The North East School Division (NESD) has passed a balanced budget after dipping into reserves.
The board of education passed the budget during their regular meeting on June 22. NESD director of education Stacy Lair said the 2026-2027 budget is the closest the NESD has been to a sustainable budget for many years.
“While we’re still projecting a cash deficit of $1.7 million, it’s a significant improvement,” Lair said. “We know that typically we are under budget annually, just about $2 million. And so while we budgeted that deficit of $2.8 million, we also know that we are around $2 million under typically,” Lair said.
Total revenues increased from $72,402,231 to $74,483,268 over last year. Total expenditures increased from $75,591,198 in 2025-2026 to $77,312,839 in 2026-2027.
Lair said that for a budget of nearly $77 million dollars they feel they have done a good job to get to a place where spending is sustainable.
“Over the course of the last several years, this is the closest the school division has been to that sustainable budget,” she said.
The deficit position before the use of accumulated surplus was $2,829,571, a decrease from $3,188,967 in the 2025-2026 budget. However, after amortization of the capital assets the number changes to $1,714,448.
On Budget Day, the NESD’s funding from the provincial government increased by $1,692,265. Roughly $325,000 of this relates to an additional Specialized Support Classroom. There is also an increase due to adjustments to the funding rates of the operating grant.
The Preventative Maintenance and Renewal (PMR) funding increased by around $30,000.
The division will use roughly $116,900 from the accumulated surplus to help to cover the funding shortfall from the Province. The accumulated surplus has developed over the life of the school division.
“We hope that we have a break-even scenario, because while we projected that $2.8 million, we typically underspend around $2 million, and so that’s the sustainable part that we will reach,” Lair explained.
Roughly 65 per cent of budget spending goes towards instruction expenses. Lair said expenses have increased in that area due to an additional Specialized Support Classroom and the increases included in salary contract with the CUPE staff.
The Provincial Collective Bargaining Agreement of the teachers expires on August 31, 2026. Similar to prior budgets, there has been no increase for any anticipated changes to the teachers’ salaries due to a new agreement. The provincial government has historically funded these increases.
Lair said completing the budget is a complex process with a lot of detail.
“We’re a large corporation, essentially, and run just about an $80 million budget,” she explained.
She said that items like instruction, plant (facilities), transportation, and governance all make up similar percentages to the budget of 2025-2026.
Staffing changes
Wanda McLeod superintendent of business administration for the NESD has announced her retirement at the end of this school year after over a decade of service. Lair said they are actively recruiting for a new Chief Financial Officer and the ad is posted on their website and posted through various networks.
Lair thanked McLeod for all of the years of work she did for the division.
“(We’re) just really reflecting on how much over the years we’ve appreciated having the expertise and care of our CFO,” Lair said. “Wanda has been a cornerstone for us in both her skills and abilities as a CFO, but also what I appreciate is her unwavering focus and attention on making sure that the funds are there for student learning, for supporting staff. That focus is unwavering.”
McLeod also oversaw the transportation and facilities portfolio during her time with the division.
“She has a big job and we’re excited to fill it, but at the same time, we will miss her,” Lair said.
Lair sent her the best to McLeod from everyone in the division.
“We’re definitely excited for her,” Lair said. “I’ve really enjoyed working with her over the years and benefited from her expertise, for sure.”
