Despite experiencing stable enrolment numbers for the first time in years, deep cuts introduced in the provincial budget have left the Pembina Hills school division facing an operating deficit of nearly half a million dollars in next year’s budget.
Pembina Hills trustees approved the 2013-2014 operating budget at their meeting last Wednesday at the Adult Distance Learning Centre.
The budget includes total revenue of $54,290,627 and expenses totaling $54,734,739, leaving the division with a $444,122 deficit.
In her budget presentation to trustees, secretary-treasurer Tracy Meunier opened with a bit of good news: schools within Pembina Hills are cumulatively projecting the same level of enrolment as this school year.
Meunier said the division hasn’t seen stable enrolment in quite some time. “We’re quite hopeful we will see some stable student populations in Pembina Hills schools (in the future),” she added.
It should be noted that the enrolment numbers do vary from school to school — the schools north of Westlock are still expecting drops — and some have built in a cumulative decline of 18 students into their budgets, she said.
She also said that schools are currently projecting a drop in 70 Kindergarten students across the division, but Meunier quickly added that determining Kindergarten numbers at this time of year is difficult because only 60 to 70 per cent of parents have registered.
Meunier then launched into an explanation of how the recent provincial budget impacted the division.
It wasn’t all bad news. For instance, the Alberta government implemented a two per cent funding increase for small class sizes in K-3, which netted Pembina Hills $45,000.
Pembina Hills is also netting $634,000 through new “Equity of Opportunity” funding. Meunier indicated this is due in part to an increase in the provincial funding model, but also because they’re re-distributing more funding for low density support.
The division was also pleased by the province’s recent announcement to introduce legislation extending the four-year deal negotiated by the Alberta Teachers’ Association to all teachers and school boards.
But the good news pales in comparison to the bad, such as the elimination of Alberta Initiative for School Improvement (AISI) funding, which comes out to $466,990 for the division and $211,998 for the ADLC.
As well, the change in the funding structure for schools that utilize ADLC at the high school level will have a huge impact on the division.
Schools using the ADLC will receive only 44 per cent of base instruction funding versus the 100 per cent they received before the most recent provincial budget.
This will prompt changes in ADLC’s model of delivery, “because they know if they do nothing, schools can’t afford to partner with us,” said Meunier.
Other reductions introduced in the provincial budget include a 40 per cent reduction in funding for work experience and special projects that normally benefited at-risk students, which comes out to about $52,000, and a 10 per cent reduction in board and system administration funding, which comes out to roughly $200,000.
Facilities (O&M) funding was also cut by five per cent, or approximately $193,000, and there was also a 22 per cent decrease in Infrastructure and Maintenance Renewal (IMR) funding of approximately $177,000.
Meunier noted this cut comes at a time when Alberta Infrastructure is now telling Pembina Hills they have a backlog of capital projects of $50 million over the next 24 years.
Another sting is the loss of the fuel price contingency, valued at approximately $400,000.
Meunier noted that if the fuel contingency funding is not re-instated, they may eventually recommend to the board the implementation of a fuel surcharge to address the lack of a fuel price contingency grant.
“That will be a sad day, in my opinion, for public education to have to charge a fuel surcharge,” said Meunier, noting other divisons are look at a surcharge of $45 per student per year for all students riding the bus.
The province also capped funding for English as a Second Language (ESL) programming, which will be challenging for all divisions, she noted.
Meunier said the $444,122 deficit is composed of a $266,375 deficit in instruction, a $150,000 deficit of transportation and a board and system administration deficit of $74,000. They’re also transferring $45,000 to the capital reserve for bus replacement.
Ironically enough, Meunier said that Pembina Hills has qualified for one-time budget mitigation funding of $1.138 million due solely to the fact the budget cost them so much.
Meunier noted this is one-time funding only and can only be used on sustainable operations.
Meunier said they have not allocated any of those funds as of yet and will likely be coming back to the board with a recommendation.
“As we see direct impacts on Vista Virtual School and all operations, then we’ll be in a better position to make recommendations,” she said.
