Jennifer McPhee
Northern News Services

Yellowknife (Sep 28/01) - The Yellowknife District No. 1 Education Authority dropped more than $800,000 into the red last year.

"The main reason for the deficit is that, for many years, staffing was completed prior to budget approval," said Steve Richards, director of corporate services at Yellowknife No. 1.

Richards said it is crucial for administration to have a budget in place before teachers are guaranteed jobs.

"A policy defining staffing levels would be very helpful to administration for continuity and budget practices," he said.

Salaries and benefits for school programs cost about $230,000 above projected amounts. Other large expenditures were tied to salaries for special education and from operation, maintenance and utilities costs.

At a recent meeting, the board voted down establishing a student-teacher ratio of 17 to 1.

Board of trustees chair Dan Schofield voted against the policy. He argued that Yellowknife No. 1 needs to plan ahead, but remain flexible and not tie itself to a policy, which may not be affordable.

All told, Yellowknife No. 1 is now $830,000 over-budget, more than quadrupling the projected deficit of about $200,000.

Trustees and administration received the annual audit for the fiscal year ending June 2001 at a public meeting last Thursday.

Members discussed administration's capital lease of two district maintenance trucks. The two vehicles cost about $25,000 each, contributing some $38,000 towards the deficit.

According to the Education Act, the chairperson and financial officer must seek approval from the minister and the legislative assembly's financial management board to borrow money.

Although Richards ack-nowledged administration didn't seek permission from the minister, he said he did consult with senior officials at the Department of Education, Culture and Employment, as well as the financial management board.

When asked why the trucks were leased when the board was already living beyond its means, Richards said the vehicles were badly needed and that repair and operation costs for older trucks would end up costing more in the end.

The policy committee is currently working on a draft of a budget control policy.