OTTAWA - Critics say native kids on reserves across Canada won't get badly needed new schools or major repairs because of a federal funding crunch.

Leaders in several provinces say Ottawa has put off plans to rebuild or renovate crumbling schools. They say upgrades are on hold despite a federal budget surplus that's expected to top $2 billion, even after sweeping tax cuts.

Instead, critics say the federal Conservatives are using capital funds to pay for other native services.

Under-funding, makeshift buildings and lack of supplies are often blamed for high native drop-out rates.

The Conservative government announced $50 million last spring for 12 school projects.

An Indian Affairs spokesman in Ontario says no projects have been cancelled, but that capital budgets are under review due to higher construction costs.