If all goes as planned, the next school year will operate without a deficit.
The good news was delivered this week by Gerry Slykhuis, Chilliwack school district's secretary treasurer, first at the Tuesday school board meeting and then a public presentation the next night.
"Last year we had a $3.5 million deficit, but right now, it looks like we're going to be okay," he said.
But this is just the beginning of a year-round budget process that is often difficult to forecast, he warned. The budget presented this week was based on two variables — last year's funding allocation per student, and this year's enrollment. Both of those numbers are still subject to change, and beyond the school district's control.
The Ministry of Education will announce their per student funding amount next Wednesday. This year, that amount was $7,158. But with more than 40 school districts in the province reporting unexpected increases in enrollment, including Chilliwack, there is some fear that the per student funding formula will change.
Many of those new B.C. students are coming from Alberta, Slykhuis said, and it's hard to forecast just how many more are coming. At this district's last count in February, growth had stabilized.
With all of that explained, Slykhuis outlined some of the operating budget pressures to be faced for the 2016-2017 school year.
The biggest expense each year is for employees, with the bulk of the employees being educators. Increases for unionized staff will be covered by the Ministry of Education, but an expected increase for principals, vice principals and exempt staff is estimated at $200,000.
The school district has decided to add a few new positions at the elementary school level. Two part-time vice principals will be added to schools with a need for more support, at an increase of $100,000. A new elementary school counsellor will also be added, to ease the current work load for the current six counsellors.
"We have seen a large increase in the number of students at the elementary level who are presenting with significant social/emotional needs," Slykhuis wrote in an overview. "The addition of one counsellor will enable us to increase the level of support provided for these students with vulnerable populations."
The new position will bring an increase of $94,000.
The school board is still grappling with last year's announcement of cuts to schools for administration costs. This year's funding loss was $680,700, and next year it will be a further $586,800, for a total of $1,267,500. That money is supposed to be cut from administration costs.
And there are other pressures handed down by the government. They began a Next Generation Network project last year meant to improve internet infrastructures and replace the PLNet with faster digital communication services. Chilliwack's share of that project this year was $315,000, and next year will be $563,000.
BC Hydro will also be charging more for power over the next year, and school boards are not immune to that cost hike. The past two years already saw nine and six per cent increases, and this April costs will increase another 4 per cent. Next April, there is another 3.5 per cent increase planned.
"Despite our aggressive energy management program, this will still be an impact on our budget," Slykhuis said.
Savings add up
But not everything is costing more.
The average teachers costs will decrease, with more new teachers in the system as long time teachers retire. This is expected to save $300,000 over the next year.
Other savings of interest are scattered throughout the budget, and while some of them are small, they contribute to a balanced budget.
The district expects to save $21,000 by bringing the Strongstart program under the district's responsibility. It is currently being operated at seven locations across the district, in schools but through Chilliwack Community Services.
The teacher's pension plan costs are dropping significantly, at a savings to the district of $980,000.
There will be a small increase to international student rates ($25,000 overall increase), revenue adjustments ($45,000), several one time costs avoided ($376,200), a savings from unused special education review/EA training ($34,700) and a savings in the dispatch operations ($43,800).
There was good news for parents who pay for bussing. To encourage early registration that could alleviate chaos in the transportation department, they are looking at an early bird discount and possibly even monthly payment options. More information will be released later this spring, Slykhuis said.
Process ongoing
After next Wednesday's funding announcement, the next step in the budget process will be a budget committee meeting on Apr. 7. The school board will give the budget its first reading on May 3, second reading on May 17, and third reading on June 7, with the preliminary budget due to the ministry on June 30.