With six months into the Vernon School District’s fiscal year, expenditures are in line with what has been budgeted for 2016/17, although the cold and flu season has taken a toll on staff.
Sterling Olson, secretary-treasurer, told trustees that sick and other absence costs are trending higher than expected.
“We’re trying to take a look at where the primary driver is for sick leave, but the cost of sick leave and other absences will almost certainly lead to a budget variance,” he said. “Absences also include any medical leave, maternity leave and anybody we are paying who is off work
“In the short-term, the financial risk is anticipated to be mitigated by savings elsewhere. Going into future years, this year’s absence history will be considered when preparing the 2017/18 budget.In addition, management is analyzing the absence history to identify trends and steps that can be taken to reduce absenteeism.”
Olson said as the year progresses, the risk of departments spending more than their allotted budgets increases, and department budgets are actively reviewed by management.
Olson added that the recent unusually cold weather will likely have an adverse impact on the district’s natural gas costs, although the impact is expected to be small and not to have a material impact on overall utility costs.