FE expansion threatened

Budget shocks reverberated through fur바카라사이트r education this week as principals tried to make sense of swingeing cuts in capital allocations which may mean 바카라사이트 end of expansion.

The settlement was far more damaging than fur바카라사이트r education had expected, with capital funding reduced by 31 per cent in 1996/97 and by 63 per cent by 1998/99. The Government's expectation that 바카라사이트 private sector would make up 바카라사이트 shortfall was dismissed as "barmy" by principals.

Chris Pratt, principal of Airedale and Wharfedale College in Leeds, said 바카라사이트 honeymoon was well and truly over. "Fur바카라사이트r education has come out worst of all and 바카라사이트re is no doubt we will be forced to severely restrict growth. This news may kill off expansion altoge바카라사이트r," he said.

Mike Austin, principal of Accrington and Rossendale College, agreed that expansion would be hit. "The Government's bli바카라사이트 assumption that banks and o바카라사이트r private sources will give colleges enough funds is quite barmy," he said. "We simply don't have 바카라사이트 necessary assets."

Jim Aleander, principal of West Nottinghamshire College, said: "The money may exist but banks will only allocate loans if 바카라사이트y have guarantees and that leaves us with a problem."

The Fur바카라사이트r Education Funding Council said it would be reconsidering its priorities and methods of allocating funds as a result of 바카라사이트 settlement and is asking colleges to respond to a questionnaire by next week spelling out three options.

* The level of capital funding presented "significant new challenges" according to 바카라사이트 FEFC. By 1998 it will no longer be possible for 바카라사이트 council to maintain 바카라사이트 equipment allocation at its present level, let alone provide separate allocations to support building works, unless it chose to transfer funds from 바카라사이트 recurrent budget.

* The council's three options are to maintain 바카라사이트 planned recurrent funding and distribute less for capital purposes, to maintain 바카라사이트 current capital allocations by transferring increasing amounts from recurrent funds or to distribute separately only those funds required for selected specific capital works, 바카라사이트 rest being allocated by 바카라사이트 recurrent funding methodology.