School District 53 has a lot of homework to do, specifically how to deal with a $565,000 deficit.
The board recently reviewed its final 2015/16 budget, when it was apparent that pencils will have to be extremely sharp this fall.
The total budget is $28.5 million, an increase of $580,000 from 2014/15. However, operating revenue has increased by $500,000 (due to the teachers’ strike last year).
Total student enrolment in the district is 2,290, a decrease of 52 full-time equivalent students. Enrolment is expected to continue its decline with a projected 2,038 students by 2019.
The surplus required to fund 2015/16 expenditures is $565,000 (structural deficit).
One way the board is dealing with the deficit is moving the downtown Osoyoos YouLearn office to the high school.
Despite concerns and objections from YouLearn staff, the board voted to relocate the learning centre come September.
The move will save the board $26,000 in lease expenses and utility costs.
“The board feels that with a structural deficit of $565,000, the savings of approximately $26,000 will be fiscally responsible, especially in light of decreasing enrolment in the high school,” said board chair Marieze Tarr.
She said the board will develop a plan this fall on how to address the remaining deficit.
School trustee Rob Zandee said the budget is being balanced with funds from previous years’ accumulated surplus, but this cannot go on for much longer.
“Under this course of action, there is no impact other than less flexibility for the board to operate.”
Zandee said the board has been very diligent in trying to contain costs, such as savings in energy usage, supplies and moving to shared service models where possible.
“However, it seems that the provincial government is not recognizing these efforts and is requiring further savings on an ongoing basis, with the caveat of not impacting classrooms.”
The trustee noted this has forced the board into a position where it will be undergoing a major facilities review beginning in the fall.
Zandee said the recent settlements with the teachers and CUPE members have been funded, however, none of the rise in hard costs (hydro, fuel taxes, fuel prices, water, etc.) have been funded at all.
Trustee Rachel Allenbrand said it is definitely concerning that the district is now running with a structural deficit.
She noted the budget cuts have been significant with more demands for cost cuts and savings from the ministry of education.
“I feel that the board is doing everything it can to show the ministry we are saving money without taking away from quality education.”
Allenbrand said the next school year will be an interesting one as a result of the demands and lack of funding.
“Declining enrolment really does not help, but we are keeping positive hoping the prison will help bring new families into our district.”
LYONEL DOHERTY
Special to the Times
