A Delicious Idea
GUEST BLOG BY TOM BEREND, SQE DIRECTOR
Earlier this week, this blog highlighted the Fraser Institute report suggesting that Ontario could save $1.9 billion every year by adopting BC's partial-funding formula for private schools. $1.9 Billion is about 8% of $25 billion that Ontario currently spends on K-12 schools.That is a lot of money! But it leads to a delicious idea.
After years of zero raises, Ontario teachers are probably looking for at least 2+2+2+2 in their next contract. That's also a lot of money, especially when you consider that it leads to increased future costs in terms of pension liabilities, and it can't be funded by small-potato savings like chopping textbooks or deferring maintenance. And because it is a recurring expense, one-time wheezes like selling empty schools won't work. However, that amount is almost exactly what the Fraser Institute predicts we can save with a BC-style funding formula.
The government is demanding 'net zero' in order to meet their deficit target. Maybe changing the funding formula is the 'net zero' that will make everyone happy. Of course it's not perfect, since the funding-formula savings would take a few years to develop and private schools can't absorb that many students right away. But salary increases also roll in over a few years.
The rate of student transfer to the private system will be slower than the teacher's attrition rate (retirement, etc), so shrinking the public system won't cost a single teacher's job. The teachers win, the parents win, the taxpayers win, the government wins and, most of all, the students win.




Share this article