1. Presentation to Board June 17, 2008 Presented by: J. A. Sabo, Associate Director – Leading Services & Treasurer of the Board 2008-09 BUDGET York Catholic District School Board APPROVAL OF THE 2008-09 FINANCIAL ESTIMATES

2. Objectives re: June 17, 2008 meeting 1.Review final draft revenue and expenditure projections for the 2008-2009 Operating Budget, and identify changes made from previous budget modules/information presented, as well as any new assumptions; 2.Present for Board approval the motions required for the approval and implementation of the 2008-2009 Financial Estimates, along with related/enabling motions. 3.Allow for discussion on the follow-up required for the completion of 2008-2009 “budget balancing process” and in preparation for development of 2009-2010 and future Operating Budgets.

3. BACKGROUND INFORMATION Further to the May 27, 2008 meeting (and direction received from the Board as to approach and methodology for filing the Financial Estimates), the following has been completed: finalization of proposed expenditure adjustments finalization of proposed revenue adjustments finalization of proposed transfer from reserves adjustments development of proposed enabling recommendations

4. The revised revenue, expenditure, and transfer from reserve projections have been based on revisions to a number of assumptions and the concept of “targeted” adjustments. Changes to major assumptions used in developing final budget projections have been identified in the supporting budget materials provided, some examples are as follows: Change in benefits renewal premiums Reduction in provision of staffing (f.t.e) Elimination of most increase requests Minor revisions to revenue calculations

5. “Targeted” adjustments reflect those adjustments to projections that are anticipated but not finalized and are as follows: 1.Revenue projections include a provision for $1.0 million for grants anticipated but not yet announced (Note: In 2007-08, a similar concept was utilized) 2.Expenditure projections include a provision for $1.0 million for targeted future expenditure reductions to be facilitated through further review and refinement of expenditure projections (Note: Future meeting of the Budget Analysis Committee of the Board will be scheduled to facilitate this action) 3.Transfers from reserves have been increased by $1.0 million (over initial provision of $0.5 million) to reflect anticipated more favourable 2007-08 financial results (Note: The total of $1.5 million in transfers from reserve reflects 0.3% of budget)

6. 2008-09 Budget Projections Total Operating & Non-operating Total Operating Revenue$ 490,486,922$ 446,442,366 Expenditures491,986,922447,942,366 Balance($ 1,500,000) Transfer from Reserves 1,500,000 BalanceNil Note: The expenditure and revenue projections for 2008-2009 do not include any provision for 2008- 09 Labour Framework adjustments. As a result, expenditure projections reflect current 07-08 labour provisions. Also, revenue projections do not include grants related to approved 08-09 labour framework adjustments

7. 2008-09 Budget Projections TOTAL Operating $ 447,942,366 Non-Operating44,044,566 TOTAL$ 491,986,922 Notes: The Difference of $44.04 million between Total Operating & Non-Operating vs. Operating Only is the funding received for non-operating expenditure functions (i.e.): School Renewal $5.53 million New Pupil Places $25.44 million Primary Class Size Capital $2.38 million Good Places to Learn debt allocation $1.21 million Pre-98 Debt $9.07 million and Best Start $0.4 million

8. 2007-08 Revised Estimates 2008-09 Final Difference $% EXPENDITURES Operating$ 439.45$ 447.94$ 8.491.93% Non-Operating42.2544.041.794.24% $ 481.70491.98$ 10.282.13% REVENUES Operating$ 436.75$ 446.44$ 9.692.22% Non-Operating42.2544.041.794.24% $ 479.00490.48$ 11.482.40% Balance( $ 2.70)($ 1.50)($ 1.20)(44.44)% Transfer from Reserves2.701.501.2044.44% Balance after ReservesNil

9. The 2008-09 Revenue Projections do not include any provision to support new labour agreements.

10. 2008-09 Operating Revenue Projections

11. 2008-09 Operating & Non-Operating Revenue Projections

12. Operating Expenditures 2008-2009 Budget Expenditures by Object Salaries & Wages338,513,603 75.57% Benefits 50,679,173 11.31% Staff Development 2,242,354 0.50% Supplies & Services 29,934,487 6.68% Capital 3,933,278 0.88% Fees & Services 22,319,533 4.98% Other 319,939 0.07% Total447,942,366100.00%

13. Salaries & Wages338,513,603 68.81% Benefits 50,679,173 10.30% Staff Development 2,242,354 0.46% Supplies & Services 29,934,487 6.08% Capital 3,933,278 0.80% Fees & Services 22,319,533 4.54% Other 319,939 0.07% Non Operating 44,044,556 8.95% Total491,986,922100.00% Operating & Non Operating Expenditures 2008-2009 Budget Expenditures by Object

14. Proposed Recommendations The series of proposed recommendations (along with background information and rationale for each) related to the approval of the 2008-2009 Financial Estimates are included on Attachment #8. They are organized into six groupings of motions as follows: AApproval & Submission of 2008-2009 Budget Estimates BUse of Operating Budget Surplus for EDC Purposes Re: Policy 610 CMonitoring of 2008-2009 Operating Budget DSubmission of the Revised Estimates ELobby Efforts re: Fair and Equitable Funding F Finalization of the 2008-09 Operating Budget Provisions and Preparation for 2009-2010 Operating Budget

15. Supplementary budget support materials In support of proposed final 2008-09 Financial Estimates, three key support documents have been included: 1.Revenue Estimates – Update(7 pages – Pink) 2.Reserve Analysis – Update(4 pages – Yellow) 3.Expenditure Projections Update(13 pages – Green)

16. Note As previously reported, expenditures must be categorized according to Ministry-defined envelopes. Based on preliminary categorization of expenditures included in the final projection, the 2008-09 (as well as projected 2007-08) Administration and Governance envelope will be “exceeded”, but will be less than the Ministry-maximum threshold of 15%.  No Deficit (Balanced Budget)  Compliance with Funding “Envelopes”  Special Education  Pupil Accommodation  Administration and Governance see note COMPLIANCE REPORTING

17. Summary/Conclusion As noted at past Board meetings, the development of budget information has been focused on capturing accurate data and providing accurate expenditure and revenue projections based on assumptions identified. Various individuals have been involved in the developing and coordinating of budgetary information. Unless identified in this report, all assumptions, issues and concerns presented at the previous meetings remain.

18. NEXT STEPS The next steps following review of final draft projections and approval of the proposed recommendations are as follows: 1.Complete and submit Estimates to Ministry of Education in prescribed format and code of account groupings prior to the required Ministry deadline of June 30, 2008. 2.Prepare for implementation of the 2008-2009 Operating Budget effective for September 1, 2008, including continuation of budgetary restraints andstrategies utilized in 2007-08. 3.Prepare for the scheduling of a series of Budget Analysis Committee meetings to facilitate implementation of Recommendation F. 4.Prepare and complete Revised Estimates for submission to the Ministry of Education prior to December 15, 2008. 5.Continue lobby efforts directly and through OCSTA to ensure the short and long term financial stability of the Board.

19. Proposed Recommendations The series of proposed recommendations (along with background information and rationale for each) related to the approval of the 2008-2009 Financial Estimates are included on Attachment #8. They are organized into six groupings of motions as follows: AApproval & Submission of 2008-2009 Budget Estimates BUse of Operating Budget Surplus for EDC Purposes Re: Policy 610 CMonitoring of 2008-2009 Operating Budget DSubmission of the Revised Estimates ELobby Efforts re: Fair and Equitable Funding F Finalization of the 2008-09 Operating Budget Provisions and Preparation for 2009-2010 Operating Budget NOTE: Background information and rationale for each of the proposed recommendations have been included in the budget support material.

20. A. APPROVAL AND SUBMISSION OF 2008-09 FINANCIAL ESTIMATES RECOMMENDATIONS: NOTE: Total estimate amount includes both Operating AND Non-operating. (Operating $ 447.94 million and Non- operating $44.04 million) THAT the Board approve the submission of the Financial Estimates to the Ministry of Education for the fiscal year September 1, 2008 to August 31, 2009, based on operating and non-operating revenue, recoveries and transfers from reserves in the total amount of $491,986,922 as presented in budget documentation presented as at June 17, 2008.

21. B. USE OF OPERATING BUDGET SURPLUS for EDC Purposes RECOMMENDATION: THAT the Board not designate 2008-2009 Operating Budget funds for the purpose of acquisition of school sites.

22. C. MONITORING OF OPERATING BUDGET RECOMMENDATION: THAT Administration continue to report to the Board through the Budget/Audit Monitoring Committee a summary of budget account transfers as well as any significant changes in budget assumptions and their projected impact on the 2008-2009 Operating Budget estimates and Revised Estimates.

23. D. REVISED ESTIMATES RECOMMENDATIONS: a)THAT Administration develop and submit revised 2008-2009 estimates to the Ministry of Education prior to December 15, 2008, and that a summary of the material changes between original and revised estimates be reviewed at the Budget/Audit Monitoring Committee, and b) THAT should the calculation of Revised Estimates result in material changes to revenue or expenditure projections, Administration be directed to develop options and strategies for the Board to consider for implementation in the 2008-09 fiscal year.

24. E. LOBBYING OF GOVERNMENT RECOMMENDATIONS: i)THAT the Board continue to lobby the government to ensure equitable and adequate funding is available for all students in Ontario, and ii)THAT administration be directed and authorized to lobby on behalf of the Board for changes in the new funding model where, in the opinion of administration, the principles of equity and adequacy are not being met. iii) THAT the Board request the Ontario Catholic School Trustees Association to undertake a review of data regarding school board budgets with the objective of developing a coordinated approach with the Ministry of Education for addressing the short and long term financial needs of school boards.

25. F. FINALIZATION OF 2008-2009 OPERATING BUDGET PROVISION AND PREPARATION FOR 2009-2010 OPERATING BUDGET RECOMMENDATIONS: 1.THAT the Budget Analysis Committee be required to undertake the required analysis to enable the Committee to make final recommendations to the Board no later than December 15, 2008 with respect to: a.Recommending strategies to ensure a balanced and compliant budget will result for the current year, and b.Examining and recommending strategies for sustaining a balanced and compliant budget on a multi year basis. 2.THAT the Committee be requested to provide interim reports to the Board prior to the final report due December 15, 2008.

26. KEEPING THE BALANCE FISCAL STUDENT RESPONSIBILITY vs. OUTCOMES THE CHALLENGE

27. QUESTIONS ?