Trustees with the Medicine Hat Catholic School Board meet Tuesday over Zoom.--SCREENSHOT
rmccracken@medicinehatnews.com@MHNMcCracken
Medicine Hat Catholic Board of Education broke down the numbers in its second quarter financial update during Tuesday’s public board meeting, which was streamed live on YouTube.
MHCBE secretary-treasurer Greg MacPherson says projections and trends put them on course for a surplus of $814,000, however like everything in the COVID era, it must be taken with a grain of salt.
“When we look at the totality of this, the deficit we were projecting as part of the fall update was $193,000. That now gives us a surplus, based on these projections and trends, of $814,000. That money, if it comes to fruition, will go directly into the reserve,” said MacPherson. “There is some concern, because of some of the savings, that we could be deferring costs to future years. A good example would be, within the collective agreement, the personal days that teachers get. They may not be utilizing them within the current year, however we could see higher utilization in future years. Some of these savings could really be more, what I consider to be transitory.”
MacPherson says revenue has decreased from what they were working with in the fall budget by $466,044. School-generated funds are down by $594,477, which MacPherson says is a direct result of low activity with team sports, hot lunches and school clubs. Other sales and services dropped $48,180, largely attributable to a reduction of international education students coming into the division, while Alberta Education revenue went up by $168,000, a number that may increase to $322,000 depending on Program Unit Funding.
“There’s still some uncertainty around that number and Alberta Education has indicated that those profiles, in terms of what’s being clawed back, would be available on or before March 31,” he said.
MacPherson says spending has been $1.4 million lower than expected.
“Generally speaking, this is a result of reduced spending because of COVID and other factors,” he said. “With our instructional staffing, we’re seeing savings of approximately $400,000. That’s a function of three major areas.”
Those areas include the extended illness and maternity budget and the substitute teacher budget – both of which MacPherson says are trending much lower than expected – and an ATA refund.
MacPherson added the update also shows $776,570 in savings for school generated funds, which similar to its changes in revenue, is a function of lower activity.
POM costs are expected to be $137,000 higher than anticipated, says MacPherson, largely due to utility and additional custodial staffing.
The board also approved the 2021-22 school fees and calendar – which will send students back to school on Aug. 30 and features a November break surrounding Remembrance Day – and re-approved its 2021-24 three-year capital plan, which MacPherson says will focus on modernization at a few local schools.
“The situation remains static, so in our opinion there’s no need to change the existing plan, as it remains valid,” MacPherson said of the three-year capital plan. “The No. 1 priority is the modernization of St. Mary’s school, a modernization of Mother Theresa School being the second priority, and the third priority is St Michael’s School modernization. Those three priorities remain the same, as in previous years.”
The capital plan estimates the cost for right-sizing and modernization at St. Mary’s to be $12,618,720, while Mother Teresa is estimated to cost $7,802,880 and the modernization of St. Michael’s comes in at an estimated $6,400,800. Modernizations at St. Francis Xavier School ($4,267,200) and St. Patrick’s School ($10,363,200) are listed as the plan’s fourth and fifth priorities, respectively.
The application and operation of an outreach program at Monsignor McCoy, as well as a dance course at the school starting in September, were also approved Tuesday.
