The Toronto District School Board (TDSB) is facing a significant financial crisis, calling on the provincial government for additional funding to address a projected $58 million deficit for the 2025-26 school year. As the board grapples with potential cuts to essential programs, including swimming pools and music education, tensions are rising between TDSB officials and the Ford government over the future of education funding in Ontario.
In a report presented to the board’s budget committee last week, various money-saving measures were outlined, which included the controversial proposals of closing swimming pools and cutting the Itinerant Music Program that employs 74 specialized music educators. The TDSB has been under increasing pressure to balance its budget amid accusations from the provincial government that it has not done enough to reduce spending.
Education Minister Paul Calandra has made it clear that he does not approve of addressing the deficit “on the backs of students.” He has warned that if school boards fail to balance their budgets, the province may take over their operations. “They should not do it by firing teachers, and they should not do it by closing down pools,” Calandra stated, emphasizing the need for alternative solutions.
The TDSB had previously pitched a plan last fall to reduce its deficit to $11 million, but this proposal was rejected by the Ford government, which has since appointed an investigator to scrutinize the board’s finances. Calandra explained, “The investigators will certainly work through all parts of their finances and then make a suggestion to me whether additional action is required.”
In response to the funding crisis, TDSB Chair Neethan Shan has highlighted the financial struggles facing the board, noting that a $1,500 shortfall in per-student funding translates to over $300 million each school year. Shan pointed out that the pay for TDSB staff accounts for $70 million, which could potentially cover the entire deficit. “Let me remind you our deficit is $58 million. That alone can address the deficit that we are facing,” he said.
Trustees have welcomed the province’s investigation, which is expected to report back to Calandra by the end of May. Meanwhile, the budget committee is set to hold a special meeting on May 15 to discuss the board's financial situation, though final decisions on the budget are not anticipated until the end of June.
The ongoing budget crisis is not unique to the TDSB. Reports indicate that over 40% of school boards across Ontario are currently facing deficits, prompting concerns about the structural issues within the education funding system. Kristen Boyd, the school council chair at Roden Public School, emphasized the need for adequate funding, stating, “If the province just funded the basics, we wouldn't be in a deficit.”
Despite claims of “historic” funding from the Ford government, many advocates argue that the actual funding levels, when adjusted for inflation, have decreased. According to analyses, the TDSB received just over $3 billion in core education funding in the 2018-19 school year, which amounted to $12,386 per student. However, for the 2024-25 school year, the funding is projected to rise to over $3.3 billion, or $14,101 per student. Yet, when adjusted for inflation, this represents a significant decrease in real funding per student.
Ricardo Tranjan, a political economist with the Canadian Centre for Policy Alternatives, estimated that province-wide per-student funding has dropped by approximately $1,500 since 2018. This decline in funding has exacerbated the financial challenges faced by the TDSB and other school boards across the province.
In addition to the funding shortfall, the TDSB has been grappling with rising costs associated with salaries and benefits for teachers and Early Childhood Educators, which have increased by $63.2 million since 2018. Shan noted that the board’s mandatory Canada Pension Plan, Employment Insurance, and Long-Term Disability program expenses have not been matched by provincial funding, creating further financial strain.
The TDSB has also faced scrutiny over its administrative costs. The board has cut its total administration and governance spending by nearly 11%, from $112 million in 2023-24 to an estimated $99.9 million for the current school year. However, with 84.5% of the TDSB’s funding allocated to labor costs, there are limited options for further cuts without impacting student services.
Calandra has pointed to the number of paid leave days and the salaries of superintendents as areas for potential savings. “What they didn’t say is, ‘We’re going to look at the record number of superintendents who are littered all over the Sunshine List,’” he remarked, referring to the list of public employees earning over $100,000 annually. The TDSB currently lists 34 superintendents, with salaries that can reach into the $200,000s.
As the TDSB navigates this financial crisis, the board continues to advocate for a meeting with Calandra to discuss potential solutions collaboratively. Shan has expressed his belief that programs such as swimming and music are critical components of a child’s education, stating, “I personally, and many trustees, feel swimming programs and music programs and outdoor education are a critical part of a child's education.”
With the province’s financial investigator set to deliver a report by the end of May, the TDSB is under pressure to demonstrate its commitment to addressing the deficit while also preserving essential educational programs. As the budget committee prepares for its special meeting, the outcome of these discussions could have lasting implications for the future of education funding in Ontario.
The situation remains fluid as the TDSB seeks to balance its financial obligations with the needs of students, teachers, and the broader community. As the clock ticks down to the end of the school year, all eyes will be on the board’s next steps and the provincial government’s response to the ongoing funding crisis.
