Recommendations from the Education Funding Review Work Group regarding the Provincial education funding formula indicate that in future some changes may be made to the per capita grant allotted to each public school pupil. For budgetary purposes in this document we have assigned the figure of $4,514.37 per student based on the following breakdown: general formula grant $3,447.06, municipal grant @ 10% $344.70 special education grant $245.50, text book grant $50.68 and a technology grant $61.72. There is also an equity grant to the regional school board of $344.71 per student.

Enrolment projections indicate that in the Margaree catchment area there will be a slight decrease in high school enrolment over the next five years. For purposes of this document we have used the projected enrolment of 121 students, as indicated in the regional school board's documentation for the year 2000.

Other potential sources of funds include institutional and government grants, charitable donations, community partnerships and contributions, dedicated fundraising, in-kind contributions, and rent and service-sharing.

Budget Projections (Year 2000)

The Financial Plan presents three scenarios of budget projections for the year 2000. The three scenarios demonstrate the financial difficulties of operating small rural schools and at the same time offering enriched programming and meeting the terms of the collective agreement.

Scenario 1 is essentially the status quo, using current staffing plans and salary levels. This results in expenses that are 50% higher than revenue.

Scenario 2 entails staff reductions but keeps salary levels, together with supplementary revenue generation. Instructional aids are increased to meet expressed needs and this figure will be adjusted as the need is determined. Scenario 2 has expenses that are 30% higher than revenues.

Only Scenario 3 presents a balanced budget. This is achieved by further reductions in the number of staff and a 25% drop in salaries. The proposed $40,000 for the average salary is in line with average incomes for teachers in independent schools in the Maritimes. The cost of contracted services is also reduced through the donation of labour from the community. This saving has been applied to instructional aids, such as textbooks and equipment, which the community has requested be adequately funded.