The budget deficit faced by the Dufferin-Peel Catholic District School Board was to be discussed with Ministry of Education officials at a special meeting Wednesday night.

The ministry last Friday requested the meeting to discuss terms of reference for a special adviser who will examine the board's financial plight.

The board started the 2005-06 school year with an estimated $17 million deficit, which had been reduced to $15.1 million by December.

The board was able to reduce that further to $7.5 million with a hiring freeze, a freeze on new expenditures, strategic redeployment of staff and additional grants from the province.

"These measures, which were intended to keep as many cuts away from the classroom as possible, are not sustainable over the long term," board chair Peter Ferreira said in a press release.

The role of the adviser is to assist the board with developing a deficit management plan to return the board to a balanced financial position in the 2007-08 school year. The adviser will also recommend changes in the board's financial management system, which includes hardware and software components, accounting systems, staffing and staff training, the budget preparation process and any necessary board bylaw provisions.

The board will prepare a deficit management plan with the guidance of the adviser that is to be based on funding levels by the government, rather than increases anticipated by the board, cost increases that are known to the board and enrolment changes that have been projected.

The board passed a motion at a previous meeting accepting the terms of reference, but only with amendments. The three amendments provide that the special adviser will:

 Report directly to the assistant deputy minister, business and finance division of the ministry of education;

 Make recommendations to the board that will include impact statements; and

 Assist the board in developing a financial management plan to return to a balanced position by the 2008-2009 school year.

"While we accept appointment of a special adviser, the board has made it clear that this adviser will not only make recommendations, but have to declare publicly their effect on the system," Mr. Ferreira said. "The board will have the final say on any cuts and efficiencies that need to be made to produce a balanced budget by 2008-09."

The deficit management plan should identify:

 The specific measures the board is adopting each year and the contribution the measures make toward the deficit reduction;

 Significant change in programs and services on a year by year basis;

 Staffing changes, if any, per year;

 Any one-time costs per year to implement the plan;

 The use of reserves, if any;

 Financial and nonfinancial assumptions in developing the plan, and

 Required methods for dealing with in-year expenditure decisions to ensure zero-base budgeting.

The adviser is to address the remaining deficit of 2006-07 and end the fiscal year in a balanced position or with a deficit that doesn't exceed one per cent of the 200607 operating revenue in the plan. As well, the adviser will address the remaining deficit carried forward from the previous year in 2007-08.

"Trustees will continue to act as advocates for our community," Mr. Ferreira said.

"We will not give up or hide from this responsibility."