CBE News Release

CBE ADMINISTRATION PRESENTS 2011-2012
OPERATING BUDGET TO BOARD OF TRUSTEES
CALGARY —CBE Administration will present the detailed preliminary operating budget for the 2011-2012 school year to Trustees during the public board meeting on June 14.

The report is Administration’s recommendation to optimize learning and delivery of our Three-Year Education Plan to more than 100,000 students while balancing the budget.

The Board of Trustees will review the operating budget for information on Tuesday, and are scheduled to approve it on June 28. The budget is not finalized until Sept. 30 when student enrolment for the school year is confirmed.

“Everyone in the Calgary Board of Education is committed to student learning,” says Naomi Johnson, Chief Superintendent of Schools. “We are educators who build the best possible plan for students with the funding we are provided.”

The operating budget recommends exactly how Administration proposes to deal with the budget shortfall resulting from the provincial budget. Since February, the Calgary Board of Education has estimated the accumulated shortfall to be $61.7 million for the 2011-12 school year. Although a budget process is dynamic and numbers have been refined, $61.7 million remains a reasonable estimate of the shortfall.

To close the budget gap, Administration’s approach has been consistent since it was first outlined in March. Costs have been reduced through initiatives in three categories:

1. redesigning central services;
2. depleting available reserves; and
3. fulfilling a commitment to keep students first by asking schools to contribute last in reducing school-based budgets.

The contribution from each category has been refined over time. For example, the amount of applicable reserves is now calculated to be $19.3 million. On March 22, the amount was estimated to be $12 million. By April 19, the estimate increased to $18.5 million. The changes—which are relatively small in the context of a $1.1 billion budget—ultimately reduce the impact on schools

Here are additional facts from the report and the budget process.

- The revenue from the provincial government is $1.012 billion compared to $1.002 billion for the current year. The revenue for 2010-11 has been restated to reflect a budget requirement from the provincial government for 2011-12. The province’s share of the cost of teacher pensions will flow through the CBE operating budget starting next year. The revenue increase is offset by an equal expense so there is no bottom-line change. The change is being made to fully reflect the cost of teachers to school districts across the province.


- The CBE budget breaks down into four major expense categories: salaries and benefits: 77 per cent; services: 11 per cent; supplies and materials: eight per cent; and amortization charges: four per cent.


- The CBE is expected to employ 8,783 full-time equivalent (FTE) positions, 331 fewer FTEs than the current year. The estimated reduction is comprised of 174.2 school-based positions, 170.7 of whom are teachers. The full impact on positions and employees will not be known until enrolment and budget are finalized.


- Budgets are not finalized until after Sept. 30, 2011, when actual enrolments are known by schools and school districts.


- The CBE estimates enrolment will increase for the 2011-12 school year by 658 students or 0.6 per cent. Budgeted enrolment for the current year was 102,674.


- The administrative cost, as a percentage of the total budget, will be 3.8 per cent, including the Board of Trustees. This figure betters the provincial maximum of four per cent.


- The board-funded capital budget of $19.75 million, which was approved May 17, is not included in the operating budget.

The full details of the 2011-2012 operating budget are attached below and available at www.cbe.ab.ca.

“No matter how difficult, a budget is merely a means to an end,” says Johnson. “As we finalize the budget and close one school year, we can begin to look forward to learning of a new year—after a well-deserved break for our students and employees.”

2011 - 2012 CBE Budget Webpage