The Thames Valley District school board is wrestling with an $18.5-million deficit, the largest in its history and almost three times bigger than forecast last spring.
The Thames Valley District school board is wrestling with an $18.5-million deficit, the largest in its history and almost three times bigger than forecast last spring. The funding shortfall will mean “serious challenges serving the needs of Thames Valley schools, staff and communities,” board chair Beth Mai said.
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How did this $18.5-million deficit happen?
The deficit largely is the result of expenses related to increases in the number of sick days and in Canada Pension Plan and employment insurance premiums, for which there has been no funding increases.
“School boards across the province, including TVDSB, are experiencing significant and ongoing budget pressures. The requirements we have aren’t being met by the Ministry of Education,” said Mai, a London trustee.
Other factors include having more teachers than are funded due to the wide range of high school courses offered, as well as some courses being offered in smaller class sizes than funded. The board also has been losing money funding a number of smaller high schools and its predictions for elementary enrollment were less than for what they budgeted.
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Can school boards carry a deficit that large?
School boards are allowed to have a budget deficit of up to one per cent of their total operating budget without approval from the education ministry. With the projected deficit equal to 1.8 per cent of the Thames Valley board’s $1.1 billion annual operating budget, trustees must seek Queen’s Park approval for the shortfall or find ways to reduce it.
What was done to reduce the shortfall?
A report received by trustees this week outlined the steps the board took to address the deficit. Measures include using “a significant amount of the board’s surplus funds” to compensate for the shortfall. The board also applied for more grants and funding. It has reviewed its operating budget and cuts have been made in staff development and supplies and services. Some high school courses also were removed as a cost-cutting measure. A review of salaries and benefits was prepared, and expenses were reduced for known and projected job vacancies.
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If funding challenges continue, what are some of the potential outcomes?
Mai said due “to significant and ongoing budget pressures” this year’s budget process will be “particularly challenging.
“There have been discussions about budget pressures,” Mai said. “If funding shortfalls continue, the board will continue to face serious challenges serving the needs of Thames Valley schools, staff and communities.”
That means potential reductions to optional programming and “teaching staff changes” that are not supported by enrolment funding.
What action has the board taken to address budget pressures?
Trustees have “advocated for the decisions and funding necessary for student success,” Mai said.
“I am optimistic that the Ministry of Education. . . will address the funding shortfalls experienced by TVDSB and other boards so that school boards can continue to support student success.”
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