FRANCAIS

January 31, 2002

Education, Training and Youth Minister Drew Caldwell today announced that the provincial government has continued to honour its commitment to fund Manitoba’s public schools at the rate of economic growth--and has gone significantly beyond that--with today’s announcement of $16 million in new funding.

Today’s announcement brings direct provincial funding to $838.6 million--on top of $174 million in Education Property Tax Credits to Manitoba taxpayers–-bringing public education support from the province to just over $1 billion for the first time in Manitoba history.

Caldwell also said that with today’s announcement, the province is simplifying the complex funding formula to school divisions.

Operating funding for 2002-03 will rise by 2.2 per cent, well above Manitoba’s estimated economic growth of 1.5 per cent. The extra 0.7 per cent in increased support has been allocated to address equity issues to school divisions as the new funding formula is implemented.

Caldwell noted that this extra support beyond 1.5 per cent is partly due to lower interest rates for school capital projects, saving the province $700,000 in capital financing costs that is being reallocated directly to the classroom for the 2002-03 year.

"Our capital funding will again be comparable to recent years and the low interest rate environment has helped create an extra benefit for students," he said.

"The cumulative benefits of this government’s support for public education are evident when comparing the last three years of funding increases to the last four years of the previous administration," he said.

The current government has committed a total of $63.5 million in new operating funding to public schools as compared to just $15.2 million between 1995 to 1999.

"We recognize, however, that we still have a long ways to go to make up for the erosion in support to public education in the past," said Caldwell.

The funding formula has been simplified by:

• introducing a streamlined per-pupil grant, instead of the previous complex series of calculations of "recognized expenditures";
• eliminating the front-end mill rate;
• clarifying equalization grants for school divisions that have lower property assessments, rather than the several equalization processes in the old formula;
• providing an additional $4.7 million in additional support to 16 school divisions with lower local property assessments and higher special levies; and
• maintaining support for specific areas such as small schools, special needs, libraries, professional development and students at risk.

"This new formula provides an improved framework for the equitable distribution of provincial educational resources," said Caldwell.

The $16.7 million or 2.2 per cent increase in operating funds for Manitoba school divisions will provide additional funding to key programming areas such as special needs, professional development, Aboriginal students, northern and remoteness allowances, and English as a second language (ESL).

"Over the last three years, our government has increased funding for our public schools while reducing the overall tax burden for the average Manitoban," he said.

The Education Property Tax Credit enjoyed by Manitoba taxpayers now totals a $400 reduction off homeowner’s bills and a credit to renters—-which represents an increase of $150 in the credit since 1999.

Caldwell also acknowledged the valuable input from stakeholders that was used in developing the new formula.

"This is a responsible approach to ensuring sustainable funding for the province’s education system, while ensuring fair levels of taxation for Manitobans. I thank the dozens of educators, trustees and other Manitobans committed to education that helped us develop this plan to support our kids."

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 * Operating funding includes direct operating grants to school divisions through the Funding of Schools Program and other grants in support of school division operating costs.

** This line shows a reduction as a result of savings due to lower interest rates and financing.