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Backgrounder
March 24, 2004

Leading in Learning

PDF version of News Release and Backgrounders


Edmonton… Budget 2004 reinforces government’s commitment to leading in learning with a nearly $300-million increase in funding to the learning system in 2004-05 and more than $1 billion over the next three years for schools and post-secondary capital projects.

Funding Support

In fiscal 2004-05, support to the basic and post-secondary learning systems will increase $294 million, or 5.7 per cent over the 2003-04 forecast, to over $5.4 billion. This includes base program spending by the Ministry of Learning of nearly $5.3 billion, an increase of $284 million, and property tax support to opted-out school boards totaling $171 million, an increase of $10 million.

This increase in base annual support is over and above increases of $76 million injected during the course of the 2003-04 budget year to respond to supported recommendations of Alberta’s Commission on Learning, to create new post-secondary spaces in high-demand areas, and address other pressures. Responding to the Commission’s recommendations and increasing access to post-secondary and apprenticeship programs continues to be the primary foci in 2004-05, as government works to strengthen our learning system to ensure it remains among the best in the world.

It is a focus that will continue in the coming years as spending on the learning system, including property tax support, grows to $5.9 billion by 2006-07 – a three-year increase of $763 million, or 14.8 per cent.

“Government has said education is a top priority, and Budget 2004 confirms it,” Learning Minister Dr. Lyle Oberg said. “We already have one of the best education systems in the world. But we can’t rest on our laurels if we want to continue to lead in learning. We must work even harder to make sure the students of tomorrow enjoy the advantages our students do today, and that we have the skilled and knowledgeable workforce we will need to compete in the future.”

New Funding Framework

To better meet the needs of school boards and their students, government is introducing a new funding framework beginning September 2004. The framework will provide funding to school boards according to their unique circumstances, with additional dollars for students with special needs, Aboriginal students, and English as a Second Language (ESL) students, as well as for school boards with higher cost pressures, smaller schools and declining enrollments.

Under this framework, boards will have the flexibility to use their funding at their discretion to address local needs and priorities, including issues such as class size and other supported recommendations from the Commission. They will also be required to account to their constituents for how those dollars are spent.

Budget highlights in basic learning include:

  • Total ongoing basic learning support will increase $216 million (5.8 per cent) to $3.9 billion in the 2004-05 fiscal year (over 2003-04 forecast).
  • This increase does not take into account funding that was injected into the system during the 2003-04 budget year. Including those funding hikes, ongoing support to the K-12 system will be more than $250 million higher this budget year than the original budget for 2003-04.
  • Total ongoing basic learning support will grow to $4.3 billion by 2006-07, including property tax support to opted-out boards, a three-year increase of $607 million (16.4 per cent).
  • School board support will increase $189 million (6.0 per cent) in 2004-05 to almost $3.4 billion. This excludes a $20 million one-time allocation provided to school boards in 2003-04 to purchase classroom resources. By 2006-07, school board support will be $3.7 billion, a three-year increase of $532 million (16.8 per cent).
  • Funding to private schools will increase $4.4 million (3.7 per cent) to $121 million.
  • Funding for Student Health Services will increase $4.4 million (13.3 per cent) to $37 million.

Better Meeting the Needs of Students

Work will also continue on implementing new second-language and physical activity and wellness programs in the coming year. As well, government will undertake a number of technology initiatives, including videoconferencing, to better meet the needs of students in all corners of the province.

Adult Learning

In adult learning, all public universities, colleges and technical institutes will receive a base operating grant increase of 4.0 per cent in 2004-05. In addition, government will create 2,000 new spaces over the next four years in high-priority areas, enhance its world-leading apprenticeship programs, and implement the Post-Secondary Learning Act to increase access to degree-granting programs. Government will also provide $7 million in additional annual operating funding to support the merger of the University of Alberta and Augustana University College in Camrose. This merger will support more than 1,200 degree-completion opportunities to meet the increasing demand for post-secondary education in rural Alberta.

Budget highlights in adult learning include:

  • Adult learning funding will increase $93 million (7.2 per cent) to nearly $1.4 billion in 2004-05; and to nearly $1.5 billion by 2006-07, a three-year increase of $166 million (12.8 per cent).
  • Ongoing support to post-secondary institutions will increase $85 million (7.5 per cent) to more than $1.2 billion in 2004-05; and to nearly $1.3 billion by 2006-07, a three-year increase of $132 million (11.6 per cent). This excludes $40 million in one-time allocations for performance and operations and maintenance provided in 2003-04.
  • Funding for scholarships, bursaries and grants to students will increase by $6.2 million, or 10.9 per cent, to $63 million in 2004-05.
  • $4 million has been budgeted in 2004-05 for the Alberta Centennial Education Savings Plan, which begins January 1, 2005. The program will cost $20 million a year beginning in 2005-06.

Infrastructure Spending

Budget 2004 will also help alleviate some of province’s infrastructure pressures due to the rapid economic and population growth in recent years. The 2004-07 Capital Plan will support $636 million in school capital projects throughout Alberta. This includes an additional $163 million in new funding that has been earmarked for yet-to-be-announced additional school facility projects. The Capital Plan will also support $416 million for post-secondary projects.

Recruiting, Retraining and Rethinking

The province is also working with health regions, professional groups and post-secondary institutions to educate, recruit and retain the needed health workforce. The Aboriginal Bursary Program is one example of the support provided to Aboriginal Albertans entering the health professions. Several Health and Wellness initiatives such as the Healthy U public education campaign and Aboriginal Health Strategy work to educate Albertans on healthy choices. The Healthy U program will be expanded to include communities and the workplace.

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For media inquiries, please contact:

(Dial 310-000 for toll free access outside Edmonton.)

Jerry Bellikka
Director of Communications
Alberta Finance
(780) 427-5364
(780) 718-5699 cellular



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