Ontario School Boards Face Financial Struggles, Two-Thirds in Deficit

Ontario’s education landscape is facing significant financial challenges, with nearly two-thirds of the 72 school boards in the province either projecting deficits for the current school year or expecting to barely break even. According to recent estimates, 25 boards have approved deficit budgets, while another 19 are struggling to balance their finances.

Education Minister Paul Calandra has highlighted the financial struggles of specific boards, particularly those under provincial oversight. In media interviews, Calandra criticized trustees at five of these boards for not making necessary decisions to maintain balanced budgets. He emphasized the importance of a funding model based on per pupil enrollment, stating that many boards manage to operate effectively with surpluses.

Systemic Issues Impacting School Boards

The current financial difficulties are not isolated incidents, but rather indicative of broader systemic issues within the funding model for Ontario’s school boards. Sachin Maharaj, an assistant professor in the Faculty of Education at the University of Ottawa, noted that the widespread inability of boards to balance their budgets suggests a deeper problem rather than mere mismanagement.

Historically, school boards in Ontario have faced challenges since losing their taxation powers in the 1990s under the Mike Harris government. The situation worsened during the COVID-19 pandemic, leading to increased costs associated with teacher turnover and special education needs.

As students return to classrooms, the financial strains are becoming more apparent. Many boards are overspending on special education to meet the complexities of student needs. The rising costs of staffing and mandated benefits have not been fully offset by provincial funding, creating additional pressures for these institutions.

Deficits and Financial Strategies

Despite the troubling projections, not all deficits indicate severe financial distress. Some boards have intentionally planned deficits to fund essential projects. For instance, the Renfrew County District School Board has opted for a $450,000 deficit to upgrade equipment and enhance wellness initiatives. Similarly, the Ottawa Catholic School Board anticipates a deficit of $5.6 million to invest in outdoor learning spaces and student mental health programs.

However, there are boards under supervision that face substantial financial hurdles. The Dufferin-Peel Catholic School Board is projected to incur a deficit of nearly $33 million due to rising long-term disability claims and a declining student population, which has diminished their revenue base. Since 2016, Dufferin-Peel has seen a 12 percent drop in student enrollment, exacerbating its financial challenges.

While Calandra has asserted that the province is allocating a record $30.3 billion for education in the 2025-26 school year, concerns persist regarding whether this funding adequately meets the demands placed on school boards. The minister has indicated a willingness to review the province’s funding formula if it is deemed to be contributing to these challenges.

As the situation unfolds, it is crucial for stakeholders, including parents and educators, to remain vigilant about the financial health of their local school boards. The current landscape highlights the delicate balance between funding, enrollment, and the ability to provide quality education in Ontario.