2013-2014 Revised Budget Estimates Reports/20132014... · December 16th Revised Budget Estimates Update on the Revised Budget Estimates (Administrative Council) December 17th Revised

2013-14 Revised Budget Estimates (Final) Page 1 of 3

Regular Board Meeting January 21, 2014

ACTION REPORT ITEM 8.5

2013-14 REVISED BUDGET ESTIMATES (FINAL)

PURPOSE: To provide the Board with the 2013-14 Revised Budget Estimates (Final) for approval. BACKGROUND INFORMATION: The following information regarding the Board’s budget process was previously provided to Trustees:

1. Action Report 8.3 – December 17, 2013 Regular Board Meeting – 2013-14 Revised Budget Estimates (Preliminary)

2. Information Report 10.6 - November 19, 2013 Regular Board Meeting – Update on Financial Reporting to the Ministry of Education

3. Action Report 9.4 – June 18, 2013 Regular Board Meeting – 2013-14 Budget Estimates (Final)

4. Staff Report 9.1 – June 4, 2013 Regular Board Meeting – 2013-14 Budget Estimates (Draft)

5. Staff Report 9.3 – May 21, 2013 Regular Board Meeting – 2013-14 Budget Estimates Update


7. Information Report 10.7 – April 16, 2013 Regular Board Meeting – Release of 2013-14 Grant for Student Needs (GSN)

8. Staff Report 9.1 – February 19, 2013 Regular Board Meeting – 2013-14 Budget Schedule and Budget Objectives

COMMENTS:

At the December 17, 2013 Regular Board meeting, the Board approved the 2013-14 Revised Budget Estimates (Preliminary) of approximately $334 million, as per the attached “Action Report 8.3 – December 17, 2013 Regular Board Meeting – 2013-14 Revised Budget Estimates (Preliminary)” report. The 2013-14 Revised Budget Estimates (Preliminary) was a compliant budget with a Total Accumulated Deficit Available for Compliance of $1.5 million (after incorporating the additional Ministry funding for conditional support of approximately $900,000). This represents approximately half of the Ministry compliance calculation for our Board`s allowable in-year deficit ($2.8 million).


In an effort to bring the 2013-14 Revised Budget Estimates (Preliminary) from a compliant budget to a balanced position, total savings of $1.2 million have been identified (which resulted in an increase in revenues of $240,000 and a reduction in expenditures of $965,000, respectively). A list of all revenue and expenditure changes has been provided in Appendix 1 of this report. In summary: Revenues Expenditures 2013-14 Revised Budget Estimates (Preliminary) $ 334,078,227 $ 334,078,227 Change $ 240,537 $ 965,120 2013-14 Revised Budget Estimates (Final) $ 334,318,764 $ 333,113,107

As a result of the identified savings, the 2013-14 Revised Budget Estimates (Final) is $333.1 million, and the Total Accumulated Surplus/(Deficit) Available for Compliance shows a deficit of $315,360 after incorporating the additional Ministry funding for conditional support of approximately $900,000. The additional Ministry funding has been broken down into four grants on the bottom of Appendix 1, with the first three amounts already confirmed and the last item being an estimate. These four grants total $951,212; however to be conservative, we have left $900,000 as additional funding to be received.

The Total Accumulated Deficit Available for Compliance stems from, in part, budget pressures caused by the implementation of Full Day Kindergarten (FDK), for which the Board receives an annual allocation of approved classes each year, with any additional offered classes not being offset by a corresponding funding source. For 2013-14, there were 98 approved FDK classes and 124 actual FDK classes (including 7 classes at St. Mary’s) offered in an effort to increase enrolment and retain students in the system. These additional 26 unfunded classes result in approximately $2.8 million expenditure without an offsetting revenue source. In 2014-15, the Ministry will provide funding for all FDK classes run in our system, with the expectation that this cost pressure will be relieved.

The following table illustrates the changes between Original Budget Estimates, Revised Budget Estimates and Year End reported Total Accumulated Surplus/(Deficit) Available for Compliance, for the past 3 years, since the Education Finance Information System (EFIS) Schedule 5 - Detail of Accumulated Surplus/(Deficit) has existed in its current PSAB format:

Total Accumulated Surplus/(Deficit) Available for Compliance

Year Budget

Estimates Revised

Estimates

Change from Budget to

Revised

Aug. 31, 2014 Financial

Statements

Change from Revised to Year End

2010-11 - 546,093 - 1,617,264 - 1,071,171 - 2,519,222 - 901,958 2011-12 - 2,238,323 - 1,637,480 600,843 - 211,394 1,426,086 2012-13 - 268,495 - 999,370 - 730,875 758,873 1,758,243 2013-14 0 - 315,360 - 315,360 N/A N/A

With the exception of fiscal 2010-11, the Year End Total Available Surplus/(Deficit) Available for Compliance has historically improved from both Original Budget Estimates and Revised Budget Estimates. The negative impact in 2010-11 was as a result of the Original Budget Estimates not incorporating the committed funds from School Activities and School Renewal Reserves. For 2013-14, it is expected that the estimated position at August 31, 2014 included in the Revised Budget for the Total Accumulated Surplus/(Deficit) Available for Compliance will be further reduced or eliminated, resulting in a balanced position at year-end.


These changes have been entered in the Board’s financial system (BAS), as reflected in item 10.3 – Budget Report for September 1, 2013 to December 31, 2013, and will be updated in EFIS in collaboration with the Ministry Finance Officer, to the extent practicable. The Revised Budget Estimates were due to the Ministry on December 13, 2013 and have been submitted to the Ministry on December 18, 2013, after their approval by the Board. The updated 2013-14 Revised Estimates Schedule has been attached as Appendix 2.

CONCLUSION: The Revised Budget Estimates (Final) reflect the projected funding and proposed expenditure needs for 2013-14 based on the best information currently available. The Revised Budget Estimates (Final) effectively reflect a balanced budget, after consideration of all items mentioned above in this report. Business Services staff, in conjunction with Admin Council, will continue to monitor the ongoing budget challenges and expenditures closely throughout the remainder of 2013-14 year and strive to identify additional savings in order to further reduce or eliminate the remaining deficit and arrive at a balanced budget for the year-end Financial Statements. RECOMMENDATION:

RESOLUTION Moved by: Seconded by:

RESOLVED, that the Halton Catholic District School Board approve the 2013-14 Revised Budget Estimates (Final) in the amount of $333,113,107.

REPORT PREPARED BY: F. GIBSON MANAGER OF BUDGET AND ACCOUNTING SERVICES REPORT REVIEWED BY: R. NEGOI SENIOR ADMINISTRATOR, FINANCIAL SERVICES REPORT SUBMITTED BY: P. MCMAHON SUPERINTENDENT OF BUSINESS AND TREASURER OF THE BOARD REPORT APPROVED BY: P. DAWSON DIRECTOR OF EDUCATION AND SECRETARY OF THE BOARD

Halton Catholic District School BoardExplanation of Change in (Surplus) Deficit - Available for Compliance

2013-14 Revised Budget

APPENDIX 1

2013/2014 2013/2014Rev. Budget Rev. Budget

Approved AdjustedDec.17/13

(Surplus) Deficit - Available for Compliance - Approved Revised Estimates - Dec.17/13 638,628 638,628

1 Decrease in GSN grant for estimated reduction in the Native Studies Grant 30,000

2 Increase in GSN Grants for SIP Approval (Estimated at $840,000 should be $930,537) (90,537)

3 Increase in Revenue due to 18 additional Average Daily Enrolment (ADE) (180,000) Total Increase in Revenue (240,537)

4 1 FTE included in Elementary Teacher (10 170 1 381 000) should be charged to Student Work Study EPO (104,080)

5 Early Leadership Strategy EPO (revenues of $279,900 and expenditures of $191,700)Salary component of the Early Leadership Lead is already included in 2013-14 Rev. Est. (88,200)

6 Reduction to Home/School/Parish (25.725.6.453.000) (20,000)

7 Computer Technician Vacancy not to be replaced (22.135.6.752.000) (62,000)

8 Reduction to System Faith Day (25.317.6.453.000) (31,000)

9 Reduction to H.R Professional Development - system wide 34.317.6.773.000 (10,000)

10 Reduction to School Assistance Contingency Fund - 10 332 6 700 000 (75,000)

11 Reduction of Curriculum Non-Salary/Non-Benefit Budget (300,000)

12 Reduction to Director's Office 21st Century budget (10.322.6.348.000) (100,000)

13 Reduction to secondary school budgets for unspent SGF Allowance (10.322.4.xxx.223) (174,840) Total Reduction in Expenditures (965,120)

Total change (1,205,657)

(Surplus) Deficit - Available for Compliance after adjustments 638,628$ (567,029)$

Available for Compliance - Transfer from (to) Internally Restricted Reserve (net) 1,782,389 1,782,389

Total Available for Compliance (Surplus) Deficit 2,421,017$ 1,215,360$

Estimated Additional Conditional Funding to be Received (900,000) (900,000)

Estimated Total Available for Compliance (Surplus) Deficit 1,521,017$ 315,360$

Additional Ministry Funding to be ReceivedAdditional Revenues

Timing of Payment

Increase sick leave eligibility 44,611$ February 201416% of total cost of Oct 11, 2013 unpaid day 133,196$ February 2014Maternity leave 353,405$ Feb / March 2014Attendance recognition (Note 1) 420,000$ July 2014Total Additional Funding 951,212$

Note (1) Attendance recognition payment will be for the actual cost incurred by the Board, up to a maximum of $420,000.

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Halton Catholic District School Board 2013-14 Revised Budget Estimates Schedule

APPENDIX 2

Z:\4 - Business Services - Administrative Assistant\Board, Administrative Council, Policy Meetings\Board Reports\2013-2014\14-01-21\8.5 2013-2014 Revised Budget Estimates\_2013-14 Revised Estimates Schedule 1/17/2014_11:15 AM

Date (2013) Completed Item Description of Activity

March 27th Ministry Memorandum 2013:B5 Established Revised Estimates due date of December 13, 2013

October 9th Ministry Memorandum 2013:SB28 Release of Ministry Revised Estimates Forms (EFIS)

October 31st Average Daily Enrolment (ADE) Revision Enrolment snapshot from Student Information System (Trillium) for October FTE Pupil Count

October 31st Salary & benefits budget Salary and FTE staffing "snapshot" pull down from HR/Payroll System

November 18th Salary & benefits budget Salary and FTE staffing comparison to original budget

November 18th Salary & benefits budget Review of Salaries by Employee Group and FTE By Superintendent (Administrative Council)

November 18th Average Daily Enrolment (ADE) Revision Publication of the October 2013 Enrolment Statistics Report

November 27th Average Daily Enrolment (ADE) Revision Finalization of the 2013-14 ADE using the actual October 31, 2013 FTE enrolment

November 28th Salary & benefits budget Salaries by Employee Group and FTE sent to all Superintendents

December 16th Revised Budget Estimates Update on the Revised Budget Estimates (Administrative Council)December 17th Revised Budget Estimates (Preliminary) Board approval of the Revised Budget Estimates (Preliminary)December 18th Ministry Memorandum 2013:SB28 Submission of Ministry Revised Estimates Forms (EFIS)December 20th Revised Budget Estimates Place on Board's Public Website

December 20th Average Daily Enrolment (ADE) Revision Reconciliation of actual October 31, 2013 FTE enrolment with OnSIS

January 6th Revised Budget Estimates (Final) Update on the Revised Budget Estimates (Administrative Council)



January 21st Revised Budget Estimates (Final) Board approval of the Revised Budget Estimates (Final)

January 31st Update 2013-14 Revised Estimates EFIS Forms Update EFIS Revised Estimates Forms to reflect changes in the Revised Budget Estimates (Final)

2013-14 Revised Budget Estimates (Preliminary) Page 1 of 6

Regular Board Meeting December 17, 2013

ACTION REPORT ITEM 8.3

2013-14 REVISED BUDGET ESTIMATES (PRELIMINARY)

PURPOSE: To provide the Board with the 2013-14 Revised Budget Estimates (Preliminary) for approval. BACKGROUND INFORMATION: The following information regarding the Board’s budget process was previously provided to Trustees:

1. Information Report 10.6 - November 19, 2013 Regular Board Meeting - Update on Financial Reporting to the Ministry of Education

2. Action Report 9.4 – June 18, 2013 Regular Board Meeting – 2013-14 Budget Estimates (Final)

3. Staff Report 9.1 – June 4, 2013 Regular Board Meeting – 2013-14 Budget Estimates (Draft)



6. Information Report 10.7 – April 16, 2013 Regular Board Meeting – Release of 2013-14 Grant for Student Needs (GSN)

7. Staff Report 9.1 – February 19, 2013 Regular Board Meeting – 2013-14 Budget Schedule and Budget Objectives

COMMENTS: 1. GENERAL (APPENDICES A-1, A-2, E, F, G AND H)

At the June 18, 2013 Regular Board meeting, the Board approved the 2013-14 Budget of approximately $331 million. The Revised Budget Estimates were due to the Ministry on December 13, 2013. As the attached Revised Budget Estimates Schedule (Appendix H) indicates, the Revised Budget Estimates will be submitted to the Ministry on December 18, 2013, after their approval by the Board. This has been communicated to the Ministry.


The following table illustrates the high level changes between revenues and expenditures between Original Budget Estimates and Revised Budget Estimates: 2013-14 Original

Budget Estimates

2013-14 Revised Budget

Estimates Revenues $330.4 million $333.4 million Expenditures $330.7 million $334.1 million Operating Surplus / (Deficit) ($0.3) million ($0.7) million Net Transfer from Student Success Reserve and School Activities Reserve

- ($1.4) million

Net Transfer to Pupil Accommodation Grant Reserve $0.5 million - Net Transfer from Committed Capital Projects ($0.1) million ($0.1) million Transfer from Committed Sinking Fund ($0.1) million ($0.2) million Total Accumulated Surplus/(Deficit) Available for Compliance (In-Year)

- ($2.4) million

Appendices A-1, A-2 and E outline a summary of changes from the 2013-14 Original Budget Estimates to the 2013-14 Revised Budget Estimates.

Total revenues are estimated to increase by $900,000 due to the conditional funding to be received from the province to support increasing costs incurred as a result of changes in the labour framework. The following is excerpted from a Ministry email received on December 3, 2013: “Conditional Labour enhancements (other than the teachers’ unpaid days) The Ministry is still in the process of reviewing the board’s files for the conditional funding allocations (maternity leave, sick leave and the principals & vice-principals unpaid days) and is anticipating having all the table amounts finalized by the end of the calendar year. Even though these allocations (revenues) are not currently included in the 2013-14 Revised Estimates EFIS package, the Boards are still required to budget for these expenditures. These amounts have not been finalized; however boards should not accrue for the revenue on Schedule 9. Once the reviews have been completed, the Ministry will populate all the Boards 2013-14 Revised Estimate files in early 2014 with the finalized amounts. If the Board’s Revised Estimates submission is showing non-compliant because of the missing allocations, the Board would not be required to come forward with a deficit approval. The Board would only need to advise their Financial Analyst prior to their submission. EPO Funding Supports for Labour Implementation As per memorandum 2013: SB30, EPO funding was to be flowed to Boards in December 2013 pending receipt of the required documentation. As the review process will not be finalized until the end of the calendar year, funding will not be flowed until early 2014.”

Refer to Appendix G for details on conditional funding allocations and table amounts already communicated to the Board. Factoring in the estimated additional conditional funding allocation to be received, the in-year “Available for Compliance” Deficit will be $1.5 million (see Appendix F). This represents approximately half of the $2.8 million allowable in-year deficit (calculated as 1% of the Operating Allocation to be Used in the Compliance Calculation) and less than 0.5% of the total Revised Budget Estimates.


The last financial reports approved by the Board for the 2012-13 year and the 2013-14 year are the Revised Budget Estimates and the Original Budget Estimates, respectively. Below is an analysis of the Total Accumulated Surplus/(Deficit) Available for Compliance for the last two years, incorporating the estimated additional conditional funding allocation of $900,000 to be included in the 2013-14 Revised Budget Estimates (Final) in January 2014.

Total Accumulated Surplus/(Deficit) Available for Compliance

2012-13 In-Year Surplus/(Deficit)

2013-14 In-Year Surplus/(Deficit)

Estimated Closing Surplus Balance at

August 31, 2014 Revised Budget Estimates

($1 million) Original Budget Estimates

$0 $13.9 million

Financial Statements

$800,000 Revised Estimates ($1.5 million) $14.2 million

Total Change $1.8 million Total Change ($1.5 million) $300,000

As outlined in the table above, the estimated Total Accumulated Surplus/(Deficit) Available for Compliance in the 2013-14 Revised Budget Estimates is $300,000 higher than in the 2013-14 Original Budget Estimates. The Revised Budget is an important update to the Original Budget Estimates, and as such supersedes it. The monthly budget reports presented to the Board will now compare actual expenditures and commitments to the Revised Budget.

2. OPERATING REVENUE PROJECTIONS (APPENDICES A-1, A-3 AND F) The Education Finance Information System (EFIS) forms have been used to calculate the provincial allocation. There has been an increase in the Grants for Student Needs (GSN) of approximately $1.7 million as a result of higher enrolment; however this has been offset by a decrease in the Qualification & Experience (Q&E) grant of $2.5 million. All other factors considered, the provincial allocation has decreased by approximately $1 million from the Original Budget Estimates (see Appendix A-1). Other Provincial Grants have increased by approximately $1.4 million due to grants received subsequent to preparing the Original Budget Estimates. These other provincial grants result in corresponding increases in expenditures. See Appendix A-3 for a list of Other Provincial Grants. As outlined in the Ministry email received on December 3, 2013 (referenced above in the General section), Other Provincial Grants also include an increase of approximately $522,000 to cover for the balance of one paid day for teachers (which is the total cost of one day of $832,000 less estimated savings of $310,000 from the Voluntary Leave of Absence Program (VLAP) and Early Retirement Incentive Plan (ERIP)). Other operating revenue (excluding EDC) has increased by approximately $715,000 mostly due to the increase in secondment recoveries and tuition fees. EDC revenue has decreased by $500,000 to better reflect the actual revenue expected in 2013-14. Refer to Appendix E for a summary of changes from the 2013-14 Original Budget Estimates to the 2013-14 Revised Budget Estimates. As presented in the 2012-13 Audited Financial Statements report at the December 17, 2013 Regular Board Meeting, the Board had $1,079,708 in Operating Accumulated Surplus at the end of 2012-13. Appendix A-1 shows an Operating Deficit of $638,628 for 2013-14. The Operating Accumulated Surplus at the end of 2013-14 is expected to be $441,080.


Factoring in the estimated additional conditional funding of $900,000 to be received, the 2013-14 Operating Surplus is expected to be $261,372 and the Operating Accumulated Surplus at the end of 2013-14 is expected be $1,341,080 (see Appendix F for details).

3. OPERATING EXPENDITURE PROJECTIONS (APPENDICES A-2 & D) The operating expenditure projections have increased approximately $4.7 million from the 2013-14 Original Budget Estimates. In part, this was due to $1.4 million in additional provincial grants which have an offsetting expenditure. Further, the salary and benefit costs have increased from the Original Budget Estimates by $2.6 million to reflect projected grid movement, higher sick leave and maternity leave costs and increased enrolment. Incorporated in the salary and benefits budget is a reduction for two unpaid days for teaching staff, as opposed to one unpaid day included in the Original Budget Estimates. The salary component was estimated using the staff complement at October 31, 2013, while the benefit costs have been increased to reflect actual costs incurred in the 2012-13 year. Operating expenditures include a salary component (approximately 85.8%) and a non-salary component (approximately 14.2%). The operating expenditure projections total $299.2 million, comprised of $227.3 million for classroom expenditures, $44.8 million for non-classroom and $27.1 million for school operations and maintenance. For the non-salary, non-benefit component, expenses have increased by $2.1 million from the 2013-14 Original Budget Estimates, mainly due to $540,000 increase in Professional Development expenditures, $1.8 million increase in Supplies and Services expenditures and a net of $265,000 decrease in Fees and Contractuals, mainly due to transportation efficiencies. These expenditure increases are in part offset by a corresponding increase in revenue (the non-salary, non-benefit portion of $1.4 million increase in other provincial grants, as outlined in section 2. Operating Revenue Projections) and a transfer from reserves (i.e. roll-over of school and student success budgets of $1.4 million).

4. CAPITAL BUDGET (APPENDIX B)

Appendix B shows the estimated capital spending in 2013-14 for approved projects and the funding sources for these projects. The estimated expenditures are $40.6 million (school construction and site purchases).

5. ENROLMENT (APPENDIX C) The provincial funding allocation is based on estimated enrolment. Elementary and Secondary enrolment is based on Full-Time Equivalent (FTE) enrolment for October 31st and March 31st. These two fixed-in-time FTE enrolment values are combined to produce the annualized Average Daily Enrolment (ADE).

The enrolment used in the Revised Budget Estimates has been updated to reflect the actual enrolment on October 31, 2013. As a result, the revised projected ADE of 18,959.75 elementary students is 4.1% higher than the elementary enrolment of 18,867.50 used in the Original Budget Estimates. An ADE of 9,968.8 has been estimated for secondary students, which is a 0.8% increase from the 9,891.5 used in the Original Budget Estimates. This results in an overall enrolment of 28,928.55 which is an increase of 0.6% over the Original Budget Estimates and a 1.06% increase over the 2012-13 Actual ADE.

6. ENVELOPING AND FLEXIBILITY Education funding recognizes that school boards need flexibility to decide how best to allocate resources within their budgets. At the same time, there are restrictions on how school boards may use certain components of their allocation. Limitations are detailed below:

• Budgets must be balanced


• Class size targets are to be met

• The Special Education Grant is limited to special education expenditures

• The School Renewal Allocation is limited to capital renewal expenditures

• Capital funding is to be used for approved capital projects

• The Temporary Accommodation Allocation is to be used for portable moves, leases, and purchases, as well as lease costs for permanent instructional space

• The School Condition Improvement Allocation is to be used for renewal expenditures that are capitalized

• School Board Administration and Governance spending shall not exceed the grant allocation (excluding internal audit)

• A portion of GSN funding is to be used first for minor tangible capital assets (furniture and equipment that is capitalized), and

• New Teacher Induction Program (NTIP) funding is to be used for eligible NTIP expenditures which are required to meet NTIP program requirements.

School boards continue to be accountable for how they use all the revenue that they receive from education funding grants, including the revenue that they can use flexibly.

7. MONTHLY BUDGET REPORTS (APPENDICES A-1 & A-2)

The Schedules “Revenue – Operating Fund” (Appendix A-1) and “Expenditures – Operating Fund” (Appendix A-2) have a column showing the 2013-14 received/spent to November 30, 2013. The amounts to November 30, 2013 are compared to the Revised Budget Estimates to show the percentage received/spent. At November 30, 2013, we are a quarter of the way through the fiscal year or three tenths of the way through the academic year. Therefore, we would expect the percentage received/spent to be between 25% and 30%. This is the case for both revenues and expenditures. Therefore, the 2013-14 fiscal year-to-date figures appear reasonable. As in prior years, Board staff will continue to produce this report on a monthly basis starting in January 2014 and show comparative year-to-date percentage received/spent in 2012-13, as a guide.

CONCLUSION:

The Revised Budget Estimates reflect the projected funding and proposed expenditure needs for 2013-14 based on the best information currently available. The 2013-14 Revised Budget Estimates reflect a compliant budget. The Board will have approximately $1,341,080 remaining in the Operating Accumulated Surplus at the end of 2013-14, after incorporating the estimated additional conditional funding to be received (See Appendix F). Business Services staff in conjunction with Administrative Council will undertake the following exercises in an effort to bring the 2013-14 Revised Budget Estimates from a compliant position to a balanced one:

• Conduct an analysis of the Q&E grant calculation, in consultation with the Ministry, in order

to identify factors leading to material swings in the grant from year to year and within the reporting cycles of the same year.


• Review the enrolment projections for the March 31 2014 count date, including a review of actual FDK enrolment and number of classes against the funded amount.

• Conduct a detailed review of staffing FTE’s, salaries and benefits estimated budgets by school and department.

• Review other (non-salary/non-benefit) expenditures in order to identify areas of potential budget reductions.

• Conduct an analysis, in cooperation with the Ministry, of the difference between the depreciation of tangible capital assets (TCA) and amortization of deferred capital contributions (DCC), which is due to the “unsupported” renewal capital spending as deemed by the Ministry, and the related debenture financing. This difference directly impacts the Total Accumulated Surplus/(Deficit) Available for Compliance of the Board.

An update report will be provided to the Board on January 21, 2014, upon receipt of the additional conditional funding and the updated results of the review and analysis noted above. It is expected that there will be ongoing budget challenges in the 2013-14 fiscal year. Business Services staff, in conjunction with Administrative Council, will continue to monitor expenditures closely and will consider the necessity of expenditure freeze to supplement the actions noted above.

RECOMMENDATION:

RESOLUTION Moved by: Seconded by:

RESOLVED, that the Halton Catholic District School Board approve the 2013-14 Revised Budget Estimates (Preliminary) in the amount of $334,078,227.

REPORT PREPARED BY: F. GIBSON MANAGER OF BUDGET AND ACCOUNTING SERVICES REPORT REVIEWED BY: R. NEGOI SENIOR ADMINISTRATOR, FINANCIAL SERVICES REPORT SUBMITTED BY: P. MCMAHON SUPERINTENDENT OF BUSINESS AND TREASURER OF THE BOARD REPORT APPROVED BY: P. DAWSON DIRECTOR OF EDUCATION AND SECRETARY OF THE BOARD

Halton Catholic District School BoardRevenue

2013-14 Revised Estimates

Appendix A-1

2013-14 2013-14 2013-14 2013-14 2012-13 2011-12Revised Revenues and OriginalBudget Receipts Remaining Pct Budget Actuals Actuals

Estimates Nov.30/13 Balance Received Estimates(in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format)

OPERATING REVENUEProvince of OntarioLegislative Grants 202,622,415 63,756,260 138,866,155 31.5% 203,633,889 200,201,646 199,050,075 Transfer from Classroom Reserve - - - - - 1,800,050 - Municipal Taxes 84,485,020 10,979,957 73,505,063 13.0% 84,485,020 82,023,831 82,786,335

287,107,435 74,736,217 212,371,218 26.0% 288,118,909 284,025,527 281,836,410 Other Provincial GrantsPrior Year Grant Adjustment - Operating - - - - - (212,944) 11,534 Other Provincial Grants 17,067,800 8,845,375 8,222,425 51.8% 15,664,117 11,969,729 6,647,747

17,067,800 8,845,375 8,222,425 51.8% 15,664,117 11,756,785 6,659,281 Other Revenue Government of Canada 1,769,662 163,431 1,606,231 9.2% 1,769,662 1,724,758 1,794,188 Tuition Fees 648,500 556,107 92,393 85.8% 538,500 510,171 356,048 Use of Schools/Rentals 561,000 559,003 1,997 99.6% 461,000 508,236 370,604 Cafeteria, Vending, Uniform and OCAS Revenue - 3,865 (3,865) - - 30,667 21,315 Interest Revenue 10,000 299 9,701 3.0% 10,000 11,572 110,525 Interest Revenue on Capital 25,999 25,999 - 100.0% - (25,336) 199,713 Donation Revenue - - - - - 8,309 22,891 Miscellaneous Recoveries 19,728 21,133 (1,405) - - 147,180 242,343 Recoveries - Secondments 1,048,315 62,837 985,478 6.0% 605,920 938,190 928,469 Miscellaneous Revenue 282,885 330,255 (47,370) 116.7% 266,000 1,334,248 1,183,653 EDC Revenue 4,500,000 596,088 3,903,912 - 5,000,000 3,679,331 6,330,132

8,866,089 2,319,017 6,547,072 26.2% 8,651,082 8,867,327 11,559,880

School Generated Funds Revenue 11,000,000 - 11,000,000 0.0% 11,000,000 11,458,810 11,728,125

Amortization of Deferred Capital Contribution 12,763,698 3,190,925 9,572,774 25.0% 13,562,759 11,718,015 11,550,397

Total Operating Revenue 336,805,022 89,091,534 247,713,489 26.5% 336,996,867 327,826,464 323,334,093

Avaialable for Compliance(Surplus) Deficit - Operating 638,628 - 638,628 0.0% 295,663 (473,173) (268,234) Available for Compliance - Transfer from (to) Internally Restricted Reserve (net) Note #1 1,782,389 1,457,149 325,240 81.8% (295,663) (285,700) 479,626 Total Available for Compliance (Surplus) Deficit 2,421,017 1,457,149 963,868 60.2% - (758,873) 211,392 Unavailable for ComplianceUnavailable for Compliance (PSAB Adjustments) (189,593) - (189,593) 0.0% (774,172) (118,384) (326,156) Change in Employee Future Benefits (458,219) - (458,219) 0.0% (540,044) (1,275,233) (31,820,828) Unavailable for Compliance (Increase) Decrease in School Generated Funds - - - - - (506,580) (649,316) Revenues Recognized for Land (4,500,000) (596,088) (3,903,912) - (5,000,000) (3,679,331) (6,330,132) Total Unavailable for Complainace (Surplus) (5,147,812) (596,088) (4,551,724) 11.6% (6,314,216) (5,579,528) (39,126,432)

Total Annual (Surplus) Deficit (2,726,795) 861,061 (3,587,856) -31.6% (6,314,216) (6,338,401) (38,915,040)

Total Revenue After PSAB Adjustments 334,078,227$ 89,952,595$ 244,125,633$ 26.9% 330,682,651$ 321,488,062$ 284,419,053$

Note #1Transfer from Working Funds Reserve (Port-A-Pac Lease) - - - - 248,751 Net Transfer (to) from the LEIP Reserve (From School Operations) - - - - 51,289 Net Transfer (to) from Student Success Reserve and School Activities Reserve 1,457,149 1,457,149 - (983,553) 1,065,528 Net Transfer (to) from the PAG Reserve - - (527,667) 698,167 5,991,892

Net Transfer (to) from Committed Capital Projects 180,633 180,633 87,397 (144,921) (6,991,749) Net Transfer (to) from Committed Sinking Fund 144,607 144,607 144,607 144,607 113,916

1,782,389$ 1,457,149$ 325,240$ (295,663)$ (285,700)$ 479,627$

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Halton Catholic District School BoardExpenditures


Appendix A-2

2013-14 2013-14 2013-14 2013-14 2012-13 2011-12Revised Expenses and OriginalBudget Commitments Remaining Pct Budget Actuals Actuals

Estimates Nov.30/13 Balance Spent Estimates(in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format) (in PSAB Format)

Classroom Instruction Classroom Teachers 171,269,964 48,938,012 122,331,952 28.6% 170,547,416 168,140,169 163,862,419 Supply Teachers 8,721,800 2,164,188 6,557,612 24.8% 8,492,240 5,623,261 4,352,219 Teacher Assistants 18,284,029 5,241,288 13,042,741 28.7% 17,959,200 18,790,147 17,701,468 Textbooks & Classroom Supplies 9,296,355 2,048,822 7,247,533 22.0% 7,809,399 5,623,968 6,893,677 Computers 1,489,465 1,209,843 279,622 81.2% 1,456,234 1,812,373 1,512,396 Professionals, Paraprofessionals & Technical 10,298,568 2,455,985 7,842,583 23.8% 9,861,064 9,282,552 9,259,732 Library and Guidance 5,402,987 1,316,043 4,086,944 24.4% 5,014,410 5,111,690 5,099,575 Staff Development 2,532,116 640,186 1,891,930 25.3% 2,164,991 2,351,164 2,987,877 Subtotal Classroom Instruction 227,295,284 64,014,367 163,280,917 28.2% 223,304,954 216,735,324 211,669,362

Non Classroom - School Support ServicesSchool Administration 19,048,913 4,795,533 14,253,380 25.2% 18,194,813 19,018,356 18,393,531 Teacher Consultants 2,689,631 754,231 1,935,400 28.0% 3,113,901 2,830,790 2,860,816 Continuing Education 6,073,531 1,514,464 4,559,067 24.9% 6,504,167 6,447,317 6,422,416 Subtotal School Support Services 27,812,075 7,064,228 20,747,847 25.4% 27,812,881 28,296,462 27,676,763

Recoverable Expenses 1,048,315 265,845 782,470 25.4% 605,920 938,190 928,469

Other Non ClassroomBoard Administration 9,443,471 2,379,115 7,064,356 25.2% 8,931,246 8,888,982 8,882,961 Transportation 6,479,246 1,619,812 4,859,435 25.0% 7,018,618 6,468,390 6,151,235 Subtotal Other Non Classroom 15,922,717 3,998,927 11,923,790 25.1% 15,949,864 15,357,372 15,034,196

Pupil Accommodation School Operations and Maintenance 26,097,883 9,644,109 16,453,774 37.0% 25,820,770 25,440,964 24,795,358 School Renewal Projects - - - - - - - ALC and Portable Leases 1,044,000 963,180 80,820 - 1,044,000 1,031,527 1,144,693 Debt Charges 47,375 - 47,375 - 47,375 47,375 47,375 Other Debenture Payments 9,726,674 4,222,688 5,503,986 43.4% 9,833,179 10,528,510 10,860,705 Subtotal Pupil Accommodations 36,915,932 14,829,977 22,085,955 40.2% 36,745,324 37,048,377 36,848,131

School Generated Funds Expenditures 11,000,000 - 11,000,000 0.0% 11,000,000 10,952,230 11,078,809

Amortization Expenditure 14,731,716 3,682,929 11,048,787 25.0% 15,453,301 13,553,724 13,330,308

Total Expenditures Before PSAB adjustments 334,726,039$ 93,856,273$ 240,869,766$ 28.0% 330,872,244$ 322,881,679$ 316,566,038$

PSAB AdjustmentsIncrease (Decrease) in Employee future Benefits (458,219) - (458,219) - (1,275,233) (31,820,828) (Decrease) in Accrued Interest on Debenture (189,593) - (189,593) (189,593) (118,384) (326,156) Total PSAB Adjustment (647,812)$ -$ (647,812)$ (189,593)$ (1,393,617)$ (32,146,984)$

Total Expenditures After PSAB Adjustment 334,078,227$ 93,856,273$ 240,221,954$ 330,682,651$ 321,488,062$ 284,419,054$

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Halton Catholic District School Board Appendix A-3

Other Provincial Grants

2013-14 Revised Budget Estimates

2013-14 Actual @ Nov.30, 2013

2013-14 Budget Estimates

LABOUR ENHANCEMENT 522,000 - - LIBRARY STAFFING GRANT 119,930 119,930 119,930 SPECIALIST HIGHSKILLS MAJOR (SHSM) SPECIAL FUNDING 41,456 34,158 41,456 PARENTS REACHING OUT 27,060 27,060 - ELP - STAFF DEVELOPMENT 16,000 16,000 - OUTDOOR EDUCATION 294,223 185,360 - COLLABORATIVE INQUIRY FOR INSTRUCTIONAL IMPACT 26,862 26,862 26,862 MATH AND LITERACY (GAINS) 53,724 53,724 53,724 DIFFERENTIATED INSTRUCTION (D.I) 26,862 26,862 26,862 S.S.SCHLS & CROSS PANEL TEAMS 35,126 35,126 35,126 RE-ENGAGEMENT 12 & 12+ 12,982 12,982 - FRECH AS A SECOND LANGUAGE 99,446 59,667 - FIRST NATION/METIS/INUIT EDUCATION 10,597 - 10,597 STUDENT INJURY PREVENTION 63,985 37,253 - TUTORS IN THE CLASSROOM 14,676 14,676 - K CONTEXTUALIZING 15,000 15,000 - E-LEARNING 110,000 105,000 - STUDENT WORK STUDY 120,000 120,000 120,000 COLLABORATIVE INQUIRY IN MATH 90,000 90,000 90,000 M.I.S.A - P.N.C. 241,532 241,532 230,000 M.I.S.A - LOCAL 69,652 69,652 44,918 AUTISM SUPPORT AND TRAINING 74,798 74,798 45,604 LEARNING FOR ALL 3,140 3,140 - MENTAL HEALTH 145,000 145,000 145,000 SPECIAL NEEDS - K-12 33,764 33,764 - PARENTS REACHING OUT - REGIONAL MONEY 17,500 - - BLDS (BOARD LEADERSHIP DEVELOPMENT STRATEGY) 50,015 30,757 - CAREER & LIFE PLANNING 10,000 10,000 - SAFE, EQUITABLE AND INCLUSIVE SCHOOLS 60,797 60,797 60,797 NETWORK-SCHOOL IN THE MIDDLE 25,000 34,000 25,000 NETWORK-SCHOOLS HELPING SCHL 110,400 69,552 110,400 PARENTS REACHING OUT - MULTICULTURAL 13,000 - OUTREACH COORDINATOR 73,600 46,000 73,600 SAFE WELCOME PROGRAM 53,320 - 53,320 INTERNAL AUDIT 3,207 3,207 - BENEFIT REFORM 344,783 125,185 - OCCASSIONAL TEACHER EVALUATION 10,000 6,901 10,000 Sub-total 3,039,437 1,933,945 1,323,196

EARLY LEARNING PROGRAM (ELP) 11,773,493 6,640,026 11,773,493 EARLY LEARNING PROGRAM (ELP) - SPECIAL EDUCATION 1,181,559 - 1,506,559 O.Y.A.P GRANT 92,529 - 92,529 O.Y.A.P SPECIAL FUNDING 19,200 - - LBS GRANTS 98,900 38,601 98,900 PROVINCE OF ONTARIO-CITIZENSHIP 793,440 163,561 869,440 PROVINCE OF ONTARIO-CITIZENSHIP-ONE TIME FUNDING 69,242 69,242 - Sub-total 14,028,363 6,911,430 14,340,921

Total Other Provincial Grants per A-1 17,067,800$ 8,845,375$ 15,664,117$

2013‐14 Revised Estimates

Halton Catholic District School Board Appendix B2013‐14 Revised Estimates

Projected Capital Expenditures and Funding Sources

Total

Expenditures Estimated New Pupil Capital Full Day School Minor POD Other

($ 000's) Capital Budget Places & GPL Priorities Kindergarten Renewal EDC TCA

Construction in Progress St. Anne ‐ Alton #1 (Note 1) 500,000 500,000 500,000 Milton #5 11,369,000 11,369,000 11,369,000 Milton Catholic Secondary School 2,400,000 975,000 1,100,000 325,000 2,400,000 Milton #7 11,369,000 11,369,000 11,369,000 Full Day Kindergarten Additions (Note 2) 5,346,000 5,346,000 5,346,000 Secondary School Air Conditioning 500,000 500,000 500,000 Minor Tangible Capital Assets 1,702,342 1,702,342 1,702,342

Land 7,400,000 7,400,000 7,400,000 Total Capital Expenditures 40,586,342$ 975,000$ 23,238,000$ 5,346,000$ 500,000$ 7,400,000$ 1,702,342$ 1,100,000$ 325,000$ 40,586,342$

Note 1 ‐ Additional costs are being incurred in 2013‐14 to complete the construction of St. AnneNote 2 ‐ Refers to Guardian Angels and St. Anthony of Padua

Total Funding

Funding Sources

Halton Catholic District School BoardAverage Daily Enrolment (ADE)


Appendix C

Projected Projected 2013-14 Projected Projected 2013-14 2012-13 2011-12FTE FTE Revised % FTE FTE Original % Actual % Actual %

Oct 31/13 Mar 31/14 ADE Change Oct 31/13 Mar 31/14 ADE Change ADE Change ADE ChangeJK 981.00 985.50 983.25 12.8% 961.00 965.00 963.00 10.4% 912.25 16.4% 872.00 8.3%SK 1,035.00 1,040.00 1,037.50 14.6% 976.50 980.50 978.50 8.1% 971.75 11.1% 905.50 5.7%Gr. 1 to 3 6,221.00 6,240.00 6,230.50 4.2% 6,203.00 6,220.00 6,211.50 3.9% 6,053.50 4.1% 5,980.50 2.1%Gr. 4 to Gr. 8 10,694.00 10,723.00 10,708.50 2.4% 10,698.00 10,731.00 10,714.50 2.5% 10,521.50 1.7% 10,455.50 0.5%

Elementary Day School Enrolment 18,931.00 18,988.50 18,959.75 4.1% 18,838.50 18,896.50 18,867.50 3.6% 18,459.00 3.6% 18,213.50 1.6%

Secondary Day School Enrolment 10,115.89 9,821.71 9,968.80 0.8% 10,007.00 9,776.00 9,891.50 0.0% 10,006.87 2.3% 9,889.59 0.8%

Total Day School ADE 29,046.89 28,810.21 28,928.55 0.6% 28,845.50 28,672.50 28,759.00 1.0% 28,465.87 1.3% 28,103.09 1.3%

Notes: ADE - Average Daily Enrolment FTE - Full Time Equivalent Average Daily Enrolment (ADE) is based on 50% of March 31 FTE plus 50% Oct 31 FTE % change equals the increase (decrease) in ADE from the prior year

2013-14 REVISED ESTIMATES 2013-14 ORIGINAL ESTIMATES

Halton Catholic District School BoardSummary of Expenditures by Expenditure Type


Appendix D


% of total budget


% of total

budget 2012-13 Actuals% of total

budget 2011-12 Actuals% of total

budget

223,145,113 74.6% 221,960,495 75.4% 217,915,683 75.7% 213,510,088 75.9%

33,627,730 11.2% 32,227,228 10.9% 32,722,207 11.4% 30,461,454 10.8%

256,772,843 85.8% 254,187,723 86.3% 250,637,890 87.1% 243,971,542 86.7%

1,674,815 0.6% 1,130,275 0.4% 798,981 0.3% 1,469,989 0.5%

24,960,886 8.3% 23,144,508 7.9% 21,138,836 7.3% 20,941,383 7.4%

26,300 0.0% 26,300 0.0% 9,389 0.0% 13,995 0.0%

250,000 0.1% 250,000 0.1% 359,971 0.1% 259,520 0.1%

1,649,038 0.6% 1,649,038 0.6% 1,594,168 0.6% 2,053,282 0.7%

12,191,383 4.1% 12,537,122 4.3% 11,381,811 4.0% 10,880,703 3.9%

796,838 0.3% 715,252 0.2% 1,074,863 0.4% 874,255 0.3%

898,171 0.3% 898,171 0.3% 803,931 0.3% 784,171 0.3%

Total Other Operating 42,447,431 14.2% 40,350,666 13.7% 37,161,950 12.9% 37,277,298 13.3%

299,220,274 100.0% 294,538,389 100.0% 287,799,840 100.0% 281,248,840 100.0%

- 0.0% - 0.0% - 0.0% - 0.0%

47,375 0.5% 47,375 0.5% 47,375 0.4% 47,375 0.4%- 0.0% - 0.0% - 0.0% - 0.0%

Turf Loan Interest - 0.0% 106,505 1.1% 294,401 2.8% 138,298 1.3%5,768,697 59.0% 5,768,697 58.4% 6,114,804 57.8% 6,792,486 62.3%3,957,977 40.5% 3,957,977 40.1% 4,119,305 38.9% 3,929,922 36.0%9,774,049 100.0% 9,880,554 100.0% 10,575,885 100.0% 10,908,081 100.0%

School Generated Funds 11,000,000 11,000,000 10,952,230 11,078,809

Amortization Expense 14,731,716 15,453,301 13,553,724 13,330,308

Increase (Decrease) in Employee Future Benefits (458,219) - (1,275,233) (31,820,828) (Decrease) in Accrued Interest on Debenture (189,593) (189,593) (118,384) (326,156)

(647,812) (189,593) (1,393,617) (32,146,984) 25,083,904 26,263,708 23,112,337 (7,737,867)

334,078,227$ 100.0% 330,682,651$ 100.0% 321,488,062$ 100.0% 284,419,054$ 100.0%

Operating

Salary & Wages

Employee Benefits

Supplies & Services

Replacement Furniture & Equipment

Total Salaries and Benefits

Professional Development

Rentals & Leases

Operating Interest

Fees & Contractuals Other ALC Lease/Rentals

Total Capital

Total Expenditures

Total Operating

Capital

Debt Charges & Interest

OFA Debenture Interest

School Renewal Projects

ALC and Portable Leases

OSBFC Debenture Interest

Other Adjustments

Total Other Adjustments

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Halton Catholic District School BoardSummary of changes - Revenues and Expenditures

2013 - 2014 Revised Estimates

Appendix E

Total Change 2013 - 2014 Revised

Estimates

RevenueGSN 288,118,909 (1,011,474) 287,107,435 Other Provincial Grants 15,664,117 1,403,683 17,067,800 Other Operating 3,651,082 715,007 4,366,089 EDC Revenue 5,000,000 (500,000) 4,500,000 Amortization of Deferred Capital Contribution 13,562,759 (799,061) 12,763,698 School Generated Funds Revenue 11,000,000 - 11,000,000 Transfer from (to) Internally Restricted Reserve (295,663) 2,078,052 1,782,389 Unavailable for Compliance PSAB Adjustment (774,172) 584,579 (189,593) Amortization of Employee Future Benefits (540,044) 81,825 (458,219) Revenues Recognized for Land (5,000,000) 500,000 (4,500,000) Total Revenue 330,386,988 3,052,611 333,439,599 ExpendituresOperating Expenses 293,538,389 4,681,885 298,220,274 Amortization Expense 15,453,301 (721,585) 14,731,716 School Generated Funds 11,000,000 - 11,000,000 Employee Future Benefits and Interest Accrual (189,593) (458,219) (647,812) Portable Leases 1,000,000 - 1,000,000 Debenture Interest Payments 9,833,179 (106,505) 9,726,674 Debt Charges 47,375 - 47,375 Total Expenses 330,682,651 3,395,576 334,078,227 Surplus (Deficit) (295,663) (342,965) (638,628)


Halton Catholic District School Board Appendix F2013-14 Revised EstimatesAccumulated Surplus

Opening Accumulated Surplus - September 1, 2013 82,669,110$

Add:Available for Compliance Surplus (Deficit)

Operating Deficit (638,628) Remaining Available for Compliance (Deficit) (1,782,389)

Total Accumulated Surplus / (Deficit) Available for Compliance (2,421,017) Unavailable for Compliance Surplus (Deficit) 5,147,812 Total Annual Surplus 2,726,795

Closing Accumulated Surplus - August 31, 2013 85,395,905$

Made Up Of:

Available for ComplianceOperating Accumulated Surplus 441,080$ School Renewal 2,475,033 Working Funds Reserve 105,718 Committed Capital Projects 6,956,037 Committed Sinking Fund Interest 3,311,506

13,289,374

Unavailable for ComplianceEmployee Future Benefits (5,786,915) Interest to be Accrued (2,705,817) School Generated Funds 3,286,961 Revenue Recognized for Land 77,312,302

72,106,531

85,395,905$

Accumulated Surplus Adjusted for Estimated Additional Conditional FundingOperating Deficit (638,628) Adjust for Estimated Additional Conditional Funding 900,000 Adjusted Operating Surplus 261,372 Remaining Available for Compliance (Deficit) (1,782,389) Total Adjusted Accumulated Surplus / (Deficit) Available for Compliance (1,521,017)$

Operating Accumulated Surplus 441,080$ Adjust for Estimated Additional Conditional Funding 900,000 Adjusted Operating Accumulated Surplus 1,341,080$

MEMORANDUM TO: Implementation Cost Estimate (ICE) Working Group FROM: Gabriel F. Sékaly Assistant Deputy Minister Elementary/Secondary Business and Finance Division DATE: July 8, 2013 SUBJECT: ICE Update Thank you for participating in the Implementation Cost Estimate (ICE) Working Group meeting of June 24, 2013. As we discussed with you at the meeting, the Ministry is committed to working collaboratively with school boards in order to support implementation and to start a new school year with the current labour process finalized. This has not been an easy process for the sector and the involvement and advice of school boards along the way has been helpful in achieving important agreements. We acknowledge that this has not been a process you feel sufficiently recognizes the role of boards as employers. As you will know, this is a matter being examined in the current talks on the future bargaining process, and I encourage you to participate actively in those discussions so your input can be taken into consideration in developing this process. The government also recognizes that there will be pressures on school boards because of these agreements. You have been very clear in your concerns about this and you have been heard. That is why we convened the Implementation Cost Estimate (ICE) Working Group. As a result of your input and expertise, we have made significant strides in understanding school board concerns related to the costs associated with the Memoranda of Understanding (MOUs) signed between the government and Federations/Unions since January 23, 2013. Support has been announced throughout this process, which is aimed at providing school boards with additional funding to help implement the 2012-14 labour framework and its MOUs. At the meeting we covered the available funding that has been announced to date, including:

• $10M announced December 2012 to implement sick leave benefit plan reforms;

Ministry of Education Office of the ADM Business & Finance Division 20th Floor, Mowat Block Queen’s Park Toronto, ON M7A 1L2

Ministère de l'Éducation Bureau du sous-ministre adjoint Division des opérations et des finances 20e étage, édifice Mowat Queen’s Park Toronto ON M7A 1L2

Appendix G

• $30M per year effective 2012-13 announced in March 2013 for a potential increase in supply teacher costs. For 2012-13, a table amount has been provided in the GSN regulation. In subsequent years, the supply teacher benchmark will be adjusted. Over the two-year life of the current contracts, this totals $60M in additional funding. The government’s position is that this funding is intended to support boards as they adopt the new sick leave plan set out in regulation;

• Support for sick leave top-up banks announced in March 2013. The government is currently working with Board actuaries and will be providing the funding necessary to establish the closing liability for the implementation of the sick-leave rolling top-up bank;

• Support for the pay-out of non-vested retirement gratuities announced in March 2013. The government is currently working with School Boards and will be providing the funding necessary for the wind-up payment to employees;

• $3M announced in May 2013 to offset the cost of extending eligibility for sick leave and short-term leave and disability plan benefits to a wider group of employees;

• $15M announced in May 2013 for payroll system and training to support implementation of new benefit plan provisions;

• Up to $60M announced in May 2013 to support any residual costs of an unpaid day;

• And approximately $10M that represents the efficiencies in Professional Development that will account for 16% of the total cost of the October 11, 2013 unpaid day.

As I noted at the meeting and as detailed in the respective B memos, the last four items are contingent on boards fulfilling the MOU requirements including incorporating/appending the MOUs into local collective agreements. While these funds are significant, and the government has stated it expects Boards will be able to implement the MOUs within their existing funding envelopes, we appreciate the opportunity to understand any additional operational issues that Boards may be experiencing on the ground. At the ICE meeting Boards identified a number of items that they felt could result in incremental costs, such as expanding maternity leave to LTOs, costs for attendance recognition and the back-stopping of unpaid days, among others. While a number of these concerns would be addressed through the funding available and identified above, we are also able to share the following additional information with you:

1. Maternity Leave - the Ministry is prepared to consider providing additional support to reflect the increase in maternity leave from 6 weeks to 8 weeks. Additional data from boards related to the incremental costs anticipated based on historical maternity leave data will need to be analyzed before any funding determination can be made.

2. Attendance Recognition - I can provide assurance that the government is

prepared to provide up to $30M in 2013-14 to cover any incremental costs

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relating to any payments made to eligible staff that use less than 6 sick days. This is based on existing data that shows that approximately 50% of staff used less than 6 days in the past. This figure, and any funding considered, would need to be reconciled with actual experience – particularly if the average number of sick days taken drops as a result of this incentive as that would create additional savings.

3. Sick leave top-up banks- we explained that the Ministry is awaiting a

determination of the liability from the Board actuaries. Once that figure is determined, the Ministry will fund school boards accordingly.

4. Unpaid days- I can confirm that the Ministry is working on determining further details with respect to the 16% of PD Efficiency funding. We will also take back to our policy ADMs the message about the logistical challenges associated with providing PD to LTOs on particular days.

5. Arbitration Costs - There is insufficient information related to incremental legal

and arbitration costs at this point in time and this item will require further discussion.

6. Inflationary Pressures - For inflationary pressures related to benefits, further follow up by Boards is required.

7. Sick Leave Usage - For sick leave usage above trend, boards would provide the

Ministry with data tracking sick leave utilization from 2009-10 on. Once that data is available, including analysis of trends, the ICE working group would have further discussion. We also agreed that sick leave utilization would need to continue to be tracked by boards over time as part of good attendance management processes.

8. Sick Leave Eligibility - Extension of sick leave eligibility, we explained that this was the focus of the $3M already announced.

We are hopeful that this information and available funding will enable an acceleration of talks between boards and unions that will allow this process to be finalized before the new school year begins. As was discussed at the meeting, any incremental funding resulting from this process is conditional upon the Board fulfilling the MOU requirements including incorporating/appending the MOUs to their collective agreements. I look forward to working with the ICE working group to develop a basic template for documenting any incremental costs beyond current supports as part of the end of year financial process for both 2012-13 and 2013-14. I am also pleased to confirm that the attestation date has been changed to August 29, 2013.

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In closing, I want to thank you for participating in the ICE working group. For everyone’s reference, I have attached a copy of the presentation we used in our initial meeting.

Original signed by

Gabriel F. Sékaly

Assistant Deputy Minister

Attachments: Ministry Presentation to ICE

Halton Catholic District School Board

To date, the Ministry has provided or committed up to $2,126,391 to support the implementation of the 2012‐14 Labour Framework by Halton Catholic District School Board

1) Supports already committed

Share of $10M in 2012‐13 to

implement sick leave benefit plan

reforms

Support for potential increase in

Supply Teacher costs from adopting the new sick leave

plan – 2012‐13

Support for potential increase in

Supply Teacher costs from adopting the new sick leave

plan – 2013‐14

$144,289 $444,015 $441,402

In addition to the amounts above, the Ministry has committed to providing amounts (to be determined) for retirement gratuity wind‐up payments, reduction in eligibility criteria to qualify for a retirement gratuity and the sick leave top‐up bank.

2) Conditional supports These further supports are conditional on appending the terms of the MOUs and providing the related attestations to the Ministry, as outlined in the Deputy Minister’s memorandum of August 8, 2013.

Share of $15M in 2013‐14 to implement payroll

system and training support to implement

new benefit plan provisions

Support for residual costs of unpaid day for

teachers

Share of $3M to offset the cost of extending eligibility for sick

leave and short‐term leave and disability plan benefits to a wider group of employees.

$219,598 Up to $832,476 $44,611

In addition to the above supports, the following are being pursued, through the Implementation Cost Estimate (ICE) Working Group process, at a system‐wide level. Where relevant, board‐by‐board information will be provided as it becomes available.

The Ministry is prepared to provide up to $30M in 2013‐14 to cover any incremental costs relating to any payments made to eligible staff that use less than 6 sick days, which will need to be reconciled with actual experience.

The Ministry is prepared to consider providing additional support to reflect the increase in maternity leave from 6 weeks to 8 weeks, once additional data from boards related to the incremental costs anticipated based on historical maternity leave data is received and analyzed.

The Ministry has committed to providing the flexibility so that approximately $10M that represents the efficiencies in Professional Development will account for 16% of the total cost of the previously planned unpaid day in October 2013.

Through the ICE Working Group process, other areas of possible support are being investigated.

Many of these supports will be provided through the Grants for Student Needs (GSN). As with any GSN adjustment, implementation of these supports is dependent on the making of regulations. It should be noted that regulations to effect many of these supports have not yet been made. The information in this document is provided in the absence of such regulations. The Minister will recommend such regulations in the near future.

Halton Catholic District School Board 2013-14 Revised Budget Estimates Schedule

Date (2013) Completed Item Description of Activity

March 27th Ministry Memorandum 2013:B5 Established Revised Estimates due date of December 13, 2013

October 9th Ministry Memorandum 2013:SB28 Release of Ministry Revised Estimates Forms (EFIS)

October 31st Average Daily Enrolment (ADE) Revision Enrolment snapshot from Student Information System (Trillium) for October FTE Pupil Count

October 31st Salary & benefits budget Salary and FTE staffing "snapshot" pull down from HR/Payroll System

November 18th Salary & benefits budget Salary and FTE staffing comparison to original budget

November 18th Salary & benefits budget Review of Salaries by Employee Group and FTE By Superintendent (Administrative Council)

November 18th Average Daily Enrolment (ADE) Revision Publication of the October 2013 Enrolment Statistics Report

November 27th Average Daily Enrolment (ADE) Revision Finalization of the 2013-14 ADE using the actual October 31, 2013 FTE enrolment

November 28th Salary & benefits budget Salaries by Employee Group and FTE sent to all Superintendents

December 16th Revised Budget Estimates Update on the Revised Budget Estimates (Administrative Council)December 17th Revised Budget Estimates Board approval of the Revised Budget Estimates December 18th Ministry Memorandum 2013:SB28 Submission of Ministry Revised Estimates Forms (EFIS)December 20th Revised Budget Estimates Place on Board's Public Website

December 20th Average Daily Enrolment (ADE) Revision Reconciliation of actual October 31, 2013 FTE enrolment with OnSIS

Z:\4 - Business Services - Administrative Assistant\Board, Administrative Council, Policy Meetings\Board Reports\2013-2014\13-12-17\8.3 2013-14 Revised Budget Estimates\_Appendix H - 2013-14 Revised Estimates Schedule.xls 14/12/2013_9:51 PM

Appendix H

Documents

2013-2014 Revised Budget Estimates Reports/20132014... · December 16th Revised Budget Estimates Update on the Revised Budget Estimates (Administrative Council) December 17th Revised