The Vancouver school district could save up to $16.3 million-$12.3 million in the short term and $4 million in the long term by implementing proposals ranging from axing its continuing education program to finding ways to use excess space to generate revenue, according to budget proposals pitched by PricewaterhouseCoopers.
The school district hired PwC at a cost of $100,000 to review its finances and come up with suggestions to deal with ongoing budget shortfalls-an $8 to $8.5 million shortfall is predicted for the 2012/13 school year.
PricewaterhouseCoopers presented the 79-page report at a committee meeting Wednesday night.
"I think this report was a good investment in terms of providing detailed advice on areas of potential cost savings that may allow us to balance this year's budget without reducing support for teaching and learning," board chair Patti Bacchus told the Courier in an email after the meeting. "It won't allow us to restore the multiple years of service cuts since 2002, but it will help at least maintain current service levels."
The report suggests the district's continuing education program could be eliminated to save $910,000 because it operates in a highly competitive market and the shortfall in revenue it generates adds to the district's financial burden.
A long-term proposal dubbed "redeployment of VSB properties" recommends the VSB consider using excess space in its buildings for other uses that may create up to $1 million in revenue. The district has more than 8,442 unused student spaces in its schools, which translates to 340 empty classrooms.
The report doesn't specify exactly how the VSB should handle the empty spaces, but it doesn't rule out school closures. "Any potential considerations for school closure will need to adhere to both district and the B.C. Government school closure policies," the report notes.
When asked if "redeployment of VSB properties" means school closures, PwC wrote in an email to the Courier that "PwC is recommending the VSB consider using the excess or underutilized space for other uses, which may generate revenue."
Bacchus interprets the proposal as similar to what's unfolding at Carleton elementary where a theatre group is leasing the old school house and paying for upgrades. She believes the idea is essentially to identify compatible users to help offset operating costs and to generate revenue, but she concedes it doesn't rule out school closures.
Bacchus said she is concerned about some PwC proposals that relate to the district's school meal program, as well as a program that provides bus tickets to needy students.
The VSB runs 17 teaching and non-teaching cafeterias and offers school meal programs for eligible students. PwC points out that food services are not part of the district's "core offerings" and that there have been "challenges" recovering cafeteria-operating costs. PwC recommends the district consider outsourcing services for three non-teaching cafeterias and assessing the costing model of the school meal program for a potential savings of $890,000.
It also suggests the VSB review its bus fare reimbursement criteria to provide objective guidance on students' eligibility status, which could cut costs by $450,000.
Bacchus said the biggest surprise is the amount of potential savings PwC found through procurement strategies. The VSB runs an electronic procurement system to leverage discounts, centralize purchasing and set purchasing standards, but purchasing procedures aren't consistent district wide, according to PwC. By standardizing procedures and negotiating further discounts, the VSB could save up to $4.1 million annually, the report states.
Meanwhile, between $60,000 to $670,000 could be saved by moving some programs out of leased spaces and into district-owned sites. The Main Street Education Centre is in leased space at 333 Terminal Ave. near Main Street, but the board decided this week to delay a decision to move it to allow time for consultation.
"My initial reaction to [proposals] is positive in that we now have some ideas to work with that won't have a negative impact on teaching and learning," Bacchus said.
PwC spent close to a month and a half conducting 40 interviews with VSB staff and stakeholders, holding workshops and reviewing VSB documents as well as comparing VSB data to peer school boards in other regions. PwC has worked with school districts in Calgary and Montreal and more than 36 school boards in Ontario.
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