Revenue: GSN Highlights€¦ · GSN announcement & expected impact Description Support...

2016-17 GSN Revenue Update

Presented by: •  John Sabo, Associate Director, Corporate Services & Treasurer

•  Anna Chan, Coordinating Manager, Business Services & Assistant Treasurer

Revenue: GSN Highlights as at April 12, 2016

2016-17 REVENUE GSN Highlights as at April 12, 2016

Further to the February 29 & March 10, 2016 Revenue Module updates, the intent of this presentation is: q  To provide highlights of March 24, 2016 GSN

announcements and where possible, identify potential fiscal impacts

q  To outline next steps for the Revenue Module development

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Extract from Ministry Website: http://www.edu.gov.on.ca/eng/policyfunding/funding.html


2016-17 REVENUE GSN Highlights as at April 12, 2016GSNAnnouncements

Below are highlights of March 24, 2016 GSN announcements focused on the following Ministry Categories: 1.  Labour framework:

a)  2015-16 in-year changes b)  2016-17 changes

2.  Equity in education 3.  Keeping up with costs 4.  EPO Grant transfers into GSN 5.  On-going implementations 6.  Accountability 7.  Capital 8.  Financial Reporting Deadlines


2016-17 REVENUE GSN Highlights as at April 12, 2016 Labour Framework

2015-16 In-year changes:


Estimated Revenue Impact

Estimated Cost

Impact

GSN announcement & expected impact Description

1% lump sum payment (↓ $242k for P/VP since March 10 2016 until P/VP settlement) $4.3M ↑

Will be Table amount based on 2015-16 Revised Estimates. Unfavourable if FTEs/salaries higher than funded by benchmark

Grid restoration for Teachers and Early Childhood Educator (ECE) $2.5M ↑

Recognize in the Q&E allocations based on Oct 31, 2015 salary grid. Unfavourable if FTEs/salaries higher than funded by benchmark

Grid restoration for all other Groups - CUPE & Other

$0 ↑Unfavourable - No additional funding.

OECTA Earned Leave Plan (ELP) GSN reduction up to 1/2 day plus new liability ↓up to

($365k) ↑ $600k

Table amount GSN reduction = one-half day savings (subject to reconciliation). Additional new Year end liability (Est $600k). Unfavourable - total impact estimated $1.0M.

Retirement Gratuities Early Payout fundingMin Min

Expect minimal impact and expect any funding will be recoup in future years.

Principals and vice-principals discussions still on-going TBD TBD

No changes are being brought forward at this time for P/VP.

Estimated YCDSB 2015-16 Impact

Labour Framework (2015-16)

2016-17 REVENUE GSN Highlights as at April 12, 2016 Labour Framework

2016-17 In-year changes:



Estimated Cost

Impact


1.25% increase in salary benchmarks for teaching and non-teaching

TBD ↑

• 1% effective September 1, 2016• 0.5% effective mid-yearUnfavourable - FTEs/salaries higher than funded by benchmark

OECTA Earned Leave Plan (ELP) GSN reduction up to 1/2 day plus new liability ↓($365k) ↑$600k

Match 2015-16 implementation = one-half day savings reduction in GSN. Additional new Year end liability (Est $600k). Unfavourable - total impact estimated $1.0M.

Employee Health, Life & Dental Benefits transformation into provincial trusts Nil ↑(>$2M)

Boards expected to include as 2016-17 costs the greater of o 2016-17 renewal rate costs o 2014-15 costs +4%+4%

Retirement Gratuities Early Payout recoup of any 2015-16 funding Min Min

Expect minimal impact from recouping of any 2015-16 funding if any.

Labour Framework (2016-17)


2016-17 REVENUE GSN Highlights as at April 12, 2016 Equity In Education



First Nation, Métis, and Inuit Education leads in every board (Minimum FNMI Per Pupil allocation ) ↑$165k

2011 National Household Survey (NHS) and Census updates to:i. PPA allocation in the First Nations Métis, and Inuit Education Supplementii.Language Grant:• Pupils in Canada (PIC) component of the ESL/ELD

TBD


Support implementation of the Ontario First Nation, Métis, and Inuit Education Policy Framework. Also, transfer of Voluntary, Confidential Aboriginal Student Self-Identification EPO grant to GSN and clarification that JK/SK pupils are eligible to generate Native Language Allocation funding.

Three-year Phase-in commencing 2016-17

Equity In Education


2016-17 REVENUE GSN Highlights as at April 12, 2016 Keeping Up With Costs


“Keepingupwithcosts”fundingannouncementsarelimitedtothetwoareasnotedaboveandbynowaycoverscostincreasesexpectedfor2016-17.

ExampleofsignificantcostincreasesresultfromUSExchangeimpactsanddoubledigitbenefitcostincreaseswhichareunfunded.


Estimated Cost

Impact


2% increase in Student Transportation Grant will be netted against a school board’s transportation surplus

↑ potential 2% ($250k)

↑ (8%?)

2% Transportation allocation increase must be netted against any 2015-16 transportation surplus which is TBD. Transportation costs expected increase is 8% for 2016-17.

2% cost benchmark update to the non-staff portion of the School Operations Allocation and a total of 3.5% increase for the electricity costs

↑ TBD ↑

Expect cost increases > Funding increase

Other Cost increases$0 ↑

Expect cost increases with no funding offset

Keeping Up with Costs


2016-17 REVENUE GSN Highlights as at April 12, 2016 EPO Grant Transfers into GSN

The following EPO (Education Programs-Other) grants will be transferred into GSN:

1.  EPO funding for Voluntary, Confidential Aboriginal Student Self-Identification

2.  EPO funding for library staff to support the learning of elementary school students will be transferred to Learning Opportunities (LOG)

3.  EPO funding for the Managing Information for Student Achievement (MISA) Local Capacity initiative will be transferred to Administration and Governance

4.  EPO funding for Outdoor Education will be transferred to LOG allocation and enveloped with the group of six (now seven) enveloped LOG components

5.  EPO funding for Technology Enabled Learning and Teaching Contacts will be transferred to Administration and Governance


2016-17 REVENUE GSN Highlights as at April 12, 2016 On-Going Implementations



School Operations Top-Up Grant elimination ↓($1.2M)

2014-15 Board Administration and Governance new funding model

Min

2014-15 New High Needs Amount (HNA) Allocation of the Special Education Grant now called Differentiated Special Education Needs Amount (DSENA).

↓($847k)

Capital Planning Capacity Allocation (4 year allocation ending 2017-18) Remain $197k

This is part of the 2015-16 (SBEM) Efficient Use of School Space measure which will be in its second year of a three year phase-in

The 2014-15 new funding model (changing from a largely enrolment-based allocation to one that reflects recommendations from the 2010 School Board Administration and Governance Advisory Group (BAAG) report) will be in its third year of a four year phase-in

2016-17 is the third of a four year funding allocation for Capital Planning Capacity to support additional capital planning activities to make efficient use of school space under

The new funding model will be in its third year of a four year phase-in.

On-going Implementations




Accountability

The following are the Accountability announcements:

Full-day Kindergarten and Primary Class Size non-compliance will result in: i. Year one – submit a compliance management plan ii. Year two – 1% reduction in Administration and Governance grant iii. Year three – 3% reduction iv. Year four – 5% reduction v. The Ministry will conduct analysis of administrative revenues Late submissions (beyond October deadline) of FDK and Primary class size information will result in 50% cash withholdings.

School Board Administration and Governance compliance review will be deferred to 2016-17 since as a result of collective bargaining, boards may face extraordinary costs in 2015-16.



Capital

The following are the Capital announcements:

Potential amendments to Ontario Regulation 444/98 with the aim to keeping school board properties in the public sphere:

i. Double current surplus property circulation period from 90 to 180 days ii. Expand list of public entities to re receive notification of surplus property

disposition iii. Have all board-to-board sales be at fair market value iv. Introduce maximum rate a school board can charge for leasing a school to

another board v. Clarify private education providers are not eligible to lease surplus property

unless the property has first been circulated to listed public entities Capital Priorities, School Consolidation Capital (SCC), School Condition Improvement (SCI) continue with increased reporting and integration requirements.


Commencing2015-16Marchandyearendrepor7ng:Therewillbeaddi7onalintegra7onofMinistrysystemsdatawithaddi7onalrepor7ngdeadlinesforcapital(e.g.SCIrepor7ngtonewVFAsystemwillintegratewithfinancialsystemEFIS)


Financial Reporting Deadlines

The following are the Financial Reporting Deadlines:


Commencing2015-16MarchRepor7ng(DueMay15,2016):Therewillbeaddi7onalSpecifiedAuditProceduresrela7ngtotheBenefitsDataandFTEtemplate.

2016-17 REVENUE GSN Highlights as at April 12, 2016 Preliminary Conclusions

Preliminary Conclusions: •  No new monies •  Provincial focus on Labour Framework,

SBEM, Equity & Accountability •  Funding will not keep up with current

costs •  Additional funding reductions added to

on-going reductions



Next Steps

Next Steps: 1.  Await for Ministry release of GSN Legislation Grants

Regulations 2.  New: Training Sessions for 2016-17 Estimates forms and

2016 March Report 3.  Prepare Revenue Module and Assess “Fiscal Impacts” •  Step #1 of Budget Balancing Exercise Note: Ministry of Education officials will be attending RECs (Regional Education Councils) over the next month….intended to provide further information/clarifications


Revenue: GSN Highlights€¦ · GSN announcement & expected impact Description Support...

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