Funding for Primary and Secondary Education

I receive many letters from people who would like education tax removed from property taxes. This is an instance where there are clear differences between Manitoba’s three political parties. Let me review this and explain our Liberal approach.

Under the Conservative government of Gary Filmon, the provincial portion of education funding was reduced from 72% to 62% of overall funding. The Gary Doer NDP government has continued the reduction in the provincial portion of education funding from 62% to 56%. Clearly, the level of education tax on property in Manitoba is far too high as a result of the approaches taken by Conservative and NDP governments in Manitoba. In essence, local property taxpayers payments have increased from 28% up to 44% of the overall funding.

The Conservatives now want to change direction and completely remove education taxes from residential property. How will they fund education? This is a critical question for our future growth as a Province. We see a simple removal as fiscally irresponsible and very difficult to achieve without shortchanging funding of education or other critical areas of provincial spending.

In contrast, the NDP government is funding a lower and lower proportion of education expenses. This will inevitably lead to increasing levels of local education property tax. It also leads to greater disparity between one part of the province to another.

Our Liberal approach to education funding is to provide 80% of education funding from provincial general revenues within four years of the start of a Liberal provincial government. This will reduce the education tax on property by more than half, which will be a big benefit to property owners. We will do this because we believe it is financially achievable and fiscally responsible. It also is a good strategy to promote more investment in Manitoba. .

We will also do this because it will leave 20% of the budget on local property taxes and within the control of the local school boards. In a democracy, we see a critical need for checks and balances in our system. Leaving a portion of the taxing power and the decision making power at the local school board level will mean significant continued local ability to influence the quality of education in our public schools. To have all the funding power fully in provincial government hands has the potential to swing the balance too far to the province. To have less than 80% funding provincially means greater inequity across the province and excessively high property taxes.

It should be noted that a thorough report released in spring 2004 called, as we do, for 80% provincial funding of education.

If you have comments on our approach, please send me an email at jgerrard@leg.gov.mb.ca