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The Kamloops-Thompson School District says its plan to rebuild reserves is on track following a $2-million accounting error, but several financial pressures could get in the way.

As a result of a piece of revenue being counted twice in the district’s financial forecast, SD73 spent funds it didn’t have — resulting in a $2-million shortfall last year.

SD73 has approved a series of budget cuts and cost-saving measures since August, the most recent at an in-camera meeting in December.

SD73's cost saving measures have raised concerns among school support workers and the local district parent advisory council. The Kamloops-Thompson Teachers’ Association backed recently approved saving strategies, saying it was needed and preferable to permanent staff reductions.

According to a report brought before the board of education last week, the district was 0.66 per cent, approximately $4.3 million, over last year’s spending in salaries and benefits as of the end of December.

The district said it would be monitoring spending on education assistants, support staff and replacement costs, all three of which were over spending last year.

SD73 had spent 3.33 per cent more of its budget for benefits compared to last year, about $1.88 million, and replacement costs were also 1.97 per cent higher compared to the same time last year, around $135,000.

The overruns in relief and benefits were what prompted December’s budget cuts.

Still risks to spending

Speaking with Castanet Kamloops, SD73 superintendent Rhonda Nixon said relief costs remain a “high risk area” and increases are being seen across the province.

“I am hearing the exact same story that relief costs are what is higher and are the main pressure points for districts,” Nixon said.

“As far as the areas we can control as a district, we've done a good job controlling them, I believe, to the best of our ability.”

SD73 received confirmation from the ministry at the end of January that over $1.4 million in classroom enhancement funding had been approved, which will go towards covering overruns in benefits and relief costs, and increases to teacher salaries approved in October.

Nixon said SD73 was pleased to see the funding come through as projected.

Reductions ‘achievable and realistic’

While in November, more had been spent in budgets for facilities and maintenance, student transportation and the international student program, Nixon said spending in each area was back on track with the district's budget.

“It’s really important that we pay attention to the monthly updates for the board, just to make sure that everything is going as planned, and so far it is,” she said.

Spending on supplies and services is down by around 6.4 per cent, around $1.25 million lower compared to last year, which is being used to address cost overruns in benefits and relief as well.

Acting secretary-treasurer Robbie Tallon told the board the district was continuing to work towards its target reduction in supplies and services — which will need to come in around $1.6 million under budget.

Following discussions with other school districts, Tallon said he thought the reductions were “achievable and realistic.”

SD73 is projecting a $562,370 operating fund surplus by June of next year after the budget reduction strategies.

“We need to continue to build those reserves to ensure that they're available as a mitigation strategy in the future,” Tallon told the board.