2008-09 budget revenue projections may 6, 2008 presented by: j. a. sabo, associate director -...

2008-09 BUDGET2008-09 BUDGET

REVENUE PROJECTIONSREVENUE PROJECTIONSMay 6, 2008

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

OBJECTIVEOBJECTIVE• To present a review of the 2008-09 Preliminary Revenue Module dated May 6, 2008

• To discuss future potential revenue “adjustments”

2008-09 REVENUE PROJECTIONS2008-09 REVENUE PROJECTIONS

REVIEW – to includeREVIEW – 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

REVENUE SUMMARYREVENUE SUMMARY

2007-08 Revised Estimates

2008-09 Revenue

Projections

Increase (Decrease)

$ %

Grants for Student Needs $ 420,863,847 $ 432,507,725 $ 11,643,878 2.77

Other Grants 2,428,259 1,000,000 (1.428.259) -58.82

Other Revenue 6,022,760 5,586,400 (436,360) -7.25

Continuing Education 7,436,725 7,061,521 (375,204) -5.05

TOTAL (Excluding Transfers from Reserves)

$ 436,751,591 $ 446,155,646 $ 9,404,055 2.15

Transfer from Reserves 2,696,287 (2,696,287)

TOTAL (Including Transfers from Reserves)

$ 439,447,878 $ 446,155,646 $ 6,707,768 1.53

2008-09 REVENUE PROJECTIONS2008-09 REVENUE PROJECTIONS

Revenue SummaryRevenue Summaryas per May 6, 2008 Moduleas per May 6, 2008 Module

OPERATING REVENUE (millions) %

Provincial Grants $ 432.51 96.95

Other Grants 1.00 0.22

Other Revenue 5.59 1.25

Adult & Continuing Education 7.06 1.58

Transfer from Reserves 0.00 0.00

TOTAL OPERATING REVENUE $ 446.16 100.00

Miscellaneous GrantsMiscellaneous 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.

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

ANALYSIS OF GRANT INCREASE-OperatingANALYSIS OF GRANT INCREASE-Operating2007-08 Revised Estimates vs. 2008-09 Projections2007-08 Revised Estimates vs. 2008-09 Projections

Total Increase $ 11,643,878 2.77%

Resulting from: (estimated)

Fold in Miscellaneous Grants $ 1,217,074 .29%

Funding increases 7,269,020 1.73%

Growth increase 3,157,784 .75%

$ 11,643,878 2.77%

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.


ANALYSIS Funding Increase 1.73%ANALYSIS Funding Increase 1.73%

Funding increase (from previous slide)

$ 7,269,020 1.73%

The above increase included pre-committed salary adjustments effective August 31, 2008; approximate impact .7%

Approximate “NET” impact of funding increase excluding fold-in, growth and pre-commitment

1.00%

SUPPORT MATERIALSUPPORT MATERIAL

MINISTRY OF EDUCATION Data/Memoranda 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.

REVENUE MODULE SUPPORT MATERIALREVENUE 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


HIGHLIGHTS OF GRANT CHANGESHIGHLIGHTS 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


HIGHLIGHTS OF GRANT CHANGES (cont’d)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.


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

CAPITALCAPITAL

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.



• 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



Grants Outside the GSNGrants 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

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

Amount subject to budget balancing exercise.

DEVELOPMENT OF REVENUE PROJECTIONSDEVELOPMENT 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)

Enrolment Impact

re: Revenue vs. Expenditures

PLAN for Projections

BUT

COMMIT TO Actuals

OBJECTIVE is to:

ENROLMENT PROJECTIONSENROLMENT PROJECTIONS


2008-09 Revenue

Projections

Increase (Decrease) %

ELEMENTARY

Students of the Board 34,461.58 34,568.35 106.77 .31

Visa 96.00 96.00 -

TOTAL ELEMENTARY 34,557.58 34,664.35 106.77 .31

SECONDARY

Students of the Board 16,888.74 17,225.71 336.97 2.0

Visa 95.00 95.00 -

TOTAL SECONDARY 16,983.74 17,320.71 336.97 1.98

TOTAL 51,541.32 51,985.06 443.74 .86

Revenue SummaryRevenue Summary

OPERATING REVENUE (millions) %

Provincial Grants $ 432.51 96.95

Other Grants 1.00 0.22

Other Revenue 5. 59 1.25

Adult & Continuing Education 7.06 1.58

Transfer from Reserves 0.00 0.00

TOTAL OPERATING REVENUE $ 446.16 100.00

0.22%

1.25%

1.58%

96.95%

Prov Grants Other GrantsOther Revenue Adult & Con Ed

0.22%

1.25%

1.58%

96.95%

Prov Grants Other GrantsOther Revenue Adult & Con Ed

OPERATING REVENUEOPERATING REVENUE

Revenue SummaryRevenue Summary

GRANTS FOR STUDENT NEEDSGRANTS 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.

GRANTS FOR STUDENT NEEDSGRANTS FOR STUDENT NEEDS


2008-09 Revenue Projections

Increase (Decrease)

$ %

Pupil Foundation $ 219,702,457 $ 225,285,146 $ 5,582,689 2.54

School Foundation 28,842,290 29,827,467 985,177 3.42

Primary Class Size 11,121,487 11,461,986 340,499 3.06

Languages (ESL & FSL) 8,414,644 8,660,952 246,308 2.93

Special Education 54,662,240 55,315,544 653,304 1.20

Program Enhancement 727,500 936,050 208,550 28.67

Learning Opportunities 6,376,419 6,385,600 9,181 .14

Admin & Governance 12,499,878 12,823,836 323,958 2.59

Qualifications & Experience 19,234,772 19,268,134 33,362 .17

Transportation 15,667,869 16,486,293 818,424 5.22

School Operations 43,109,062 44,023,101 914,039 2.12

Metis, First Nation, Inuit 30,148 30,588 440 1.46

Community Use 475,081 785,954 310,873 65.44

TOTAL $ 420,863,847 $ 431,290,651 $ 10,426,804 2.48

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 for 2008-09

– budget estimates include $ 1,000,000

OTHER GRANTSOTHER GRANTS2007-08 Revised

Estimates2008-09

Projections

Increase (Decrease)

$ %

OPA $ 408,000 $ (408,000) -

CODE 110,000 (110,000) -

MEMO 2007 B:6 (14/08/07) 1,576,202 (1,576,202) -

Other Grants expected to be distributed

334,057 $ 1,000,000 665,943 -

TOTAL $ 2,428,259 $ 1,000,000 (1,428,259) (58.81)

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.

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 REVENUE2007-08 Revised

Estimates2008-09

Projections

Increase (Decrease)

$ %

Tuition Fee Revenue $ 2,291,500 $ 2,348,800 $ 57,300 2.5

Rental & Other Income 3,731,260 3,237,600 (493,360) 13.2

TOTAL $ 6,022,760 $ 5,586,400 $ (436,360) (7.25)

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

ADULT AND CONTINUING EDUCATIONADULT 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.

ADULT AND CONTINUING EDUCATIONADULT AND CONTINUING EDUCATION2007-08 Revised

Estimates2008-09

Projections

Increase (Decrease)

$ %

Grant Programs $ 6,388,160 $ 6,269,701 $ (118,459) (1.85)

Non-grant Programs 1,048,565 791,820 (256,745) (24.49)

TOTAL $ 7,436,725 $ 7,061,521 $ (375,204) (5.05)

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 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)

ALTERNATIVE EDUCATIONALTERNATIVE 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

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, 2007RESERVE POSTION as at August 31, 2007

Worker’s Safety Insurance Board $ 1,678,717

Employee Benefits Rate Stabilization 788,927

Retirement Gratuities 2,258,472

Transportation 365,304

Total “Unprotected” $ 5,091,420

G.S.B. $ 914,980

Infrastructure Technology 542,254

School Council Reserve 66,022

Scholarship Reserve 10,492

Total “Protected” 1,533,748

TOTAL $ 6,625,168

RESERVE POSITIONRESERVE 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

Balance at August 31, 2007

Projected Drawdown as actual Projections

Projected Balance August 31, 2008 as per

Actual Projections

Workers Safety Insurance Board 1,678,717$

Benefits Rate Stabilization Reserve 788,927

Retirement Gratuities 2,258,472

Transportation 365,304

5,091,420$ (2,696,287)$ 2,395,133$

Protected Reserves

General School Budgets 914,980$ 914,980$

Information Technology 542,254 542,254

School Council Reserve 66,022 66,022

Scholarship Reserve Fund 10,492 10,492

1,533,748$ -$ 1,533,748$

6,625,168$ (2,696,287)$ 3,928,881$

2007-08 Reserve Projections as per Revised Estimates

Non-Protected Reserves

RESERVES


Projected Variance

2007-08 Projected Actual

Operating ExpendituresSalaries and Wages 333,941,010$ 500,000$ 1 334,441,010$ Employee Benefits 48,766,260 48,766,260 Staff Development 1,748,296 (50,000) 2 1,698,296 Supplies and Services 28,993,985 1,000,000 3 29,993,985 Capital Expenditures 3,649,884 3,649,884 Fees and Contractual 21,952,539 800,000 4 22,752,539 Other Expenditures 395,904 395,904

439,447,878$ 2,250,000$ 441,697,878$

Operating RevenuesGrants for Student Needs 420,863,847$ 457,606$ 5 421,321,453$ Other Grants 2,428,259 (118,057) 6 2,310,202 Other Revenue 6,022,760 5,250 7 6,028,010 Continuing Education 7,436,725 0 7,436,725

436,751,591$ 344,799$ 437,096,390$

Surplus/(Deficit) (2,696,287)$ (1,905,201)$ (4,601,488)$

Transfer from/to Reserves 2,696,287 1,905,201 4,601,488

Balance 0 0 0

2007-08 Year End Projections - DRAFT

2.7

9.1

19.1

28.5

32.3

0.65

5.9

14.516.216.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.01988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1998-1

999

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

Millio

nAccumulated 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

3.58

8.18

0.501.661.10

2.70

19.10

28.50

32.30

16.00

16.20

14.50

5.90

0.65

9.10

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.01988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

Mil

lio

n

• 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.

Accumulated Deficit History 1988–2004/Projected 2004-2008

(EXCLUDING USE OF RESERVES re 2003-2008)

2003-08 accumulated deficit (excluding reserve

drawdown)

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)

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

• There are no additional funds to pay for ANY proposed increased level of service

• Attaining a “York Catholic Solution”

AREAS OF POTENTIAL REVENUE AREAS OF POTENTIAL REVENUE ADJUSTMENTSADJUSTMENTS

• 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?

NEXT STEPSNEXT 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)

QUESTIONS re Revenue Projections

2008-09 budget revenue projections may 6, 2008 presented by: j. a. sabo, associate director -...

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