In the 2002 Rozanski Report, found the following issues with the provincial funding formula for school repair and renewal; and made the accompanying recommendations.
Issue 1: As of 2002, yearly funding to school boards for school renewal (repairs and maintenance) was $266-million for school assets valued at $28-billion. This was less than 1% of the value of the facility replacement value of schools. Established guidelines recommended that governments provide annually a minimum of 1.5% to 4% of the current facility replacement value of a building for renewal needs.
Rozanski Recommendations:
- Update the benchmark costs within the education funding formula and increase annual funding for school renewal to meet industry guidelines.
Where this issue is at today:
in 2015, Ontario’s Auditor-General issued a report stating that $1.4-billion per year ought to be allocated to school boards for school repairs and maintenance, a figure that represented 2.5% of the value of school assets in Ontario. Between 2011-2015, provincial funding for school repairs was $5.8-billion less than it ought to have been, according to these Ontario Auditor-General numbers, which obviously contributed to the ballooning deferred maintenance backlog.
In June 2016, the Liberal provincial government did announce $1.1-billion of new money over two years for school repairs (after significant pressure from Fix Our Schools and both the NDP and PC parties). This new money brought annual funding for school repairs in both 2015/16 and 2016/17 to the $1.4-billion recommended. Therefore, annual funding for school repairs is finally at a level that it always OUGHT to have been at!
Implications:
Our provincial government must continue annual funding at the level of 2.5% of the value of Ontario’s school assets.
Issue 2: As of 2002, $5.6-billion of deferred maintenance had been allowed to accumulate in Ontario’s publicly funded schools
Rozanski Recommendations:
- School boards should secure capital financing needed to quickly address this deferred maintenance via debentures
- Province ought to support school boards with $200-million of additional funding for interest and principal payments on these debentures
Where this issue is at today:
The provincial government never pursued the solution of debt financing to a degree that impacted the deferred maintenance backlog in Ontario’s schools. As of 2017, the deferred maintenance backlog in our schools has ballooned to $15-billion.
Implications:
Our provincial government must acknowledge that annual budgets are never going to solve the $15-billion problem of disrepair in Ontario’s schools. The $15-billion deferred maintenance backlog accrued over 20 years and therefore, debt financing is an appropriate funding solution for a problem of this magnitude, and must be pursued if we are to fix our schools.