The Richmond School District will be scraping the scrapings at the bottom of the barrel as it faces a $2.5 million deficit for next school year, largely as a result of a projected drop in enrolment, according to a budget projection report to be presented at the Richmond School Board Monday, May 5.
In order to balance the budget, which is required by law, district executives are proposing to transfer up to $1.5 million from its surplus reserves as well as reduce the number of educational assistants, which could save up to $750,000. Other substantial cuts include reducing the school supplies budget by $400,000 and reducing 3.5 full-time positions from the learning services department.
District treasurer Mark De Mello noted in his report that taking money from a surplus reserve is "not sustainable," however, "the current proposal is a challenge to all staff in the district to find many saving that add up to $1 million or more worth of savings."
He told the Richmond News the reserve account currently stands at about $6 million. De Mello hopes to recoup most of the $1-1.5 million over the year through finding efficiencies.
He said dipping into reserves will save — at least temporarily — some jobs because the district has few other options for cuts available to it.
"After years of cutting elsewhere we are now at a point where we need to cut staff," said De Mello.
Educational assistants were targeted because the district actually spends more on them than is required by the Ministry of Education. Also, most of the cuts are expected through attrition as the district anticipates about 8-10 retirements.
Cuts to the learning services department (curriculum coordinator, teacher consultant, area counsellor and a speech language pathologist) are justified because the department had not seen any cuts over the last few years as enrolment has declined.
The district is projecting 300 fewer students in 2014/15 and as such it will receive a smaller grant cheque from the ministry. Money from the ministry represents 93 per cent of the district's revenues, according to De Mello.
It is the third straight year Richmond's student population has declined.
The cuts are in addition to the 10 fewer teachers the district will higher as a result of lower enrolment
De Mello noted in his report the deficit factors in CUPE wage increases, for which the provincial government did not fund.
General increases in benefit costs and other inflationary costs added to the deficit as well.
One saving grace for the district is a projected record $12.3 million infusion of cash due to its international student program. With total revenues at $187 million, the international program now represents 6.5 per cent of its budget. Last year international students brought in about $10 million, representing five per cent of revenues.
Total expenses for next year are projected at $189 million. Teachers account $85 million.
@WestcoastWood
