2025-26 Operating Budget

& 2025-2031 MYFRP

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June 17, 2025

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Prepared by: Kim Scanlon, Senior Budget Manager

Submitted by: Calum McNeil, Chief Financial Officer & Treasurer of the Board

Endorsed by: John De Faveri, Director of Education, Foundation Chair and Secretary of the Board

Table of Contents

2024-25 Forecast

2025-26 Financial Position

• Funding Highlights
• Operating Budget
• Recommendations

Multi Year Financial Recovery Plan

• Projection to 2030-31
• Recommendation

Appendices

1. Core Education Funding
2. MYFRP Financial Projection Submitted January 2025
3. Enrolment Projection
4. Operating Deferred Revenue
5. Balanced Budget Determination

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2024-25 Forecast

• Positive values = decrease in the deficit. Negative values = increase in the deficit.

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2025-26 Funding Highlights�(see Appendix 1)

Online (E-Learn) credit load updated.

Transportation 6.3% increase across the sector and based on recent routing simulations for each school board.

Additional funding to enhance school board financial management through the Regional Internal Audit Team component.

Interim approach for the Special Incidence Portion (SIP) Allocation based on 2024-25 amounts adjusted for labour-related increases and an exceptional circumstances amount.

New formula-based approach for Care and Treatment Education Programs (CTEP).

Year 2 of 5 Year phase-in of the 2021 Statistics Canada census updates, including adjustments to allow school boards to adjust cost structures if needed.

Benchmark increases overall 3.3% to support targeted investments including 2% non-staff portion for school operations and school facilities.

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2025-26 Operating Budget

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The operating budget includes:

• Assumptions from the Multi-Year Financial Recovery Plan (MYFRP) submitted to the Ministry in January 2025 which included:
• Removal of one-time updates and budget assumptions
• Proposals approved
• Core Education grant updates using projected enrolment
• Responsive Education Program updates
• Other revenue and expense projections including previously approved items
• Adjustments to staffing based on change in enrolment
• Labour benchmark updates for all other staff as defined by collective agreements or the Ministry
• Approvals from the Board of Trustees

Operating Position

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Bridge from 2024-25 to 2025-26 Budget

• Positive values represent an decrease in the deficit. Negative values represent a increase in the deficit.

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Operating and Non-Operating Summary

#1

#2

#4

Recommendations on following slides:

#3

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RECOMMENDATIONS�2025-26 Budget (Estimates)

1. Revenue Estimates for 2025-26

THAT the Board approve the submission of the Revenue Financial Estimates to the Ministry of Education for the fiscal year September 1, 2025 to August 31, 2026, in the total amount of $735,145,987 (based on Operating $687,417,754 and Non-Operating $47,728,233) as presented in this budget presentation.

2. Salaries and Benefits Estimates for 2025-26

THAT the Board approve the submission of the Salary and Benefits Expenditures Estimates to the Ministry of Education for the fiscal year September 1, 2025 to August 31, 2026, in the total amount of $621,172,883 (Salaries $532,256,843 and Benefits $88,916,040) as presented in this budget presentation.

3. Other Expenses Estimates for 2025-26

THAT the Board approve the submission of the Support Cost Expenditures Estimates to the Ministry of Education for the fiscal year September 1, 2025 to August 31, 2026, in the total amount of $123,419,845 (based on $73,148,626 Operating expenditures, $2,542,986 of REP and Other Grants/Programs expenditures and $47,728,233 of Non-Operating expenditures) as presented in this budget presentation.

4. In-Year Budget for 2025-26

THAT the Board approve the submission of the $9,446,741 non-compliant deficit to the Ministry of Education for the fiscal year September 1, 2025 to August 31, 2026 as presented in the budget presentation.

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Multi Year Financial Recovery �Plan (MYFRP) - Update

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Due to the board’s non-compliant in-year deficits in 2022-23 and 2023-24, the Ministry of Education required an MYFRP, which projected a balanced budget by 2026-27 and maintained this position into 2027-28, be submitted by January 31, 2025.

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YCDSB’s submitted plan was approved by the Minister of Education on May 21, along with two outstanding POD approval requests. The Ministry outlined a further requirement that the Board submit an updated MYFRP, that eliminates the accumulated deficit by 2030-31, by June 30, 2025.

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MYFRP Update

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THAT the Board, approve the Multi Year Financial Recovery Plan, which projects an accumulated surplus of 155k by 2030-31.

Appendix 1�Core Education Funding

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Change in Funding ratio for E-Learn (Online Learning)

Regional Internal Audit Team (RIAT)

Appendix 2�MYFRP Financial Projection Submitted January 2025

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The 2024-25 Revised Estimates deficit of $10.5M serves as a baseline / reference point. Figures for 2025-26 through 2027-28 represent changes compared to the 2024-25 Revised Estimates.

Notes:

• Inflationary Increases are assumed to be fully funded and are therefore excluded from the projections
• The financial impact of declining enrolment is offset by regular staffing adjustments and the Declining Enrolment Adjustment grant

Appendix 3�Enrolment Projection

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The Board continues to experience declining Elementary enrolment while Secondary enrolment will increase in 25-26. International student enrolment is increasing.

Appendix 4�Operating Deferred Revenues

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Appendix 5�Balanced Budget Determination

A balanced budget is deemed to be an in-year surplus or a deficit not exceeding 1% of the GSN operating allocation. In 2025/26, 1% of the Board’s GSN operating allocation is $6.6M.

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