The 2015-16 budget for the Okanagan-Similkameen School District has a lot of red in it.
The school board gave first, second and third reading to an amended budget on Jan. 27, with a shortfall that the district will draw $617,798 from their surplus fund to balance. That is $53,900 more than expected at the beginning of the budget year, which runs from July 1, 2015, to June 30, 2016.
The money to make up for the deficit will come from the surpluses built up over previous years. After taking what they need from it, the district is projecting they will have about $17,824 left in the surplus fund on June 30.
There is no one specific reason for the deficit, according to Secretary-Treasurer Lynda Minnabarriet.
“There have been increasing costs, but not increasing revenues,” she said. “So things like utilities and benefits costs. The board also puts money into purchasing capital assets every year (which they have a surplus in, but are unable to take money from). We have declining enrolment, but it doesn’t always happen in one location so you can’t reduce staffing costs to match it.”
The school board is considering closing one or more schools in the district, although Minnabarriet noted that wouldn’t completely solve the problem. School closure estimates vary from savings of $250,000 to $400,000 for next year.