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Millions in jeopardy as SD43 approaches budget deadline

Budgeting for next year a challenge as Coquitlam school district contemplates its future with reduced international student enrolment
Superintendent Patricia Gartland
Superintendent Patricia Gartland says interest in School District 43's international education is strong but travel restrictions during COVID-19 are preventing new foreign students from attending summer and fall programs.

As COVID-19 takes a financial toll on Tri-City residents, cities and school districts are also feeling the pinch.

But where cities can look to taxpayers, or anticipatory loans to make ends meet if necessary, School District 43 has to look to the province to cover mounting costs.

And so far, the province is mum on how much help it can provide school districts.

For Coquitlam school district, the uncertainty and lost revenue is resulting in layoffs for the  first time in three years.

Millions of dollars in revenue from international education will likely be wiped off the books as foreign student enrolment drops because of travel restrictions, and despite other cash infusions for class size and composition, 37 layoffs are expected for the next school year.

That has school trustees worried for the future.

In the midst of finalizing next years’ school budget, trustees want to know how problems this year will affect 2020/21 even as they are putting the final touches to the spending plan.

“There’s an option to rescind layoffs before June 30. Is that correct?” asked Coquitlam trustee Jennifer Blatherwick at Tuesday’s virtual board meeting.

However, she was told it would be September before the district knows what its final enrolment will be.

Meanwhile, SD43 is keeping a list of what current COVID-19 costs are.

Among the biggest hits, trustees were told, is a drop in investment income, and while those numbers aren’t being quantified yet, and indeed there has been a bit of a rebound of late, the upshot is the world’s economy could impact next year’s operating budget.

A reduction in interest rates, for example, is making solvency payments for the so-called Non-Teaching Pension Plan for retired staff more costly, and rental income is dropping after 17 of 46 child care providers closed.

Other costs include substitute teacher costs for those offering ‘school care’ for essential services workers, new and refurbished computers for the virtual learning effort, re-supplying the district’s stock of personal protective equipment, food supports for vulnerable students and cleaning supplies.

SD43’s top money man, treasurer Chris Nicolls, said it’s not known whether the province will reimburse the district for these costs.

But he provided a positive outlook for school trustees.

“It’s a very fluid situation and I think we would be in a good situation to hopefully adapt, and hopefully adapt positively, as we move from the COVID-19 scenario we are seeing now,” Nicolls told trustees.

Next Tuesday, April 21, trustees are expected to pass the 2020/'21 budget.

Meanwhile, the district hopes children under 18 will be allowed in to Canada as foreign students because young people are less at risk of acquiring COVID-19.

According to superintendent Patricia Gartland, the district is watching foreign student enrolment very closely.

“Our applications have been very robust and the majority of our existing students have renewed again for the 2021 school year. The concern is for new applicants to attend the summer program as they have not yet applied to come to Canada and those entering Canada for the first time,” said the superintendent.

Meanwhile, the province is offering hope for cash-strapped cities with a number of measures.