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B.C. Schools Receive Extra $15-Million Due to Prudent Fiscal Management

March 30, 2005

British Columbia’s 60 school districts will receive an additional $15 million this year thanks to savings in the Ministry of Education’s budget, Education Minister Tom Christensen announced today.

“When we took office, we said we would responsibly manage taxpayer dollars to benefit school districts and students – and we are,” Christensen said. “As a result of cost savings within the ministry’s budget, we are able to provide an additional grant to districts for the fourth year in a row.”

Including this year, the Province has provided $153 million in one-time grants since 2001/02. The savings this year were achieved through prudent fiscal management and lower debt-servicing costs. The grant will be allocated on a per-pupil basis. School districts will be required to use the grant to pay for any unfunded employee future benefits and vacation leave obligations.

“More than 20 school districts have already set aside funds for employee future benefits and vacation leave, so they will be able to use this funding to improve student achievement,” Christensen said.

The ministry anticipated some one-time savings in this year’s budget, but had to wait until the end of the fiscal year to verify the full extent of the savings.

The one-time grant is in addition to the $35 million per year the Province gives school districts to pay for unfunded employee future benefits through the implementation of generally accepted accounting principles. Districts that have already met their employee future benefit obligations can use their share of the $35 million to improve student achievement.

Since 2000-01, the Province has increased funding to B.C. public schools by nearly $460 million: $305 million for district operating grants and $153 million for special, one-time grants. During the same period, enrolment has declined by more than 30,000 students. Next year’s $150 million funding increase will help districts continue to focus on improving student achievement.

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Authorized By Jim Pipe, Financial Agent BC Liberal Party.
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