1. 2011-2012 Budget Overview COSC

2. Agenda Current Situation Provincial Government Budget Overview Budget Process Budget Assumptions

3. Current Situation

4. Reserve to Expense ratio

5. Days of Operation

6. Provincial Budget Highlights

7. Basic grant funding increase of 4.4% – 4.4% is AB Ed anticipated increase in teachers’ salaries; currently AAWE is at 4.56% Class size funding for grades 4-6 has been eliminated Relative Cost of Purchasing reduced 50% and eliminated in 2012/13 Stabilization Funding reduced 50% and eliminated in 2012/13 Alberta Initiative for School Improvement reduced 50%

8. Innovative Classroom Technology grant completed and not renewed CTS Evergreening grant completed and not renewed Growth and Decline funding eliminated Intra-Jurisdiction Distance funding eliminated Enhanced ESL funding eliminated Remaining funding allocations remain unchanged (PO&M, IMR, Severe Disability, etc.)

10. Impact on EIPS Revenue is unchanged from 2010/11 Salaries and benefits are expected to increase approximately 4.2% EIPS has used reserves to mitigate the impact of very challenging education budgets for the last few years

11. Impact on EIPS The use of reserves is not sustainable There is a $1,871,000 shortfall in unsustainable reserve spending

12. Budget Shortfall

13. EIPS Budget Principles Equitable distribution of funds Budget aligned with the strategic priorities established by the Board Transparent allocations

14. Budget Process Board strategic priorities established September AB ED funding overview (February/March) Financial Projections (February/March) Budget Assumptions(February/March) Draft budget (February/March) Detailed budget review – mid May Budget presentation – late May

15. Budget Assumptions

16. Student transportation, Plant Operations & Maintenance funding will be spent in the respective areas Enrolment is estimated to be 16,386 (increase of 30 students or.2%) Classified staff receive the same percentage increase as certificated staff for salary Trustee remuneration will increase by the AAWE as per past practice AISI program reduced to match funding

17. Budget Assumptions Maintain current reserve levels of 1.8% (discretionary reserve only) Standard cost of $98,000 – Increase of 5.1% – Increase due to salary increases, benefit increases and grid movements Classified standard cost increases range from 3.22% - 7.34% depending on staff mix – Average increase is 5.15%

18. Budget Assumptions Alberta Average Weekly Earnings is currently at 4.56%, while Alberta Education has provided an increase of 4.4%. The budget assumes Alberta Education will fund the actual AAWE once it is finalized.