The budget, which was discussed over the course of three board meetings in the last week, reinstated several staff-recommended cuts including a planned $3 million in cuts to school budgets. Trustees also voted to hire back 14 special education teachers who had been cut in earlier budget proceedings and vetoed a planned $10,000 reduction to Trustee expenses, a move that divided the board.

"We're asking everyone else to do their bit, it seems we need to do our part," said Trustee John Hastings. "We're all talking about reputation, but how can we expect to have a sterling reputation if Trustees won't take a minor reduction recommended by staff?"

The cuts would have reduced trustees annual expenses from $30,000 to $20,000, an amount Trustee Josh Matlow felt was still substantial given their annual salary of just under $26,000.

"There's a lot of money we spend at the board that doesn't go directly to students," he said. "These are the areas we should cut."

Trustee Irene Atkinson, who originally tabled a motion cancelling the cuts altogether, disagreed, describing herself as already "overworked and underpaid."

Although Trustees defeated the motion to cancel the cuts altogether, they reduced the reductions to 10 percent, or $3,000, from the original $10,000.

Trustees also increased spending in several areas, voting to save 20 school pools instead of the 13 recommended by staff and also set aside funds to hire an art curator to administer the board's collection of fine art, valued at up to $6 million.

Don Higgins, executive officer of business services, warned trustees against continued spending, predicting it would lead to problems for the 2010-11 budget.

"This board cannot continue to increase spending and offset it with cuts," Higgins explained. "When a new revenue stream comes into our hands you don't necessarily spend it quickly because that's not fiscally responsible. It's going to lead to trouble on the horizon, which is the 2010-2011 budget."

Higgins estimated the board could face a budget shortfall of $25 to $30 million for 2010-2011.

"You need to cobble together cuts to spend more, but it's not fiscally responsible," he said.

To mitigate the effect of cuts trustees also voted for several revenue generators, including an extended paid parking program. The program, which was originally proposed several years ago and is now in a pilot stage, will have school lots being used for paid parking after-hours.

Trustees also touted the revenue generating potential of the board's art collection under a full-time curator. Trustee Gary Crawford, who originally moved the motion to hire a curator, displayed a book from 1912 that is included in the collection. Inside the book was found a postcard signed by Samuel L. Clemens, better known as Mark Twain.

"This is just an example of some of the gems we have that we want to get out there," Crawford said.

Other trustees agreed, noting that the art collection could be used to stage exhibitions and also create prints that could be offered for sale and potentially generate much-needed revenue for the board.

"This is not only a financial asset, but also a great cultural asset," trustee James Pasternak said of the collection. "Every day we lose the ability to use these incredible assets."

A budget of $75,000 was set aside for the curator position and related expenses.

After trustees had finished amending staff recommendations the budget was set at a deficit of just under $2.8 million, which Trustee Gerri Gershon suggested the board balance by transferring funds from the capital budget.

"We've run out of choices," Gershon said of the move, which staff warned would have the effect of deterring capital work on schools, which is currently at a $2-billion backlog. "My hope is next year we can get down to business, consolidate our empty spaces and generate revenue so we'll be in a better position for the upcoming budget."

Although some trustees disagreed with the move, with Trustee Shaun Chen going so far as to call it "trickery," the motion was passed.

Trustees voted overwhelmingly in favour of passing the final budget, with only two trustees dissenting.

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