News - revised balanced budget

For immediate release
December 3, 2001

Board submits revised balanced budget

        After several discussions with Ministry of Education officials and the involvement of Provincially elected officials throughout the Fall of 2001, the Hastings and Prince Edward District School Board is set to revise its' 2001-2002 budget as required by provincial regulation. All school boards are required to submit revised budgets each fall in order to provide Ministry officials with updated projections on expenditures and school enrolments.
        Earlier this Fall, Board officials were called to a meeting with Ministry officials to review a projected budget shortfall of $855,000. The Board had submitted a budget that included $855,000 in additional funding which the Board had received the previous year to offset extraordinarily high utility and bus transportation costs which were projected to continue. These discussions resulted in the Ministry of Education confirming a commitment to 1) Review the impact of declining enrolment on the provinces's funding model, 2)Continue to monitor energy costs and 3)Implement a new transportation funding model for the 2002-2003 school year. For its part, the Board committed to working within a balanced budget and would, therefore, review all expenditure areas.
        Since the beginning of the school year, political and economic events have occurred which have caused energy prices to decline and governments have continued to reduce interest rates in order to boost sagging economies. These combined factors have lessened some of the fiscal pressures on the Board's budget with respect to school bus transportation costs and utility costs. Upon review of specific components of the budget, the Board is also recommending selected expenditure adjustments. These are summarized as follows:

Reduce central administrative costs through retirements and restructuring to save $180,000
Reduce non-teaching support and services across the system to save $210,000
Reduce selected plant operations and maintenance budgets to save $205,000
Consolidate transportation routes and reflect a reduction in fuel costs to save $160,000
Reduce projected utility costs through additional energy conservation measures and rate reductions to save $100,000

While these adjustments will allow the Board to offset its budget shortfall for 2001-2002, discussions with the Ministry of Education will continue with respect to Board specific and province wide financial issues such as the impact of declining enrolment on school board operations.

For information contact:
Dave Rutherford, Superintendent of Finance, 966-1170, ext. 2280