Calgary Board of Education to change how it reports cost of lease

An operational review of the Calgary Board of Education (CBE) by Alberta Education shows the organization has been categorizing the lease costs for its administrative offices as an instructional expense rather than one for board system and administration (BSA) expenses.

The lease for the CBE educational centre has been a political lightning rod in recent years. The deal, inked by a prior board in a hot real estate market in 2006, locked the CBE into a long-term arrangement with property management company Bentall Kennedy. In 2011, the board moved in and started the clock on the 20-year lease, which cannot be renegotiated and will see costs for space escalate to $62 per square foot in 2031.

“We are constantly looking for ways to minimize those lease costs. But, as of right now, it’s something that we are contractually obligated to fulfil.”

Tweet This Click to share quote on Twitter: "We are constantly looking for ways to minimize those lease costs. But, as of right now, it's something that we are contractually obligated to fulfil."

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READ MORE: Alberta government urges more consistency in preliminary CBE audit

The operational review, ordered by education minister David Eggen after the board identified a $38.6 million dollar shortfall in the 2017-2018 school year, noted that in the 2015-16 school year, BSA costs totalled only 2.56 per cent of the board’s expenditures.

By moving the lease cost to its correct category, BSA costs would rise to 3.3 per cent, which is still below the provincial allowable maximum of 3.6 per cent.

“In the interest of transparency and clarity, we’ve recommended that the board move this amount into the proper category,” said education minister David Eggen in a statement to Global News.

That’s a request the CBE is happy to comply with.

READ MORE: Alberta’s education minister suggests busing fees are at the root of CBE operational review

“I think it’s important for the public to have full knowledge of what the lease costs are and what the liability is,” Hurdman said. “This board believes firmly in transparency, our senior administration believes in transparency, and we want to be transparent with the public around this.”

“At the end of the day, it doesn’t really make a big difference because it’s not money we can allocate to the classrooms.”

Tweet This Click to share quote on Twitter: "At the end of the day, it doesn't really make a big difference because it's not money we can allocate to the classrooms."

Hurdman said the operational review has been a positive for the board, hoping it will bring daylight to some of the complexities in trying to offer inclusive education within the system.

“All school boards are seeing an increase in the complexity and diversity of our student populations,” she said. “We’re showing that the provincial funding is not keeping pace with that.”