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Ministry of Education and Economic Development ______________________________________________

MINISTRY HEADQUARTERS - Education -

Head 95

BUDGET BRIEF 2014-2015

Presented by

Dr the Hon. E Grant Gibbons JP, MP Minister of Education and Economic Development

Monday, March 10

th 2014

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MINISTRY OF EDUCATION AND ECONOMIC DEVELOPMENT

MINISTRY HEADQUARTERS

Education

HEAD 95

FOUND ON PAGES B103 – B107

OF THE ESTIMATES OF REVENUE AND EXPENDITURE

Mr Chairman,

It gives me great pleasure to present the budget for Head 95; Ministry of Education and

Economic Development Ministry Headquarters found on pages B103 – B107 of the Budget

Book. Please note, you should find an errata page insertion for page B103.

Mr Chairman,

The Ministry HQ, in total, has been allocated a budget of $8,677,000.

Estimate 2014/15: $8,677,000 down $1,825,000 from previous year

Budget 2013/14: $10,502,000

FTE - 13

Mr Chairman,

Following the organisational restructuring in December 2013, the creation of this new Ministry

resulted in several changes. Prior to the reorganisation, the Ministry of Economic Development

had responsibility for the Departments of Civil Aviation and Maritime Administration. These

departments now fall under the Ministry of Tourism Development and Transport. Similarly,

responsibility for the Bermuda Economic Development Corporation has shifted to the Ministry

of Home Affairs.

The Ministry of Education Headquarters, formerly Head 16 has been amalgamated into what

was the Ministry of Economic Development, Head 95. Head 17, the Department of Education

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now falls under the Ministry of Education and Economic Development, as does Head 41, that

of the Bermuda College.

The Bermuda National Library (Head 18) and the Bermuda Archives (Head 19) were also for a

period of time part of the organisational structure of the former Ministry of Education.

Mr Chairman,

We have been asked by the opposition to discuss Ministry HQ as it relates to Education,

separate and distinct from Headquarters as it relates to Economic Development. This is not

that simple because, as I have mentioned earlier, the Ministries have been amalgamated and

they are now, in fact, one Ministry.

I will however seek to break these out in as user friendly a manner as I can.

To this point, I will advise that of the $8,677,000 allocated to the whole Ministry HQ,

$2,084,000 is allocated to Ministry HQ as it relates to Education. Bear in mind that some of the

funds are allocated to grants and scholarships, etc. I will break this down further as we work

through this brief.

Mr Chairman,

Although the Ministry acquired responsibility for Education in late December 2013, the actual

objectives and role of the Ministry Headquarters remains one of direction, coordination and

leadership.

The Ministry is staffed with a Permanent Secretary; Comptroller; two Policy Analysts; and

some administrative and accounting support.

Mr Chairman,

Head 17: The Department of Education. This is headed by the Commissioner of

Education, Dr Edmond Heatley.

Head 41: The Bermuda College. Headed by Dr Duranda Greene with Jill Husbands as

Chairman of the Board. The College continues to work towards its 10 year strategic plan

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and has been able to manage well and continues to diversify its offerings despite budget

constraints.

EXPENDITURE OVERVIEW (including an analysis by cost centre) (PAGES B104 and B105)

Mr Chairman,

As this section of the debate is focused on Ministry HQ as it relates to Education I shall seek to

hone in on to those issues only and reserve comments on the other aspects of the Ministry HQ

when we come to debate Economic Development on Wednesday.

As I mentioned earlier, you should find an errata page insertion for page B103. The initial

Budget Book had an error where the Budget Office had inadvertently swapped the line figures

for the Department of Telecommunications and Bermuda College. The errata page contains

the correct figures.

The HQ budget is set out under four cost centres, Policy and Administration; the Business

Development Unit; Grants, and; Education Administration.

Mr Chairman,

Please note that a straight “apples to apples” comparison of the Ministry HQ budget last year

versus this year is not simple. The figures provided in the Budget book for the prior fiscal year

are from the previous Ministry of Economic Development. Following the government

restructuring in December 2013, the Ministry added the portfolio of Education and shed

responsibility for Civil Aviation, Maritime Administration and The Bermuda Economic

Development Corporation. As much as possible we have sought to ensure the comparison

year-on-year is as meaningful as it can be.

MISSION

Mr Chairman,

On the Education side, the Ministry is seeking to foster an inclusive and progressive learning

environment that promotes excellence, improvement, constant development and success.

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Mr Chairman,

As I mentioned, the Ministry of Education was amalgamated with the Ministry of Economic

Development in December 2013. The following discussion focuses purely on the functional

aspects of the HQ. The actual education related functions, achievements and budget allocation

for the Department of Education (Head 17) will be discussed when we debate that

departments budget allocation later.

The Ministry Headquarters focuses on ensuring compliance with legislation, rules, regulations,

policies and procedures. Legislation is under review and will be amended to help support

student improvement.

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COST CENTRE 9504 105040 – EDUCATION ADMINISTRATION (B104 & B105)

Estimate 2014/15: $463,000 down $35,000 from previous year

Budget 2013/14: $498,000

FTE – 3

This allocation is purely for general operating expenses and for the salaried positions that

remain in the Headquarters that are specifically allocated to Education. There are three

positions: A policy analyst; an administrative assistant and funding for senior civil service

support. The remainder is for supplies, training, general expenses and some consulting

provision.

A great deal was accomplished by the Ministry of Education Headquarters during the

2013/2014 budget year. The major projects and processes included:

i. Under the direction of the Board of Education, the recruitment of the new Commissioner of

Education;

ii. The introduction of the Inclusive and Special Education Discussion Paper. This was

developed following widespread consultation. This is the precursor to a full-fledged policy

on inclusive and special education. The policy will be accompanied by amended legislation

to bring Bermuda in line with 21st century international standards.

iii. The launch of a public consultation on proposals to amend the Education Act 1996 with

regard to parental involvement and boards of governors for maintained schools; and

iv. The development of amendments to the Bermuda College Act 1974.

In the 2014/2015 budget year, the Ministry of Education and Economic Development

Headquarters will undertake the implementation of its mission by:

Introducing a White Paper on Inclusive and Special Education. This will outline the policy

direction of the Government of Bermuda in these areas and will reflect many of the views of

parents and the community collected during the public consultation process;

Introducing amendments to the Education Act 1996 with regard to parental involvement

and boards of governors;

Introducing amendments to the Bermuda College Act 1974; and

The introduction of a new Bermuda Educators Council Act.

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COST CENTRE 9504 105050 – EDUCATION GRANTS TO EXTERNAL BODIES

(B104, B105 & C17)

Estimate 2014/15: $621,000

Budget 2013/14: $621,000

Mr Chairman,

During this current fiscal year, the Education related grants were revised from $621,000 to add

an extra $80,000. This addition was to provide for the cost of Associate Contributing Country

status, tuition and related fees for the University of the West Indies Scholarship. This amount is

accounted for, for the coming year, under scholarships.

The Ministry has received education related grant applications from traditional recipients, and

has received some new requests. Organisations requesting grants are required to complete a

grant application and provide reports on what has been delivered with the public funds

provided to them.

While the level of funding allocated to this cost centre has been maintained, the volume of

applications and the amounts requested have significantly increased. The Ministry has

carefully reviewed the applications and, while the grants for many applicants will be less than

in former years, the Ministry expects to assist a larger number of applicants over the year.

Some programmes and services within the Department of Education are currently being

restructured and re-organised. Therefore, a process is currently underway to ensure that all

grants – whether new or old - are consistent with the mission and system priorities of the

Department.

Some grants to external bodies are still under review. Many of those who have made

applications will be, or already have been, contacted. Additionally, the Ministry will retain some

limited ability to provide grant money to applicants throughout the budget year, where criteria

have been met.

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Before we get into the specifics of the grants, I will address what may appear to be an

anomaly. The Budget Book on page B104 has $621,000 allocated to the line item but only

$521,000 on page C17. This is because $100,000 has been allocated for the Reading Clinic as

a “fee for service” as opposed to a pure grant. The Reading Clinic provides psycho-educational

assessments and diagnostic assessments of school children with reading or math-related

learning difficulties, and early literacy intervention programmes for preschool students.

The remaining $521,000 will be distributed during the 2014/2015 financial year. In addition to

the Reading Clinic, at this point, we have allocated grants to the following organisations:

$15,000 Bermuda National Gallery. The funding will support educational programming

that promotes visual arts in schools.

$50,000 Bermuda School Sports Federation. This will support school sports in

Bermuda such as soccer, track & field and cricket as well as covering National Sports

Stadium rental fees.

$100,000 The Bermuda Sloop Foundation. This is so they can continue their character

building voyages for middle school students.

$75,000 Centre for Talented Youth. This grant helps fund the after school Gifted and

Talented Programme for designated high achieving students

$25,000 Global Arts (UN). This supports the youth newspaper Youth News.com and

other leadership development activities for students

$50,000 Wind Reach. This supports programmes that allow for an increase in sensory

motor skills, social, physical, cognitive and emotional development for public school

students with special needs.

$7,500 Keep Bermuda Beautiful. KBB supports teachers with delivering science

lessons and materials tied to the Cambridge curriculum at the P-1, P-4, P-6 and M-1 levels.

$20,000 YouthNet. This will help support the mentorships of one thousand public school

students through traditional, reading, as well as peer, sports and work site mentoring.

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COST CENTRE 9504 105060 – EDUCATION SCHOLARSHIP AWARDS

(B104, B105 & C17)

Estimate 2014/15: $1,000,000 down $333,000 from previous year

Budget 2013/14: $1,333,000

Mr Chairman,

There are different categories of scholarships and awards. These are:

Teacher Training Awards

Mature Student Awards

Government Scholarships

Further Education Awards

Teacher Training Awards are valued at $15,000 per year for up to three years and are given to

promising Bachelor of Education candidates studying subjects where there are shortages of

local candidates. Particular emphasis will be paced on applicants studying geography, English

language, arts, mathematics, modern foreign languages and special education. Awardees are

expected to return to Bermuda and teach within the Bermuda Public School System.

Mature student awards are provided to successful candidates who are over the age of 35 and

who wish to return to post-secondary education. The award is valued at up to $15,000 per year

for up to three years.

Further Education Awards are also valued at between $1,500 and $10,000 and are awarded to

students who are in financial need studying at university.

Finally, the Bermuda Government Scholarship is awarded to up to eight of Bermuda’s top

scholars. They are provided with tuition and accommodation up to a value of $35,000. This

scholarship is tenable for up to four years. As mentioned earlier, this cost centre also includes

the University of the West Indies Scholarship.

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Mr Chairman,

As mentioned some of these awards are multi-year and renewable. We have outstanding

obligations for Government scholarships and awards that we are happy to honour. We have

allocated $825,000 for Bermuda Government Scholarships this year. The remainder of the

allocation is for the consideration of Teacher Training Awards, Mature Student Awards and

Further Education Awards.

Last year $1,333,000 was budgeted. This was down from what was budgeted for 2012/2013.

Last year’s budget has also been revised to $1,253,000. This is as a result of careful review by

the Ministry HQ and the Board of Education’s Scholarship and Award’s Committee.

During last year’s budget period, it was explained that the previous Government amended the

Bermuda Government Scholarships Act in order to provide unlimited scholarship funds to

Bermuda’s top academic scholarships. While these funds very generously contributed to

important academic study, we simply do not have the funds to provide unlimited tuition to some

of the world’s most expensive post-secondary institutions. Some scholarships ranged up to

$70,000, while others were as low as $17,000.

Therefore, the Ministry revised its internal policies pertaining to scholarships and awards.

Amendments were made to the Bermuda Government Scholarships Act 2008 and new

Bermuda Government Scholarships Regulations 2013 were introduced. The new Bermuda

Government Scholarships (BGS) regime allowed the Ministry to achieve targeted reductions.

While it resulted in reduced expenditure for this cost centre, it also included valuable

expansion in key areas of the BGS programme.

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We are able to achieve this by:

Extending the term of each scholarship by one academic year, to a period not exceeding

four years, in order to coincide with the typical number of years required to earn an

undergraduate university degree; and

Covering tuition and basic accommodation only, to a maximum value of $35,000 per year,

instead of covering the total cost of tuition, accommodation (including room and board), a

one-way airfare ticket to university and a one-way return ticket upon the completion of

studies.

This allowed the Ministry to more appropriately budget for the BGS regime, as we now know

that no scholarship amount will exceed $35,000.

Saving in this cost centre was also achieved by reducing the budgets for awards, such as

mature student awards and further education awards. Additionally, a decision was taken that

teacher training awards would only be granted to individuals undertaking education studies at

the levels and subject matters for which the public education system has a need.

For the current budget year, the 2014/2015 estimate for this cost centre is $1,000,000.

The breakdown in the amounts for the four categories of awards and scholarships is set out on

page C17 of the Budget Book.

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MANPOWER – PAGE B106 Mr Chairman,

Mr Chairman, please note the figure in the Budget Book on page B106 is incorrect. It states 10

Full Time Equivalent positions for the Ministry HQ, but there are, in fact, 13. Four of these are

correctly shown for the BDU, comprising one Section Head, one Legislative Assistant, one

Policy Analyst, and one Administrative Assistant. The other nine are: one Permanent

Secretary, one Comptroller, two Policy Analysts, three Administrative Assistants, one financial

accountant and an allocation of funding for senior assistance with Education HQ. Other than

the three FTE’s currently allocated to Education; the remainder are essentially allocated to

Economic Development. It must be noted, however, that due to the merged nature of the

Ministry HQ that there is overlap.

Mr Chairman,

Honourable Members may recall that the former PS, of what was the Ministry of Education, has

moved to the private sector. However, the funding has been retained to allow the appointment

of additional senior assistance in the Ministry Headquarters.

Mr Chairman,

Before I conclude, I need to say a word or two about the work of the HQ staff. This has been a

very challenging time. The former PS left right at the end of the year and the Ministry

Controller’s contract ended in January. The Ministry Administrative Assistant took on a role at

a company outside of Government and left at the end of January. Also note that the

Commissioner himself is relatively new to Bermuda and our Government. This has proven to

be particularly challenging at the Ministry level and we have been able to surmount this

challenge, thanks to the dedication, diligence and sheer hard work of the Ministry’s Policy

Analyst; Ms Kimberley McKeown. I would like to extend my thanks for her perseverance.

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Mr Chairman,

With the work of the PS, the Commissioner, the Policy Analyst, and the rest of the Ministry

staff, the Ministry will continue to oversee the direction and improvement of our Education

system. This will be discussed in more depth during the debate on the Department of

Education.

Thank you Mr Chairman, this concludes my remarks on the Ministry Headquarters.