Given the uses for which school division reserves are maintained, it is not surprising that they fluctuate significantly. For example, as of June 30, 2003, two Manitoba school divisions had respective accumulated operating surpluses of 8.3 per cent and 2.2 per cent. By June 30, 2006, the operating surpluses of those same two school divisions were 2.8 per cent and 5.2 per cent. The first division had expended a significant portion of its reserve over a three-year period, while the second was rebuilding from what most financial experts would view as an unhealthily low level.

The government's own financial reports show relative stability in operating surpluses in recent years. There is nothing there to indicate a recent or emerging crisis. To be sure, the minister previously voiced some concerns about reserve levels, and school boards have responded to those concerns. A significant number have acted to lower the levels they hold, and through MAST, they have identified their own concerns and suggested solutions that would speak to both.

When the announcement was made on March 9, fully one-third of Manitoba's school boards had already set their special levy rates for the upcoming year. The remaining boards were preparing to do so at the beginning of this week, in order to meet the statutory March 15 deadline. In getting to this point, all boards had conducted public budget consultations through which they solicited and received input from their communities about what they wanted in their public schools. By forcing school boards to make changes at this late date, the government has rendered those consultations all but meaningless. It has lessened community voice by imposing an arbitrary standard without discussion or appropriate notice.