Finding the right funding formula

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This article was published 07/02/2024 (842 days ago), so information in it may no longer be current.

Manitoba school divisions are getting a funding boost this year. Provincial government officials say it will exceed the rate of inflation. However, many school boards will only receive increases of one per cent or less. That means some may have to cut back on core services or raise education property taxes.

It’s a stark reminder of how urgent it is for the province to reform education funding.

Manitoba’s NDP government last week announced an overall funding increase for school divisions of 3.4 per cent. That is slightly above the province’s projected inflation rate of two to three per cent for 2024. Divisions will receive $93.4 million in additional operating funds in 2024-25. All 37 school divisions will receive an increase of some kind.

However, owing to the province’s complicated funding formula — which is based partially on projected student enrolment — some divisions will get increases well below the rate of inflation. Because school costs are often fixed (they are rarely tied directly to year-over-year changes in student enrolment), divisions that receive below inflationary increases may have to reduce services — like library hours or the number of teachers they employ — to balance their budgets.

The Opposition Tories were quick to point out the 3.4 per cent increase is far less than the six per cent boost the former PC government provided last year. However, Tory MLA Wayne Ewasko, interim leader of the official Opposition, failed to mention his government’s increase came after six years of austerity, which, in some cases, forced school divisions to cut services.

Still, since the 3.4 per cent increase does not apply to all divisions, not all schools will receive adequate funding in 2024-25

Meanwhile, Education Minister Nello Altomare also announced that school divisions will be allowed to raise education property taxes again, something they were not permitted to do under the previous government (unless they were prepared to forgo their provincial offset grants).

The reinstated tax authority will allow school boards to fill the funding gaps when operating grants fall short. However, it will also punish homeowners who live in parts of the province that have static or dwindling student enrolments.

All of which speaks to the need for a more stable and equitable way to fund public schools in Manitoba. The NDP says it plans to bring in a new funding formula next year, one that will be both modern and permanent. However, there are no details on what that formula will look like, including how much it will rely on student enrolment or local property assessments to determine funding levels.

A new funding formula is long overdue. The former PC government attempted to reform education funding during its time in office. But its unilateral approach, which included a plan to eliminate most school boards, faced widespread criticism and was ultimately abandoned.

The NDP should avoid that pitfall. It should consult with Manitobans, including all stakeholders in the education system, before implementing changes. Reforming education funding is important, but getting it right is critical.

The convoluted formula that has been used and tinkered with over the years has not served Manitoba students well. It has forced many school divisions to cut back on essential educational services and burdened homeowners in some parts of the province with unfair levels of taxation. Public schools in at-risk communities that rely disproportionately on provincial funding have been particularly hard hit.

It’s time once and for all for Manitoba to get its school funding formula right.