Thames Valley school board faces $5.5M deficit in preliminary budget

London, Ont.'s largest school board is staring down a potential deficit of $5.5 million for the 2022-23 year due to rising student enrolment and a number of costs related to the COVID-19 pandemic.

The deficit projection is in a Thames Valley District School Board (TVDSB) budget report to be presented to the board's planning and priorities advisory committee's Tuesday meeting. 

Helping with the budget pressure is a one-time provincial grant of  $11.2 million to deal with COVID-19 recovery. It will fund the equivalent of 61 full-time secondary teachers, 21 literacy support teachers and 28 elementary school supervisors. 

However, adding to the budget pressure is a projected rise in enrolment of almost 3,000 students that will push the student total to just over 82,200 next year.

"As a result of this significant increase in enrolment, there are staffing increases year over year, as the majority of the board's funding is based on average daily enrolment," the report says.  

It warns that if the enrolment increase is higher than expected, it could send the board's number crunchers back to the drawing board. 

"Any further increase or decrease realized in projected enrolment will impact expected grants and expenses would have to be further reviewed and adjusted in the fall."

A chunk of the projected $5.5-million deficit is the result of a one-time cost of $2.8 million to bring in a new student information database system. According to the report, this along with other one-time costs result in a "compliance budget" of $3.9 million, allowing the board to stay under limits set by the province for how much deficit it can approve. 

The report cautions that rising special education costs will need to be addressed. Special education expenses increased $2.5 million over 2021‐22, including an extra $1 million in technology-related costs.

This will result in a projected deficit in special education just under $3 million.

Staffing absences 

Staffing absences were a massive challenge for the board over the past year, when students were learning in school but COVID-19 numbers were climbing. The preliminary budget sets aside $22.4 million to cover those absences, which is the same amount as the previous budget year, but warns it could wind up being higher. 

"This is considered a risk given the continuation of the sick and short‐term leave program and the potential increase in the number and cost of replacement staff required," the report says.  "Management of absenteeism continues to be a challenge for Ontario school boards."

The report also points to other costs facing the board, including a 5.4 per cent increase in utilities tied to higher commodity prices and a COVID-19 requirement to run ventilation systems more often. 

Final approval of the budget — before it's submitted to the province for approval — is scheduled for the TVDSB committee's June 21 meeting.