Dufferin-Peel board budget passes with $1.7 million deficit
By LAVINIA KERR Orangeville Citizen
With the help of a provincially appointed supervisor, Dufferin Peel Catholic District School Board's budget for 2007-08 has been passed with a deficit of $1.7 million.

In February, the province took control of the budget when the board refused to make cuts to reduce a $2.5- million deficit which was initially was estimated as high as $17 million, first reported in 2005.

Board chair Bruno Iannicca said then that the board had worked hard to make cuts to reduce the deficit from the initial $17 million down to $2.5 million and it was the province's turn to address the fiscal imbalance.

School boards across the province including the Dufferin Peel and Upper Grand district boards, have stated the province has been chronically underfunding the boards, forcing them to balance budgets by using reserve funds.

Calling the underfunding problem systematic the Catholic board since 2005 has said the province ignored a flawed funding formula for years in the area of transportation, salaries and special education.

School boards are required to balance their budgets and the Catholic board had continued to find ways to cut costs while imploring the ministry to fix the funding problems. In December 2005, the board initiated a postcard campaign, asking parents to write to the province and ask for an increase in funding.

Under the direction of then Education minister Sandra Pupatello, the Ministry offered and the board accepted the appointment of a special advisor, Peter Lawers, who worked with the board during the summer of 2006 to try and find a solution.

Throughout the process the board maintained that through a series of costsaving measures the deficit was reduced to approximately $7.4 million and any further cuts would impact students directly.

By October, thenminister Kathleen Wynne announced the ministry was taking over supervision of the school board temporarily and appointed a comanagement team headed by Norbitt Hartmann, who were directed to make the cuts required to balance the budget.

The board remained steadfast and rejected the two options presented that outlined plans for further cuts and establishing a balanced budget until the Minister directed Hartmann to make the cuts with or without the board's approval.

In January, Hartmann handed the board a plan to restore financial stability to the school board. His report outlined three stages, including reducing the forecasted deficit from $15.1 million to slightly over $2.5 million by August 2006, placing temporary and permanent budget reductions designed to reduce the operating deficit and eliminate the structural deficit in 2007-08.

In a telephone interview, Hartmann said he is pleased with the progress but acknowledges his job won't be complete until there is no longer a deficit and there is a plan for the future.

"I think we've done what we can this year," said Hartmann. "It was a balanced approach and we are already beginning some reinvestment."

According to a report he presented to the board in June, the expenditures for 2007-08 are $691.3 million against revenues of $689.6 million, leaving a deficit of $1.7 million.

"The process to balance the budget was intended to take several years," he added. "It began with cuts in 2005 and has continued through this budget."

He said the administration and finance committee met the deficit reduction target.

The report outlines how reinvestment directly impacts students. At the elementary school, budgets were increased by 5 per cent over last year's level, adding approximately $400,000 to support activities, resources and student services. The equivalent of a five per cent reinvestment at the secondary school level will be used to address supervision concerns, which was identified by a work group of principals. The hiring freeze within special education was lifted in May, allowing for psychologists, speech pathologists and social workers to be replaced as vacancies occur.

"There is still work to do for next year and I expect the next budget will show a surplus and we will also continue to reinvest money as we have done so this year," he said.