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2008-09 OPERATING BUDGET PRELIMNARY OVERVIEW Presentation to Board February 5, 2008

2008-09 OPERATING BUDGET PRELIMNARY OVERVIEW Presentation to Board February 5, 2008 Presented by: J. A. Sabo, Associate Director, Leading Services & Treasurer of the Board. 2008-09 Operating Budget.

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2008-09 OPERATING BUDGET PRELIMNARY OVERVIEW Presentation to Board February 5, 2008

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  1. 2008-09 OPERATING BUDGET PRELIMNARY OVERVIEW Presentation to Board February 5, 2008 Presented by: J. A. Sabo, Associate Director, Leading Services & Treasurer of the Board

  2. 2008-09 Operating Budget “We are a Catholic Learning Community of collaborative partners, called to serve one another by being committed to and accountable for quality learning by all with Jesus as our inspiration” • we are re-allocating and accessing resources to achieve our student outcomes • Leveraged use of resources

  3. Serenity Prayer God grant me the serenity to accept the things I cannot change; courage to change the things I can;and wisdom to know the difference.

  4. York Catholic District School Board FRAMEWORK TO ACHIEVE OUR SHARED VISION

  5. Strategic Leadership

  6. 2008-09 Operating Budget • Leveraged use of resources • Continued and focused investment on becoming a Catholic Learning Community • Major priority is to allocate funds towards student achievement

  7. Financial Position Overview • Past, Current, Future • Prior Year 2006-2007 Audited Financial Results • Current Year 2007-2008 Revised Estimates • Estimated August 31, 2008 Reserve Position • Budget Development Process • Review of 2007-08 Development process • Three key “steps” • Labour Relations link (end of Provincial Labour Framework)

  8. Pressures, Challenges and Concerns • Ongoing annual concerns previously identified: examples • Benchmarks, sustainability, etc. • Transportation, Special Ed., I.T. etc. Refer to board correspondence to Ministry including OCSTA funding brief.

  9. Pressures, Challenges and Concerns (cont’d) • Capital related expenditures • Not-permanently Financed (NPF) • Good Places to Learn (GPL) • Primary Class Size (PCS) • Facility Renewal Program (FRP) • New Rules – (Approval Process/Silos) Note: Accounting for above related capital matters may have an impact on Operating under changing reporting rules/requirements.

  10. Proposed Timelines/Next Steps • April to June 2008 • Final Target: June 2008 • Trustee Input • Clarifications • Request(s) for information

  11. Financial Position Overview • Past……. influences • Current…..which influences • Future

  12. Financial Position Overview • Past • Financial Position at August 31, 2007 • Current • 2007 - 08 Budget • 2007 – 08 Revised Estimates • Future • 2008-09 Operating Budget

  13. Accumulated Deficit History 1988–2007 • Amounts reflect Audited Financial Statement figures 1988 - 2007. • 1992 is net of Undue Burden Grant • 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

  14. Guiding Fiscal Policies, Objectives & Directives • Pre 1998 • Reduce and eliminate deficit • Reduce and eliminate Mill Rate differential • Post 1998 • Position Board financially to “never” allow a deficit to knowingly reoccur • Position Board to take fullest advantage of any changes to the funding model • Develop and maintain reserve for working funds and other selected areas (e.g Retirement gratuities, WSIB, Technology) • Maintain current programs and services subject to above objectives and directives

  15. Guiding Strategies Financial/Budgeting • Maintenance of Strong Budgetary and Internal Audit Programs and Controls • Minimize Deferrals of Expenditures and the Multi-Year Financing of Current Year Expenditures • Regular Monitoring/Review • Budget/Audit Review Committee • Budget & Financial Reporting Services Unit • Effective Use of Technology • Revenues Recorded Only when Certain of Receipt

  16. PAST INPUT re: 2004-05 to 2007-08 Operating Budget Development • SUPPORTIVE OF STABILITY OBJECTIVES • (e.g. Labour Relations “Link”) • SUPPORTIVE OF FISCAL OBJECTIVES • (No Deficit, Regulation Compliance) • OPTIMISM over “Promised “ Funding Reviews • Review Benchmarks & Update • Multi-Year Funding • FRUSTRATION OVER LACK OF FUNDING INFORMATION • Prefer to know all funding information earlier • Prefer detailed multi-year funding information • APPRECIATE BOARD INFORMATION • Access to Website • Budget Briefs/Highlights Newsletter

  17. FINANCIAL REPORT 2006–07as at August 31, 2007 As per Audited Financial Statements • No Deficit (Balanced Budget)  • Compliant with Funding “Envelopes” • Special Education  • Pupil Accommodation  • Administration and Governance 

  18. Financial Operating Results – Previous two years

  19. York Catholic District School Board Operating Revenues 2006-07 Actual Provincial Grant Entitlements $ 394,542,317 95.81% Other Grants 1,886,163 .46% Other Revenue 9,468,109 2.30% Continuing Education 5,904,785 1.43% TOTAL OPERATING REVENUE $ 411,801,375 100.0% (excludes Transfers from Reserves of $ 1,857,662)

  20. York Catholic District School Board Operating Expenditures 2006-07 Expenditures by Function excluding new pupil places, facilities renewal and debt charges • School Classroom 295,974,034 71.55% • School Non-classroom 42,421,587 10.26% • Admin & Governance 14,687,088 3.55% • Pupil Transportation 16,003,620 3.87% • Pupil Accommodation 44,572,708 10.78% • TOTAL 413,659,037 100.00%

  21. York Catholic District School Board Operating Expenditures 2006-07 Expenditures by Object excluding new pupil places, facilities renewal and debt charges • Salaries & Wages 313,315,093 75.74% • Benefits 44,214,820 10.69% • Staff Development 1,518,489 0.37% • Supplies & Services 26,439,527 6.39% • Capital 5,314,578 1.28% • Fees & Services 22,316,946 5.40% • Other 539,583 0 .13% • Total 413,659,037 100.00%

  22. Summary of Reserves 2006-07 Financial Operating Results Reserves

  23. Summary of Reserves August 31, 2007 Reserves: Board Established

  24. FINANCIAL POSITION as at August 31, 2007 • ZERO DEFICIT • RESERVES - M.E.T. Specific • Pupil Accommodation $ 25.97 • Special Education $ - • Education Development Charges - $ 25.97 million • RESERVES - BOARD Specific • Non-protected • Retirement Gratuity $2.26 • Employee Benefits $ .78 • WSIB $1.68 • Technology Infrastructure $0.54 • Transportation $0.36 • Protected • General School Budgets $0.91 • School Council $0.06 • Scholarship Fund $0.01 5.63 $ 6.62 million $ 2.7 million committed for2007-08 (As per Revised Estimates) Recommended Level 5% of Budget or $ 19.5 million 0.99

  25. BUDGET 2007-08 DEVELOPMENT TIMELINES • GSN Funding Announcements • Initial overview announced March 19, 2007 • March 27, 2007 Board Meeting: “Introduction to Development of the 2007-08 Operating Budget” • Updates to Board provided in April, May, June • Approved Operating Budget June 19, 2007 • August 28, 2007 Board: Summer 2007 Funding Enhancements

  26. BUDGET 2007-08(Approved June 19, 2007) • Balanced Budget • Operating Budget 2007-08: $ 436.34 million • Provincial Grant Allocation 95.60% • Other Revenue/Recoveries/Transfers 3.62% • Transfer from Reserves 0.78% Note: Revised Estimates (Nov./07) $ 439.45million • Note: Excludes New Pupil Places, Facility Renewal& Debt Charges • Compliant with Funding “Envelopes” • Special Education  • Pupil Accommodation  • Administration and Governance 

  27. Operating Budget 2007-08(Approved June 19, 2007) • Revised estimates include updated funding (Summer 2007 Enhancements) & expenditure projection information, including impact of changes in enrolment and staffing levels and placements. • Enrolments down 116 (a.d.e.) from original projections included in June 19, 2007 Approved Budget

  28. Financial Operating Results Projections – “Current”

  29. 2007-08 Revised Estimates Operating Revenues Provincial Grant Entitlements $ 420,863,847 95.77% Other Grants 2,428,259 .55% Other Revenue 6,022,760 1.37% Continuing Education 7,436,725 1.69% Transfer from Reserves 2,696,287 .62% TOTAL OPERATING REVENUE $ 439,447,878 100.0%

  30. REVISED ESTIMATES 2007-08 Expenditures by Object • Salaries & Wages 333,941,010 75.98% • Benefits 48,766,260 11.10% • Staff Development 1,748,296 0.40% • Supplies & Services 28,103,404 6.40% • Capital 3,649,884 0.83% • Fees & Services 21,952,539 5.00% • Other 395,904 0 .09% • Program Enhancement 890,581 0.20% • Total 439,447,878 100.00%

  31. REVISED ESTIMATES 2007-08 Expenditures by Function • School Classroom 318,643,696 72.51% • School Non-classroom 46,219,491 10.52% • Admin & Governance 13,863,733 3.15% • Pupil Transportation 16,681,356 3.80% • Pupil Accommodation 43,149,021 9.82% • Program Enhancement 890,581 0.20% • TOTAL 439,447,878 100.00%

  32. PROJECTED YEAR END FINANCIAL POSITION AUGUST 31st, 2008 • No Deficit • Compliance with Funding Envelopes • Reduction in Level of Existing Reserves • Negative trend continues to be a concern. • 2004 2005 2006 2007 2008 • Value of Reserves at August 31, 2008 subject to year-end audit • Establishment of new reserves ???

  33. Accumulated Deficit History 1988–2006 (EXCLUDING USE OF RESERVES re 2003-2008) 7.83 2.70 • Amounts reflect Audited Financial Statement figures 1988 - 2007. ( 1992 is net of Undue Burden Grant) • 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 • 2006-07reserve drawdown includes $ .35 from Special Education Reserve • 2007-08 based on Revised Estimates • 2003-07 Accumulated deficit reflects projected impact without use of reserves

  34. 2008-09 BUDGET

  35. 2008-09 Ministry Simulation • 2008-09 Preliminary Budget Information • Initial Ministry Information • 2008-09 Simulation File - NEW • .7 % increase for Labour Framework 1 • Enhancements announced August 14, 2007 • Program enhancement $ 7,500 to $ 9,650 per school • School operations 1% increase over 2007-08 • Excludes (referred to in August 14,2007 announcement) • Benefits • New Schools in Growth Areas • Student Transportation • Special Education

  36. Financial Operating Results Projections

  37. 2008-09 Budget Simulation “Illustration” NOTE: The above is for illustration purposes only and is an over simplification of the expenditure projection process.

  38. 2008-09 Budget Simulation “Illustration” NOTE: Illustration excludes any “other” or one-time grants that may be announced.

  39. BUDGET OBJECTIVES • Balanced Scorecard Outcomes • “Re-allocating and Accessing Resources to Achieve our Student outcomes” • “Leveraged use of our Resources” • Stability in the System • Fiscal Targets • Balanced Budget ( ie. NO Deficit) • Compliance with Legislation/Regulations • Compliance with Funding Envelopes • Minimize use of Reserves

  40. Issues, concerns…ONGOING • Zero Sum Game – THERE ARE NO EXTRA FUNDS • NO Contingency – 1% = approx. $4.5 million

  41. Issues, concerns…ONGOING • FUNDING MODEL • Revenue Generator vs. Expenditure Guideline • Revenue Generator only • Envelopes vs. Line items • Compliance required for envelopes only • Code of Accounts • Standard application by all boards is required • Benchmark “Fixation” • “zero sum” allocation exercise • Financial Report Card – board/school/program • Highly supportive yet NOT in place

  42. 2008–09 CHALLENGES, PRESSURES & CONCERNS • FUNDING MODEL • Starting 11th year and certain components remain under review • Benchmarks continue to be “offside” with actual costs • 2008-09 Components Under “Review” • Labour (major 2008-09 focus) • Benefits • Special Education • Transportation • Capital Financing

  43. The Facts • Labour intensive organization • END of Four-year labour Provincial Framework Agreement • NEW COLLECTIVE AGREEMENTS TO BE NEGOTIATED • Reliant on defined funding from the Province • Funding is restrictive in a number of areas (limited flexibility) • NEW – as at January 2008 • 2008-09 Budget Simulation EFIS file • .7% increases • 1.0 % increase for School Operations • Ministry “references” to possible increases for Benefits, Transportation and Special Education

  44. TYPICAL FUNDING CYCLE • Original Budget • Revised Estimates • RECENT EXPERIENCE (past few years) • Original Budget • Revised Estimates • Supplementary in-year grants • specific purpose and specific time-frames • one-time or continuing??? • inclusion in subsequent budget periods ??? • Note: Received 2007 Funding Enhancements in August 2007

  45. Issues, concerns…: • One time funding cannot support permanent staffing: • Various “in-year”/“one-time”, grant allocations such as: • Managing Information for Student Achievement (MISA) • Literacy and Numeracy Initiatives • New Teacher Induction Program (NTIP) • Safe Schools • Ontario Psychological Association (OPA) • Parent Involvement Grants (PIG) • Parent Reaching Out Grants (PRO)

  46. 2008–09 OPERATING BUDGET CHALLENGES, PRESSURES & CONCERNS • Enrolment Changes • Elementary Growth (est. 106 pupils) • Secondary Growth (est. 337 pupils) Budget for Projections Commit to Actuals • New School Organizations • No new schools or additions in 2008—09 • However provision for initial Secondary staffing required • Parental Expectations • Past and current Ministry/”Minister” Statements • Provincial “Politics” • Fairness & Equity • Pupils, Parents & Staff

  47. 2007-08 Enrolments with October 31, 07 unaudited actuals and March 2008 "calculated" October March A.D.E. Headcount F.T.E. Headcount F.T.E. Elementary JK 3,162.00 1,581.00 3,178.95 1,589.48 1,585.24 SK 3,354.00 1,676.79 3,374.83 1,687.42 1,682.10 6,516.00 3,257.79 6,553.78 3,276.89 3,267.34 1-3 10,906.00 10,904.06 10,932.39 10,932.39 10,918.23 4-8 20,238.00 20,237.50 20,314.51 20,314.51 20,276.01 37,660.00 34,399.35 37,800.69 34,523.80 34,461.58 Total Visa 96.00 96.00 96.00 96.00 96.00 37,756.00 34,495.35 37,896.69 34,619.80 34,557.58 Total Secondary 9-12 16,972.00 16,972.00 16,483.85 16,483.85 16,727.93 Alt Ed 144.00 144.00 144.00 144.00 144.00 Part-time 29.00 13.71 39.84 19.92 16.81 17,145.00 17,129.71 16,667.69 16,647.77 16,888.74 Total Visa 95.00 95.00 95.00 95.00 95.00 17,240.00 17,224.71 16,762.69 16,742.77 16,983.74 Total TOTAL 54,996.00 51,720.06 54,659.38 51,362.57 51,541.32 ENROLMENTS2007-08 Revised Estimates

  48. ENROLMENTS2008-09 Preliminary Projections

  49. ENROLMENTSPast: (2003-2008) vs. Preliminary Projections (2008-09)

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