ST. PAUL - After directing administration to do a thorough review of every department within the organization with the aim of cutting spending by about $1 million, St. Paul Education Regional Division (SPERD) has passed its 2020/21 budget with a $661,807 deficit.
On May 27, the board approved its budget, just days before the provincial deadline. The budget projects just over $57.3 million in spending.
"The mandate was to look for efficiencies that could produce savings in what we expected to be a difficult financial year. Considering this direction was given prior to the pandemic it was a fortuitous move by the division and has allowed us to be better prepared during these very uncertain times," said board chair Heather Starosielski when asked about the review conducted by administration. "In a combination of a reduction of six per cent to school-based budgets, as well as further efficiencies, we are anticipating a savings of approximately $1 million. These savings will ensure classrooms are intact with relatively the same staffing component as we have now."
SPERD has had deficits in five of the last six years and has been drawing down its reserves as it transitions to lower enrolments, according to a media release sent out on June 3. This budget is the first under the new provincial funding model that funds enrolment based on a three-year weighted moving average.
The division aknowledges that the economic slowdown could affect student numbers, moving forward. Also, the COVID-19 pandemic could have a significant impact on revenue and expenses, but since the situation remains fluid, the extent of those impacts will be hard to predict.
When asked specifically about staffing, Starosielski acknowledges that with being one of the largest employers in the area with over 550 staff members, "there are always some changes from year to year." She adds, "Some staffing at schools might go up and others down, but overall our teacher numbers are possibly decreasing by two and support staff by 10. In any given year it can fluctuate due to being dependent on student enrolment that isn’t entirely known until September."
Speaking to the COVID-19 pandemic, Starosielski says the division is preparing for a variety of scenarios and all of them could have varying levels of costs.
"Our budget does account for slightly more increased absenteeism due to the ongoing health crisis that may necessitate possibly needing more substitute teachers, but additionally, we anticipate more costs related to cleaning, scheduling, PPE, transportation . . . Our budget assumes that significant cost increases related to COVID-19 will be funded by additional provincial support or alternatively through our reserves."
Another big impact on this budget is the increase in insurance costs, which many divisions across the province are dealing with. For SPERD, insurance costs increased by nearly 180 per cent last year, and "this remains a very volatile area," reads the media release. "The division will be transitioning to a new insurance consortium in the fall and there is a possibility it may see significant savings."
As for capital priorities, the division's top three priorities are modernizations to the schools in Mallaig, Myrnam, and Elk Point.
"These are subject to provincial approval and none have been approved at this time."
The division is also still expecting the provincial government will ensure the outside work at Ashmont School is completed in this year.
"In addition, we are continuing with various IMR projects that include roofing, mechanical and energy efficiency retrofits as well as some regular upgrades like painting and flooring at various schools. We were fortunate that there was an advancement in future IMR funds of $1 million that allowed for additional projects to be planned this year."
SPERD Secretary-Treasurer Jean Champagne said the division is getting closer to returning to a balance budget, and the projected deficit is manageable. Of course, the budget is only a projection and there are many unknowns in the next year, such as bus fees and collective agreements, he adds.
