The Kamloops-Thompson School District is forecasting a year-end operating surplus of more than $9.3 million, nearly eight times higher than originally budgeted, driven by increased student enrolment, additional provincial funding and stronger-than-expected investment and international education revenues.
A financial update presented to the board projects a $9.314-million operating surplus, up from the $6.065-million forecast at the end of the third quarter and well above the amended budget surplus of $1.207 million. District revenues are now expected to reach $219.4 million, about $5.7 million above budget.
School district superintendent Mike St. John and secretary treasurer Kim Morris told the Chronicle this increase is driven by higher-than-expected enrolment, particularly in distributed learning programs, additional labour settlement funding from the province following collective bargaining agreements, strong investment income and continued growth in international student activity revenues.
The district has also benefited from increased reimbursements through the Classroom Enhancement Fund, which helps offset teacher staffing costs.
“It’s a combination of salaries, benefits, services, supplies and revenue,” said Morris.
How will this impact the 2026-2027 school year? Morris said the surplus allows the district to make one-time purchases on items like much-needed equipment replacement or infrastructure upgrades. By doing so, administrators avoid any future disruptions in service and education if a surplus like this doesn’t exist, she said.
“We’re not impacting the future service level for students by creating jobs that may not be there if the surplus isn’t there,” said Morris.
St. John added spending decisions like this are made with the best interest of the students and school culture in mind.
“What this allows us to do is to go deeper with what we do have,” he said. “We can enhance professional learning. We can enhance opportunities for teacher development and student experiences that does impact the classroom day to day that isn’t something, three years from now, where we’re laying people off.”
On the spending side, the report showed salary and benefit costs remain below budget despite retroactive wage increases for teachers, principals and vice-principals following provincial labour settlements.
The savings are largely attributed to vacant support staff and excluded staff positions, along with lower replacement costs through the district’s Attendance and Awareness Support Program.
Supplies and services are also forecast to finish roughly $609,000 below budget, although officials note spending typically accelerates toward the end of the fiscal year as invoices continue to be processed.
As of May 31, the district had recorded $195.4 million in revenue and an operating surplus of $12.8 million. While that figure is expected to decrease as remaining expenses are recorded before the June 30 fiscal year-end, administrators remain confident the district will close the year with a surplus of more than $9.3 million.
The financial report is one of several quarterly updates provided to the board each year as trustees monitor the district’s fiscal performance and compare actual revenues and expenditures against the approved operating budget.