Caitriona Ruane said saved money would go into schools
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It is believed about 460 jobs will be lost in the Northern Ireland education sector as a result of the merger of the existing five area boards.
They are being merged into a single Education and Skills Authority and £50m has been set aside for its creation.
It is understood most of that money will go towards voluntary redundancy packages for the 460 staff expected to lose their jobs with the boards.
The union NIPSA has said it will "fight the case for proper staffing levels".
"We will continue to expose all attempts to make education cutbacks especially when they appear under the guise of so-called modernisation," said Alison Millar of NIPSA.
"We are committed to protecting education services and we will be making strenuous efforts to ensure that the interests of staff and pupils are safeguarded."
Education Minister Caitriona Ruane is pledging to put the £20m saved on bureaucracy into schools.
She told the assembly the money would cover the cost of building three new primaries and one new post-primary school every year.
Education officials hope the new authority will raise standards in schools and strengthen child protection safeguards.
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