The Vancouver School Board has rejected a proposal by the B.C. government to partially address its operating budget shortfall just one day before deadline, raising the possibility that the government may fire the board and appoint a trustee.

The Ministry of Education had proposed the board sell the land under Kingsgate Mall, which the board owns and currently leases out, and put $5.59-million of those proceeds toward its $21.8-million operating budget shortfall.

The proposal did not include any additional provincial funding.

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At a special budget meeting Wednesday evening, VSB Chair Mike Lombardi said a majority of the board's nine trustees rejected the proposal because it does not offer adequate, stable or predictable funding to address the shortfall.

"Quite frankly, I think the board felt it would be a short-sighted move to take money from capital projects and put them into operating budgets, especially if it doesn't solve your problem, it compounds it the following year," Mr. Lombardi said.

"Our preliminary estimated shortfall for next year is $15-million. This would make it $20-million. Anything that got reinstated this year would have to be cut again next year."

Trustee Patti Bacchus called the proposal "reckless and irresponsible."

Education Minister Mike Bernier said he was disappointed with the decision.

"Just like many parents, I am disappointed that the Vancouver School Board has put their desire to own a mall ahead of services for students," he said in a statement.

"The VSB seems to have forgotten its mission is to educate students – not maintain ownership of as much property as possible."

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Under the B.C. School Act, school boards are required by law to balance their budgets. A board that fails to do so can be fired and replaced with a government-appointed trustee – something that last happened in Vancouver in 1985.

Leading up to Wednesday's decision, the board's four Vision Vancouver trustees and lone Green trustee – the majority of the nine-person board – had said they were prepared to be fired in rejecting the budget.

Ms. Fraser, the Green trustee, said $21.8-million in cuts would simply have too severe an impact on students, while the Vision trustees said they had to take a stand against the government's chronic underfunding of public education.

The remaining four NPA trustees had said it would have been irresponsible to reject the budget, and that trustees should work with what they are given.

The ministry presented the board with its proposal late on Tuesday afternoon.

In May, the VSB had a $27.2-million shortfall – the largest the board had ever faced. The Ministry of Education has since provided budget relief totalling $4.88-million; the relocation of some students from Henderson Annex saved another $580,000.