Transcript Grants for Student Needs for the 2010–11 School Year

School Board Audit Committee Training
Pre-training module 2
Education Funding
Session objectives
After completing this session you will better understand:
o The structure and components of Education funding in the Province of Ontario
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Who is funded?
 72 district school boards (focus of this presentation)
 4 school authorities (very small boards in remote areas)
– James Bay Lowlands
– Moose Factory
– Moosonee
– Penetanguishene
 6 hospital authorities (very small boards in hospital settings)
– Bloorview
- John McGivney
– Campbell
- Kids Ability
– Niagara
- Ottawa
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Ontario School Board Facts for 2010–11*
 $20.22B in total GSN funding (projected)
 72 district school boards
 1,207,600 elementary students in over 4,000 schools
 676,100 secondary students in 900 schools
 202,407 staff (including 124,000 school-based teachers)
* Footnote: Ministry of Education - School Board Funding Projections for the 2010–11 School Year
http://www.edu.gov.on.ca/eng/funding/1011/funding10.pdf
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Funding Model Principles
 A strong publicly funded education system is at the centre of this
government’s mandate and is the foundation of the province’s future
prosperity.
 To support this goal, the funding model:
– Provides a fair and equitable level of funding for all students, wherever they live in
Ontario;
– Provides more funding for students in the classroom and less funding for
administration and other non-classroom costs;
– Provides funding to maintain schools and to build new schools where they are
needed;
– Protects funding for students with special needs;
– Increases the accountability of school boards by ensuring that boards report
consistently on how they spend their allocations.
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Funding Model for District School Boards
Grants for Student Needs
(GSN) Funding Formula
=
Property Tax +
Revenue
Provincial
Grants
Source
Type
Mechanics
Municipalities
Property taxes
Set by the Province of Ontario for
residential & business properties
Collected by municipalities on behalf
of Province and remitted to school
boards
Ministry of Education
Grants
Calculated as GSN funding formula minus
amounts received through property taxes
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Structure of the GSN Funding Model
 Intended to model cost structures
 4 major components:
– Pupil foundation grant
– School foundation grant
– 13 Special purpose grants
– Debt service grant
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16 grants in the 2010–11 GSN
$M
%
(1)
PUPIL FOUNDATION GRANT
$9,498.5
47.1%
(2)
SCHOOL FOUNDATION GRANT
$1,356.9
6.7%
$2,312.0
11.5%
$625.3
3.1%
$35.4
0.2%
SPECIAL PURPOSE GRANTS
(3)
Special Education Grant
(4)
Language Grant
(5)
First Nations, Métis, and Inuit Education Supplement
(6)
Geographic Circumstances Grant
$192.8
1.0%
(7)
Learning Opportunities Grant
$460.3
2.3%
(8)
Safe Schools Supplement
$44.7
0.2%
(9)
Program Enhancement Grant
$45.6
0.2%
$126.1
0.6%
$1,274.1
6.3%
$834.6
4.0%
(13) Declining Enrolment Adjustment
$59.9
0.3%
(14) School Board Administration and Governance Grant
$541
2.7%
$2,219.6
10.9%
$537.0
2.6%
$55.5
0.3%
$20,219.5
100.0%
(10) Continuing Education and Other Programs Grant
(11) Cost Adjustment and Teacher Qualifications and Experience Grant
(12) Student Transportation Grant
(15) School Facility Operations and Renewal Grant
(16) DEBT SERVICE
Funding for School Authorities ($29.3M) and unallocated GSN funding ($26.2M)
TOTAL 2010–11 GSN
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2010–11 Grant Allocations as a Percentage
Pupil Foundation Grant
47.1%
School Foundation Grant
6.7%
Debt Service 2.7%
Special
Education
Grant 11.5%B
Language Grant 3.1%
School Operations &
Renewal 11.0%
Cost
Adjust. &
Teacher
Qual. & Exp.
6.3%
First Nations, Métis & Inuit Education 0.2%
Geographic Circumstances Grant 1.0%
Continuing Education
& Other Programs
Learning Opportunities Grant 2.3%
0.6%
Safe Schools
Supplement 0.2% Program Enhancement Grant 0.2%
Administration & Governance
Grant 2.7%
Declining Enrolment Adjustment
0.3%
Student Transportation Grant 4.1%
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(1) Pupil Foundation Grant
 Per Pupil Allocation
 Supports the elements of a classroom education that are required by all
students
 Three levels of funding:
– Primary (JK – 3)
– Junior & Intermediate (4 – 8)
– Secondary (9-12)
 Includes costs such as the following:
–
–
–
–
–
–
classroom teacher salaries & preparation time;
library and guidance services;
educational assistants,
classroom supplies, textbooks and learning materials, classroom computers,
classroom consultants,
professionals (e.g., psychologists) and para-professionals (e.g., attendance
counsellors, social workers, child/youth workers, community workers, and computer
technicians)
Projected 2010–11 funding amount: $9.50B
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(2) School Foundation Grant

Funds in-school administration and leadership, and school office
supplies

Includes the following costs:
– Principals (1 for every 50 or more students, < 50 students, 0.50 FTE)
– Vice-principals (based on school enrolment)
– School office support staff (1 for every school + based on school
enrolment)
– School office supplies (per school amount + based on school enrolment)
Projected 2010–11 funding amount: $1.36B
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Special Purpose Grants
 Provide additional funding to meet students’ different needs and the
costs that vary from one school board to another
 The thirteen special purpose grants are:
•
•
•
•
•
•
•
•
•
•
•
•
•
Special Education Grant
Language Grant
First Nations, Métis, and Inuit Education Supplement
Geographic Circumstances Grant
Learning Opportunities Grant
Safe Schools Supplement
Program Enhancement Grant
Continuing Education and Other Programs Grant
Cost Adjustment and Teacher Qualifications and Experience Grant
Student Transportation Grant
Declining Enrolment Adjustment
School Board Administration and Governance Grant
School Facility Operations and Renewal Grant
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(3) Special Education Grant
 Funding for students who need special education programs, services
and/or equipment
 Composed of six components:
1. Special Education Per Pupil Amount (SEPPA)
2. High Needs Amount (HNA)
3. Special Equipment Amount (SEA)
4. Special Incidence Portion (SIP)
5. Facilities Amount
6. Behavioural Expertise Amount
Projected 2010–11 funding amount: $2.31 billion
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(4) Language Grant
 Provides funding to meet school boards’ costs for language
instruction
 Composed of five components:
1. French as a First Language (FFL)
2. French as a Second Language (FSL)
3. English as Second Language (ESL)
4. Actualisation linguistique en français (ALF)
5. Programme pour nouveaux arrivants (PANA)
Projected 2010–11 funding amount: $625.3M
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(5) First Nations, Métis, and Inuit Education Supplement
 Supports programs designed for Aboriginal students as outlined in the
Ontario First Nation, Métis, and Inuit Education Policy Framework
released in January 2007
 Composed of three components:
1. Native languages
2. Native studies
3. Per-pupil-amount
Projected 2010–11 funding amount: $35.4M
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(6) Geographic Circumstances Grant

Recognizes the additional costs of operating small schools in
isolated areas and costs that are associated with the geography of
boards, including board size and school dispersion

Composed of three allocations:
1. Remote and Rural (higher costs of goods)
2. Supported Schools (teaching staff costs to keep viable lowenrolment schools that are far from other schools of the board)
3. Rural and Small Community (supports boards with schools in
small or rural communities)
Projected 2010–11 funding amount: $192.8M
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(7) Learning Opportunities Grant (LOG)
 Supports a wide range of programs to improve the achievement of
students with a higher risk of academic difficulty
 Composed of six allocations:
1. Demographic
2. Literacy and Math Outside the School Day
3. Student Success, Grades 7 to 12
4. School Effectiveness Framework
5. Ontario Focused Intervention Partnership (OFIP) Tutoring
6. Specialist High Skills Major (SHSM)
2010–11 projected funding amount: $460.3M
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(8) Safe Schools Supplement

Supports amendments to the safe schools provisions of the
Education Act which came into effect on February 1, 2008.

Consists of two allocations:
1. Safe Schools Strategy
i.
Program & Support: Funding for programs for students on long-term suspension or
expulsion to continue their education;
ii. Professional Staff Support: Funding to acquire additional para-professional resources
for at-risk students;
2. Urban and Priority High Schools: Funding to support urban and priority high
schools to address challenges faced by at-risk students.
Projected 2010–11 funding amount $44.7M
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(9) Program Enhancement Grant
 Supports programs and activities such as arts, music, physical
education, and outdoor education to ensure students have access to
a well-rounded education
 Funding is allocated on the basis of $9,650 per school
 Boards have flexibility in how to use this funding, which may be used
to fund or enrich existing programs or to offer new programs
Projected 2010–11 funding amount: $45.6M
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(10) Continuing Education and Other Programs Grant
 Provides funding for adult school programs, continuing education,
correspondence programs, summer school and night schools
 Composed of five components:
1. Adult day-school
2. Prior learning and assessment for mature students
3. Continuing education programs
4. Summer school programs for adults and secondary students
5. International (“heritage”) language instruction for elementary students
Projected 2010–11 funding amount: $126.1M
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(11) Teacher Qualification & Experience Grant

Provides funding to help boards meet teachers’ salary costs above
the funding provided in the Pupil Foundation Grant

The grant recognizes the differences in salary ranges of both
teaching and various non-teaching staff

Composed of three allocations:
1. Cost Adjustment
2. Teacher Qualifications and Experience (Q&E)
3. New Teacher Induction Program (NTIP)
Projected 2010–11 funding amount: $1.27B
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(12) Student Transportation Grant

Funds the costs of transporting students from home to school and
students with special needs to special education programs

Composed of five allocations:
1. Cost Update Adjustment
2. Enrolment Adjustment
3. Routing Efficiency
4. Fuel escalator and De-escalator
5. Transportation to Provincial Schools
Projected 2010–11 funding amount: $834.6M
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(13) Declining Enrolment Adjustment (DEA)

Provides transitional funding to recognize that it takes time for
boards to adjust their cost structures to declines in enrolment (and
the resulting decline in revenue)

Composed of three components:
1. First year component
2. Second year component
3. Third year component
Projected 2010–11 funding amount: $59.9M
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(14) School Board Administration and Governance Grant

Provides funding for the administration and governance costs such as
operating board offices and central facilities, board-based staff and
expenditures, including supervisory officers and their secretarial support

Composed of seven allocations:
1. Trustees
2. Directors and Supervisory Officers
3. Board Administration
4. Reporting Entity Project
5. Parent Engagement Funding
6. Multiple Municipalities
7. Internal Audit
Projected 2010–11 funding amount: $541.0M
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(15) School Facility Operations and Renewal Grant

Supports the costs of operating, repairing, and renovating schools

Composed of two allocations:
1. School Operations: to heat, light, maintain, and clean schools,
including funding for custodial staff
2. School Renewal: to address costs of repairing and renovating
schools
Projected 2010–11 funding amount $2.22B
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(16) Debt Service

In light of declining enrolment, the Ministry has reviewed its funding
approach to capital programs and the effectiveness of the New Pupil
Places (NPP) funding model

As a result, a number of changes are being introduced, starting in
2010–11 they include:
•
Wrap-Up of the New Pupil Places Funding Model
•
Recognition of Long-Term Debt
•
Accountability Procedures
Projected 2010–11 funding amount $537.0M
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Changes to Funding Formula
 Funding formula was introduced in 1998
 Yearly refinements in response to school board needs through formal
consultations and ad-hoc workgroups
 Government commitment to reviewing the funding formula to ensure
its continued responsiveness to the sector
 Changes to the formula are introduced by regulation annually through
the Education Act
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Enrolment

Many GSN funding formulas are based on enrolment

Enrolment is defined in terms of full-time equivalency (FTE) and
average daily enrolment (ADE)

FTE: # of minutes of instruction per day / 300

Junior kindergarten and Senior kindergarten students are counted
as half-time students

ADE: FTE at October 31st x 50% + FTE at March 31st x 50%
count dates for funding purposes
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Grant Administration
 Grant payments are transmitted to Boards and School Authorities
through electronic funds transfer
 Grants are paid to school boards once a month whereby the cash
flow is timed to match expenses by boards
• About 8% of their cash is flowed per month, except July and August at
6% and September at 13%
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Other Revenue Sources
 Grants outside the GSN – Education Program Other (EPO)
 Grants from other Ministries and Federal Government
 Tuition fees from students
 School fundraising activities
 Rental revenue
 Interest revenue
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Financial Reporting
 School Boards submit financial data (used to calculate annual grant
payments) and other business reporting information in four reporting
cycles
–
–
–
–
Estimates (the board Budget due end of June)
Financial Statements (mid November)
Revised Estimates (Updated budget due mid December)
7 Month Capital and Operating Report (mid May)
 Financial reporting standards are maintained through common chart
of accounts, communication with school boards and external
auditors (follow public sector accounting rules)
 Data is submitted through a web-based tool and maintained in a
system called EFIS
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Appendix I – Business Cycle
• Business cycles overlap as it takes 3 years to complete one business cycle
Estimates:
end of
June/July
GSN: end
March
Year 1: Sept
Dec
Mar
Cash Flow Begins:
mid Sept
Year 2: Sept
June
July
Mar
Revised
Estimates:
mid Dec
Business Cycle begins in March,
prior to the school year in September
to provide time for boards to develop
balanced budgets
Year 2: School Year
Adjust Cash:
mid January
Dec
Year 1: Prior to School Year
June
7 month Capital
& Operating:
mid May
During the school year, a budget
update is due and cash flow get
adjusted. Year-to-date report is (7
month) to report on the province’s
fiscal year.
Year 3: Post School Year
Year 3: Sept
Financial
Statements:
mid Nov
Dec
Mar
Interim Final
Cash: mid
January
June
Final Cash:
mid March
Financial Statements are due and
cash flows get finalized based on
this information.
Legend:
Blue - 4 Reports Due
Green - 4 Cash Flow Adjustments
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Flexibility & Restrictions
 Education funding recognizes that school boards need flexibility to
decide how best to allocate resources within their budgets
 At the same time there are restrictions on how they may use certain
components of their allocation:
– Achieve balanced budgets
– Achieve primary class size targets
– Special education grant is limited to special education expenditures
– School renewal allocation is limited to capital renewal expenditures
– School board administration and governance grant spending shall not exceed the
grant allocation (excluding internal audit)
– NTIP funding is to be used for eligible NTIP expenditures
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Comprehensive Accountability Framework
 Financial Reporting
 Monitoring
 Auditing (focus on enrolment and English as second language)
 Internal audit function (new)
 Measures taken to ensure compliance:
– Withholding grants when a board is not in compliance on class size
– Requiring boards to prepare and submit deficit management plans when
necessary
– Directing boards to take measures to become compliant
– Control of the school board transferred to the Minister of Education
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Resources
 Ministry of Education Public Website:
Go to: Popular topics
Then go to: Education Funding
 http://www.edu.gov.on.ca/eng/policyfunding/funding.html
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