Amended budget slightly more favourable than last year’s

February 22, 2016

For immediate release February 22, 2016

Amended budget slightly more favourable than last year’s

Langley, BC – Boards of Education are required to submit a certified Amended Budget Bylaw by February 28 of the current school year in accordance with the School Act. The annual re-calculation of the district’s operating budget in December is brought about as the operating grant is awarded from the Minister of Education.

At the end of January 2016 the District is shown to be in a deficit position of approximately $1.7 million, which is slightly more favourable than the results at the end of January 2015 when the deficit was approximately $1.9 million. Deficits include the purchase of capital assets to support IT infrastructure and wifi upgrades in schools ($659,253 in 2016, $724,008 in 2015) and the payments for the capital lease of District photocopiers ($201,845 in 2016 and 2015). Prior to these capital items, funded from the operations budget, the 2016 deficit of $0.846 million still compares favourably to the $1.0 million deficit realized at the end of January 2015.

Appropriations from prior year’s surpluses will offset the amended budget deficit to produce a balanced amended budget for 2016. A deficit position at this time of the fiscal year is expected primarily as a result of the timing of receipt of Ministry of Education funding. The year-to-date (YTD) revenue balance of $90.0 million is 50.6% of the amount budgeted to be earned this year, compared to $80.0 million or 48.3% of the 2014-2015 budget. There are primarily three factors to account for the differences: (1) an increase in international student tuition;  (2) additional Ministry of Education funding to pay for wage lifts for teachers and support staff; and, (3) additional Ministry funding in response to higher enrolments. Revenue in 2014-2015 was also reduced when the Ministry recovered teacher salaries and related wage sensitive benefits in September 2015 at an estimated amount of $5.5 million.

Secretary Treasurer David Green noted that all districts in BC would be in a similar position at this time of year due to the nature of Ministry funding allocation. Mr Green went on to say, “…actual results for 2015-2016 to the end of January show a similar trend to the previous two years and substantial variation from the amended budget is unlikely for this year”.

Contact: Ken Hoff, Communications Manager, School District No. 35: 604-534-7891