September 1, 1999
(Education)

School boards to continue to keep savings from school closures

School boards in the province will be allowed to keep the savings accrued from school closures for three years after a school closes, announced Judy Foote, Minister of Education. When school boards across the province started the process of consolidating resources and closing schools, they received a commitment from government that they would be able to retain savings achieved through school closures for up to three years. Specifically, savings were to be returned to the boards during the 1997/98, 1998/99 and 1999/2000 fiscal years.

Those boards which were able to implement closures early in the process received savings for three years. Those that implemented closures later had a shorter period during which savings were available.

"In order to be fair to those boards which required a longer time to effect closures, the commitment on savings is being revised," said Minister Foote. "Boards will now be able to retain their savings for three years (the year of closure plus the following two years), regardless in which year the closures occur."

The amount of savings for the coming 1999/2000 school year alone is approximately $6.4 million. The total amount that has remained with school boards for the upcoming school year and the two previous years is $12.8 million.

"All monies from education reform are being re-invested into the school system," said Minister Foote. "On a per-pupil basis, school board operating grants have increased during the past three years by 10 per cent from $623 per-pupil in 1997/98 to $689 per-pupil in 1999/00. Between 1990/91 and 1996/97 total per student expenditures for this province increased by 19 per cent, a greater increase than in all other provinces except Saskatchewan. Newfoundland and Labrador's educational effort (expenditures as a per cent of GDP per capita) continues to be greater than that of any other province."

Boards must obtain approval from the Department of Education regarding the use of the savings. Approved uses will include such initiatives as capital improvements.

Media contact: Nancy Healey, (709) 729-0048.

1999 09 01