Report on Resources

The Resource section compares projected spending to actual spending for the Ministry of Education's operating budget, and breaks down ministry expenses by core business area. In addition, projected and actual FTE's (full-time equivalents) are reported.

For the 2004/05 fiscal year, the Ministry of Education experienced significant variances in the following categories:

Public Schools — Under the core business area of Public Schools, a savings of $6.8 million was a result of savings in the ministry allowance for unanticipated spending pressures, plus the change in accounting treatment to recognize certain federal contributions toward K–12 education. Savings were used to fund one-time grants for education partners.

Amortization of Prepaid Capital Advance — Savings of $9 million in this category was due to a combination of $11.8 million in savings related to less than anticipated amortization expense, which was offset by an expense of $2.8 million for school closures in fiscal 2004/05.

Debt Service — Savings of $33.6 million was primarily a result of lower than anticipated interest rates, higher than anticipated sinking fund earnings, and reduced capital funding.

Total Variance

The variance between the budget and actual spending for the Ministry of Education primarily reflects a change in accounting treatment to recognize certain federal contributions toward K–12 education. The impact on the 2004/05 fiscal year is a $52 million reduction in both provincial revenue and education expense.

The Province has changed its accounting treatment with respect to recognizing certain federal contributions toward K–12 education costs of status on-reserve Aboriginal students attending provincial schools. The impact on the 2004/05 fiscal year is a $52 million reduction in both CRF revenue and CRF education expense. There is no impact on provincial net operating results. There are a variety of federal funding arrangements in place, under which federal contributions toward K–12 education may be paid directly to the province or to school districts through First Nations. Previously, to provide a consistent accounting and reporting of these funds, the gross cost of education was reported as a provincial expense. To avoid double funding of students, the amount of contributions received by school districts was recovered from school districts and reported as provincial revenue. Total funding received by school boards was unaffected by this change in accounting. Under the revised accounting treatment, CRF (Consolidated Revenue Funds), education revenue and expense will no longer reflect funding that is paid directly to school districts.

2004/05 Resource Summary

	Estimated	Other Authori- zations	Total Estimated	Actual	Variance (Actual minus Total Estimated)1
Operating Expenses ($000)
Public Schools	4,147,463		4,147,463	4,140,664	(6,799)
Independent Schools	176,777		176,777	174,377	(2,400)
Debt Service and Amortization	564,955		564,955	522,487	(42,468)
Management Services	18,032		18,032	16,782	(1,250)
Executive and Support Services	35,938		35,938	33,041	(2,897)
Total	4,943,165		4,943,165	4,887,351	(55,814)
Full-time Equivalents (Direct FTEs)
Management Services	98		98	92	(6)
Executive and Support Services	211		211	207	(4)
Total	309		309	299	(10)
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Management Services	310		310	340	(30)
Executive and Support Services	14,100		14,100	8,725	(5,375)
Total	14,410		14,410	9,065	(5,345)
Capital Plan ($000)
Public Schools	134,500		134,500	117,881	(16,619)
Total	134,500		134,500	117,881	(16,619)

Resource Summary — School Districts

The Resource Summary for school districts compares actual to projected expenditures and revenues. For the 2004/05 fiscal year, the actual revenues and expenditures for school districts exceeded budget projections. Increased revenues were due to higher than projected government contributions, local revenues and reporting of school-based revenues. The increase in expenditures was primarily due to reporting of expenditures related to school-based activities funded by school-based revenues. The increase in expenditures was partially offset by lower than projected salary expenditures.

Major Capital Projects

This section reports on capital projects that exceed $50 million. The ministry had only one project that met this criteria for the reporting period.

Project Description: New Westminster Secondary School Replacement

New 2,400-secondary student capacity school to replace the existing 2,025-capacity New Westminster Secondary School; replacement of existing District Administration Offices; and renovation of existing District Maintenance Facility.

Project Objectives

New Westminster Secondary School (NWSS) is the only secondary school in School District No. 40 (New Westminster). The building complex also accommodates the School District administration offices, School District maintenance facility, and School District stores facility.

The existing NWSS is in poor condition, making it inefficient and costly to maintain and operate. The renovation of the existing school and district administration offices was rejected as a viable option, with renovation costs surpassing 70 per cent of replacement costs.

Forecasted growth of population for the City of New Westminster and increases in student enrolment supported the increased capacity.

As part of a community initiative, the City of New Westminster supported the project making a funding contribution for sporting and arts initiatives co-located on the site, to enhance NWSS as a community school.

Project Costs And Benefits

Costs

The cost of the entire project is $63,936,481, with the following funding sources:

• Ministry to provide $51,920,708 in capital plan funds for the replacement of the secondary school and administration offices, and renovation of retained area for eligible educational programs and maintenance facilities.