Red Deer Public Schools says budgeting for the next school year was tough.
The division said cost challenges included the continuing increase in material and supply costs, inflationary pressures on utilities and insurance, the rising cost of employee benefits for a third year in a row, and more newcomer students.
On May 8, the board of trustees approved the division's $134,712,560 budget for 2024-25, which will use reserves to fund a projected $700,000 deficit.
The division also identified a few budgetary risk factors, like the impact on enrolment from the provincial economy, Alberta being designated as a high-risk province due to natural disasters causing insurance rates to increase exponentially, and inflationary cost pressures not being funded.
As material and supply costs continue to rise, the division said that ensuring ongoing maintenance and improvements are made to schools has become a draw on the budget, as well as the continued increase in rate costs for Alberta School Employee Benefit Plan, CPP and EI benefits.
“We appreciate the funding that we receive from the provincial government and Alberta Education, but we still face funding challenges," said school board chair Nicole Buchanan, in a statement.
As part of the budget, staffing levels will be maintained, along with Student Support Rooms in elementary, kindergarten to Grade 8 and middle schools, a comprehensive bullying prevention program will be implemented, and an extensive Staff Learning Day plan will be developed to implement initiatives and strategies in the Three-Year Education Plan.
“This budget reflects the board's priority to invest in mental health initiatives for all students, as well as to put every available resource into the classroom. We believe the best place to spend our money is on excellence in teaching and learning," Buchanan said.
The projected student enrolment for the 2024/2025 school year is about 10,813 full-time equivalent students.
Superintendent Chad Erickson said the board of trustees will engage with parents and the community to find the best way forward in regards to the budget.
“Just to continue the status quo, we have to go into reserves. We will also continue to advocate cross-ministry funding so that the dollars meant for education stay in the classroom," Erickson said.
Red Deer Public Schools will submit its budget to Alberta Education on May 31.
Chinook's Edge School Division school board trustees will meet later this month to discuss and approve its budget.
Superintendent Kurt Sacher said reserves have been used to balance past budgets, and will likely be required again to help out a little.
"We may still need to dip into some reserves to sustain the plans that we have and meet the targets that we set," Sacher said.
He said reserves can't be relied on to fund the budget long-term, but at the moment, it's fine.
"The government has been really good about allowing us to use reserves and that is very helpful."
He said the 2024-25 budget will total about $138 million and should sustain the same level of class size support in schools.