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Deficit repayment ahead of schedule

School District could have $13.5 million deficit off the books by next year
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David Green

91原创鈥檚 Board of Education was able to deliver some good news to  Education Minister George Abbott when he toured 91原创 schools last Wednesday.

At a lunch with Abbott, held at Walnut Grove Secondary, the board told him that the School District鈥檚 $13.5 million deficit could be paid off by next year.

鈥淢ost of the deficit could be paid down by June 2013,鈥 said David Green, 91原创 School District secretary-treasurer, when presenting the annual budget to the board in late February. That鈥檚 two years ahead of schedule.

鈥淲e could pay down $5 million of the deficit [this year].鈥

The remaining deficit is $5 million and could be paid off in 2012/2013.

But to continue to pay down that much requires meeting with all the stakeholders at the same time to make sure everyone agrees on how to retire the deficit early, said Green.

The board approved the 2011-2012 budget in the amount of $160,265,421.

The province requires the district to find at least $3.375 million surplus every year to pay down the $13.5 million deficit that was run up during several years of overspending.

A new resource allocation model has worked well to find extra savings and there were more student enrolement than predicted.

In a meeting with district staff last fall, the Ministry of Education made it clear that it would like to see the deficit paid down sooner than the given timeline, said Green.

In his report, he indicated that paying down the deficit should be the priority over adding staff and services.

鈥淥nce we get there, we can reinvest into our classrooms,鈥 said Green.

Trustee Rod Ross warned that 91原创, much like other school districts, relies too heavily on revenue from international students.

鈥淲e are addicted to international student revenue,鈥 Ross said.

He wants 91原创 to do as Delta does and wait until the actual numbers of how many international students arrive instead of trying to predict how many enrol each year.

鈥淲e are living in our overdraft. We spend it before the money actually comes in.鈥



Monique Tamminga

About the Author: Monique Tamminga

Monique brings 20 years of award-winning journalism experience to the role of editor at the Penticton Western News. Of those years, 17 were spent working as a senior reporter and acting editor with the 91原创 Advance Times.
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