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1 TDSB FUNDING NEEDS WARD COUNCIL PRESENTATION March 2011 Narrative by Trustee Irene Atkinson, Budget Committee Chair 1.

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Presentation on theme: "1 TDSB FUNDING NEEDS WARD COUNCIL PRESENTATION March 2011 Narrative by Trustee Irene Atkinson, Budget Committee Chair 1."— Presentation transcript:

1 1 TDSB FUNDING NEEDS WARD COUNCIL PRESENTATION March 2011 Narrative by Trustee Irene Atkinson, Budget Committee Chair 1

2 22 TDSB Historical Funding Backdrop Pre 1998 Seven local boards of education (Scarborough, North York, Toronto, Etobicoke, East York, City of York & Metro) Boards were able to meet community expectations through the property tax base 1998 Seven local boards amalgamated into the Toronto District School Board (TDSB), the largest Canadian school board Provincial formula funds education in Ontario Boards must balance their budgets Boards lost the power to tax 1998 – 2010 Despite cost saving measures, disposal of surplus properties, etc., gaps exist between student needs and funding provisions TDSB struggles to operate within provincial funding formulas Ministry increases provincial funding but in support of its own new initiatives Aging inventory of buildings results in growing renewal and capital needs Moratorium on school closures (December 12, 2003 – September 30, 2004)

3 3 Two Major Funding Challenges Operating pressures (salaries, benefits, utilities, program supports and supplies, technology, transportation) Capital pressures (building and renewing schools) 3

4 4 Increasing Operating Pressures 4

5 5 Boards must balance spending and revenues. In order to spend more in one area, a Board must spend less in others For example: We use the money from Ministry grants such as our English as a Second Language (ESL) or Learning Opportunities Index (LOI) funding to pay for school based expenses such as libraries, etc. For example: TDSB spends more on principals, vice-principals, school office, educational assistants, librarians and guidance counsellors, special education, textbooks, etc., than the funding formula allocates for these expenses

6 6 SUPPORTING SCHOOLS: These are the choices the Board has made to supplement the funding received from the Ministry in certain categories by spending less in other areas. 6 * Prepared April 2010 Total Shortfall (147,775,931)

7 77 Notes: 1) School Foundation Allocation includes funding for: principals, vice-principals, school office clerical and office supplies. 2) Pupil Foundation Allocation includes funding for: teachers, supply teachers, library & guidance, educational assistants, textbooks & supplies, computers, professionals & paraprofessionals, staff development and curriculum coordinators & consultants. 3) School Operations Allocation includes funding for caretakers, maintenance and utilities, but not capital. This is after a reduction of $30M in maintenance from the budget to offset unfunded expenditures in all areas of the Board's operation. Reallocated Shortfall Analysis of Grants versus Operating Expenditures, contd Based on 2010 – 2011 Budget

8 8 Current Strategies for Addressing Operating Pressures Closed eight properties in 2010/11 and will realize $2.5M in annual operational savings Appointed a Chief Enrolment Officer to develop more financial partnerships and recruit students from abroad Regular review of all areas of operations and service delivery to identify efficiencies and cost savings thereby reducing budgets Working with Ontario Public School Boards Association (OPSBA) to advocate for improvements to the funding formula 8

9 9 Increasing Capital Pressures 9 Capital costs include: repairing existing schools; building or upgrading classrooms, portions of a school or a full school; repairing or upgrading plumbing, wiring and heating, etc; repairing structural problems; and repairing or upgrading school grounds including sport fields, playgrounds, fences and asphalt surfaces, etc.

10 10 TDSB Historical Capital Funding Backdrop Pre 1998 During the 1950s, 60s and 70s, major construction is undertaken in what is now the City of Toronto to build enough learning spaces for baby boomers. Local boards of education have access to local property tax base to assist with construction and renewal needs 1998 Province introduces a province-wide funding formula that does not provide funding to the TDSB to build new schools due to pocket enrolment growth or purchase land through Education Development Charges (EDCs) School boards ability to raise revenues through the property tax base is removed. 1998 – 2010 Boards with growing populations are provided dollars to help construct new schools. Ministry changes funding formula to allow boards with declining enrolment to close under-subscribed schools and generate funding to build schools where there are pockets of enrolment growth Ministry provides funding to rebuild schools they deem too expensive to repair. Ministry provides Good Places to Learn funding for four years to help Boards deal with aging buildings. Torontos aging infrastructure requires more funding for renewal than the Board receives. TDSB begins to reduce its space inventory to reduce expenses and generate capital dollars to reinvest into the system. Today TDSB still has pressures in both the operating and capital budgets.

11 11 Over 300 schools were built in 20 years. Now they have to be retrofitted. School Space Constructed (000s ft2)

12 12 TDSB Historical Capital Funding Backdrop Pre 1998 During the 1950s, 60s and 70s, major construction is undertaken in what is now the City of Toronto to build enough learning spaces for baby boomers. Local boards of education have access to local property tax base to assist with construction and renewal needs 1998 Province introduces a province-wide funding formula that does not provide funding to the TDSB to build new schools due to pocket enrolment growth or purchase land through Education Development Charges (EDCs) School boards ability to raise revenues through the property tax base is removed. 1998 – 2010 Boards with growing populations are provided dollars to help construct new schools. Ministry changes funding formula to allow boards with declining enrolment to close under-subscribed schools and generate funding to build schools where there are pockets of enrolment growth Ministry provides funding to rebuild schools they deem too expensive to repair. Ministry provides Good Places to Learn funding for four years to help Boards deal with aging buildings. Torontos aging infrastructure requires more funding for renewal than the Board receives. TDSB begins to reduce its space inventory to reduce expenses and generate capital dollars to reinvest into the system. Today TDSB still has pressures in both the operating and capital budgets.

13 13 Over 300 schools were built in 20 years. Now they have to be retrofitted. School Space Constructed (000s ft2)

14 14 2015? $3 billion $960 million Building systems in over 450 schools each over 40 years old have surpassed the end of their average 35 year designed life cycle. $3 Billion Renewal Backlog* Note: 1. This backlog includes the funds needed for replacement of building systems (structural, mechanical, electrical and civil). 2. It does not include funds needed for program changes and code-compliance. 3. Projections based on exponential pattern of growth suggest the backlog alone could reach $6 billion by 2015. *as of September 22, 2011

15 15 Facilities Condition Report Card 2019 Forecast of FCI by Ward 2010 FCI by Ward With no increase in funding for renewal, by 2019 only six schools will be considered to be in good condition. Lowest Renewal Backlog Highest Renewal Backlog

16 16 Bottom line: Almost all of our schools will require a deep retrofit over the next 15 years Basic facility needs – light, heat and water. Excellent, modern, and efficient program spaces Level of Investment We need to ensure that schools have light, heat and water – and, at the same time, retrofit our classrooms and schools for 21 st Century learning. Respond to emergencies Replace some building systems Engage communities in rebuilding schools through deep retrofits We value sustainability: It is both economically and ecologically efficient to retrofit our existing buildings. This deep retrofit approach allows us to look at the whole picture. We will rethink and reorganize spaces within schools and on grounds to make the most of students learning environments. At the same time, we will make much needed repairs and also bring our buildings up to todays standards (e.g. safety codes, access for the disabled). This also allows us to preserve our citys architectural history wherever possible.

17 17 Estimate of Total Cost to Deep Retrofit ALL our Schools in 2011 Dollars Panel Current area of instructional space (million ft 2 ) Estimated total cost of deep retrofits Elementary25.7$4.84 billion Secondary16.8$3.38 billion Total42.5$8.22 billion Note: This total projected cost of $8.22 billion in todays dollars does not include: Natural price escalations (inflation) Cost of emergency repairs and health and safety projects over the next 15 years to keep schools open Cost of additions and new buildings required for some pocket areas of residential growth across the City If we reduce the number of schools in the system: deep retrofit costs will go down proportionally costs associated with emergency and health and safety projects will decrease growth of the backlog will rise more slowly

18 A Societal Investment for TDSBs Future Learners 2012-13 Develop Sustainable Deep Retrofit Strategy 2013-14 Design/First Phase Construction 2014-16 Ongoing Design and Construction 2029 and Beyond The Legacy: Regular Building Renewal Normalized construction; sustainable capital plans and construction practices; affordable program renewal resulting from flexible designs implemented in deep retrofits Deep retrofits will have to follow pattern of construction in the 50s and 60s 2017-2029 Accelerated construction to address post-war construction boom, incorporating best practice sustainable design 2012-2029 and BeyondTDSBs aging infrastructure 18

19 19 Strategies for Addressing Capital Pressures 1.Address underutilized surplus school space by selling buildings/properties to generate capital funding. Since 2007, through the Toronto Lands Corporation (TLC), $95M in sales have been generated with a further $39M pending. Redevelopment and sales over the next five years will generate an additional $222M. 2.Generate revenue through renewable energy programs to reduce utility costs 3.Investigate capital redevelopment where feasible (e.g. North Toronto CI, Claude Watson School for the Arts) 4.Explore other funding sources (e.g. potential access to the tax base via the private members bill just introduced, provincial debentures) * The Boards Five Year Capital Building Program and Go Green: Climate Change Action Plan are both available on the Boards website at www.tdsb.on.ca.

20 20 The pieces are coming together but we cant do it alone. Federal infrastructure funding and provincial debentures Money from surplus buildings and leasing properties Ministry of Education capital funding Renewable energy Public/private partnerships Access to tax base We need a societal commitment to rebuild our schools for our 21 st century learners


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