Hard times have hit the Near North District School Board (NNDSB) as it predicts a budget deficit of $1.5 million. The board is considering reducing staff and examining ways to cut costs.
Trustee Shane Hall, Chair of the Finance Committee, noted that last July, the school board had predicted a surplus in the draft budget. For the 2024-2025 school year, that surplus was estimated to be just over $61,000.
However, when revising the spreadsheet, the committee found instead of a surplus, the board must deal with a $1,535,203 shortfall. What happened? Enrolment fell 2.9 per cent, which meant less funds from the province. Further, the board noted salaries and benefits are on the rise, and transportation costs have increased as well.
Specifically, the board noted salaries and benefits went up $4.4 million. As for the transportation, that increase was $690,480, the board added. The dip in enrolment meant a loss of $530,000 of provincial funds.
The NNDSB’s annual budget hovers around the $192 million mark.
The school board has submitted its budget to the Ministry of Education, which does not allow for deficits. However, there are circumstances where an in-year deficit is permissible, and the NNDSB falls into that category.
The board noted exceptions can be made, “if there were prior surpluses,” from a previous budget. The board explained, “The draw on the accumulated surplus is limited to ensure that this action does not place the school board at undue financial risk.”
A deficit elimination plan was submitted to the ministry with steps the board will take to balance the books. For the 2025 to 2026 school year, the board will seek efficiency in the operation and reduce staffing to reflect lower enrolment numbers. The board also plans to improve “absence management” to reduce supply staff costs.
However, reducing staff will only occur if enrolment continues to decline.
Recently, the board requested the province examine the current four-board school system to find ways to save money.
See: NNDSB calls on province to examine four-board school system
David Briggs is a Local Journalism Initiative reporter who works out of BayToday, a publication of Village Media. The Local Journalism Initiative is funded by the Government of Canada.
