Greg MacPherson, secretary treasurer, presents the 2024-25 Catholic School Division budget to trustees during their public meeting Monday.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
Medicine Hat Catholic Board of Education trustees voted to approve the division’s 2024-25 budget of $39.7 million for the next school year, projecting a deficit of $437,800.
However, that deficit will be covered through the use of accumulated unrestricted reserves that have no plans for spending. This year’s budget will halve the division’s unrestricted reserve budget from $651,000 to $311,000.
During a public budget meeting Monday, trustee David Leahy shared concerns with the board on future budget issues which several divisions across the province may encounter.
“A year from now if that amount stays static, we along with a number of other school boards in Alberta, will be facing some critical decisions,” said Leahy. “We need to be preparing ourselves that if we’re looking at the same situation we are looking at now, we will not have enough money, and that’s just a comment about the situation in Alberta.”
Secretary treasurer Greg MacPherson explains that under the province funding model per student the division’s unrestricted reserve budget changes every year and new students only receive 80 per cent of funding during their second year.
The division is projecting 88 more students will enrol in Catholic schools next year.
“Essentially those 88 students in our division who are new are only funded half,” explains MacPherson. “So next year they would be funded for 80 per cent. So there would already be an increase of funding because of the way the moving average works.”
Despite the deficit the division continues to grow its funding framework and expects an additional $738,000 over last year to total revenues at $31.2 million.
Transportation
Trustees learned the major driver for this year’s deficit is the unexpected cost of school bus transportation, including inflation, fuel costs and maintenance.
The board approved a five-year contract with Southland Transportation during its public meeting May 7 following a formal request process for transportation services to find the best market prices.
In that contract the Catholic division will experience an increased cost of $331,000 over the 2023-24 budget for a total of $2.027 million for student transportation in the 2024-25 school year.
“We’re seeing a significant increase in our transportation costs,” says MacPherson. “The price of fuel, the ability to attract and retain school bus drivers as well as the supplies and maintenance on buses.
“We are confident we’re getting the market prices, but unfortunately the market prices are higher.”
Higher transportation costs can now be implemented into future budgets and MacPherson says the division is actively working with Southland on finding cost-saving measures.
The division has also budgeted $28,000 for GPS and amortization of cameras, and an additional $26,000 for transportation software to allow for better routing opportunities with Southland.
More students, more educators
Next year the division is planning 88 more students to enrol in Catholic schools and will hire two additional full-time educators to account for the increase.
“So that’s a positive, and with the additional students coming in those staff are needed to teach those students, and then as we progress into future years the funding for those students will fully materialize in subsequent years as part of the moving average.”
The division is forecasting fewer international student enrolments next year, with a total of 50.
The budget has also built salary increases for all staff under a collective agreement and for a rate that will be needed to be finalized for staff without an agreement, as well as a fall retreat with board trustees and school administrators.
