VSB chair Patti Bacchus did not know about the appointment of a financial adviser to her board until the news media informed her, she said. (CBC)

The chair of the Vancouver School Board reacted angrily Wednesday after learning that the B.C. government had appointed a special adviser to examine the board's financial performance.

Patti Bacchus said she was not informed by the ministry of education about the appointment of the financial adviser but learned about it from news media who had received press releases making the anouncement.

Education Minister Margaret MacDiarmid later called Bacchus to apologize for the communications mixup, Bacchus said.

'"It is inappropriate for her to make those allegations" ' —VSB chair Patti Bacchus

"I hope she's not considering this some kind of game, a political game," Bacchus said.

The appointment is the latest volley in a war of words that has erupted between the ministry and the Vancouver School Board (VSB) over its funding for the coming school year.

"The Vancouver board of education is either unable or unwilling to manage its resources to protect the interests of students," MacDiarmid said in Wednesday's news release. "We are interpreting this as an indication this board needs extra help.

"As a result, I have appointed a special adviser to assist the district by examining the board's budget planning processes and opportunities for administrative efficiencies."

Bacchus challenged the assertions in the announcement.

B.C. Education Minister Margaret MacDiarmid has accused the VSB of "fear-mongering" in its latest budget projections and has appointed a financial adviser to the board. (CBC)

"It is inappropriate for her to make those allegations," she said. "I find it insulting."

The special adviser MacDiarmid appointed Wednesday is B.C.'s Comptroller General, Cheryl Wenezenki-Yolland.

"We will co-operate fully with the comptroller general who has been appointed," Bacchus said.

The VSB has estimated an $18-million funding shortfall for its 2010-2011 budget.

The board says its options to meet the shortfall include staff layoffs, shortening the school year by 10 days, cancelling programs or closing schools, Bacchus has said.

MacDiarmid accused the VSB on April 8 of "fear-mongering," and said the board is in the habit of predicting budget shortfalls and ending up with surpluses.

The board should be looking for ways to "do things differently" in order to deal with its budget, the minister said.

"The special adviser will review the board's budget development process, benchmarks, financial forecasts and position, management capacity, administrative expenditures, and opportunities for economies of scale, and make recommendations to assist the board to meet its obligations under the School Act," the education ministry said in its release.

The adviser will report back to the minister by May 31, giving the board a month to complete its budget process by June 30, the release said.

Bacchus said that put the VSB in a difficult bind. Labour agreements between unions and the VSB require that any layoff notices that might be necessary to balance the budget have to be announced in May and the minister should know that, Bacchus said.