1. BUDGET OVERVIEW 2012-2013 FAITH IN YOUR CHILD
Good Evening Trustees, Staff and members of the TCDSB Community.
I am pleased to present to you information regarding the Budget Estimates and the Budget Consultation Process
FAITH IN YOUR CHILD

2. Toronto Catholic District School Board
Over 86,000 Pupils
Over 14,000 teaching & Support Staff
167 Elementary & 36 Secondary Schools.
$1.03 Billion Annual Budget
TCDSB can take pride in being the largest Catholic School Board in Ontario and Canada with:
A budget exceeding $1 Billion
Serving over 86,000 pupils
With 167 Elementary Schools & 36 Secondary Schools
And over 14,000 Teaching & Support Staff

3. Multi Year Strategic Plan (MYSP)
Living Our Catholic Values - to apply Catholic Social Teaching to all that we do.
Student achievement and well being -To support our students in meeting the Ontario Catholic School Graduate Expectations, the ability to apply critical and innovative thinking in all subjects and also to create equitable learning environment for all students.
Strengthening Public Confidence -To create enhanced, regular communications that reach all stakeholders and to create and implement a proactive community engagement strategy.
Stewardship of Resources -To establish integrated decision-making structures and processes to support responsive and responsible allocation of Resources and to ensure fiscal responsibility at all levels of the organization.
Inspired and Motivated Employees -To create a learning and work environment that is equitable and diverse, that supports professional learning, innovation and Collaboration.
Excellence in Governance – To lead and model best practices in Board governance.
The Multi Year Strategic Plan was approved by a Special Board Meeting held on April 4th 2012.
The Budget will be developed consistent with our Board’s vision, values and the goals set out in the Board’s Multi year Strategic plan.
We have also developed a Budget Impact statement for internal purposes where the proposal for each initiative has to align to one or more of the MYSP directions for TCDSB.
A copy of the Budget Impact Statement can be located as an appendix in the report appearing in your agenda package.

4. Purpose of the Presentation
To explain how Toronto Catholic District School Board receives Grants from the Ministry.
To outline the board budget preparation process and key elements & timelines.
A financial Overview of how TCDSB’s spending compares to the funding formula.
The purpose of this presentation is to provide:
An overview of how TCDSB is funded
To outline the TCDSB budget planning process
And provide a financial overview of how TCDSB’s spending compares to funding

5. Grants for Student Needs 2012-13 (GSNs)
The Grants for Students Needs, often referred to as GSNs, can be depicted as a pie chart, and the following should be noted:
Foundation Grants (includes Pupil & School Foundation) generates 53% of total GSN funding
School operations , Administration & Governance & Transportation generates 13% of total funding
Special Education Grants represents 12% of total funding.
Learning Opportunity & Language ( ESL & FSL) total to 9% of the funding.

6. Budget Allocations
And now, your first look at the Expenditure budget allocations which can also be depicted as a pie graph.
What is interesting to note is the following:
Teaching Salaries (Elementary & Secondary) comprises approximately 56% of the total expenditure budget allocations
School Operations & Maintenance which includes the cost of custodians comprises the next largest budget allocation at 8%
Staff Development & Other Expenditures comprises the 3rd largest slice of the pie at 6%; Other Expenditures include Education Programs – Other, also referred to as EPOs, for programs and services which receive one-time or defined funding outside of the GSNs, i.e. the Full Day Early Learning Kindergarten Program rollout and the Mental Health Initiative.

7. Limited Budget Flexibility for Expenditures
A high level look at the Expenditure Budget as a pie chart also shows us that:
Almost 83% of the total expenditure budget is earmarked for Classroom Instruction
6% for School Operations, Maintenance & Transportation expenditures
7% for Capital , School Renewal, and EPOs
Which leaves only 4% for all other expenditures such as the School Block, Program and Central Department budgets, Staff Development, etc.
The message in this budget pie chart is simply that there is not much flexibility once consideration is given to Provincial Discussion Table Agreements (also known as PDT Agreements), Class Size requirements, Special Education enveloping requirements, and Collective Agreement requirements.

8. Primary Class Size Progress
As you can see from the graphs, TCDSB has complied with the provincial class size requirements in Primary classes (JK to 3) and in Grades 4 to 8.
90% of JK to 3 classrooms must be <= 20:1 and the remaining 10% cannot exceed 23:1
Grades 4 to 8 must be 24.5:1 as per the existing PDT Agreements
TCDSB will be staffing to meet these class size targets.

9. Funding per Pupils versus Enrolment
Enrolment for TCDSB is projected to increase by a small margin of only 13 ADE overall.
Any change in enrolment creates funding pressures as enrolment is a key driver for the generation of education funding.
Enrolment is calculated as the average of two count dates, i.e. October 31st and March 31st, which provides the Average Daily Enrolment, otherwise known as the ADE.
The ADE generates funding through the Grants for Student Needs, also known as the GSNs.
The projected ADE also generates staffing requirements in our elementary and secondary schools, which in turn feeds into our Expenditures Estimates from a cost point of view.

10. Special Education Grant
In the current provincial fiscal environment, funding for special education is not projected to increase in The Ministry of Education is projected to maintain the same level of funding as was in with one small exception.
There will be a slight reduction to benefits benchmark funding earmarked for retirement gratuities provided across all programs over the next 12 years, which amounts to a reduction of 0.167% in , however, there will be a matching reduction to Benefits expenditure budgets.

11. Special Education Allocation
In order to maintain stability for the system and to ensure that student achievement is not compromised, TCDSB has historically reallocated flexible GSN funding in order to address the shortfall that has occurred in recent years; which is approaching $18 to $20M.
The GSNs allows TCDSB to expend more than its Special Education GSN funding provision to maintain its existing complement of Special Education programs and services for the fiscal year
If one line is over, something else must be under. In the past we have been using the ESL, Learning Opportunities and Program Enhancement grants to fund the shortfall. Of some immediate concern is the loss of the Program Enhancement grant amounting to nearly $2m for as this grant is phased out.
The challenge to TCDSB in compiling a budget will be to find other funding sources or efficiencies in order to provide the same level of programs and services.

12. Special Education Allocation
Despite the budget constraint, Toronto Catholic District School Board programs and services will continue to support high levels of student achievement, pursue equity of opportunity and learning outcomes by refocusing its program delivery models. The Board continually reviews its programs and central supports to improve service to students, identify gaps in student achievement and to address those gaps. By focusing on students needs and aligning resources to support those needs, the Board can better serve its students and improve student success

13. Special Education -Comparisons
The graph shows the cost pressures that exist in the GTA by school boards delivering special education programs and services from the current ministry special education funding model.
The Ministry will continue to gradually review and refine the components of SEG and to consult with stakeholders to ensure that the evolution of the funding approach supports students with special education needs and supports improvements in student outcomes.

14. What is the GSN?
The Grants for Student Needs (GSN), also known as “the funding formula”, is the regulatory vehicle the Province uses to determine the annual funding allocation for each district school board.
Each school board’s GSN allocation comes from two sources:
Education Property Tax: collected by the municipalities with rates set by the Ministry of Finance; and
School Board Operating Grant (SBOG): funding provided to boards by the Province to cover the difference between the property tax collected and the total allocation as determined by the GSN funding formula. SBOG makes up 68% of funding to boards, while property taxes account for 32%. Prior to the Province assuming responsibility for setting education property taxes (1997), these percentages were reversed.
In addition to the GSN, funding for Education Programs(EPO) Other is provided to boards to support specific projects and programs (e.g., Student Success).
So, What are the GSNs?
Overall, the Grants for Student Needs (GSN) is a global entitlement funding model. All School Boards receive a per pupil funding amount in order to ensure equity of all students. Differences between School Boards are accommodated by the funding provided by Special Grants.
Although education taxes have been relatively flat over the past eight years, Increases in the GSNs have largely been financed by the province.
We also have other funding which flow to us outside the GSNs which as I mentioned earlier is mainly EPO funding.

15. Grant Structure Overview: 2012–13
The GSN is made up of 17 grants.
Foundation Grants cover the basic costs of an educational experience that is common to all students.
1.Pupil Foundation Grant
2.School Foundation Grant
Special Purpose Grants address the unique needs of students, schools, and school boards.
3. Special Education Grant
4. Language Grant
5. First Nations, Métis, and Inuit Education Supplement
6. Geographic Circumstances Grant
7. Learning Opportunities Grant
8. Safe Schools Supplement
9. Program Enhancement Grant
10. Continuing Education and Other Programs Grant
11. Cost Adjustment and Teacher Qualifications and Experience Grant.
12.Student Transportation Grant
13.Declining Enrolment Adjustment
14.School Board Administration and Governance Grant.
15.School Facility Operations and Renewal Grant
Debt Service provides funding to cover the costs of capital debt incurred prior to August 2010.
16. Interest Expense
17. Non-Permanently Financed Capital Debt
The Ministry calculates all the funding based on our enrolment projections that we provide to the Ministry. We also provide additional information such as the number of schools, the number of Principals, VPs, etc. and that data is used to calculate all of the funding listed on the presentation slide.
Once we arrive at the total funding, the Ministry will fund only the net amount to the board after deducting what Board will receive from the City of Toronto as Education taxes. The Ministry grants flow to the board on a monthly basis whereas the City Transfers funds to TCDSB on a quarterly basis.
The capital grants, which must remain separate from the Operating Grants, follow the same path and sometimes we have to use our own funding until the project is 90% completed at which time TCDSB will apply to the Ontario Financing Authority (also known as the OFA). The loan amount is used to pay the contractor and our line of credit if ever we have used one. The debt service grant will be just an in & out as Ministry will flow the principal and Interest of the loan contracted with the OFA during the term period of the loans.

16. TCDSB’s Reporting Cycle
7 Months Report (March 31st)
Boards must submit a Balanced Budget as per Education Act
(June 30)
Estimates
Budget
12 Month Financial Statements Aug.31st & Submitted to MOE (November 15)
Revised Budget Estimates
(December 15)
As usual we have to comply with Ministry requirements in filing the various financial reports on time otherwise there may be cash flow penalties.
We have our 7 month Interim Financial March report due by May 15, 2012, which is required by the Ministry for their year-end reporting requirements
We have 3 cycles –First we have our Estimates based on projected October and March enrolment.
Second, for the Revised Estimates we have the actual October 31st enrolment and projected March 31st enrolment from which we can calculate Revised Grants and Expenditure budget amounts.
And finally, the audited year-end Financial Statements are due by December 15th.
Consultation Timelines-March GSN Announcement & Start Budget Consultation with Monkey surveys and material posted on website.
April-Develop Draft Budget and presented to CASPPC
May-Public presentation and to the Board
June-Final Board approval and submitted to Ministry thru' EFIS.

17. ACCUMULATED DEFICT/SURPLUS
We have turned the deficit of $ 18.8m in to a surplus of nearly $6m in
In we are aiming at a balanced budget as required by the Education Act, which means that in-year planned expenditures must not exceed the projected in-year revenues.
The Planned expenditure for programs and services must be sustainable not only in the current year but also in future years especially if the program and/or initiative has ongoing cost commitments.
Despite the challenges brought by the current fiscal environment we are striving to maintain a balanced and sustainable budget.

18. TCDSB’S CHALLENGES
The Current Programs or Staffing Cost pressures not fully funded by GSNs:
Special Education
Phase out of program Enhancement Grant in ($1,958,950)
Continuing Investment in 21st century Learning
International languages
Transportation
Special education continues to be a cost pressure and becomes more challenging this year as mentioned earlier.
Despite the cost pressure we will continue to invest in areas of information technology and in 21st century learning.
Transportation remains a cost pressure and we will continue to find efficiencies either thru’ the consortium with the public Board or by saving internally. It is good to note, however, that we had a moderate to high rating in our Effectiveness & Efficiency Ministry Review and we have received $1.5m for and and we are expecting the same to flow to TCDSB in fiscal year.
Funding will continue to be reduced by the 1% routing efficiency reduction in , which equates to approximately $200,000 by not achieving a high rating in the Routing and Technology from the effectiveness and efficiency reviews.

19. TCDSB’S CHALLENGES ( cont’d)
The Current Programs or Staffing Cost pressures not fully funded by GSNs:
Full Day Early Learning
Junior Literacy Intervention (JLI)/5th Block
GSN Pressures on collective Agreement as PDT expires this August 2012.
Under-Utilized School Strategy- Changes in incentive to small/or school starting
4 year High School Program- Cap of 34 credits starting in
Full day early learning continues to be underfunded and remains a cost pressure in
In the Ministry of Education’s GSN Announcement, we are also made aware of the forthcoming savings measures coming in the next school year :
Starting in , the Ministry’s Under-utilized School Strategy will be reexamined in order to change the funding formula to maintain small schools in operation.
There is also now a Cap of 34 credits and anything above the 34 credits will no longer be funded by the ministry

20. TCDSB Consultation Feedback Options
Survey Monkey (under development)
Will be available at:
2. Hard copy Survey form (under development)
3. Budget Feedback and Comments
at (Available)
4. Deadline for submissions
( May 15, 2012).
The budget consultation process will involve only one central meeting rather than 4 regional meetings. This presentation is being recorded and will be posted on TCDSB’s internet website for all stakeholders to view.
We will have a survey monkey on TCDSB’s website to reach out and engage the parents, CPIC, CSACs and other stakeholders of the TCDSB community.
We have also developed a hardcopy survey teleform which will be distributed to schools and CSACs in order to have input from all our stakeholders.
The survey responses and comments arising from the consultation will be compiled and communicated to all stakeholders. This input will be anonymous and taken into consideration during the budget planning process and appear as a report to Board for information.
Furthermore, we will also have an address for all stakeholders to provide comments directly to Budget Services staff.
Please note the deadline for survey submission is May the 15th

21. TCDSB Budget Consultation
QUESTIONS
Thank you for your attention!