January 30, 2013 at 5:54 p.m.

How the taxpayers are supporting $36M in waste


By Larry Burchall- | Comments: 0 | Leave a comment

Government's financial people - and everyone else - knows that things are tight now, and will likely get tighter next year. Government is looking to do two things. Get more tax revenue - from somewhere. Cut costs - somehow.

Government can reduce its costs by $36,000,000 right now.

This $36,000,000 is sitting smack dab in the eye of the public and smack dab in the eye of the Minister for Finance. Currently, there are about 3,750 students spread throughout Bermuda's six private schools (*). These 3,750 pay an average $15,300 (**) tuition. The national cost for all 3,750 privately educated students in these six schools is about $57,000,000 - employing 454 teachers/staff.

There are about 5,750 students spread throughout Bermuda's thirty-seven public school units (***). Government spends an average $22,300 per student on their education. The 2009/2010 government budget for all 5,750 publicly educated students is just over $128,000,000 - employing over 1,200 teachers/staff.

Just suppose - suppose - that the public system was at least as efficient and effective as the private system. What would it cost?

Simple arithmetic says that it would cost - should cost - about 5,750 students x $16,000 per student (allowing for lingering and relative inefficiency) = about $92,000,000.

$128,000,000 (what is now spent on public education) LESS $92,000,000 (what it could and really should cost) = $36,000,000 (equals the current excess spending on public education).

If, at the least, public education were as efficient and effective as Bermuda's existing private system, public education would only cost about $92,000,000 a year, which is a recurring saving of $36,000,000 per year. This is a massive government saving.

With such a massive saving the Minister for Finance could meet much of this year's expected current account shortfall - OR - reduce customs duties by 15 per cent and give all Bermuda residents some price relief - OR - cut personal payroll tax to one per cent for all lower income Bermudians and give them a tax break 3.75 per cent "pay rise" - OR - spend more on good tourist advertising - OR - cover Future Care costs right now - OR - ... ... ...?

Bermuda's resident population is only 65,000 persons. These 65,000 residents spend the stupendous sum of $57,000,000 + $128,000,000 = $185,000,000 on the public and private education of just 9,500 students. Relatively, that is a world record high. A Guinness Book of Records high. Nowhere else in the world spends like that on education. Nowhere!

It is one of the reasons why some costs in Bermuda are so high. It is one of the ways in which Bermuda often prices itself beyond the reach of ordinary Bermudians. It is one of the factors causing some college-educated Bermudians to choose not to return and raise families here; or emigrate in order to raise a family and have a good quality of family life.

For four out of ten residents, education in Bermuda is a double jeopardy. The parents of children in the private system must first work and pay Bermuda's high national taxes in order to fund their share of the tax burden of the $128,000,000 public education system.

THEN they work some more and PAY AGAIN for the costs of private education. They pay TWICE in a colossal and unnecessary national duplication of national effort.

'Race flaggers' who may have already begun saying that it's "all those white folks" who are doing that need to open their eyes and minds, and go and count the colours at all the private schools. And the uncounted 'home schools'. And the 'home tutoring' places. And the students who are sent overseas to boarding schools. Colour count them all.

In this year's budget, there is at least $36,000,000 of waste. It is in the national Education Budget. It was there in last year's $123,000,000 Education budget ($32m wasted last year). If there is no change, the waste will be budgeted for and inserted in next year's Education budget.

Imagine. Actually budgeting for obvious waste. Actually putting waste into a budget.

Actually taxing people and businesses so as to waste the tax dollars. And, at the same time, talking about cutting and saving and making economies. It is imprudent. It is immoral. It is stupid.

Something is wrong - bloody wrong!

(*) SGS, MSA, BHS, BI, WA, SA - Students in October 2009 reported as 3,737.

(**) In 2009, annual Tuition fees range from $8,500 to $18,030. (***) 10 Preschool, 18 Primary, two Special, five Middle, two Senior - Students in September 2008 reported as 5,744.

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