Red Deer Public Schools is preparing a $137-million budget for 2025-26, and expects to dip into reserves to fund a projected $700,000 deficit.
The division's reserves will be about $4.2 million as of the 2025 year end on August 31.
The budget grew from $134 million in 2024-25, which also used reserves to pay a similar sized deficit.
Projected student enrolment is comparable at about 10,826 full-time equivalent students for 2025-26.
The division says one of the challenges for the upcoming school year is that there was no increase to the base instruction grant funding to address rising costs.
Colin Cairney, secretary treasurer at Red Deer Public, said it would have been nice to see an increase to the instruction grant, but there was a three per cent increase to the operations and maintenance grant, and the 2.32 per cent increase to several programs like Program Unit Funding (PUF), English as an Additional Language, School Nutrition and more.
"There's been years when we haven't had an increase at all to any of our funding. The 2.32 and three per cent was definitely a welcomed addition," Cairney said.
He said costs are generally on the rise, but staffing costs noticeable climbed 4.3 per cent for Alberta School Employee Benefit Plan, in addition to CPP and EI benefits increases.
Most school jurisdictions use the same benefit plan so they would face a similar hike, he added.
He said the costs of supplies and materials could also grow due to tariffs imposed by the United States, particularly when it comes to renovations and maintenance projects at the schools.
"We currently haven't experienced any increased costs due to tariffs. But it's still very early."
The division's administration is working out the final details on the 2025-26 budget and will present the budget to the school board for approval on May 14 so it can be submitted to Alberta Education before May 31 deadline.
