At the Dec. 4 Rocky View Schools (RVS) board of trustees meeting the 2014/15 budget was updated to reveal a projected deficit increase of $607,000 to about $2 million.
“Our total revenues are projected to be $224 million with total expenditures of $226 million, resulting in a net deficit of about $600,000 (more than the original budget),” RVS Director of Finance Karyn Golem told the trustees.
The original 2014/15 budget approved by the Board in June projected a $1.4 million operating deficit.
Though RVS revenues are projected to increase by $10.4 million to $224.1 million, expenditures are also projected to increase by $11 million to $226 million in the revised budget.
Golem said the increased projected revenue is due in part to a larger contribution from Alberta Education (increased by $10.5 million from the original budget) because of the division’s increased enrollment (which represents an increase of about $3.9 million) and an increase in Infrastructure Renewal and Maintenance Funding (IMR), which contributed to the $3.1 million increase in maintenance revenue.
However, expenditures are also rising with about $3.8 million being needed for new teachers to accommodate increasing enrollment, another $40,000 was required to hire a junior accountant and $208,000 went to caretaking salary and benefits including four new maintenance staff.
In addition, $400,000 was required to provide additional services for high need students, contract psychologist services and training for staff education students with complex needs.
Though the 2014/15 budget is projecting an increased deficit, not all news is bad as the 2013/14 audited financial results, which were also reviewed at the Dec. 4 meeting, indicated a $660,000 surplus.
“Overall the year ended with the Board in good standing,” Golem said in a press release.
“Our Education Centre and school-based staff are to be applauded for keeping costs in line, while continuing to provide world class service.”
RVS’ revenues for 2013/14 came in at about $214.2 million, while the expenditures came in at about $213.6 million.
“The bulk of these savings were the direct result of lower than anticipated teaching costs, increased enrollment and a growing number of high school credits earned by students,” Golem said.
She said the estimated teaching cost – which is a weighting of training and experience – came in $927 per full time teacher less than projected, saving the division about $966,000.
Instructional revenues also increased by about $6 million due to enrollment increases and high school Credit Enrollment Units (CEUs).
The division took a $1.3 million hit in their maintenance department to install modular classrooms at schools throughout the division.
This was caused by a cost-sharing program from the Province that required school boards to contribute $50,000 for every modular classroom installed or relocated, and pay 100 per cent of the cost for links between modular classrooms and the main school building in 2013/14.
As a result of the surplus the combined total in RVS reserves as of Aug. 31 was $18,608,947.
However, of that only about $7.3 million is in unrestricted reserves. Golem said $7.3 million, “represents about six-and-a-half days of operations.”
“I think we are doing the best that we can with the number of students we have,” RVS Trustee Sylvia Eggerer said.
“The money is the money. It is what it is,” RVS Chair Colleen Munro said.
“I think we are deploying it to the best of our ability.”
The 2013/14 audit results were unanimously accepted as information and the 2014/15 budget update was unanimously approved.
To view the budget visit www.rockyview.ab.ca
