Public Information Meeting March 3, 2016 Public... · March 3, 2016 . 2016-17 Budget - Information Meeting. Agenda . Agenda – Welcome & Introductions ... 10% Administrative Services

Public Information Meeting March 3, 2016

2016-17 Budget - Information Meeting Agenda

Agenda – Welcome & Introductions – Strategic Plan

• Creating Alignment • Measuring Success

– The Budget & Financial Picture • Current Year Budget and Financial Position • How we Compare • Outlook for 2016-17

– Questions

Mission

Vision

Strategic Themes

Operational Plans

School Plans

Measures and Targets

Strategic Initiatives/Actions

High Altitude District/Board Level

Ground Level Classroom Level

2016-17 Budget - Information Meeting Strategic Plan

Board of Education’s Role Administration’s Role Set Goals (Strategic Plan) Develop a budget that aligns with

Strategic Plan and Board Goals

Obtain community feedback Provide information to Board and community

Monitor budget process and approve budget

Develop budget process and provide information as required

Ensure high quality planning Develop long-term and sustainable plans



Abbotsford Board of Education Strategic Plan 2014-2018

Aligning Budget & Strategic Plan

Budget Planning & Development

School Plans + Operational Plans

Strategic Plan

Student Success

Progressive Workforce

Optimized Resources

Engaging Opportunities


https://issuu.com/abbsd34/docs/measuring_up_2016-single_pages

dave.stephen

Text Box

Click here to view Measuring Up

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100

2009/10 2010/11 2011/12 2012/13 2014/15

Grade 3 Reading Proficiency

2016-17 Budget - Information Meeting Our Results

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80

82

84

86

88

90

92

2010-11 2011-12 2012-13 2013-14 2014-15

Perc

enta

ge

Six-Year Graduation & Completion Rates

Abbotsford Province


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30

40

50

60

70

80

2009/10 2010/11 2011/12 2012/13 2013/14

Post-Secondary Transition

Abbotsford Provincial Avg Fraser Valley


Evaluation Planning

Preparation

Approval

Implementation

January – March •Budget Estimates & Forecasting

March - May •Staffing Estimates •Program/Service Review •Operating Budget Estimates •Approval – by June 30th

•School Budget Allocations •Distribution of Information

•Financial Statements •Budget Analysis

By February 15th •Enrolment projections

March 11 Funding Announcement

Budget Planning Cycle

2016-17 Budget - Information Meeting Planning Cycle

($millions) 2015-16 Budget

Total Revenue 169.4

Total Expenditures 173.9

Surplus (Deficit) for Year (4.5)

Accumulated Surplus, Beginning of Year 12.1 Distribution of School Budget Carry-Fwds (0.4)

Planned Use of Surplus for Strategic Initiatives (1.5)

Operating Deficit 2015-16 (2.6)

Accumulated Surplus, End of Year 7.6

2016-17 Budget - Information Meeting Current Year Budget (2015-16)

Provincial Grants 95.7%

Tuition 3.01%

Other Revenue 0.9%

Rentals & Leases 0.2%

Investment Income

0.2%

BUDGETED REVENUE 2015-16

2016-17 Budget - Information Meeting Current Year Budget (2015-16)

$169.4 M

School Operations

72%

Centralized Education &

Learning 16%

Facilities & Transportation

10%

Administrative Services

2%

School Operations Costs for direct instruction and all school-based services. (Principals, VPs, teachers and support staff, and school supplies & services)

Centralized Education & Learning Services Curriculum, student services, district special education, early learning, aboriginal education, careers, technology, international students.

Facilities & Transportation Custodial services, building maintenance, student transportation, capital planning, grounds, & IT services.

Administrative Services Board of Education, Strategic & District Planning, Finance, HR & Payroll, Purchasing

2016-17 Budget - Information Meeting Current Year Budget – Internal Allocations

$173.9 M

Total Accumulated Surplus (beginning of year) 12,106,598

Required in 2015-16 School Budget Carryovers 362,712

Strategic Initiatives 1,516,422

Unfunded Operating Deficit 2,599,133

Total Operating Deficit for Year 4,478,267

Total Accumulated Surplus (end of year) 7,628,331

2016-17 Budget - Information Meeting Accumulated Surplus

Board Supported Strategic Initiatives 2015-16 – Board funded StrongStart – After-School programs – Explozone – Rick Hansen science and business school – Middle Years Career Develop programming – Internal Pay-Equity support

– Total for 2015-16 = $1.5M – Planned for 2016-17= $1.0M

2016-17 Budget - Information Meeting Current Initiatives Funded from Surplus

0

2

4

6

8

10

12

14

16

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(est)

Mill

ions

Accumulated Surplus Balances (in millions)

2016-17 Budget - Information Meeting Accumulated Surplus

2016-17 Budget - Information Meeting Operating Reserves

Operating Reserves (Accumulated Surplus) – Reserves are a one-time funding source that cannot

sustain on-going services. – Reserves are necessary to cover unexpected and

unavoidable expenditures. – The Board should determine Net Accumulated Surpluses. – Ernst and Young: 2% to 3% of operating expenses.

– Target for Abbotsford SD - $3.5 M - $5.5 M – Estimated Balance at end of this year

• Unrestricted = $1.4 M • Internally restricted = $6.2 M

How do we compare to other similar sized school district’s & to the provincial averages?

2016-17 Budget - Information Meeting How we Compare

INSTRUCTION DISTRICT ADMIN O & M TRANSABBOTSFORD 84.4% 3.2% 10.5% 1.9%PROVINCE 82.7% 3.6% 11.7% 1.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Comparison of 2014-15 Spending in Abbotsford SD to Provincial Average


Source: 2014-15 Audited Financial Statements

(2,000,000)

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2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Instruction Administration Operations &Maintenance

Transportation

Change in Spending over last 5 years


Source: Audited Financial Statements

80.0%

81.0%

82.0%

83.0%

84.0%

85.0%

86.0%

87.0%

Instruction



0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Operations & Maintenance



0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

District Administration



How well have school districts managed the cost of administering the public education system?

– BC has the lowest per pupil district administration cost in Canada. (Statistics Canada)

– In 2013/14, BC spent 30% less on district administration per pupil than other provinces:

• BC - $306.95 per pupil • Alberta - $395.47 per pupil • Manitoba - $402.58 per pupil • Saskatchewan at $500.52 per pupil

2016-17 Budget - Information Meeting Administration Costs

Source: Review of the Administration Costs & Operating Reserves for BC Public Schools, December 2015

2016-17 Budget - Information Meeting Administration Costs - Comparisons

Douglas College 7.69% University of Victoria 3.55% Fraser Valley Health Authority 4.89% Okanagan College 5.11% Manitoba School Districts 3.49% Alberta School Districts 3.74%

District Administration Spending as a Percentage of Total Operational Spending

School District Average:

2014/15 3.19%

Source: Review of the Administration Costs & Operating Reserves for BC Public Schools, December 2015

• Provincial Budget for K-12 – $4.861B (Operating Grant Funding)

– $100M Learning Improvement Fund ($2M increase)

– Funding unionized wage increases $52M (includes $17M for ESD)

– Reduction of additional $25M (“administrative savings”) Note – With the decrease of $29M in 15-16 the total Administrative Savings grant reduction = $54M

– Net increase in funding of $27M – Provincial Budget Pressures

• General economic conditions • Healthcare costs

2016-17 Budget - Information Meeting Provincial Budget for Education

K-12 funding established in Provincial Budget ($4.861 billion)

A funding formula allocates these funds to Boards of Education.

Student base allocation plus supplementary grants. (Unique student needs, Enrolment Decline, Salary Differentials, Unique Geographic Factors, etc.)

Boards manage and allocate grants based on local priorities - STRATEGIC PLAN


0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

480,000

500,000

520,000

540,000

560,000

580,000

600,000

Provincial Funding Compared to Enrolment

Funding Enrolment


Preparing for 2016-17

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2016-17 Budget - Information Meeting Budget Pressures

Budget Principles – Commit to building a reasonable understanding of budget

information through ongoing communications. – Maintain a three year budget plan to ensure funding

sources support program initiatives. – Maintain surplus/reserve balances to respond to emergent

needs. – Maintain strong internal fiscal management policies.

2016-17 Budget - Information Meeting Budget Principles

Budget Objectives 2016-17 – Maintain support for strategic priorities. – Ensure reasonable use of accumulated surpluses for

• planned program spending • to limit current year spending reductions.

– Review discretionary program spending.

2016-17 Budget - Information Meeting Budget Objectives

STUDENT ENROLMENT The forecast of enrolment determines and influences

the financial estimates in the budget.

REVENUES Student Enrolment determines approximately 99% of all operating revenues. - Operating Grants - International Student Revenue

EXPENDITURES Enrolments influence the allocation of staff, school supplies and facility requirements.

2016-17 Budget - Information Meeting Enrolments

18,400

18,600

18,800

19,000

19,200

19,400

19,600

19,800

20,000

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Enrolment (FTE)

Forecast

2016-17 Budget - Information Meeting Enrolments

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Budget Pressures Amount

Estimated Operating Deficit from 2015-16 ($4.5M)

Reduction in Operating Grant – Administrative Savings (Total of $1.80M in 16-17)

($0.8M)

Possible funding shift to re-establish $50M grant holdback ($1.75M)

Increase in Exempt Salaries (unfunded) ($0.45M)

Cost for NGN (Next Generation Network) ($0.55M)

Employee Benefit increases (MSP, EBP) ($0.05M)

Reduced Teacher Pension costs $1.0M

Total Estimated Budget Pressures ($7.1M)


Addressing Budget Pressures • Potential revenue increases

– Facility Rentals – Other Fees – International student revenues

• Administrative services reductions • Reduced transportation services (Transportation Review underway)

• Re-evaluation of spending from accumulated surplus • Reductions in centralized departments & school allocations • Other discretionary spending reductions (supplies, services,

professional development, equipment, etc)

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Risks & Emerging Issues – Uncertain funding (changes/reductions) – Provincial economic conditions – Compensation challenges – Reduction in services provided to schools – Reduced discretionary spending – Implementation of new curriculum (IT v. 2.0)

2016-17 Budget - Information Meeting Risks

2016-17 Budget - Information Meeting Next Steps

Preliminary Budget estimates • March 8th Board Meeting • April 5th – Finance Committee • April 12th – Board Meeting • April 26th – Finance Committee • May 3rd – Board Meeting (Approval) • Presentations to ADTA, Teamsters, APVPA • Ongoing staff reviews

Finalize Student Enrolment Information

Estimate Operating Revenues (Grants, other)

Set Allocations to Schools and Departments (Estimates of staffing &operating costs)

Balance Operating Budget

2016-17 Budget - Information Meeting Next Steps

Questions?

What questions do you have? What additional information would you like?

For more information: www.sd34.bc.ca

http://www.sd34.bc.ca/

Documents

Public Information Meeting March 3, 2016 Public... · March 3, 2016 . 2016-17 Budget - Information Meeting. Agenda . Agenda – Welcome & Introductions ... 10% Administrative Services