Prairie South 2022 - 2023 Budget Running A $4 Million Deficit

Deficit made up from reserves and the Province contributing

Despite sharpened pencils and cost cutting measures over the last decade the Prairie South School Division finds itself with a $4 million deficit.

The $4 million deficit is part of an overall cost increase of $5.5 million from last year to this year’s budget. The total budget saw revenues of $98,257,506, operating expenses of $94,758,939 and capital purchases of $11,605,742.

The $4 million deficit will be made up with the Prairie South dipping into reserves as well as a contribution from the Province.

In a release Prairie South said despite the multi-million dollar deficit the Board remained committed to Classroom size and supports, Enhancing opportunities for students, and Infrastructure maintenance.

The Budget was passed unanimously 10 - 0 by trustees.

Budget Highlights - Total Operating Budget $94,758,939

The largest expenditure in the Operating Budget was in instruction (wages to teachers, teachers aids etc) where Prairie South has budgeted $63,064,254 in 2022 - 2023 compared to 2021 - 2022 where instruction cost $60,713,777. The net increase to the budget year over year is $2,350,477 or a 3.87 percent increase.

The second largest expenditure in the Operating Budget is Plant (physical properties) where Prairie South is set to spend $14,737,924 in 2022 - 2023 versus $13,841,359 budgeted last year. The net increase is $839,565 year over year or 6.48 percent.

The third largest expenditure in Prairie South’s Operating Budget is transportation (bussing) which saw an increase of $803,000 or an increase of 11.8 percent. Prairie South will spend $7,607,269 in 2022 - 2023 versus the $6,804,296 spent in 2021 - 2022.

The rising cost of fuel has been attributed to the effects of the Ukraine-Russian War. See the Inflation Backgrounder at the end of the article.

The cost of External Services has seen a budget reduction year over year. Prairie South has budgeted $3,341,413 in 2022 - 2023 versus the $3,541,985 budgeted in 2021 - 2022. This is a reduction of $200,572 or 5.66 percent.

Another area where there will be a budget reduction is in the area of Administration. In 2022 - 2023 Prairie South will spend $2,771,945 versus $2,777,029 spent in 2021 - 2022 for a net year over year decrease of $5,084.

Complementary Services will see increased spending in 2022 - 2023 versus the 2021 - 2022 budget. Prairie South will spend $1,584,248 in the upcoming year versus the $1,450,165 spent last year. The increase is $134,083 or a 9.25 percent increase year over year.

School Generated Funds is another area where Prairie South has budgeted less in 2022 - 2023 versus 2021 - 2022. In 2022 - 2023 Prairie South budgeted $1,220,021 versus the $1,262,797 in 2021 - 2022 which is a $42,776 less or a 3.39 percent reduction.

Governance or the Prairie South Board will see less spent on it in 2022 - 2023 versus 2021 - 2022. Prairie South has budgeted $410,865 this coming year versus $413,793 last year. This is a reduction of $2,928 year over year.

The area of Other Expenses will see the largest year over year percentage increase. Prairie South has budgeted $13,000 in 2022 - 2023 versus $6,000 in 2021 - 2022. This represents a year over year increase of $7,000 or 116.67 percent.

Tuition and related fees will see no year over year increase with the same $8,000 budgeted in 2022 - 2023 versus last year.

Inflation Backgrounder and Increasing Costs

As part of their release Prairie South outlined how increasing costs driven by inflation have impacted their Operating and Capital Budgets.

The factors listed were:

  • Carbon Tax: 25% increase. With the most recent increase, the carbon tax will be roughly 75% of Prairie South’s contracted price for natural gas.

  • - Crowns: we hear Crowns are asking for rate increase in the 4%+ range which would be on top of carbon tax.

  • Heating Costs: increase of $85,000.

  • Fuel: 70% increase year over year – about a $300,000 increase this budget year and potentially another $400,000 next budget year if prices continue at these rates.

  • - School Buses: 27% increase in cost this year vs. last year which is about $300,000.

  • Clean Fuel Standard: this starts in January 2023 and will be added to fuel, electricity and heat.

  • Insurance: 20% increase in each of the last two years. The Federal Budget included a special tax on insurance companies which will drive rates up further.

  • Staffing Costs Escalation: Approximately 2.5 million dollars.

  • CPP and EI: approximately $350,000 additional staffing increase due to rate and limit increases.

  • Technology: 11% increase over two years but varies by product.

  • Freight: will become challenging for our rural schools as fuel surcharges increase.

  • CommunityNet: $78,000 increase.

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