Hanover School Division Board of Trustees has approved the 2019-20 budget. The new budget invests $92.1 million dollars in the education of students, striving to provide the best education possible. The Board worked diligently to find budget solutions that address enrollment growth, during a time of fiscal challenge.
Although provincial funding increased by $761,400 (1.6%), operational costs are projected to rise by $2,986,000. The cap on local taxation (2%) will limit tax revenue to $694,400, thereby creating a deficit of $1,530,200. Expenditures include an annual operating cost of $550,100 for the new Niverville High School, and an increase of $511,100 for French education fees (paid to other school divisions). The budget also provides funding for increases associated with enrollment growth (instructional staff), collective bargaining agreements, utilities, property insurance, IT infrastructure, and the addition of one Reading Clinician.
To meet provincial budget guidelines, the Board will reduce expenditures in transportation by $340,000 (bus replacements) and school maintenance by $500,000 (projects). An additional cost reduction of $370,200 will be achieved through the elimination of existing divisional programs and services. The remaining budgetary gap will be covered by using $320,000 of surplus. The Board was careful to ensure that budget reductions will have minimal impact on classroom instruction. In total, these reductions will result in an overall expenditure increase of 2% over the 2018-19 budget.
Government funding comprises only a portion of total operational revenue required of school divisions. Approximately 40% of annual revenue needs to be obtained through education taxes in the form of a Mill Rate. Property assessment growth of 2.75% will work to offset a small increase in levy of 2.90%, resulting in a Mill Rate increase from 15.14 to 15.17, a 0.16% tax increase. As such, the 2019-20 education tax levy on a sample house assessed at $250,000 will increase by approximately $2.00.
The 2019-20 budget reflects a commitment to excellence in education, while ensuring Hanover School Division’s administrative costs are among the lowest in the province.
