Board News - Meeting of February 23 2010

Structural change needed in new financial environment
Superintendent of Schools Cheryle Beaumont, in her report to the Board, said Langley must consider structural and delivery model changes in response to the operating environment school districts are now in. "We will need to change some structures and processes that have been established for decades in Langley," she said.
Her remarks preceded consideration of an amended 2009-2010 budget, which shows the district facing a deficit of $5.31 million. In 2008-2009 Langley School District incurred a deficit of $8.2 million. The combined total will have to be paid down through a deficit elimination plan that will have to be negotiated with the Ministry of Education (see item below).
The objective of restructuring will be to maintain programs and services to students by maximizing the use of human, financial and physical resources, and building a system that can adapt readily to an operating environment where there is a high degree of uncertainty. "The shift for our culture will be significant," she said.
Adjustments will have to be made to the Decentralized Decision Making model, which has been in place in Langley for three decades, and which is the philosophical basis for allocating funds in the district. The DDM decentralizes decision making responsibility and funding to school communities, based upon the belief that decisions affecting students can best be made at the school level.
That approach will remain at the heart of Langley's processes, but Ms. Beaumont said it must be adapted to the present environment. "It's not a choice between centralized services and a decentralized system," she said. "It is a continuum and we need to adjust where we are on the continuum."
She noted that the change is not unique to Langley, as districts across the province are struggling with budget shortfalls and deficits. Ms. Beaumont said Langley is capable of making the changes, which will be complex and require up to two years, while continuing to offer excellent services to students.
"The Board and Senior Staff are confident that Langley can make the necessary changes to operate in a changed financial environment. We have the capacity and the will to respond to the challenges and provide very well for our students."
See: The Superintendent's Report to the Board

2009-2010 Budget Update projects deficit
Langley School District faces a 2009-2010 operating deficit of $5.31 million Interim Secretary Treasurer Dave Greenan reported to the Board. In 2008-2009 the district incurred a $8.2 million deficit. The combined total of $13.5 million will have to be paid down through a Deficit Elimination Plan to be negotiated with the Ministry of Education.
Mr. Greenan noted that many steps have been taken to improve financial management processes in Langley since August 2009, and that all elements of a comprehensive restructuring plan will be in place by July 2010, which marks the start of the 2010-2011 budget cycle.
"However, restructuring has been a major undertaking," he noted. "As the district has been reviewing every aspect of its financial operations and achieving significant savings, cost pressures have continued to mount."
He noted that the Ministry of Education and the Auditor General's department have been informed of the projected deficit in the district's $158 million budget, and that senior representatives of the Auditor General's Department "have commented positively on the new budgeting and financial processes being implemented."
He pointed out that Langley will submit a 'balanced budget', as it must do under the School Act, but that the amended budget will be followed up with a formal letter notifying the Ministry that deficit is projected, how it occurred and what steps the district will be taking to eliminate it. Mr. Greenan noted that in the four months remaining in the 2009-2010 operating year steps will be taken to further reduce the projected deficit. "Every effort is being made to realize savings and reduce the actual deficit in the current operating year," he said.
See: The Secretary Treasurer's 2009-2010 Budget Update; the Amended 2009-2010 Budget Bylaw; a Question & Answer information release.

Electrical Foundation Program the latest Dual Credit option
Langley School District will become the largest satellite campus of the BC Institute of Technology with approval of an Electrical Foundation Program at D.W. Poppy Secondary School. District Principal of Languages and Careers Claire Guy and Langley Education Centre Principal Harold Krische, who was principal at DWP until January, presented the latest dual credit offering to the Board.
Dual credit programs allow students to achieve credits toward high school graduation and post secondary training in certified fields concurrently. "This allows students to pursue a 'hands on' experience in a career area of their choice in their senior high school years that gives them a head start on post-secondary training," says a report to the Board.
The Electrical Foundation Program will provide students with Level 1 Industry Training Authority standing as they go on to pursue a Certificate of Qualification in Electrical Construction through further training and apprenticeship.
See: a report to the Board on the Electrical Foundation Program

Policy on Financial Reports and Statements amended
Trustees approved amendments to Policy 3203 - Financial Reports and Statements. The policy outlines how financial matters will be reported to the Board of Education by the Secretary Treasurer. It now specifies that an update will be made on a quarterly basis on the district's financial position. The update will include:

Current year budgeted amounts, actual revenues and expenditures;
Projected year end actual results;
Projected actual versus budget variance amounts.

See: Recommendation to the Board on Policy 3203

Notice of Motion given on Policy 3204 - Audit Committee
A proposed new Policy 3204 - Audit Committee will be circulated in the district for comment from partner groups, staff and the community. The preamble to the policy states, "The Audit Committee's principal function is to oversee the School District's financial reporting process and its internal control structure, and report its findings to the Board of Education."
See: the Notice of Motion

Board reverses December decision to increase indemnity
The Board of Education voted to rescind a 6.8 per cent increase in the trustee indemnity that was approved in December. In a subsequent motion, trustees voted to apply the savings generated by the reduction toward meal programs for school children.