Budget

The Northern Lights Board of Trustees approves a budget that is submitted to Alberta Education in June. These spring budgets are revised every fall once student enrollment numbers have been confirmed on September 30th of each year. A Fall Budget Update including these revisions is then submitted to Alberta Education at the end of November.

In the 2019-2020 school year, the Fall Budget Update deadline was extended and NLPS submitted an updated budget in January.

2019-2020 Budget Update

2019-2020 Spring Budget Submission

Budget Update 2019-2020

Statement Issued January 9, 2020

Over the past couple of months, the Northern Lights Public Schools Board of Trustees and division administration have been working diligently to address a $2.56 million shortfall in this year’s budget.

The $2.56 million shortfall is the result of three factors: 

  • a $1.5 million increase in the division’s insurance premiums (a 274% increase in property insurance premiums and a 38% increase on liability and other premiums);
  • a $700,000 reduction in funding from the provincial government (the difference between what the division was receiving through the class size initiative grant last year and what it will receive this year through a one-time funding to offset the loss of that grant, and an enrolment-related transportation grant reduction); and,
  • additional expenses identified since the initial 2019-2020 budget was approved by the Board in the spring. Some of these additional expenses are related to initiatives that will save the division money on a long-term basis, but require an initial investment in this school year.

“Our goal was to balance the budget without drastically affecting the services offered to students in our classrooms or passing costs on to parents without adequate time for consultation,” said Board Chair Arlene Hrynyk. “We are confident with the plan that has been developed that the direct impact on students will be minimal this year and we are committed to consulting with stakeholders when appropriate as we look at changes that may need to occur going forward.”

The majority of the shortfall will be offset by using school board reserves of $1,350,000. In addition the Board has taken the following steps:

  • Cut its own budget and reduced its spending by 6% compared to 2018-2019;
  • Identified efficiencies and reduced spending at the division level by nearly $700,000;
  • Asked schools with reserves to contribute 20% of those reserves towards the shortfall; and
  • Reduced funding to each school by $8 per student for the 2019-2020 school year.

School administration have been reviewing and making adjustments to their budgets to reflect the changes that were made. The impact on direct services to students and staffing levels is expected to be minimal.

“It is important to us that our students don’t experience any mid-year disruptions in their classrooms as a result of the financial situation we are dealing with,” explained Hrynyk. “We know our students, parents, and staff are experiencing a lot of anxiety due to stories they may have read or rumours they may have heard, and we want to reassure everyone that we are doing our best to ensure we maintain services to our students while operating in a fiscally responsible manner.”

The Board is looking forward to the results of the provincial funding framework review that is currently underway and will determine how much funding boards will receive from the government starting in the 2020-2021 school year. Once that has been announced, the Board will begin developing its budget for next year.

“We are hopeful that the funding framework review will provide equitable and predictable funding for boards across the province and, in particular, address some of the circumstances that are unique to rural boards,” explained Hrynyk.

In the meantime, the Board is taking several steps to prepare for a potential budget shortfall next year. This includes continuing to work with the provincial government and school boards across the province on potential solutions to address the increase in insurance premiums all boards are dealing with. After discussing the issue with local MLA’s David Hanson and Laila Goodridge at their December 13th board meeting, the Board is optimistic that with some time to work on the issue, there will be options identified that could reduce the impact.

The Board and administration will also continue to look for efficiencies and opportunities to reduce costs in the system while minimizing the impact on students in the classroom.

“It is important to us that if any changes need to be made for the 2020-2021 school year, that, whenever possible, we give our stakeholders opportunities to provide us with input so that we can make decisions that best reflect the needs of our students and our communities,” said Hrynyk. “We encourage all of our students, parents and community partners to take advantage of the opportunities provided to them through our stakeholder consultations, and to work with us to identify options and find solutions that will enable us to provide the best possible educational opportunities for our students.”