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The Canadian Champion, Riday, January 27, 2006 - A3 Board looking at how to pay $2 million deficit By JASON MISNER Special ta The Champion The Halton District School Board is staring at a $2 million deficit. but top officiais insist thc moncy to pay it off won't corne at the expense of vital classmoom resources. Trustees wcre told at a meeting last week the board faces a $2- million shortfail on the 2004-05 $350 million-plus budget because of two things: deficits resulting from the Halton Learning Foundation - $199.000 -and the Centre for Skills Development and Training, with an approximate shortfall of $1 .9 million. Trustees have yet to decide how to cover the deficit. Board staff wilI work on scenarios and bringing back recommendations for trustees. The bulk of the deficit, attributed to the skills centre, is primari- ly because of leasing debt it assumed when it took over the space at the Bay Area Learîsing Centre in 2003. said Barry Finlay, the centre's president and the school board's associate director of edu- cation. The centre. locatcd in Burlington. shares the building with other organizations including Charles Sturt University. The centre - with a staff of 90 and an annual opcrating budget of $5 million - served 22,000 people laat year by tcaching adulta and older youth skills for the working world. Next year. the centre is anticipated to serve 30.000 people. "Me goal, Mr. Finlay said, is that by 2007, the centre will oper- ate at break-even, given that Bay Area tenants are paying their share of the lease and the fact prograns; are fce-baaed. Wayne Joudrie, the board's director of education, said after the board meeting thc $2 milion deficit is an 'issue of concem for the board" but is confident it can be paid without a major impact. "One of thie questions that was aaked was will that impact on any classroom cnveloping and (it) absolutcly will not. la a $350-mil- lion budget. on a one-time basis. 1 believe we can came ta a solu- tion that gets us that $2 million. There arc enough other areas that will alow us some flexibility." Mr Joudric said thc board isn't requircd ta pay off Uic deficit the year after its incun-cd. The ministry, he said. can allow up ta five ycars for it ta be pald if it approves a board's plan. "We don't have to nccessarily cat thc entire $2 mrillion in one ycar," he said, adding hie would like ta sec Uic shortfall paid soon- er Uian later. "Wc can spread il out." Stephen Parfeniuk, Uic boani's superintendent of business serv- ices, told Uic board Uic deficit could have bccn much highcr because of Uic $3.8 million it paid for rmtrement gratuities lant ycar, about $1 million bcyond wbat wan budgctcd. To cover Uic extra money. Uic board dcplctcd ils gratuity rcservc. He told trustecs he believes 40 ta 50 staff lcft Uic board at Uic end of Uic ycar. Mr. Parfcniuk said Uic board fmnishcd Uic year with an operating surplus of about $700.000, which wifl be put into a working reserve. Trustees decide how Uiat money gets used, he noted. Thec deficit, he said. doesn't include a controversial $600.000 sevcrancc paid ta former director Dusty Papke whcn he lefi Uic board in June 2005. Part of Uiat severance included a $100.000 ~ AUTO BODY ( ROYAL ATLANTIC) 1INC. "lNe don't have to necessnrily eat the entfre $2 million i one year. We can spread it retirement gratuity. Some trustees have publicly cxpresscd con- cern the board could he in dire financial straits to cover the amount. Mr. Parfeniuk said savings found in the 2004-05 budget covered the severance. He said savings would have included money flot spent on having to pay the salaries of various senior staff. That would have includcd the director's position, which was vacant for some two inonths. The position of superintendent for business services sat vacant for about four months. Also. Uic board has yet ta hire a superintendent for special cdu- cation. Brenda Kcarney left aithUi end of June. Oakville Trustee Mary Chapin - anc of several trustees who have voiccil anger aver Uic departure of Papkc and Uic subsequent severance paid - said even Uiough Uie severance didn't put Uic board into deficit, she's frustratcd because Uic savings found could have been put into a working reserve and uscd on students instcad. Combine Uic $600,000 wiUi lant ycar's $700.000 operating sur- plus, Ms Chapin said Uic total of $1.3 million could have been used in a number of ways, including Uic retirement gratuity reserve and/or ta pay down same of Uic $2-million shortfall. "The problcmn is we could have bail a much larger surplus at Uic end of Uic ycar and we could have reinvcsted in Uic classroom," she said. see TRUSTEE on page Ai12 400 Steeles Avenue 1-800-721-9396 www.mlltontoyota.-o