The Courage of our Convictions
June 3, 2007
A Speech by Don Fleming
President, PSBAA
to the Spring Assembly
Sunday, June 3, 2007
View 
[26 KB]
Address to the Graduating Class of Strathcona High School
May 24, 2007
A Speech by Don Fleming
Trustee, Edmonton Public Schools and President, PSBAA
May 24, 2007
View [22 KB]
PSBAA President Don Fleming writes to Premier Stelmach regarding the Lobbyists Act
April 27, 2007
More
PSBAA Initial Response to Provincial Budget
DOWNLOAD this document
The Public School Boards’ Association of Alberta
Initial comments on the Provincial Budget, as it relates to K – 12 education
I. Introduction
In 2007 – ’08 K–12 education is being charged most of the cost of the provincial government’s effort to recover from past mistakes.
Among 21 “Votes” (essentially, departments), Education receives the sixth smallest increase. Among the “big 4” of government service (Health, Education, Advanced Education, and Social Services), all but Education received increases in excess of 10%. (Fiscal Plan, p. 15)
The government’s socio-economic assumptions seem reasonable. Price assumptions are the basis for projecting revenue for the provincial government. In the judgment of many experienced observers, the price assumptions (for oil, bitumen, natural gas, and the Canadian dollar) for the next three years are all unreasonably low.
The government has said that there will not be any more mid-year initiatives or changes to budget. In that case, since the budget contains nothing to deal with the unfunded liability of the Teachers’ Retirement Fund, we should expect that this issue will not be dealt with until next year.
II. Operating Budget
“Operating spending (for all government departments) is increasing by 10% in 2007 – ’08. This addresses the pressures raised by a 3% increase in population and 3.9% inflation.” (Fiscal Plan, p. 8)
The corresponding increase for the basic operating per pupil grant, effective September, 2007, will be 3%. (Fiscal Plan, p. 20)
“The (budget) increase for the Ministry of Education will be 5.5%.” (Fiscal Plan, p. 15) It is important to be aware of the difference between the two numbers (a 3% increase in the basic grant, which is the basis of school board budgets, and the 5.5% increase to the Department, including salaries for department employees, growth in staff complement, larger than 3% increases in conditional funding for school boards, larger than 3% increases to private schools, etc.)
Support for school facilities (plant operations and maintenance; school facilities infrastructure) is budgeted to go down, from 982,004,000 to 924,955,000, a reduction of 5.8%. (Estimates, p. 95)
The budgeted increase in support for accredited private schools is 6.47% (Estimates, p. 95).
The Fiscal Plan states (p. 20) that support for public schools will increase by an average of 4.1% per year for the next 2 years: support for private schools will increase “by an average of 4.7% per year in the following two years…”.
The budgeted increase for the direct internal operations of the Department is 3.58%. (Estimates, p. 94: Vote 1 – Ministry Support Services)
In the public schools across the province the increase for 2007 – ’08 works out to about $300.00/student/year, or just over $1.50/student/school day.
III. Inflation (C.P.I.)
Statistics Canada has just released the most recent inflation figure for Alberta: 5.5%.
IV. Funding for Local Mandates (such as the community use of schools)
There continues to be no recognition of, or funding for, local mandates.
V. Capital Budget
The Capital amount budgeted for schools is $508 million, including $71M for cost escalations (Fiscal Plan, p. 77), and including funds for construction approved in 2006. This compares with $578 million forecast expenditure in 2006 – ’07, a decrease of 12% on an unadjusted basis – a decrease of 24.39% on an inflation adjusted basis. The comparable targets for 2008 – ’09 and 2009 – ’10, are $494M and $276M, respectively.
“With Budget 2007, government is announcing a further 300M over the next three years (our emphasis) for new school projects, and will examine alternative procurement methods to deliver school infrastructure to Albertans.” (Fiscal Plan, p. 82)
“The government will explore strategies to alternatively procure school infrastructure.” (Fiscal Plan, p. 76)
VI. Education Property Tax
“Education Property Tax Mill Rate Reductions Education property tax rates have been reduced or frozen for the last 14 years. In 2007, education property tax mill rates will be reduced by 5.8%. The rates are being reduced to 4.52 for residential properties per $1,000.00 of equalized assessment and 6.64 for non-residential properties per $1,000 of equalized assessment.
“Rates for 2007 are 40% lower than they were in 1993. In 1993, the mill rate for residential properties was 7.65, while the non-residential rate was 11.02. This is one of the major reasons why Alberta has among the lowest property taxes in Canada. In 2007, the province plans to capture real growth in the assessment base but not inflationary increases.” (Fiscal Plan, p. 31)
