August 12, 1982 Mad Hatter A Douglas College-New DOUGLAS eee ARCHIVES NEWS RELEASE FROM MINISTRY OF EDUCATION Schools, colleges and institutes face major reductions in expenditures total- ing more than $68 million in the next eight months. The Ministry's internal expenditures are being trimmed by $8 million during the same period. Education Minister Brian Smith said that School Boards must closely examine budgets and produce an expenditure reduction plan by September 15. "T am advising all concerned by telex today of what is expected of them following the restraint program announced by Premier Bennett on Tuesday," said Mr. Smith. "I am also reminding the boards that it was their wish, expressed to the Premier and myself last week, that they be allowed to plan their own reductions after the necessary figure was supplied." The minister said one of the areas that must be examined by all is that of reducing this year's salary increases. "I strongly urge that in the present economic climate there be no additional unemployment created through what may be seen as an easy layoff route in achieving savings," said the minister. "The time has come for boards to sit down with the faculty and staff and work out cooperative solutions to cope with the times." "In 1982 teachers' salaries were increased 17 percent over 1981," said Mr. Smith. "Tf that increase were reduced to 10 percent effective September 1, then the needed savings would be made without disruption to any other areas of the system." The minister said grants to school districts will be reduced starting August 1. The saving from August to December is $37.5 million and a further $22.5 million from January to March, 1983 for a combined saving of $60 million. Colleges and institutes funding will be pared by $8.5 million during the same period and independent schools by a proportionate amount of $.38 million. Meanwhile, the Ministry will provide information to the affected areas through the following phone lines. 387-3543 1. College and Institutes 2. School Board Secretary—Treasurers 387-1434 3. Superintendents 387-1588 4. General Information 387-5041 ELEMENTS OF THE REVISED RESTRAINT PROGRAM FOR EDUCATION 1. Total Ministry Budget Reduction - August 1, 1982 - March 31, 1983 a) School District Grants $60.00 million b) Colleges and Institutes 08.50 million c) Independent Schools 00.38 million d) Ministry (internal) 08.00 million 2. School District Grants are to be reduced by $60.00 million from August 1 to March 31, 1983. - School board budgets will be frozen at the new, restrained level until March 31, 1983. - Boards are being asked to: a) first make all possible further non- salary items reductions: and implement’ them immediately, b) open negotiations with their pro- fessional and support staffs regarding salary reductions (If agreed move immediately to effect savings.) c) Depending on the results of (b) table a plan with the Minstry by September 15 indicating: i) non-salary budget cuts ii) salary reductions, or, if necessary,