The Alberta Teachers’ Association

From: Education Minister
Sent: March 22, 2010
Subject: AAWE AND BUDGET UPDATE

I was pleased that I was able to meet with the members of Alberta School Boards Association this morning, and I am providing this follow up e-mail to confirm information about Alberta Average Weekly Earnings (AAWE) index funding decision shared with you in that meeting. 

After the arbitrator’s decision regarding the AAWE, I indicated it was my intention to return to Treasury Board in order to seek appropriate funds to support the 5.99 per cent AAWE decision.  I am pleased to confirm that Treasury Board has given its support and directed the allocation of the additional funds necessary to fulfill the agreement.

For the 2009/2010 school year, base and class size grants will increase from 4.8 to 5.99 per cent, retroactive to September 1, 2009. Jurisdictions will receive a retroactive lump-sum payment for the September 2009 to March 2010 period to reflect increased rates for these months. Commencing April 1, 2010, your monthly payments will be based on the new rates.  An updated grant rate schedule can be viewed online at www.education.alberta.ca/admin/funding/rates.aspx.  This increased support will continue for 2010/2011 and subsequent school years. 

I appreciate that we still face challenges for 2010/2011 and future school years, and I continue my work with the Alberta School Boards Association and the Alberta Teachers’ Association to develop a long-term plan. However, it is recognized that boards must prepare their budgets for the 2010/2011 school year prior to this plan being finalized. Long-term strategic requirements, a continuing commitment to class size guidelines and continued growth in the student population indicate that we must sustain employment in the teaching workforce, particularly in support of students in the classroom. It is also recognized that the new increased grant rates may not, in some cases, be sufficient to accommodate staff contractual obligations that are effective September 1, 2010. I expect jurisdictions will be rigorous in evaluating programs and initiatives to ensure there is value to students in the classroom.

As you know, government and the ministry have undertaken substantive reviews and made difficult adjustments where appropriate. We also acknowledge that in order to sustain student-focused services and supports, jurisdictions may have to draw on accumulated reserves and surpluses.  As in previous years, prior ministerial approval is not required for deficit budgets. In fact, deficit budgets are the only means of drawing down accumulated operating surpluses.  However, where a deficit budget is expected to result in (or increase) an accumulated operating deficit, ministerial approval will be required.

I expect that approval will be granted where there is clear indication that programs, services and supports were rigorously evaluated, and expenditure plans are focused on sustaining classrooms and student-focused services.

Budget planning is particularly challenging and it may not be reasonable or prudent to require board approved budgets by May 31, 2010. However, boards should receive clear information from their administrators on budget proposals prior to the start of the school year. Where these preliminary budget proposals will result in accumulated operating deficits, a request for ministerial approval should be forwarded before June 30, 2010. Where budget proposals will not result in accumulated operating deficits, we will require the submission of board approved budgets before November 30, 2010. This will also allow for alignment of other information, such as final student counts and class scheduling.

I will continue to explore strategies and options that will provide clarity and predictability with regard to future expenditure and revenue expectations. While expenditure pressures and revenue capacity may not be well matched in a particular year, it is my objective to match long-term revenue with long-term expenditures.

Your continued support in managing the delivery of exceptional services and supports to Alberta students is appreciated.

Dave Hancock, Q.C.
Minister of Education