Funding
The current provincial funding model allocates funding to districts based on student population. In school districts experiencing enrolment decline, this translates to reduced funding from year to year.
The reduction in funding triggered by enrolment decline, however, is greater than the costs that vary directly with enrolment. The cost of maintaining a school facility and its administration, for example, is not reduced when there are 20 fewer students in the school.
The funding formula, moreover, does not account for regular cost increases such as salary increments, increases in employee benefit costs, and inflation on goods and services not covered by provincial operating grants.
Under the School Act, Boards of Education are required to submit balanced budgets every year. When cost increases outpace funding increases, boards must implement reductions in programs, staffing and other costs.
Since 2008-2009, the Maple Ridge – Pitt Meadows school district has made over $12 million in net reductions in order to balance its annual budgets. In 2013-2014 alone, the school district made a net reduction of $4.14 million. Further shortfalls are projected in coming years. A shortfall of $5.02 million is anticipated for 2014-2015, and a shortfall of $2.16 million is predicted for 2015-2016.
In 2013-2014, eighty-four per cent (84%) of the school district’s expenditures are tied to instruction (teachers, education assistants, instructional supplies, and school administration, including principals and school office support staff), while ten per cent (10%) is allocated to building operations and maintenance. Less than four per cent of the district’s budget is spent on district administration.
With funding shortfalls projected for future years, budget reductions will be needed. In order to minimize cuts to instruction-related programs and costs, future reductions will have to occur in areas other than the classroom. The efficient use of educational facilities would reduce non-instructional operating costs, which would in effect protect funding for educational programs.
Cost of Operating New Schools
The Ministry of Education provides funding for land acquisition and construction of new schools, however additional operating funding is not provided for operating the new schools.
When new schools are open, the school district will incur additional costs in areas such as principal and vice-principal administration time, office support staff, custodians, facility operations, maintenance supplies and expenses. There would be little increase to student-based costs, including principal and vice-principal teaching time, teachers, educational assistants and instructional supplies and expenses because these costs would follow the students to their new school. A typical elementary and secondary school budget allocation is below:
 Typical Budget Allocation: Elementary
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 Typical Budget Allocation: Secondary
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Although from a pure financial perspective the most efficient use of resources occurs when schools are operated at full capacity this is not necessarily the optimal use of facilities. It is not advisable to operate all schools at 100 per cent capacity because there would be limited flexibility to respond to emergent educational needs or to provide schools with space to support school based educational initiatives. Schools operating at 90 per cent are considered to be operating at a reasonable rate.