School division faces tough choice: $15M in cuts or 6.5% tax hike

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This article was published 01/03/2024 (587 days ago), so information in it may no longer be current.

River East Transcona School Division trustees are warning they will have to make $15 million in cuts next year unless residents support a 6.5 per cent increase to local taxes.

As she presented two options, trustee Brianne Goertzen made a lengthy and emotional address about 2024 being an “exceptionally difficult budgeting year” on Thursday.

RETSD will receive $130.8 million in baseline provincial funding next year — an increase of 5.6 per cent.

Administration is anticipating enrolment will grow by upwards of 500 students to reach nearly 19,000.

“I, along with my fellow trustees, did not put our names on the ballots to cut education nor did we put our names on the ballot to raise taxes willy-nilly,” Goertzen told a virtual townhall.

The Ward 3 representative said forgoing a fee hike will yield significant staff and program reductions.

The presentation indicated a sizeable increase is required to address an $118.8-million gap between expenses and revenue to maintain operations at current levels.

The board approved a loan to cover one-time costs for the ongoing school year’s budget, but Goertzen said a repeat is not an option because it would create an unstable financial situation.

Secretary-treasurer Elise Downey noted RETSD has a smaller commercial tax base than other boards and local taxpayers are disadvantaged as a result.

“(Given) we don’t have an IKEA or the airport, we have to raise our taxes higher than other city school divisions just to get the same impact,” Downey said.

Goertzen spoke at length about the inequities built into the kindergarten-to-Grade 12 funding formula and her and her colleagues’ advocacy efforts to make changes.

The board of trustees has prepared numerous presentations to government officials and “the revolving door of consultants,” she added.

The former PC government announced in late 2021 it was assessing how the province pays for public education with the goal of introducing a new model for 2023-24. The Tories paused the project a year later.

The review has resumed under the NDP. A modern formula is slated to be rolled out ahead of 2025-26.

During a question-and-answer period, Goertzen was asked Thursday about whether trustees considered a higher fee hike to improve operations.

She said trustees recognize there will be polarizing views on any increase and they are conscious some residents have fixed incomes.

Elected officials are required to submit their final budget before March 15.

Should the board decide not to raise taxes, Goertzen said cuts will be announced after the document is approved.

maggie.macintosh@freepress.mb.ca