BUDGET 2015/16

Over the past week we have received a number of inquiries about how the recently announced provincial budget will impact school division operations in the coming year. Currently, division leadership and school principals are working closely to assess the impact of the new fiscal realities presented by the budget announcement. While the complexity of funding conditions set out in this budget will require further analysis, there are some key facts that can be shared:

• Northern Gateway Public Schools will receive a grant reduction of 2.7%. When coupled with anticipated enrolment decline of approximately 100 students, this will see revenues to division operations reduced in the area of $600,000. The Division is mandated to ensure that a balanced budget is achieved.  

• Budget 2015/16 protects front-line teaching positions, requiring cost reductions to come from other areas of personnel, programs and supports to achieve a balanced budget. While base funding for teaching staff increases by 2% or $532,800, real costs associated with maintaining staff, with salary and benefit increases included, is approximately $848,400 creating a shortfall of $315,600. 

• Staffing costs associated with non-teaching support positions in the areas of school support, transportation, operations and maintenance continue to rise. Base funding rate for non-teaching staff has decreased by 3.1% or $105,000. 

• Division costs in the areas of student transportation and building maintenance continue to significantly outstrip funding, with projected deficits in these areas forecasted to be $410,000 and $738,000 respectively.

• Schools within NGPS that have accumulated operating reserves accrued from the past may not access these dollars in offsetting educations costs in the 2015/16 school year without prior Ministerial approval. The government has provided the direction that using reserves should be viewed as a transition measure to bridge a new financial/cost structure. In 2014/15, Northern Gateway Public schools accessed $1.6 million dollars from its Operating Reserves in providing for reduced class sizes and program supports for students. 

The 2015/16 Provincial Budget is a difficult budget that will make it very challenging to continue to provide the same level of educational services for students. It will likely result in increased class sizes and a reduction of direct and indirect support provided to classrooms within Northern Gateway Public School Division. While presenting new challenges that will undoubtedly require some adjustments in all areas of jurisdiction operations, our school division remains committed to working together with all partners in continuing to engage students in meaningful ways. 

For more information please contact:

Mike Gramatovich
Secretary-Treasurer
Email: mike.gramatovich@ngps.ca