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Explains that the Canadian federal government has recently cut $800 million in transfer payments for education to the provinces, with further cuts planned for the next two years. Consequently, there is growing concern among administrators and professional educators as to the likely impact of these developments in Ontario. Examines the impact of incremental resource reductions on an Ontario board of education. Puts forward proposals aimed at improving the management of educational resources in Ontario, in particular means of supporting teachers and service quality in schools, and yet retaining equity of educational provision.

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