Public Schools & Public-Private Partnerships. CUPE Local 1253 NEW BRUNSWICK COUNCIL OF SCHOOL DISTRICT UNIONS

Transcript

1 Public Schools & Public-Private Partnerships CUPE Local 1253 NEW BRUNSWICK COUNCIL OF SCHOOL DISTRICT UNIONS

2 N.B. Council of School District Unions Representing 2300 school custodians, school bus drivers, maintenance repair workers Most members have many years of service Dedicated to clean, safe, secure and inviting school buildings and services An important part of the school community

3 N.B. is building 2 new P3 schools Moncton North School on Ryan Rd Eleanor Graham Middle School in Rexton Public-Private Partnership: private company to design, construct, finance, own, operate and maintain then lease back to the Province

4 P3 schools cost more Cost more over years of P3 contract Typically 30-50% higher than public financing Evergreen Park School in Moncton costs $900,000 more

5 Auditor General has confirmed that P3 s cost more In his 1998 and 1999 reports, NB Auditor General found that P3 s cost more Financing costs: Evergreen Park School: $400,000 more Miramichi Youth Facility: $700,000 more Moncton-Fredericton Highway: $25 million more

6 P3 schools cost more in Alberta P3 project to build 18 new P3 schools in Calgary and Edmonton 51% higher than conventional financing or $103 million more For every two P3 schools, could build three financed the traditional way

7 P3 schools create more debt P3 schools commit the Province to expensive lease payments over years Borrowing money through private sector costs more Indirect debt is still debt

8 Tax dollars to profit, not education Lease payments are calculated to include profit margin typically 15-25% Profits siphoned away from education to private for-profit companies No guarantee that profits will remain in the province

9 Higher interest rates Governments can borrow at lower interest rates Governments can pay portion of capital costs upfront, but P3 s typically borrow 100% of the cost at higher rates, spread over a longer period of time P3 s = higher total interest payments

10 Risk is not transferred away from taxpayers Price of risk transfer passed onto taxpayer through higher lease payments In addition, P3 contracts do not cover all risks

11 Risk Transfer and Cost overruns Evergreen Park School Design risk excluded Province had to pay for 4-room extension Evergreen Park School Contract allows for unlimited increases in operating costs for cleaning and maintenance If costs increase, Province will have to pay

12 Cost overruns in Nova Scotia In 2000, N.S. abandoned its plan to build 38 P3 schools due to cost overruns of $32 million Poor building standards, lack of accountability, last minute design changes, and unmanaged development costs Cost overruns occurred after the contract was signed

13 Contracting out Custodian jobs Current plan is to contract out school custodian jobs at new P3 schools in Rexton and Moncton North Same as Evergreen Park and Leo Hayes Schools Lower wages & benefits, no pension plans, higher workloads, fewer staff, and higher staff turnover Loss to the school, the community and local economy

14 Limited or reduced services Evergreen Park School Free use of school after hours for school activities not allowed under terms of P3 contract 4 custodians instead of 5 Over 20 classrooms per custodian instead of 16 Alberta Preschool and daycare programs not allowed in P3 schools

15 P3 schools don t belong to us Rexton and Moncton North schools Own as well as build, operate and maintain Evergreen Park School Buy-back option of $2.5 million after 25 years, or continued leasing for further 10 years at undisclosed rate

16 We pay now. Our children pay later. Our children and grandchildren will still be paying for their schools when they are grown up Less money for schools for their children

17 Say NO to P3 Schools! It s not too late to say NO to P3 schools in Rexton and Moncton North Conventional public sector financing costs a lot less and P3 schools cost a lot more Don t mortgage away our children s future!

18 Say YES to School Custodians Put public school custodians to work in Moncton North and Rexton schools Don t contract us out! Bring us over just like students, principals, teachers, clerical and educational support workers We work hard to keep your schools clean, healthy, safe and secure

19 THANK YOU NEW BRUNSWICK COUNCIL OF SCHOOL DISTRICT UNIONS Delalene Harris Foran, President Rick MacMillan, Secretary-Treasurer Jean-Yves Maillet, 1 st V.P., Miramichi-Richiboucto Area Gerry Prosser, V.P., Moncton Area Vallie Stearns, Coordinator