Manitoba

Hanover School Division plans to cut teachers, programs to make up for revenue shortfall

Southeastern Manitoba's Hanover School Division is the latest in the province to declare it doesn't have enough revenue to meet expenses in the coming year.

Southeastern Manitoba division the latest to say provincial funding hikes are not enough

A sign reading "SRSS" is seen in front of the parking lot of a large high school.
Steinbach Regional Secondary School is one of 19 schools in Hanover School Division, which is planning cuts to make up for an operating shortfall. (Jérémie Bergeron/CBC)

Southeastern Manitoba's Hanover School Division is the latest in the province to declare it doesn't have enough revenue to meet expenses in the coming year.

The school division announced Thursday it plans to cut teaching positions, eliminate services and dip into its surplus this coming fiscal year as part of a plan to make up for a $2.7-million deficit.

The funding shortfall comes in spite of an operational funding increase from the province, the division said in a statement.

While the division received a provincial funding increase of $1.1 million as well as an $850,000 grant to offset a provincial education property tax cut, expenses rose $4.7 million, creating the $2.7-million deficit.

"The cost increase is primarily due to inflationary measures and expected wage settlements," the division said in its statement.

Since school divisions are no longer permitted by the province to raise education taxes without facing a funding clawback, Hanover plans to balance its budget through a series of cuts, transfers and deferrals.

In a statement on Thursday, Hanover said it intends to shed 10.5 teaching positions in order to save $1.25 million, save $315,000 by cutting back on bus replacements, trim $290,000 from its school maintenance budget, reduce spending on information technology by $100,000 and eliminate $235,000 worth of programs.

The division also plans to transfer $500,000 from its surplus to cover the funding shortfall and put off adding 15 teaching positions, which were intended to handle increasing enrolment in the fast-growing division.

Hanover operates 19 schools in Steinbach, Niverville, Blumenort, New Bothwell, Crystal Springs, Grunthal, Kleefeld, Landmark and Mitchell.

Education Minister Wayne Ewasko said in a statement the funding increase for Hanover greatly exceeded enrolment growth in the school division.

He also said the funding increase was intended to help the division respond to rising costs.

Hanover joins Winnipeg's Louis Riel School Division and Seven Oaks School Division in complaining provincial funding increases are not keeping pace with actual costs.