar 31, 2009 May 15, 2009

15. Grants for Student Needs (GSN) • HIGHLIGHTS OF GRANT CHANGES • Grants Outside the GSN • “…the government continues to support other important initiatives with $ 270M in investments outside the GSN,……Further information about funding outside the GSN will be provided in the near future.” • NOTE: A $1.0 million “placeholder” has been included in the Preliminary Revenue Estimates

16. DEVELOPMENT OF REVENUE PROJECTIONS SOURCES 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 Amount subject to budget balancing exercise.

17. DEVELOPMENT OF REVENUE PROJECTIONS • DETERMINE ESTIMATED ENROLMENT PROJECTIONS • Planning Dept. 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)

18. Enrolment Impact re: Revenue vs. Expenditures OBJECTIVE is to: PLAN forProjections BUT COMMITTO Actuals

20. Revenue Summary

21. Revenue Summary OPERATING REVENUE

22. GRANTS FOR STUDENT NEEDS • Represents the calculated grant estimates based on projected enrolments for 2008-09 • Grant data is based on the March 25, 2008 Ministry announcements • Note: Any new information received after March 25, 2008 will impact revenue calculations.

24. OTHER 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 for 2008-09 • budget estimates include $ 1,000,000

25. 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 $ 1.0 million is included in the Revenue projection.

26. OTHER REVENUE Other revenue includes: • Tuition fees • (visa students) • Rental • Community Use • Child care centers • Other Miscellaneous • Transportation recoveries (Admin./PPU) • Interest Revenue • Other

27. Tuition Fee Revenue up slightly based on fee increase . Other income is based on same levels as 2007-08.

28. ADULT AND CONTINUING EDUCATION Estimates are as submitted by the Continuing Education department. • Include grant programs and non-grant programs • Revenue module contains re-sorting based on organization of GSN grant calculations and con-ed revenue groupings • Some revenues in Con Ed module are included under GSN revenue in the Revenue Module.

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

30. INCREMENTAL EXPENDITURES VS. INCREMENTAL REVENUES • Examples of programs requiring additional expenditures not fully covered by new grants: • Alt Ed (Alternative Education Program Costs) • Specialized Teacher Allocation • Program Resource Teachers • Reading Recovery Teachers • Special Education (e.g. CODE, OPA)

31. ALTERNATIVE EDUCATION • NEW programs over last four years. • Previously included as part of Regular Day School • Expenditures included as regular day program costs • NEW Expenditures • Salaries • Supplies • Rent/Lease for alternate spaces

32. TRANSFERS 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

33. 2008-09 Operating Budget

34. RESERVE POSITION • Balance as at August 31, 2007 $ 6,625,168 • Less protected 1,533,748 • Available amount $ 5,091,420 • Available amount will be required to fund: • Year-end 2007-08 TBD • Budget 2008-09 TBD • Estimated net amount available (subject to year-end) will approximate $4.6 million for 2007-08

35. RESERVES

37. Accumulated Deficit History 1988–2004 Projected 2004-2008 (INCLUDING USE OF RESERVES re 2003-2008) • Amounts reflect Audited Financial Statement figures 1988 - 2007. ( 1992 is net of Undue Burden Grant) • 2007-08 based on estimated financial position. • The Accumulated deficit was eliminated in the year ending August 31, 1998. • Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August 31

38. Accumulated Deficit History 1988–2004/Projected 2004-2008 (EXCLUDING USE OF RESERVES re 2003-2008) 2003-08 accumulated deficit (excluding reserve drawdown) • Amounts reflect Audited Financial Statement figures 1988 - 2007. ( 1992 is net of Undue Burden Grant) • 2007-08 Based on Projected Year-end transfer of $4.6 M from Reserves • The Accumulated deficit was eliminated in the year ending August 31, 1998. • Commencing Sept 1, 1998 the fiscal year changed from Sept 1 to August 31 • 2003-2007 reflects amounts drawn from reserves each year.

39. CONCERNS 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)

40. 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 • There are no additional funds to pay for ANY proposed increased level of service • Attaining a “York Catholic Solution”

41. AREAS OF POTENTIAL REVENUE ADJUSTMENTS • Provision of additional enrolment projections without additional staffing requirements • Other miscellaneous placeholders • Other miscellaneous grants i.e. MISA • Q & E adjustments • Increased expectations of additional grants? • Use of Capital/Non-operating revenues?

42. NEXT STEPS • Budget review/presentations – May & June • Internal Staff Review • Board Review • Public Input/Budget Review • Scheduled meetings May 6, 2008 & May 27, 2008 • Final budget review/presentation (including finalized Revenue projections) • targeted for June 17, 2008 • Final budget approval ? (tbd by Executive)

43. QUESTIONS re Revenue Projections