Surrey Schools posts $33M surplus, rebuilding reserves in latest budget update
Surrey Schools is reporting a $33 million accumulated surplus with $12 million in unrestricted reserves – replenishing the district’s rainy-day fund – to better support students and district operations.
At the September public board meeting, Surrey Board of Education Vice-Chair Terry Allen announced an “improved financial picture” for Surrey Schools, with the surplus allowing the district to rebuild its operating reserves for current and future financial needs.
Of the $33 million surplus:
- $16 million will be used to replace the district’s enterprise resource planning (ERP) system;
- $5 million will be placed in other restricted reserves; and
- the remaining $12 million will replenish an unrestricted surplus, within the recommended range of 1% to 3% of the district’s $1.2 billion budget.
“The district is now in a stronger financial position to handle any headwinds or unexpected expenses as the province heads into another very, very difficult year,” said Allen, who also chairs the board’s Finance Committee. “Our diligent adherence to the board’s fiscal management policies and practices has consistently prioritized the needs of our students.
“I am confident that the district will continue to uphold its commitment to delivering outstanding education to our students.”
Allen acknowledged that over the past year, many school communities watched the board make difficult decisions regarding transportation, Grade 7 band and IESW support, as the board and the district worked to address a $16-million deficit amid funding and inflationary pressures. He thanked the district’s finance staff for their work on finding efficiencies that have stabilized Surrey Schools’ fiscal standing.
Secretary-Treasurer Ray Velestuk called the surplus a “key measure of financial health,” emphasizing that the foresight of the board to strengthen reserves will allow the district to ensure the long-term sustainability of educational programs. He also said the district will now be able to better respond to challenges from economic pressures in B.C., as well as a projected decline in enrolment attributed to federal changes in immigration targets and temporary resident policies.
“It is important to underscore that an improved financial position does not eliminate the ongoing budgetary and operational pressures we face,” said Velestuk. “Rather, it does enable us to manage those pressures more deliberately and effectively.”
Later in the meeting, Deputy Supt. Andrew Holland presented an enrolment report, highlighting a decline of 350 registered students – from kindergarten to Grade 12 - compared to this time last year, making for a tentative headcount of just over 78,700 students. This downward trend is considered a significant departure from the district’s rapid enrolment growth of 1,507 students in 2024 and 2,494 students in 2023.
“Except for a minor anomaly during the COVID years, this is the first decline of enrolment in Surrey in well over 25 years,” said Holland, adding that other Metro Vancouver districts are slightly declining while Fraser Valley districts are stable or increasing, with some families moving east in B.C. or to other provinces. The district’s final enrolment report for the 2025-26 school year, based on the official Sept. 30 headcount for the Ministry of Education and Child Care, will be presented at the October public board meeting.
“People who’ve experienced declining enrolment know that puts significant budget pressure on school districts,” he added.
Holland also highlighted that the district’s total number of students – factoring in online learning, adult education, specialty programs and cross-enrolled students – is currently more than 85,600.
While Trustee Bob Holmes expressed concern that declining enrolment may bring funding challenges, he noted that fewer students may offer some reprieve in overcrowding while providing a chance to get ahead on capital projects before enrolment increases again.
“I suppose the good news could be it eases a little bit of pressure, at least in the short term, on our capital,” he said, emphasizing that more students will join Surrey and White Rock soon despite the current downward trend. “We know where the SkyTrain’s going to go, we know where development’s going to go and we still have thousands of kids in portables, so I’m certainly hoping this will provide an opportunity to catch up and get more kids into proper schools.”
