School District 57 Lays Out Financial Reality and Options
By 250 News
September 22, 2009

Prince George, B.C. – School District 57 has painted the full picture of its financial challenges for the current and coming school years.

The School District was already facing a deficit and earlier this year had accepted a plan that would balance the books over three budget years, but that was before the loss of the facility grants, the introduction of the HST, the green house gas targets, increases to the Medical Services Plan and the introduction of all day Kindergarten.

To add insult to injury, the enrolment is down more than expected with 13350 students registered and it had been expected the enrolment would be 13500. Fewer students means reduced dollars from the Ministry of Education. 

Here are some of the estimates of what the Board is facing:

Annual Facility Grant: $4.1 million includes $1.8 million already committed to repairs and contracts and $2.3 million in planned projects

Greenhouse gas reduction targets: The School Districts are supposed to be carbon neutral by 2010, but that is not possible for School District 57 which heats schools with fossil fuels and busses students. The catch 22 is that without the facility grants, they cannot afford to upgrade facilities or vehicles to reduce their greenhouse gas emissions, so, it will be forced to buy carbon credits from a new Crown Corporation to the tune of $200 thousand a year.

Medical Services Plan: The announced increases to the premiums to be paid to the Medical Services Plan will add $84 thousand dollars to the School District’s budget next year, and twice as much in the year after that.

Harmonized Sales Tax: There has been no discussion or indication that School Districts will see any exemption for the Harmonized Sales Tax. At this point it would appear it will add at least $914,000.

Full Day Kindergarten: There has been no indication if there will be any funding at all for additional space, or staff or how the full day Kindergarten will be phased in.

Enrolment Holdback recovery: The Province is pulling back $103,000

Funding Protection Grant: There is an expectation this grant will be lost and that is another $450,000.

The bottom line --  Additional financial concerns will add $5.8 million (plus costs associated with full day Kindergarten) to the already cash strapped School District.