The Burnaby school district will have to dig deeper into its reserves than expected to balance its books this year, and school officials are "keeping an eye" on how that will affect next year's budget.
Just five years ago, the district was carrying millions of dollars in operating surpluses from one year to the next, but the district now expects to have only $43,795 in its reserves when the books are closed on the year this summer, according to an amended 2024/25 operating budget passed at a school board meeting last week.
Secretary treasurer Ishver Khunguray called that sum "quite small for a budget of $330 million or so."
"We do want to be in a better position from a reserve perspective for sure because $43,000 in the account isn't a lot of money, and it doesn't provide us a lot of flexibility, so it's definitely not a position that we're looking to continue," Khunguray told the Burnaby NOW.
The preliminary 2024/25 budget passed last spring estimated the district would end the year with a $460,000 unrestricted surplus, but Khunguray said cost pressures from enrolment growth in all categories except international students have eaten more than expected into the reserve.
The district expects to pay $2.3 million more on substitutes than anticipated in the preliminary budget, $1.5 million more on education assistants and $900,000 more on principals and vice-principals, while taking in $900,000 less than projected in international student fees, according to Khunguray's amended budget presentation.
The district also expects to pay $1.5 million more on employee benefits related to higher extended health and dental claims, according to the presentation.
Khunguray said the $2.3 million more than expected in substitute cost was "significant."
"That's definitely a cost pressure," he said. "Substitute costs, we don't get a direct source of funding."
Khunguray said the increase in that line item over the last few year is something the district is "looking to better understand."
One expense that has gone down significantly, however, is portables.
Khunguray said the district's decision to move to five-block days at four of its high schools means the district won't have to take money out of its operating budget for more portables.
"We're avoiding significant pressure for portable costs going forward," he said.
When it comes to the district's reserves, however, the damage has already been done.
The province doesn't provide extra funding for portables, and Khunguray said the district has taken about $7.5 million from its operating funds over the past three years to pay for portables to keep up with enrolment growth.
"That's a big part of where our reserve has gone," Khunguray said.
How the diminished reserve will affect next year's budget has yet to be seen.
A draft of the preliminary 2025/26 budget will be unveiled at a public meeting April 16.
Usually the school board passes the preliminary budget at the end of April, but Khunguray said they have decided to wait until May 27 for final adoption so the board can hear from partner groups and the public.
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