BCSTA BACKGROUNDER: CONFERENCE CALLS WITH BOARD CHAIRS

re: Provincial Budget and pending Distribution Announcement on March 12, 2015
Background Information
The following is provided as general background information to help inform Mondays
conference calls with Board Chairs (and invited Vice-Chairs and senior staff)
Reference documents suggested for Board use:
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Government Budget and Fiscal Plan 2015/16 2017/18 (pages 20 and 21)
Ministry of Education Service Plan 2015/16 2017/18
MOE: 2014/15 ANNUAL BUDGETED OPERATING EXPENDITURES BY FUNCTION

Education Budget Facts (as per government budget documents and explanation):
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$106 million net overall budget increase for next year primarily directed toward
funding additional costs of the recent teacher and support staff collective
agreements as well as LIF improvements ($94 million of this amount relates to
the 2014/15 school year for the teacher agreement and is already in your
budgets). Increases rise to $200 million in 16/17 and $258 million in 17/18 to
again offset the funding costs of the new agreements. This represents the total
+$564 million education budget increase announced by government for the
three-year fiscal plan period.

$29 million in required administrative savings for school districts in 15/16, rising
to $54 million in required administrative savings in 16/17 and 17/18. These
amounts have been deducted from the overall education budget prior to
calculation of the increases noted above.

School districts will receive their individual 2015/16 initial funding

announcements from the Ministry of Education on March 12, and are anticipated
to include:
o +$35 million for 2015/16 labour settlements
o -$29 million administrative savings
o +$6 million anticipated net overall change in block funding

Total dollar value funding to independent schools will rise as the number of
students attending their schools rises and the provincial per pupil allocation
rises. They will, however, see corresponding reductions in their budget
allocations due to the administrative cuts assigned to public school districts.

Other potential budgeting factors to be considered:

-

Additional cost pressures will need to be addressed by Boards this spring. These
will vary district to district, but potentially include:
o General inflation, including items such as MSP premium increases
o Next Generation Network continued implementation costs
o Excluded staff compensation increases (should the freeze be lifted)

Boards have been encouraged to implement long-term cost saving measures and
not to rely on short-term solutions such as drawing down surpluses to balance
their budgets.

Shared Services implementation will create a small opportunity for cost savings
in the first year, but will not create sufficient savings for districts to cover any
large part of the required administrative savings and/or additional cost pressures.

Current district surpluses will be under particular scrutiny going forward. It will
be important that Boards can identify portions of their surplus that have already
been allocated against a known or planned cost as well as anomalies (such as
the retention of June strike savings) that may have skewed the appearance of
large cash reserves.

The funding distribution formula used to determine individual district budget

allocations will continue to include consideration of both districts in funding
protection (30) as well as growing districts (30). The formula will not, however,
shield either group from the impact of budget pressures; nor the administrative
cut requirement.

The funding distribution formula will continue without significant change toward
trying to ensure an equitable, but not equal allocation of limited funds across the
K-12 system.

School district fiscal reporting under the District Administration function shows
spending in this area varies significantly (generally by district size) with averages
of 3 to 4 per cent for districts with greater student populations and 5 to 6 per
cent for districts with smaller student populations and/or larger geographic size.

BCSTA actions to date

-

Attendance at the government budget lockup in Victoria followed by immediate

media interviews and commentary (15+) regarding the impact on school districts

Budget impact overview to member Boards as well as broad media release

2

Board of Directors request for a joint meeting with both the Minister of Finance
and the Minster of Education to discuss budget impact and concerns

Meeting with the Minister of Education to discuss budget concerns and impact on
school districts, stressing the tough decisions and hard work Boards have already
done to balance previous budgets

Meetings with MOE staff to review the budget details and funding formula
application stressing the need for equitable impact for all school districts and
transparency in budget documents

A Provincial Council motion regarding a broad-based meeting between Board

Chairs, Branch Presidents, the Board of Directors and the Ministers of Finance
and Education

Provincial Council motions calling for 1) a common action plan by all Boards that
includes meetings with all local MLAs regarding the budget, and 2) a review of
government budget processes and communications as they relate to the cogovernance agreement

Meeting with PSEC representatives to raise continued concerns regarding both

BCPSEA trustee oversight and excluded staff compensation

Meetings with BCASBO, BCSSA and BCPVPA partner group representatives to

discuss a common approach to both understanding of the budget issues as well
as our response efforts. Future meetings to include a broader representation of
partner groups

Conference calls and further information sharing with member Boards toward a
common understanding of the budget impacts as well as a common approach to
further action

BCSTA further planned actions

-

Additional background and interpretation materials to member Boards

Media releases and interviews highlighting the impact of the budget on school
districts as local budget decisions are finalized

Further meetings with both provincial politicians and government staff to put
forward our concerns and recommendations on financial decisions

Participation in the provincial shared services implementation advisory committee

Assisting Boards in gathering historical data reflecting budget cuts as well as the
increased reporting and administrative requirements currently required by
government

Additional actions and initiatives by your Board of Directors following review of

input from member Boards

Key Questions and Discussion Points for the Conference Calls

1. How might BCSTA and Boards of Education further assess and communicate the
impact of the announced budget on school districts?
2. How best can we best share our local stories as to the cuts that have already
been made in past years as well as the impact of the current cuts on our schools
for next year?
3. How can BCSTA further support Boards through the spring local budget review
and response process?
Reminder of Conference Call Details
The calls will be held Monday, March 9 as follows:
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8:30 to 9:30am
12:00 to 1:00pm
5:00 to 6:00pm

Vancouver Island, Northern Interior Branches

Fraser Valley, North West, Thompson Okanagan Branches
Kootenay Boundary, Metro, South Coast Branches

CALL NUMBER
1-866-428-1156

PASSCODE
657974#

Board Chairs may wish to have their Vice-Chair, Secretary-Treasurer and/or

Superintendent listen in as well so that local issues and ramifications can be addressed
as part of any local follow-up.

Please call Mike Roberts BCSTA CEO directly if you have specific questions regarding
this information.