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Education
03 October 2024

Ontario School Boards Face Rising Deficits

Increasing financial strain leads more Ontario school boards to deplete reserves amid funding concerns

Ontario's school boards are grappling with increasing financial challenges, according to recent documents from the Ministry of Education. The situation reveals troubling trends as more boards report budget deficits and rely on their reserves, which are funds typically set aside for large projects or emergencies.

The internal briefing documents obtained through freedom-of-information requests highlight the fiscal pressures facing various boards across the province. Despite claims from Education Minister Jill Dunlop asserting the overall financial health of school boards, the reality appears more complicated. Internal ministry records show significant discrepancies between the government's optimistic outlook and the financial struggles reported on the ground.

Historically, Ontario's school boards boasted surpluses. Yet, recent years have seen a shift, with 11 boards reporting deficits during the 2020-21 academic year. This number surged to 31 boards for the following year before slightly dropping to 29 for the 2022-23 term. Current reports indicate collectively, these boards face deficits approaching $200 million.

Officials from the Ministry have attempted to reframe these deficits as merely accounting maneuvers rather than genuine financial crises. For example, one bureaucrat stated, “Oftentimes, we just inherently think of a deficit as bad, but it simply indicates money set aside for future purposes.” This perspective suggests the accounting methods followed by school boards—aligned with public sector standards—necessitate deficit reports for access to their reserve funds.

Despite such assertions, Kathleen Woodcock, president of the Ontario Public School Boards' Association, expresses concerns over the far-reaching effects of these deficits. She warns, "If they keep dipping again and again, students won’t have the educational opportunities they should have had.” This indicates not only budgetary concerns but potential impacts on curricular options and services available to students.

While the government has increased funding for education by 20 percent since 2018, the rise hasn't matched inflation rates, leading some boards to use up their savings for day-to-day expenses. Woodcock argues this underfunding can hinder students' educational prospects, affecting their ability to enroll in necessary courses for their future studies.

The Progressive Conservative government maintains its stance, stating they've pumped record levels of funding to address educational needs, including substantial investments to address aging infrastructure, which had risen by 136 percent. A government spokesperson, Edyta MacKay, commented, "At the same time, Ontario has provided school boards with unprecedented funding. Deficits should not be recorded under these conditions.”

One of the main obstacles highlighted by the Ministry’s documents relates to the aging physical structure of schools across Ontario. The average age of these educational institutions exceeds 40 years, with maintenance needs increasing over time. Unfortunately, the documents indicate there’s no dedicated funding designated for modernization efforts. Instead, any available funding is primarily allocated toward replacing worn-out components of schools rather than comprehensive renovations.

Adding to these financial strains, school boards face restrictions from a moratorium on school closures, originally enacted by the previous Liberal government to reassess closure procedures. Even now, seven years post-implementation, this moratorium remains, forcing boards to maintain schools they might otherwise shutter, consuming their limited renewal funds.

The financial strain is compounded by infrastructure issues, particularly concerning reinforced autoclaved aerated concrete, which has raised alarms following the Ontario Science Centre's sudden closure due to safety hazards. Although the ministry is collaborating with boards on related mitigation strategies, including addressing the concrete issue, some board officials express confidence their budgets are currently manageable.

Despite these suggestions of control, the provincial funding structure continues to sit uneasy with those directly affected. Parents and educational advocates are calling for solutions—emphasizing the need for fair and adequate funding levels to support the future of education within the province. The overarching consensus is clear: the financial health of school boards is far more complex and precarious than the government acknowledges. And as schools battle budget constraints, students stand to lose out on the quality of education they truly deserve.

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