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By Cam Lee

Financial challenges remain

NESD to allocate accumulated surplus toward bus fleet, vehicle replacements

Mar 2, 2026 | 10:49 AM

The North East School Division (NESD) has allocated part of its surplus to go toward vehicles of all kinds. 

The board has approved the allocation of $1.5 million to bus fleet renewal, and $200,000 to vehicle replacements, from unrestricted accumulated surplus. 

NESD guidelines state that an unrestricted surplus should be between 0.5 per cent and 2 per cent of the Adjusted Annual Operating Revenue, not including capital grants and school generated revenue fund. The Internally Restricted Accumulated Surplus should be between one and 10 per cent of the Adjusted Annual Operating Revenue, not including Internally Restricted Reserves designated for capital expenditures, facility related projects and school generated funds. 

At the recent board meeting, the 2024-25 audited financial statements had an unrestricted accumulated surplus of $3.1 million and based on the 2025-26 budgeted revenues and the guidelines stated above, the balance should be between $357,000 and $1.4 million. Thus, the division allocated the cash to the bus fleet renewal and vehicle replacements to fall below the 10 per cent threshold. 

“We’re in a very fortunate position where we have some money in our reserves, our accumulated surplus, to do those things,” Director of Education Stacy Lair said. 

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Lair said the NESD policy is to only have a small percentage of the money sitting without being designated for a specific purpose. 

Despite the expenditures and what looks like a significant surplus, Lair said the division deficit budgets.  

“Our only source of revenue is our provincial grant, and we annually budget and dip in anywhere from half a million in excess of a million into that accumulated surplus,” Lair explained. “We know that that’s not a sustainable model; however, advocacy work is being done from the Board’s perspective to get to something sustainable.” 

Lair said NESD reserves were at $13.5 million in 2017, and for 2025-26 they are just over $10 million. She said the division is aware they need to be sustainable going forward. 

“We’d like to do so without having to make any kinds of cuts on our educational side, and so it does mean that we have to be very responsible with what we have and advocate strongly for an increase to our educational funding to make sure that we have something sustainable.” 

Adding to those pressures is the increased cost of everything over the past few years, including new buses and parts. Lair said they have been diligent in ensuring that the bus fleet is as up to date as possible, mechanically sound, and most importantly – safe. 

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cam.lee@pattisonmedia.com