O. Reg. 540/20: CALCULATION OF MAXIMUM IN-YEAR DEFICIT
filed October 1, 2020 under Education Act, R.S.O. 1990, c. E.2
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made under the
Education Act
Made: October 1, 2020
Filed: October 1, 2020
Published on e-Laws: October 1, 2020
Printed in The Ontario Gazette: October 17, 2020
Amending O. Reg. 280/19
(CALCULATION OF MAXIMUM IN-YEAR DEFICIT)
1. (1) Subsection 4 (1) of Ontario Regulation 280/19 is amended by striking out “and 2020-2021 fiscal years” in the portion before paragraph 1 and substituting “fiscal year”.
(2) Subsection 4 (2) of the Regulation is revoked.
2. Section 5 of the Regulation is revoked and the following substituted:
In-year deficit, 2020-21
5. (1) Subject to subsection (2), for the purposes of clause 231 (1) (a) of the Act, a board is authorized to have an in-year deficit in respect of the 2020-2021 fiscal year if the amount of the board’s in-year deficit is less than or equal to the amount determined as follows:
1. Take the board’s accumulated surplus for the preceding fiscal year. If the board does not have an accumulated surplus, the amount determined under this paragraph is deemed to be zero.
2. Take 1 per cent of the board’s operating revenue for the applicable fiscal year.
3. Take the lesser of the amounts determined under paragraphs 1 and 2.
(2) A board is authorized to have an in-year deficit in respect of the 2020-2021 fiscal year that is greater than the amount determined under paragraph 3 of subsection (1), if the following conditions are satisfied:
1. The board has provided evidence satisfactory to the Minister that the reason the board will incur an in-year deficit greater than the amount determined under paragraph 3 of subsection (1) is a result of the board’s response to the outbreak of the coronavirus (COVID-19).
2. The amount of the in-year deficit is less than or equal to the amount determined as follows:
i. Take the board’s accumulated surplus for the preceding fiscal year. If the board does not have an accumulated surplus, the amount determined under this paragraph is deemed to be zero.
ii. Take 2 per cent of the board’s operating revenue for the applicable fiscal year.
iii. Take the lesser of the amounts determined under subparagraphs i and ii.
In-year deficit, 2021-22, 2022-23
6. For the purposes of clause 231 (1) (a) of the Act, a board is authorized to have an in-year deficit in respect of the 2021-2022 and 2022-23 fiscal years if the following conditions are satisfied:
1. The board has submitted to the Minister, in respect of the applicable fiscal year, an in-year deficit elimination plan that complies with subsection 4 (3).
2. The amount of the in-year deficit is less than or equal to the amount determined as follows:
i. Take the board’s accumulated surplus for the preceding fiscal year. If the board does not have an accumulated surplus, the amount determined under this paragraph is deemed to be zero.
ii. Take 1 per cent of the board’s operating revenue for the applicable fiscal year.
iii. Take the lesser of the amounts determined under subparagraphs i and ii.
In-year deficit, 2023-24 and subsequent fiscal years
7. For the purposes of clause 231 (1) (a) of the Act, a board is authorized to have an in-year deficit in respect of the 2023-2024 fiscal year and each subsequent fiscal year if,
(a) the conditions set out in section 6 are satisfied; and
(b) the board has not had an in-year deficit in both of the two fiscal years immediately preceding the applicable fiscal year.
Commencement
3. This Regulation comes into force on the day it is filed.