Mr. Jacobs questions Minister of Education about school board funding levels

The following is copied from the February 17, 2010 printed transcripts of the Legislative debate and discussion.

Mr. Jacobs (Cardston-Taber-Warner PC): Thank you, Mr. Speaker.

Our rural school board in my constituency is facing an $850,000 shortfall in

the 2010-11 school year despite the announcements by the Minister of Education

that school boards will receive a zero per cent increase. I don’t know if

zero per cent is an entirely correct figure as I have heard that school

boards will in fact receive an overall budget decrease of over 4.17

per cent, 1.17 per cent in 2009-10 and approximately 3 per cent in

2010-11, due to the lack of funding for this government’s negotiated

settlement with the ATA. My question to the Minister of Education:

when will the government provide the funding for the agreement that

they negotiated?

Mr. Hancock (Edmonton-Whitemud PC): Well, Mr. Speaker, first

of all, in this budget this year – and we’ll go into it more during estimates – we

have provided the same amount for school boards as last year, no increase in

budgets overall, although there will be some adjustments between school

boards based on the number of students they have, based on

increased enrolment, based on changes in transportation, and based

on changes in the class size funding.

With respect to salaries the member is absolutely correct. There

are agreements in place with the ATA locals which provide for an

adjustment based on average weekly earnings, and we’ve had an

arbitrated process.

The Speaker: The hon. member.

Mr. Jacobs: Thank you. Again to the Minister of Education.

Because of the budget shortfall boards will have to make significant

cuts to staffing in the upcoming year and will face public outcry as

the current information does not indicate the deficit created by the

government’s lack of commitment to the agreement with the ATA.

Question: why did the government fail to budget for teachers’ salary

increases at the more prudent figure of 5.9 per cent?

Mr. Hancock: Well, Mr. Speaker, the average weekly earnings

index at the end of 2008 was 4.82 per cent. At the end of March

Stats Canada changed the way they calculated the index, and that

change resulted in the 5.99 figure. That was not something we could

budget for because the budget was already prepared. However, there

was also a dispute with respect to interpretation as to whether the

index should be what they had previously calculated or what they

changed it to. We went through an arbitrated process. We didn’t

win that, unfortunately, so now we have an index that’s certain, but

we haven’t budgeted the money for it.

The Speaker: The hon. member.

Mr. Jacobs: Thank you, Mr. Speaker. Again to the same minister.

In addition to the shortfall due to the government’s salary settlement

with the ATA, boards will also face increased costs for support staff,

benefits, grid movement, and increases due to inflation. Without

additional funding in the current budget school boards will be forced

to either make significant program and staff cuts or submit deficit

budgets. Question to the minister: does the minister envision school

boards submitting deficit budgets to maintain the current educational

programs being offered to students in Alberta?

Mr. Hancock: Well, the good news, Mr. Speaker, is that school

boards across this province are in great financial shape. There are

close to $360 million in operating reserves. Yes, those monies have

been saved for specific purposes, but they’re in good shape to

manage through this year. I’ve asked school boards to bear with us.

We now have the arbitration in place, so we know the index that

we’re dealing with. I will have to work with the ATA and the

Alberta School Boards Association school boards with respect to the

salary issue over a longer term process so that we can make them

whole over a longer term if we can’t in the short term. In the

meantime they have the resources in their operating reserves. (150 – 151)

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