Rainbow school board shows budget surplus, despite projecting shortfall

The ongoing review of planned school closures by the English public school board in the Greater Sudbury area has been based on projected budget shortfalls, but new financial numbers show the board ran a surplus in the last fiscal year.

Financial statements presented at the Rainbow District School Board's meeting this week showed the board was $3.6 million in the black during the 2015-16 fiscal year.

That's in contrast to the projected $3.6 million shortfall that has been cited this fall when board staff recommended closing schools.

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But those numbers don't tell the whole story, said Dennis Bazinet, the board's superintendent of business, adding that the surplus is from savings found during the previous fiscal year, while the accommodation review process deals with projected numbers looking forward.

"We do have surplus space [in schools] whether or not we have increased our bank account or not does not change that," he said.

"We see an opportunity to consolidate some schools and it will generate annual operating savings because we do expect the grants to be reduced year over year as a result of the changes by the ministry."

The board's accommodation review that began back in the fall aims to consolidate students in fewer schools in order to decrease operating costs to balance, what the board calls, a decrease in provincial funding.

Most of board's $3.6M surplus already spoken for: Bazinet

Most of the surplus the Rainbow board saw in the last fiscal year is already spoken for, and thus is not available for budgetary requirements, except in certain emergencies, Bazinet said.

The figures presented showed that $2.2 million is earmarked for a reserve fund that the board has to maintain.

"Once you spend [the money] for something that is a recurring maintenance on schools and school buildings then eventually it's all gone and then you're in big trouble and need it for more school buildings or for future employee benefits," said Doreen Dewar, the school board's chair.

Bazinet acknowledged that explanation may not sit well with parents and students dealing with looming school closures.

"I'm hoping they see the positive value that this is good for the board," he said.

"It's actually a very good news story, however the decision now lies with trustees in terms of how to move forward."

The remaining surplus could be used to help with changes coming from the accommodation review, or for day-to-day operations, Bazinet said.

According to the school board, changes in how the province funds education through its grants program, meant the Rainbow District School Board saw a decline of $1.5 million in revenue last year.

Board officials say they're revising the 2016-17 budget and will bring a report forward in January.