Surrey Schools has approved a balanced budget amid declining enrolment.
The 2026-27 school budget was approved during the May 13 Surrey school board meeting, where trustees discussed both financial progress and ongoing challenges before approving what they described as a balanced budget.
“This budget reflects a commitment to ongoing fiscal sustainability and a strong focus on student success,” Surrey school board trustee and finance chair Terry Allen said in a district release.
Allen later told Peace Arch News the district is now in one of its strongest financial positions in years.
“Well, I think the district’s finances right now are as stable as they have been for a long time,” Allen said. “I believe, as the budget chair, that the board has positioned itself better than it’s ever been.”
The board discussed topics including survey feedback from families and teachers, declining enrolment projections, inflation and aging infrastructure, all of which continue to create financial uncertainty.
The district also noted in the release that the balanced budget has allowed Surrey Schools to move beyond its structural shortfall while increasing supports in several key areas.
That includes the addition of approximately 40 Inclusive Education Support Worker (IESW) positions, along with the expansion of four new HOPE programs at Johnston Heights, North Surrey, École Salish and Princess Margaret secondary schools.
Surrey Schools says the HOPE programs are designed to support students who struggle in traditional classroom environments through wraparound services including social-emotional, mental health and trauma-informed supports.
With the additions, the district said HOPE programs will operate in 14 of Surrey’s 21 secondary schools.
The budget will also include continued expansion of the district’s Feeding Futures initiative and universal lunch programs.
According to Surrey Schools, lunch programs have expanded from 57 schools to 85 elementary schools and 35 secondary and alternative schools in less than two years. Universal lunch programs have also expanded from three sites at the beginning of this school year to 61 sites.
Before and after-school childcare access has also increased, growing from 37 sites in 2022 to 95 elementary schools.
However, while district officials highlighted financial progress throughout the meeting and in the release, several concerns repeatedly surfaced during the nearly 90-minute discussion.
One of the district’s largest concerns remains declining enrolment.
Allen told Peace Arch News the district is forecasting the loss of another 900 students over the next two school years, continuing a trend that has become increasingly challenging for district finances.
Because Surrey Schools receives most of its funding through provincial per-pupil funding, fewer students directly impact revenue.
While this decline is significant now, Surrey school district superintendent Mark Pearmain said during the meeting that the district does not expect the downturn to continue permanently.
“We don’t think the Surrey school district will be seeing a decline forever,” said Pearmain. “It’s a question of when will it level off?”
Allen also pointed to inflation as one of the district’s growing long-term concerns, saying rising costs continue to put pressure on not just school districts across the province but everyone.
“There’s no recognition at all from the provincial government that inflation needs to be addressed everywhere else in everyday life,” said Allen. “We’ve never had a penny given to us for inflation through all these years.”
According to a financial presentation shared during the meeting, approximately 97 per cent of district revenue comes from government funding sources.
One issue that generated extended discussion during the meeting was the district’s Enterprise Resource Planning (ERP) system – a major overhaul of Surrey Schools’ internal HR and payroll systems.
Pearmain described the district’s current system as decades old, while Secretary Treasurer Ray Velestuk noted portions of the infrastructure were built roughly 30 years ago.
Allen was even more direct about the system.
“This thing is being held together with duct tape and string,” he said during the interview with Peace Arch News. “If we don’t change it, the district is not going to function well at all because nothing is linked.”
District administration costs listed in the 2026-27 budget do not include approximately $5 million tied to ERP implementation costs.
Another major topic during the meeting was staffing levels amid declining enrolment and budget pressures.
While officials said no programs are being cut and no layoffs are planned, Pearmain acknowledged declining enrolment could eventually reduce the need for some teaching positions. Instead of layoffs, district officials said future staffing reductions would likely happen gradually through retirements and natural attrition.
At the same time, support staff positions are expected to increase as student needs continue to evolve.
Trustees also repeatedly emphasized the role public feedback played in shaping the budget.
Classroom instruction and resources ranked as the community’s top advocacy priority at 40 per cent, while inclusive education and new schools, student space and class sizes each received 19 per cent support.
The survey also found that 59 per cent of respondents supported setting aside funding for future expenditures such as technology and equipment.
Board vice-chair Gary Thind said it was encouraging to see strong community participation in the consultation process.
Trustee Bob Holmes added that the feedback highlighted both strengths and ongoing gaps within the district. “This helps us shape the budget but it also highlights the gaps we need to pay attention to.”
Allen said community input remains critical to board decision-making.
“I want people to understand that all those people that filled in that survey, just how critical the survey is for the board to make its decision,” he said.
Despite continued financial pressures, district officials said they believe Surrey Schools is now in a stronger position than it was several years ago and better equipped to invest in student supports moving forward.
“If we were in this place two years ago, we’d be in a very difficult place moving forward,” Pearmain said during the meeting.
Surrey school board meetings are open to the public. The next one will be held on June 10 at 7 p.m.
Agendas are posted before meetings; people can attend in person or via video livestream on the Surrey School’s website, surreyschools.ca