RASCI Template
September 21, 2021
RASCI Template Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp The RASCI matrix is a visual business tool used to define the connection between members and their
Business Administration Expenses in Canadian Schools
This article is part of the Canada’s School Spending series where GPetrium draws out insights through data visualization and analytics. If you would like to visit other articles within this series, please visit the page Canada School Spending Series.
In this article, we will take a deeper look at Business Administration expenditure (from 1973 to 2016) for the Canadian education budget by taking a look at Canadian provinces and territories in relation to economic classifiers such as fees and contractual services, fringe benefits, salary and wages, among others. To better understand data visualization and the dashboard above, please refer to ‘Canadian School Expenditure Insights Through Data Visualization’.
General
Business administration expenditure has reached $1.58 billion in 2016, up by $18 million compared to 2015, a 1.1% increase. Such annual increase shows a 20 years trend towards a smaller increase in comparison to the periods of 1974 – 1994.
The major business administration spenders in 2016 are Ontario ($538.6 million), Quebec ($431.3 million), Alberta ($243.6 million), and British Columbia ($140.3 million). In the 1993-2002 period, British Columbia saw a rapid rise in this expenditure, causing it to pass Alberta. However, from 2002-2004, it saw a rapid drop from $193.3 million to $94 million – it then stabilized for the remaining period.
Budget Allocation
Canada’s salaries and wages expenditure remains the largest part of the business administrative expenses at 61.2%, followed by fees and contractual services at 14.45% and fringe benefits at 11.49% in 2016.
Source: Statscan
Fringe Benefit in Alberta has surpassed that of Quebec, growing from $17.9 million in 2006 to $33.7 million in 2016, an 88% growth that looks set to continue on the same trajectory as it follows similar trends to salary and wages, and fees and contractual services. With fringe benefits accounting for 11.49% of the business administration expenses in 2016, it may be important, specially for Ontario and Alberta to continue to monitor their numbers.
Salaries and wages experienced a few abnormal trends in Saskatchewan (SK), Nova Scotia (NS) and British Columbia (BC) have been noted:
- Saskatchewan has seen a continued growth in salaries and wages throughout the years, with an exceptional year between 2012 ($27.7 million) to 2013 ($62 million) at 216% growth. Such number was then decreased in 2016 to $38.2 million, albeit still a 95% growth in comparison to 2012.
- Nova Scotia sustained two major spikes in the past decade or so. The first occurred between 2005-08 where salaries and wages moved from $9.8 million to $21.6 million, a 119% growth. The second was in 2011-2014 where it changed from $19.3 million to $31.3 million, at 62% growth. The number then went down to a more realistic level at $17.9 million.
- British Columbia saw a major spike in the period of 1993-2002 going from $50.8 million to $136.4 million only to get back to the $55.3 million mark in 2004 with continuous incremental growth up until 2016 ($78.6 million).
Supply and services peaked in 2009 at $156.9 million and has dropped to $131.2 million by 2016, which was led by cuts from Ontario and Quebec. Supply and services have hit the lowest percentage of the business administration pie since 1973 at 8.26%, which can raise the question of whether there has been an over expenditure for decades or there is an under expenditure at this time. A quick projection would likely see Ontario and Quebec’s number stabilizing with a small incremental growth in the upcoming decade, likely leading to an expenditure range of $130-175 million.
It can be difficult to determine a smooth linear expenditure in this segment since maintenance and much needed upgrades may come at different times and rates due to a variety of factors. Most governments around the world will use relatively simple historical models and expenditure predictions (with guidance from the districts) to determine a cap for each subcategory within supply and services. Districts and schools would then determine the level of priority within their directive based on budget availability.
Conclusion
The dashboard raises numerous interesting trends and variances that may benefit from further investigation. It is in no way a be-all and end-all solution to the opportunities and challenges that school education faces, it is a tool that, along with extra information, can provide deep insights and pose questions to drive better decisions.
Business administration as a percentage of the total budget has decreased in a relatively linear fashion since it peaked in 1994 at 3.9% to 2.56% in 2016. This means that it has not kept to pace with other expenditure items. Questions should be asked as to whether business administration is suffering a shortage, has became more efficient or other segments have become bloated on a province to province basis based on their unique economic and demographic profiles.
There have been multiple variances for each classification at different timelines and provinces/ territories, this is to be expected due to policy decisions, administration changes, etc. Although there have been interesting outcomes from this article’s analysis, further province/ territory specific research would be beneficial to better understand the trends of the past to support decision making in the present and future.
- Digital Strategy – Help develop the individual/organization’s digital strategy to drive true competitive advantage.
- Digital Initiatives – Create and/or enhance digital tools to support key business initiatives and cost optimization solutions.
- Data Analytics – Turn data and digital assets into value driven capabilities.
- Data Visualization – Create meaning in data through clear and directional Visualization solutions.
We would love to hear from you!
Our Latest Posts
Read More »
Communication Plan Template
September 14, 2021
Communication Plan Template Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp Communication helps instill important information between different parties, helping to build relations, drive collaboration and much
Team Charter Template
September 7, 2021
Team Charter Template Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp Team charters can help teams, projects and organizations build the rules of engagement and roadmap needed
Check Register Template
August 31, 2021
Check Register Template Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp Financial transactions have existed throughout history, helping buyers and sellers exchange goods based on their needs.
Employee Training Tracker
August 24, 2021
Employee Training Tracker Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp Training is a great way to learn or hone the skills relevant to one’s professional career
Bi-Weekly Budget Tool
August 17, 2021
Bi-Weekly Budget Tool Share on facebook Share on twitter Share on linkedin Share on email Share on whatsapp There are many cases where employees or contractors are paid bi-weekly for their effort. To some,
