Chief Superintendent: 100 teaching positions may be saved

As CAPSC has learned over the last several months, the budget process is complex, fluid,and subject to change once all the pieces start coming together. One of our commitments to membership is to keep them up-to-date with information that is timely and accurate as possible. From last night's meeting of the board, the Chief Superintendent's report.....

Over the last two months, the Calgary Board of Education has been grappling
with a $61.7 million budget shortfall. We have a legal and fiscal responsibility
to balance the budget. When three‐quarters of our operating budget is
salaries and benefits—and three‐quarters of our budget goes to schools—we
cannot absorb $61.7 million without affecting people, schools and students.
Since the budget was announced Feb. 24, the CBE has been calculating and
communicating the impact. Our initial estimates are proving to be quite
accurate.

Tonight, as we bring forward a report for approval to proceed with an early
release of resources to facilitate staffing at schools, I would like to connect our
initial estimates to the revised figures. You will see that the impact on schools
is better than initially communicated. Instead of a 2.1 per cent increase in the
RAM, the increase will be 3.0 per cent.

As you know, our proposal to close the budget gap involves using an
estimated $12 million of reserves and two phases that affect services,
programs, employees and students in classrooms.

The first phase was introduced on March 22. It involves a redesign of central
services to save at least $24.9 million. This phase eliminates the equivalent of
172 full‐time positions.

On March 22, we also made a promise to keep students first by asking schools
to contribute last.

Initially, we estimated schools would be asked to absorb $24.8 million. As we
distribute the RAM, the outcome for schools is slightly better than estimated
You may remember this equation from March.

$61.7M shortfall - central service redesign = impact on school RAM

Starting with the shortfall, if you subtract the initial reductions from
centralized services, you have the impact on schools. By continually working
the problem, we have lessened the impact on schools.

$61.7M shortall - $24.9M central service redesign = impact on school RAM
First, we proposed to deplete our remaining reserves.

$61.7M shortfall - $24.9M central service redesign - $12M reserves = impact on school RAM

Second, with the RAM, principals will be asked to apply all school‐based
reserves to mitigate staff reductions. The estimated $2.7 million could mean
we save about 38 positions in schools.

In addition, we have $800,000 in operating reserves and $3.0 million from an
amortization reserve. The amortization reserve was confirmed by finalizing
our board‐funded capital budget.

Together, these represent $6.5 million more than the original reserve
estimate.

Essentially, we propose using $18.5 million of reserves.

$61.7M shortfall - $24.9M central service redesign - $18M reserves = impact on school RAM

Third, administration dug deeper to finding additional gains in central services
to further reduce the impact on schools. Administration has come up with a
net $3.9 million between reductions and a small revenue increase.

Instead of $24.8 million, the RAM will call on schools to absorb $14.4 million.

$61.7M shortfall - $28.8M central service redesign - $18.5M reserves = $14.4M impact on school RAM

Remember, to get to the $14.4 million RAM for schools, we applied $2.7
million of school‐based reserves. All schools with reserves are expected to use
them to mitigate staff reductions.

$17.1M RAM - $2.7M school-based reserves = $14.4M impact on school RAM

We have increased the RAM percentage to 3.0 per cent from 2.1. In addition,
the RAM impact on schools improves from an initial estimate of $24.8 million
reduction to a $14.4 million reduction.

During an impossibly difficult budget year, this $10.4 million difference may
save more than 100 teaching positions.