The province is investing $1.323 billion in public school divisions for the 2018/19 school year. That is an increase of $6.6 million, or half a per cent.

"We continue to provide significant funding to give students the best education possible while we carefully steer Manitoba back onto a responsible fiscal track," Education Minister Ian Wishart said.

But the Manitoba Teachers Society calls the funding announcement a disgrace.

"I'm sickened by this," said President Norm Gould. "We're expected to do more. And now we're going to be expected to do more with a lot less."

But if school divisions are thinking of imposing a large property tax increase to add extra funds...the province says think again. Ian Wishart is directing school divisions to limit any education property tax increase to two per cent.

"It's a strong encouragement for them to be fiscally responsible to the needs of the ratepayer and the taxpayer," he said.

Sherri Rollins, who chairs the Winnipeg School Division Board of Trustees, says she hears concerns about tax increases.

She also says she has very real and growing costs that can't be addressed by a half per cent increase.

"I'm not happy today. Not happy on behalf of parents. And not happy on behalf of students that I was elected to protect and to enhance their learning. And you can't do it with a budget like this."

The Province says the Public Services Sustainability Act would freeze wages, alleviating pressure to spend more. Wishart also announced a 15 per cent reduction on existing caps on administration costs. That will become effective on July 1.

In addition the education minister says the province will phase out the tax incentive grant over the next six years. The grant will be adjusted so that school divisions do not receive less than 98 per cent of last year's operating and tax incentive grant combined.