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School district handed $100K in offloaded insurance

School District 57 will see nearly $100,000 added to its expenses due to provincial government downloading. School board trustee Lyn Hall said the added expense will be felt when the 2011-12 budget is set.

School District 57 will see nearly $100,000 added to its expenses due to provincial government downloading.

School board trustee Lyn Hall said the added expense will be felt when the 2011-12 budget is set.

"Whenever we have to look for more money to cover off various costs it's a big impact," he said.

In a May 11 letter to B.C. school districts, Ministry of Education capital management branch director Doug Stewart says "funding pressures" mean it will no longer be possible for the ministry to cover district premiums for loss replacement.

Effective July 1, a new "property loss pool" of $3 million will be in place with the annual cost allocated among districts based on current estimate building replacement value.

For Prince George, where the total replacement costs of its schools and facilities is $627 million, it adds up to $98,291 or 3.3 per cent of the total.

Additionally, the deductible payment will increase to $10,000 from $3,000 and the maximum amount covered under the new scheme will be $250,000, down from $1.5 million under the previous arrangement.

Losses over $250,000 will be treated as "emergent capital requests through the government's capital funding process," Stewart said.

"I appreciate the added pressure this will create for school district budgets, and I assure you this decision has not been made lightly," Stewart continued. "Your understanding is appreciated."