Quote:
Originally Posted by Torture
As you say, not having a reserve points to a funding gap in my mind. And just like the building lease, it's also not really on the current board. They inherited the problem.
Kind of hard for the current board to build a reserve during a downturn in the economy when your funding is getting cut, enrollment is going up, and then a global pandemic hits.
Are there problems? Absolutely. But the Government isn't helping resolve those by going to the media about their "reckless financial mismanagement" and threatening to fire them all.
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And to be fair...the CBE is playing a bit of a game here as well. While they might not have people with a lot of financial knowledge, they're also not complete fools. So, when the government said "you can use the maintenance reserves" for the teaching positions that was somewhat calculated. They use those reserves, and if anything happens that would have required those reserves, the province basically has to step in. In other words...sure, we'll use that reserve and if a roof caves in and needs to be replaced we all know it's backstopped by the province anyway.