By Grant Warkentin
School trustees breathed a collective sigh of relief last week after narrowly avoiding being stuck with a deficit.
The school board was able to pass a balanced budget for next year, after struggling with unexpected new costs created by a recent labour settlement with the provincial teachers’ union. Campbell River, along with several other school districts, found itself on the hook this spring for a bigger funding share for teacher benefits.
The new requirements left a $385,000 hole in the local budget, and with school boards legally unable to run deficits, the board would have had to make more cuts to find balance.
“While we are committed to responsible fiscal management and have recently gone through a budget process with stakeholders that saw $2.1 million in budget cuts, the magnitude of this increase in benefit costs far exceeds our capacity to absorb it,” says a letter sent by the board May 29 to Lisa Beare, BC’s Minister of Education and Child Care.
The letter pointed out there is nothing left to cut to absorb the new costs.
“For School District 72, the financial impact of a 35% increase in benefit costs represents a significant budget shortfall,” said the letter, signed by board Chair Craig Gillis. “Without additional funding, we face the prospect of making further reductions in key areas, including classroom supports, staffing levels, and student programs… Such reductions would run counter to our shared commitment to equity, inclusion, and improved student outcomes.”
District Secretary-Treasurer Kevin Patrick raised the issue at a recent BC Association of School Business Officials (BCASBO) event,, starting a discussion with other school districts and provincial representatives. School board funding comes from the province, based on how many students are enrolled in a community. Patrick pointed out how in communities such as Campbell River, where enrolment is declining, the new funding model would be a hardship.
Thanks to those discussions, the funding formula has since been modified to be more equitable. Campbell River is no longer facing a deficit, and several other BC municipalities are also getting a break on their budgets.
“We should take a lot of pride in Campbell River for helping resolve this for the province,” Patrick told the board at its meeting last week. “It’s good news, but we never really should have had this as a concern.”
Patrick met with the provincial education ministry last week and confirmed Campbell River’s provincial funding was increased to cover the new costs. The board unanimously passed the $93.5 million budget last week.
Where does the money go?
Most of the school district’s budget, nearly 77%, covers expenses beyond its control: educator salaries and benefits. Funding comes from the province based on student enrolment, which is then redistributed by the local district.
Here’s where the money comes from, and where it goes.
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