York Catholic District School Board
REPORT
Report To:
Board of Trustees
From:
Administration
Date:
March 25, 2014
Report:
Development of the 2014-15 Operating Budget: Status Update
Executive Summary:
The purpose of this report is to continue Board discussion on the development of a balanced operating
budget for 2014-15 and to provide a status update on the development of associated revenue and
expenditure projections for 2014-15. Furthermore, this report will also provide an update on any
Provincial Ministry of Education announcement that will/may impact the development of those estimates.
Note: At the time of preparing this report no announcements were received regarding the 2014-15 GSNs
or status of Provincial labour discussions which may impact projected funding and/or
expenditures. Any updates available (which were rumored to be made March 24th) will be brought
to the March25th Board meeting.
Note:
It is recommended that this memorandum be filed under the “Introduction” section of the 20142015 Budget Allocation Workbook.
Background Information:
The process used in the development of the annual operating budget for the Board has evolved over the
years. Each year’s budget development is influenced by many varied factors (e.g. Board’s financial
position, Ministry funding levels, state of labour relations/negotiations, Board priorities, Ministry
directives, etc.) that can change dramatically from year to year. A number of meetings have been
designated to facilitate Budget deliberation.
There are three important steps in the balancing element of the budget process:
1. Calculate Estimated Revenue Entitlement
2. Calculate Estimated Expenditures Requirements
 Salary and Benefit Projections are 90% of the expenditures
3. Ensure that Step #1 is greater than or equal to Step #2
Note: While the above approach is an overly simplistic summary of the budget balancing process, it does
however capture the key components that Board must address to ensure compliance requirements are
met.
The Board must also remember that the past decisions influence the current state and impact future
financial positions.
At present three key initial strategic areas to be prepared and finalized are as follows:



Enrolment Projections
Revenue Projections
Labour Estimates
Subject to confirmation of GSN information, the April 29, 2014 Board Meeting will have time allotted to
review the initial Projected Revenues (including enrolment projections) to be used for the 2014-15
Estimates.
Development of the Board’s Labour Estimates (Employee Salaries & Benefits) has been and continues to
be reviewed and discussed at the Labour Relations Committee (LRC) of the Board. Further discussions
are planned at LRC in April and May and, subject to discussions held and recommendations generated, it
is targeted that a Final Salaries and Benefits module will be available for Board review by the end of May,
2014.
A PowerPoint presentation entitled “2014-15 Allocation of Resources Budget: Introduction/Overview”
was distributed (along with the Budget Binders) at the February 25, 2014 Board meeting. The 66-slide
PowerPoint presentation was included to provide an introductory overview of the various issues and
challenges to be considered with respect to developing the 2014-15 Financial Estimates (i.e. Operating
Budget). Extracts and themes included in this presentation were highlighted as part of the presentation
given at the February 25, 2014 Board meeting and will be discussed further at the April and May Board
and Labour Relations Committee meetings.
Next Steps:
Administration is continuing to work towards completion of financial estimates based on the timelines
previously presented. These timelines indicate that the goal is to have the 2014-15 Financial Estimates
“substantially complete” by the end of May with final approval by June 17th. This will incorporate some
very tight timelines and assumes that and is subject to receiving the required information from the
Ministry of Education and that key decisions on staffing levels are made in a timely manner.
Note: As new information becomes available from the Ministry, calculations for both revenue and
expenditure projections will be required to be updated and new options presented to Trustees.
“Incremental” Analysis:
In developing the revenue and expenditure projections, Administration will report any budgetary
adjustments on an “incremental basis”. Using the Revised Estimates as a base for comparison, the
following concepts must be understood and followed in order to generate a balanced and compliant
budget:

Any incremental increase in expenditures must have an equal and offsetting increase in revenue
and/or decrease in expenditures.

Any incremental decrease in revenue must have an equal and offsetting decrease in expenditures
and/or increase in revenue

Any incremental increase in revenue may have an equal and offsetting increase in expenditures.
Conclusion:
Clearly communicated and understood decisions on Provincial labour and funding levels for 2014-15 are
“critical” in order for the Board to proceed with the development of the 2014-15 Operating Budget. At the
date of this report, decisions on these two areas have not be made.
Note: TDSB announced (last week) that they have passed a balanced budget for 2014-15. Administration
will “investigate” what was announced and if any strategies used at TDSB can be used at YCDSB.
Prepared & Submitted by:
Endorsed by:
John Sabo, Associate Director: Corporate Services and Treasurer of the Board
Patricia Preston, Director of Education