Board dips into surplus

The Prince George School District is anticipating 600 fewer students for the 2008-09 school year.
In 2007-08, the district had the equivalent of 14,691 full-time students. That number is predicted to drop to 14,085 for the coming year.
The decline will mean $1.1 million less funding from the Ministry of Education for the coming school year, district management and finance committee chairwoman Sharel Warrington said.
“We then have not enough revenue to cover our expenses,” Warrington said. “In order to deal with that we’ll have to use previous year’s surplus.”
The board of education approved the district’s 2008-09 budget on Tuesday. The $129 million budget draws on $4.371 million in previous operating surpluses, including $1.38 million initially allocated for the 2009-10 year.
“Our expenses represent a status quo budget. There will be no cuts,” Warrington said. “It also reflects our rising costs in utilities, bussing costs … and the impact of the carbon tax on the district.”
The B.C. carbon tax, slated to begin on July 1, will cost the district $80,000 this year and up to $240,000 in future years, she explained.
The district has budgeted $7.58 million for utilities and busing for 2008-09, up more than $176,000 from 2007-08.
“There has been no change to transportation funding since 2001. Despite our rising costs, there will be no increase in 2008,” she said. “We have gone over school and department budgets in detail. There is no room to squeeze money anywhere.”
Trustee Lois Boone said the district won’t receive an income tax cut to correspond with the carbon tax, unlike individuals and businesses.
“That’s money that comes directly out of the classroom,” Boone said. “These are going to be issues that come directly into your classroom.”
Trustee Roxanne Ricard said she’s very concerned about relying on previous years’ surpluses to maintain services.
“It’s eventually going to run out. We have to start planning for that.”