The Richmond School District will be scraping the bottom of the barrel as it faces a $2.5 million deficit for next school year, according to a budget report presented to the Richmond School Board Monday.
In order to balance the budget, which is required by law, district executives are proposing to transfer $1-1.5 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.
The board will vote on a final budget on May 20. Up until that time, board chair Donna Sargent said comments from the public are welcome.
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 savings that add up to $1 million or more.”
He told the Richmond Newsthe reserve account stands at about $6 million.
De Mello 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 spends more on them than is required by the Ministry of Education. Also, most cuts are expected through attrition as the district anticipates about eight to 10 retirements.
According to the report, cuts to the learning services department are justified because the department had not seen any 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. 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 hire as a result of lower enrolment.
De Mello noted in his report that the deficit factors in CUPE staff 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.
