The Horizon School Division board was able to dam the tide of a provincial economy awash in red ink for now, but trouble may be brewing for 2011-2012.
The board passed its 2010-2011 budget at its meeting on May 18, and had to access its reserves to balance a budget that has a deficit of just under $420,000, factoring in both the lack of funding for the provincially-negotiated Alberta Average Weekly Earnings Index and some further budget adjustments, including embedding more class-size funding into the regular staffing formula.

The Horizon School Division board was able to dam the tide of a provincial economy awash in red ink for now, but trouble may be brewing for 2011-2012.
The board passed its 2010-2011 budget at its meeting on May 18, and had to access its reserves to balance a budget that has a deficit of just under $420,000, factoring in both the lack of funding for the provincially-negotiated Alberta Average Weekly Earnings Index and some further budget adjustments, including embedding more class-size funding into the regular staffing formula.
“The board's budget philosophy calls for balanced budgeting to ensure sustainable delivery of quality programs and services. The focus of budget allocations has been on putting staffing in the classrooms as a priority, and we are fortunate to have a reserve to draw on to provide stability in the upcoming school year,” said Cheryl Gilmore, superintendent of Horizon School Division, in an interview with The Advance after the board meeting. “Drawing $420,000 from reserves is a significant amount. The board was clear that this is a one-year strategy.”
The draw on reserve funds for next year will come close to depleting the non-designated reserve funds for Horizon, according to Gilmore.
The board and budget committee based the decision on the component of the budget philosophy that provides for exceptions to a balanced budget if there is a contingent situation in the short term. The contingent situation is the lack of commitment on the part of the provincial government to fund the agreement made with the ATA to provide salary increases to teachers at the Alberta Average Weekly Earnings Index determination. Though the government has stated it will not fund this commitment, the follow through by the government to fund the difference in what was budgeted for AAWEI and what was the actual did eventually come through for the 2009-2010 school year. Horizon did not want to reduce staff with the possibility the government might decide to uphold the commitment part way through the school year.
Horizon will still have some designated reserve funds of approximately $5 million. These funds have been designated for specific uses, including a contingent transportation fund which includes money that was put aside when Horizon sold its bus fleet and went to contract bus service.
For 2010-2011, Horizon is in a better position than many other school divisions in the province with its current professional staffing formula remaining in effect with some modest reduction to class-size allocations.
“This is very good news for schools during challenging fiscal times,” said Gilmore in her budget committee meeting outcome memorandum to the board, as she added the regular staffing adjustments of schools that have increases or decreases in enrollment remain on par.
The special education budget will also have a reduction of approximately 1.0 to 2.0 full-time equivalents across the district.
“We are also fortunate to be in a position to be able to buffer the shortfall in provincial funding for the next school year. The 2009-2010 school year can close on a positive note with planning for comparable staffing levels for the next school year.”
But if the government continues to be at a stalemate over funding the provincially negotiated AAWEI for professional staff, the picture may not be as rosy for 2011-2012 for Horizon.
“It is likely that the board will have to make an adjustment and look at staff reductions. Drawing this significant of an amount from reserves is not sustainable into a second year,” said Gilmore.
For 2010-2011, total revenues and reserves are projected at $39,722,887, with total expenditures at $40,141,959.

New federal legislation introduced by the Harper Conservatives last week should give provinces the opportunity to elect their own senators under a set of guidelines, if passed into law.
Setting out a voluntary framework for provinces to decide if they want to elect their own senators, the Harper government is hoping to lure with a carrot what it previously couldn’t get with a stick. Two past direct attempts to bring a measure of democracy to Canada’s appointed Senate have failed under Opposition pressure and provincial objections on constitutional grounds.

The following are selected minutes of the Vauxhall town council meeting on May 17.
Introduction
Council members met the Taber/Vauxhall RCMP detachment’s new sergeant, Tom Cooke.