Malcolm Gorrill
Northern News Services
Inuvik (Jun 08/01) - The Beaufort Delta Education Council is running a deficit this year and is projecting another one for 2001-02.
The deficits (which combined are estimated at about $218,000 on June 30, 2002) will reduce BDEC's management surplus.
BDEC council members approved the budget for the next year during their meeting last weekend in Inuvik.
Comptroller Dan Hemming explained that the council is fortunate, as even with a three per cent decrease in student enrolment, overall funding increased in comparison to 2000-01.
Hemming said one additional source of funding came about due to lower than expected enrolment across the territory over this past year. As a result, the Government of the NWT had extra funds available and decided to reduce the student teacher ratio territory wide for the next year to 16.5 to one.
BDEC's share of those funds will be $229,000.
Hemming said running a deficit is not a real cause for concern.
"The one for next year is $141,000. That's reasonable," Hemming said.
"We've been fortunate over the last few years because we've had such a large (management) surplus, that we've been able to fund additional initiatives."
Hemming pointed out that, as of June 30, 2002, the council's management surplus will be about $1.1 million, or slightly more than five per cent of BDEC's total budget.
Hemming explained the surplus consists of funds set aside for payouts pertaining to retirement, severance and removal benefits of employees. BDEC policy is to have its management surplus be at least five per cent of its total budget.
"We're getting down to that level. So in future years we won't have a choice but to run balanced budgets," Hemming said.
For his part, BDEC director James Anderson said this shouldn't be a problem.
"We anticipate being able to maintain a balanced budget," Anderson said.
