Education department releases financial data

How can the province and education property taxpayers pump $93 million of new money into the public school system this year, yet have spending go up by $72.5 million?

How can spending within the $1,816,127,082 public school system go up by 4.2 per cent this year, but record spending per student increase by 4.6 per cent?

OK, the numbers in the department of education’s annual financial report are mind-boggling, and the funding of Manitoba public education is complex.

But let’s try.

The answer to the first question is that the NDP has switched its funding focus from improving the quality of education, to freezing, or at least holding down, education property taxes.

Money going into the system exceeds money spent because the province offered tax incentive grants to divisions willing to freeze their taxes. It increased education property tax credits, money which comes off property owners’ tax bills without ever going into a classroom. And the government ordered school divisions to spend their surpluses down to two per cent of revenue — in effect, spending “old” money in contingency reserve funds — rather than raise taxes.

Only 12 divisions passed up the tax incentive grants back in March when they set mill rates for this school year.

Those divisions chose to raise property taxes, because they believed that the price for tax freezes would mean cutting jobs, programs or services, or passing up improvements.
But the second question — how can spending per student go up at a higher rate than spending?

Those provincial data suggest that as enrolment declines — as it has been throughout the decade — that school boards are not reducing the number of people on the payroll. So even though there are fewer students, there are just as many classroom teachers, administrators, and resource teachers.

Opposition leader Hugh McFadyen said Wednesday that he has no problem with lower class sizes: “That is a good thing. It’s a reflection of the decline in enrolment. As a parent, I think it’s positive.”

But McFadyen said administration costs should be dropping as student numbers fall — keep the frontline teachers, but find ways to cut overhead, he said.

“The government has used tax-incentive grants to temporarily keep property taxes down,” but that’s not sustainable, McFadyen said.

Former education minister Peter Bjornson had threatened to cap education spending in this coming March’s budgets, and possibly even impose tax freezes across Manitoba. He had not committed to continuing tax-incentive grants to help achieve tax freezes.

Bjornson is gone and his successor, Nancy Allan, will not grant media interviews, at least until the end of the month, say her aides.

Meanwhile, if you want proof schools have as many teachers while students decline, try this — the pupil/teacher ratio dropped this year from 17.6 kids per classroom teacher to 17.4, the pupil/educator ratio from 14 to 13.9.

Look almost anywhere in the system, and costs per student go up faster than overall costs.

Student support services are up 4.8 per cent, for example, but by 5.2 per cent per student.

OK, you’re asking, doesn’t overall spending of 4.6 per cent exceed inflation?

Of course it does, but the base wage increase for teachers for several years has been three per cent plus cash bonuses of as much as $500, and many teachers also receive increments as they move up in seniority.

Louis Riel School Division settled this year for a contract that gives each teacher pay equal to the highest rate paid anywhere else in the city for that teacher’s level of qualifications and years of service, a contract the Manitoba Teacher’s Society’s website says is an overall 4.82 per cent increase. It’s likely many teachers elsewhere will seek a similar deal for 2010-2011.

There are other intriguing tidbits to be found amid the number-crunching.

While enrolment is inexorably dwindling, schools are busing an additional 697 kids this year, and running buses almost 500,000 more kilometers — where there’s been growth, it’s phenomenal rural growth, primarily in the rural areas around Steinbach and Winkler.

http://www.winnipegfreepress.com/local/education-department-releases-financial-data-70603797.html

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An Example in Winnipeg Manitoba Where Development Decision Adverse Tax Base

THE Selinger government’s decision to buy a “field of dreams” for Gordon Bell high school will cost the Winnipeg School Division at least $27,800 in taxes every year, city records show.On Tuesday, the province announced it will pay Canada Post $3.8 million for a triangular patch of vacant land bounded by Portage Avenue, Broadway and Borrowman Place. The 2.5-acre property, which once housed Midway Chrysler, was slated to become a letter-sorting depot before community activists lobbied for more inner-city green-space.

In 2007, the last year Midway Chrysler owned the land, the property generated slightly more than $71,000 in city and provincial taxes, including $27,300 in municipal property taxes, $27,800 for the Winnipeg School Division and $16,000 in provincial education support levies, city records show.

The land would have generated even more revenue as a letter-sorting facility, said city assessor Nelson Karpa.

“It is accurate to say that rehabilitated as a Canada Post building, it would have made more,” he said in an interview.

As a school property, the triangular field will not generate any tax revenue.

“Under the Municipal Act, schools are exempt,” Karpa said. “The school division is out money, as are school divisions in general.”

On the positive side of the tax ledger, Canada Post’s decision to move its letter-sorting depot to the West Alexander neighbourhood should result in some new revenue for the city and province. The Crown corporation plans to bulldoze existing properties at Ellen Street and McDermot Avenue.

“Certainly, if you were to tear down older rental housing and put up a modern building, the end structure would have a higher value,” Karpa said.

Point Douglas Coun. Mike Pagtakhan, who represents West Alexander, said he’s happy to see redevelopment in the inner-city neighbourhood.

A city property-department memo obtained by the Free Press in June warned the field would have “a real penitentiary feel” because a three-metre-high chain link fence must be built around its perimeter.

http://www.winnipegfreepress.com/local/decision-costly-to-school-divisions-tax-base-78850137.html

Yet the “Other Side of the Storey”

Gordon Bell’s green dream will be realized.

The province and Canada Post have struck a deal that will give the inner-city high school some much-needed recreational and green space.

Education Minister Nancy Allan told an exuberant crowd in the West Broadway school gymnasium the province will be kicking in $5.3 million for the project on the site of the former Midway Chrysler property just to the west of Gordon Bell High School at Borrowman Place and Portage Avenue. The province will spend $3.8 million to buy the land from Canada Post and another $1.5 million to develop it.

Allan praised students, staff, parents and other community organizers for their perseverance in bringing the plan for the 2.5 acres of land to fruition.

“Most of all, I’d like to thank the students,” Allan said. “You had a vision, you had a dream, you never gave up … you believed this is what was best for your community.”

Canada Post had been planning to build its new downtown distribution centre on the lot adjacent to Gordon Bell but has located an alternative site near Ellen Street and McDermot Avenue.

Grade 12 student Johnathan Kopchuk said he was overjoyed plans for the green space came through.

“I’m just really happy we won’t have to play on concrete anymore,” Kopchuk said. “We’ll get to play outside on some of that good old green grass stuff.”

http://www.winnipegsun.com/news/winnipeg/2009/12/09/12088606-sun.html

CBC Winnipeg Furnasman

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Property Reassessment Underway in Manitoba

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It's not all about curb appeal

Higher assessment doesn’t necessarily mean you’ll pay higher property taxes.

On average, the assessed value of residential properties in Winnipeg shot up 78 per cent from the last assessment period, according to the city’s assessment and taxation department.

While the increase officially gives you a clear picture of the wealth you may have already known you were sitting on for the past few years, it may also have implications for your tax bill.

But it doesn’t necessarily mean an increase in your property taxes, says the city’s assessment and taxation department’s director, Nelson Karpa. Continue reading

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