2013-2014 Operating Budget Ward Forum Presentation Trustee Cathy Dandy May 6, 2013

1. 2013-2014 Operating BudgetWard Forum PresentationTrustee Cathy DandyMay 6, 2013

2. Purpose To provide an overview of the recommendations being considered by the Board to balance the 2013-2014 Operating Budget.

3. Context For Decision Making No access to tax base since 1998 Largest source of funding is from the Ministry of Education through the Grants for Student Needs (Grants) The Grants are tied to enrolments and demographics The Grants use provincial averages with some adjustments to recognize differences amongst boards Legislative Requirement to balance the budget

4. Cost Pressures Provincially: • Boards have less students which means less funding • Full day kindergarten, similar to primary class size, means capital and space pressures • Impacts of Bill 115 including benefit costs etc. • Other legislative requirements were funding levels may not match costs incurred (i.e. Ontarians with Disabilities Act) TDSB: • We pay higher salaries than the provincial average salaries which creates cost pressures (teachers, early childhood educators, caretakers etc.) • Large number of schools which were built in the 1950’s and 1960’s • Number of sites

5. What the Board has been doing Ongoing review of student accommodation needs and closure of schools (close to 20 facilities since amalgamation (saving $2.5M per year) Reducing maintenance and utility costs with (waste management, energy conservation, environmental initiatives) Reducing central administration, department budgets and staff Increasing revenues where the Board can charge fees Taking advantage of new technologies to consolidate systems, improve efficiencies

6. The Roadmap Long Term Sustainability and Ability to Reinvest

7. The Budget Cycle

8. Where We’ve Been For a number of years, budgets were balanced by making reductions to central expenditures to protect programs, services, schools and classrooms as much as possible By only addressing budgets deficits on a yearly basis to balance the budget until more funding is available, the Board begins each budget cycle in a deficit position In short, the bill for the services we provide is always more than the money that is coming in

9. This Year… • The projected deficit for the coming year is $55 millionbased on current information This is subject to change based on enrolment and the announcement of the Grants for the upcoming year • $30 M - original forecast • $10 M - 2012-2013 in year savings to be found • $10 M - (Grant changes and currently unidentified cost pressures as indicated in the PwC report ) • $5 M - savings planned to balance the 2012-2013 budget and matching savings for 2013-2014 to be found

10. Constraints • The Ministry provides funding for the following purposes and the Board has to use the funding for these programs: • full day kindergarten, primary class size, special education, secondary student success • The Board must meet its collective agreement requirements (collective agreements were carried over with no changes due to Ministry legislation); • Board must meet its legal requirements (health and safety, insurance, audit, payroll and taxation, etc. • Very little discretionary spending

11. While Working Toward Financial Sustainability • A number of decisions need to be made this budget cycle to help bring the Board’s finances in to balance. • Staff recommendations for the 2013-2014 budget cycle set out the best advice about the structural changes that are needed to put the Board on strong financial footing for the future. • Over the next four months staff recommendations will include: • Staff Allocation Report • Operational Budget Recommendations • Capital Deficit Reduction Plan • Long-Term Capital Building Plan

12. 2013-2014 Staff Allocation

13. School Based Expenses – Salaries and Benefits

14. School-Based Staff Allocation Each year approval of staff allocation is needed in March in order to be ready for the next school year and to meet the staffing process obligations that are outlined in Collective Agreements.

15. March 6th Summary of School-Based Savings

16. 2013-2014 Operating Budget

17. School-Based Expenses Compared to Operating Budget 74% of the $3 B budget is school-based expenses. Of this 74%, most of it ($2B) is school-based salaries and benefits

18. Approach to the Operating Budget • When balancing both operating and capital budgets, the dollars available must equal (or exceed) the planned expenses. • For the operating budget, this means increasing revenues, which school boards have very little flexibility to do, or decreasing expenses. • The funds available in the operating budget are minimal as a result of the reductions made in previous years.

19. Finding the remaining $27.3M to Balance the Budget Eliminating duplication of services Reducing central and other budgets Changing the way we deliver programs and services Reducing facility services expenses Using technology to reduce costs

20. Areas Where Direct/Specific Funding & Expenditures Are Not Matched School Based Staffing (e.g. Vice-Principals, Guidance, Library, Secondary Teachers) Outdoor Education Centres Classroom Consultants, Central Coordinating Principals, Principals, Vice-Principals, Instructional Leaders Vision of Hope Aboriginal Education Continuing Education/International Language Programs Transportation Community Use of Schools (permits) Technology School Budgets Facility Services (cleaning of schools, heating, snow removal, etc.)

22. Creating a Strong Financial Foundation By making decisions that address the Board’s structural deficit and building processes that ensure public dollars are being spent in a responsible and transparent way, the Board will establish the strong foundation that is needed to support the current and future students The 2013-2014 budget cycle is an opportunity to continue making the changes that are needed to improve the financial management of the TDSB

23. Where We’re Going PROGRAM IS THE DRIVER FOR DECISION MAKING Board’s Strategic Directions Long Term Program &Pupil Accommodation Strategy Operating Budget Sustainability and Financial Stability Annual Operating Plan Capital Budget