Pembina Hills School Division adopts 2024-25 budget

BARRHEAD - Heather Nanninga, secretary treasurer for Pembina Hills School Division livened the start of her budget presentation May 22 with the time-honored government tradition of presenting her shoes.
“Check out my shoes! They are not new. They are functional. These are my get-work-done shoes. Which is part of the theme for this budget,” stated Nanninga.

She explained that her shoes were uncomfortable and caused blisters in the beginning, same as the budget. The shoes were within her means, also the same as the budget.

Nanninga stated, “The result is a budget for 2024-2025 that is expected to be balanced. No major withdrawals from reserves. School operations are similar. Nothing major changing.”

School operations are in line with the 2023-2024 budget. No schools closing or opening and no significant operational changes.

Staffing levels are relatively the same with school-based staff increasing by 2.6 full-time equivalents (FTE) and a 1.1 per cent increase for school-based non-certified staff which equates to an additional 5008 hours or 3.6 FTEs.
Teacher costs are increasing slightly at 0.3 per cent, or $294 per teacher per year on average.

Support staff costs are increasing because of benefit changes and the grid step increase by 2.8 per cent or $1.04 per hour per support staff on average. 

Judy Lefebvre, chair of the Pembina Hills School Division, noted that collective agreements with both teachers and support staff end this August.

Projected community school enrolment is consistent with few changes. Some of the Kindergarten to Grade 9 forecasts are down in numbers slightly.

Virtual Vista School projections are the best-judgment forecast for increased student enrolment based on the data available.

Summer student enrolment is not included in these overall enrolment figures.

Budget revenue figures show no surprises compared to the 2023-2024 budget with only slight changes.
The total budget revenues for 2024-2025 are $70.3 million.

This includes Government of Alberta funding revenue at $68 million. The largest contributor to the budget revenue is the Alberta Education Instructional Grants. 

Revenue from fees is forecast at $366,000, a significant drop from 2023-2024 budget of $614,700. Transportation funding calculations from the government has changed and the forecast was adjusted to reflect that.
The forecast for other sales and services funding budget is $1.2 million, a slight increase from the 2023-2024 budget amount of $1.1 million.

Investment income funding is forecast at $375,700, an increase from 2023-2024 budget figure of $328,500.
Gifts and donations shows a 0.3 per cent decrease in the forecast.

Other revenue funding is forecast at $61,000 compared to $13,000.

Operating expenses are made up of certified personnel salaries and benefits, non-certified personnel salaries and benefits, services, contracts and supplies and amortization of supported and unsupported capital assets.
Total expenses by category saw slight changes, increases with salaries and benefits and a minimal increase in services, contracts, and supplies.

Facilities, operations, and maintenance departments are school support expenses. 

Dedicated funding is received for these functions. 

There are three grants received; envelope funding increased by six per cent, infrastructure maintenance and renewal grants decreased by 1.2 per cent and capital maintenance and renewal grants increased by 147 per cent.
The CMR (capital maintenance and renewal) grant provides funding for large projects. Nanninga explained that an example would be a roof replacement or mechanical systems.

Transportation expenses are funded by a targeted grant that increased by 5.3 per cent, affected by the change in formula calculation by the government.

Grants to cover fuel price contingency and driver training are expected to be continued for the next year.
The transportation department has six buses on order for the 2024-2025 budget year, estimated at $187,000 for each bus, expected to be delivered next summer. 

Five additional buses are planned for the 2025-2026 budget year.

Board and system administration expenses are funded by a targeted grant with an increase of 10.1 per cent. 

The forecast for board trustees expenses is $363,000, while division office expenses are $2.3 million.

Reserve funds are split between operating reserves and capital reserves. 

Operating reserves are savings of surplus. The Province of Alberta says all divisions have been saving too much and have put a cap on operating reserves of 3.74 per cent of expenses.

The budget forecast for operating reserves balance for 2024-2025 is $1,533,055.  

Nanninga recommended to move $1 million to capital reserves to fund capital projects like new buses, fleet vehicles and gym expansions, which is the one project that funds need to be set aside for.

Lefebvre questioned the mental health funding and supports currently in place. 

Funding ends in December this year but plans are in place to continue support through operations. 

It has not been announced whether this funding will continue to be available to the division.

An increase has not seen in per student rates in quite some time.  

There was $2.4 million in COVID funding that is included in the 2024-2025 budget as a one-time grant.

Trustees voted unanimously to adopt the budget as presented.