Red Deer Catholic Regional Schools says a projected $4.2-million funding deficit for the current school year means significant spending adjustments are necessary.
Last spring the school board approved a $118-million budget for 2023-24.
Murray Hollman, Red Deer Catholic Regional Schools board chair, said for 2024-25 the division is carefully evaluating provincial funding allocations and the division's educational mandate.
"Given the current funding framework and inflationary pressures, we are no longer able to maintain the types of support that have historically been provided in their current form and focus, particularly if they are outside our instructional mandate," said Hollman, in a statement.
A recent budget update from the school board reported that the division continues to experience an increase in average costs for staff benefits and additional costs for services, contracts and supplies which has put significant pressure on the budget when there is "no offsetting increase to base funding."
Holland said with the current projected deficit, the division will fall below the total required minimum operating reserve of $1,208,407.
"Our current spending model is no longer sustainable, and significant adjustments must be made to balance the budget and restore both operating and capital reserves to acceptable levels," Hollman said.
A 2024-25 Budget Review and Key Assumptions Report, approved by school board trustees, determined the net projected operating reserves would be reduced $589,109 by August 31, 2024.
The report also listed specific factors contributing to the 2023-24 deficit. They included additional teachers and educational assistants, increased costs for support staff substitutes and maternity leaves, underestimated school generated funds expenses, one-time revenues that did not off-set one-time expenses such as curriculum grants, and revenue reduction when the projected additional weighted moving average growth did not materialize in the enrolment instruction grant.