March 10, 2003

STATUS OF FIRST NATIONS SPECIAL EDUCATION FUNDING ALLOCATION

The original AFN budget submission for National First Nations Special Education programming needs was:

$359 Million

The Ontario submission for First Nations Special Education programming needs was:

$ 43,990,000.

As a result, the federal government announced $60 M over the next two years --- equaling $30 M for each of the years, 2002/2003 and 2003/2004.

The original submission went to INAC from AFN in July 2000 and Treasury Board just approved the 60M on January 30, 2003.

Background Information

2002-2003 Fiscal Year:

National Allocation Methodology:

• based on total on-reserve population ages 4-21
• Ontario’s percentage based on this option is 19.2% nationally

National Allocation After INAC Re-Profiling:

• 12 million was subtracted from the 2002-2003 national allocation
• 30 million minus 12 million leaves 18 million
• current national allocation for 2002/2003 is 18 million
• the 12 million will be split over the next two years as INAC asked for an extension due to the delay in process

Ontario’s Allocation for 2002-2003:

• 3.2 million

1. INAC Ontario region informed the Chiefs of Ontario that INAC Headquarters unilaterally made the decision to split the regional funding into a vote 5 and vote 15.

• For 2002/2003 the allocation is 3.2 million in Ontario
• 2.8 million is being identified as Vote 15 and will therefore be distributed to First Nations in Ontario based on the agreed upon funding method.
• $400,000 is being identified as Vote 5 and cannot be distributed to First Nations.
• This money (400,000.) is intended for salaries, consultants, etc. It will be kept at the INAC regional office for such services.
• INAC has also stated that the $400,000 is for the Federal Schools –
• special education.
• The original understanding of the Chiefs of Ontario was that the full 3.2 million would be allocated to First Nations.

It is understandable that federal schools are in need of special education funding but clarification is required on the amount of their allocation

INAC Projected Allocations:

2002/2003 - 18 mil
2003/2004 - 36 mil (30 mil annual plus 6 of the 12 mil taken off this year)
2004/2005 - 41 mil (30 mil jumps to 35 in 3rd year and remaining 6 of the 12 mil is added)
Ongoing - 35 mil

NOTE: In recent discussions with INAC – they are stating that Ontario region will be including the $400,000. back into the First Nation allocation for this year. We are awaiting formal correspondence from INAC on this prior to reporting.