School District 46 (SD46) resolved to restrict its operating surplus during its Sept. 11 regular meeting.
A financial statement in the meeting agenda explains SD46 restricts a portion of its surplus for spending in subsequent years, as part of its multi-year approach to the allocation of resources.
Nicholas Weswick, the secretary-treasurer told Coast Reporter, “It’s not a lot different from prior years.”
Westwick explained a portion of SD46’s overall surplus is restricted by the board for specific use, while another portion is unrestricted – the general surplus.
The board sets aside two per cent of revenue as a financial reserve or provision of the general surplus.
He added that “about half” of the restricted surplus this year is being used for the 2024-20245 budget.
Weswick explained that the school district receives “targeted funding” for different programs. When the district cannot spend all the current year's funding plus the surplus remaining from prior years it is set aside as a restricted surplus to use on that same program the following year.
During SD46’s Sept. 11 regular meeting, Weswick said, “We've drawn down our operating surplus a little bit this year. Most notably, school surpluses are down to below a million dollars for the first time in a few years, to $545,000.”
Highlights of the $2,788,961 restricted operating surplus for SD46 include $1,369,587 set for subsequent year budget allocation, $643,222 for district programs, $472,220 for Indigenous education and $128,943 for teacher Pro-D.
One board member asked if the surplus being lowered puts the district at any risk throughout the year.
Noting that SD46 has an unrestricted surplus of $250,000 to protect schools facing any budgetary concerns, Weswick said, “This in and of itself, doesn't create a risk to us, but it does indicate a trending downwards in terms of affordability … the impact of inflation is being felt at our schools, as well as at the district level.”
Weswick explained that the “downward pressure” on this district's surplus is coming from costs that don't receive ministerial funding, such as the new requirements for the compost and recycling program as well as sick leave costs, which he noted have “risen sharply,” since COVID.
Jordan Copp is the Coast Reporter’s civic and Indigenous affairs reporter. This reporting beat is made possible by the Local Journalism Initiative.
