Executive Summary


Investigation Report to the Minister of Education, Province of Ontario regarding the Ottawa-Carleton District School Board

August 6, 2002

I was appointed under the Education Act of Ontario to investigate the financial affairs of the Ottawa-Carleton District School Board ("OCDSB"), especially their proposed deficit budget for 2002-2003. I have performed the investigation in association with members of my firm. We met with most of the OCDSB's Trustees and many of the Staff, as well as officials at the Ministry of Education ("Ministry"). We reviewed written and oral submissions from the Trustees, and applicable OCDSB documents including those submitted to the Ministry.

In our opinion, based on the available data, an important portion of the 2002-2003 proposed budget deficit arises because of delayed or uneconomical decisions that were chosen by the majority of Trustees. Much of the Trustee inaction can be attributed to the group of Trustees who were elected in 2000. In recent years, OCDSB Staff have recommended many measures to improve efficiency which have not been accepted by the majority of Trustees. For example, Staff-recommended cost reductions to transportation and the closure of schools were not adopted, or at times even considered, by the majority of the Trustees. Overall, therefore, previous Trustee inaction on economy and efficiency proposals, such as school closures, have contributed significantly to the proposed 2002-2003 budget deficit.

A total of $141 million (of which $127 million was for operating funds) was provided to OCDSB by the Government of Ontario to transition from the previous to the new funding system in the Province. Much of the $127 million was not used for its intended purpose. As an example, Trustee funding allocations have given dollars to low-utilization schools, and transportation programs, for purposes that are not fully discernible. Reasons for many budget allocations by the Trustees have not been documented or well justified. Trustee decision effects or consequences to all of the OCDSB's students have not been communicated effectively to parents.

In essence, the majority of Trustees have literally self-inflicted their financial crisis of 2002-2003. Consequently, we are recommending to the Minister that control and charge over the administration of the affairs of OCDSB should be vested in the Ministry, in accordance with Division D of Part IX of the Education Act.

Cost savings are achievable and should have been pursued by all Trustees as part of their regular fiscal responsibility and accountability roles. A partial or complete presumption that a government will fund whatever some Trustees choose to spend is unlikely to be consistent with taxpayers' views.

Given that this report is being submitted less than one month before the OCDSB's schools are scheduled for opening, limited funding options and money decision choices are available. A balanced budget for 2002-2003 is attainable, but could result in some harsh consequences. For example, immediate large efficiency improvements would have to be made to transportation in order to balance the budget. Alternatively, the OCDSB could pursue other savings, but could be risking litigation for not having given sufficient notice to certain parties. These risks could have been avoided if Staff recommendations had been adopted in February 2002.

The granted three-year transition period to Ontario's new education policies should have been more than adequate to effect reasonable changes in OCDSB's programs. OCDSB Staff proposed a long-term, phase-in program to restructure the delivery of special education. Such a plan was not approved by the majority of Trustees. As a result, the changes to special education may now have to be immediate, instead of having been introduced over time.

Special education programs are an important part of the Province's education system. However, cost efficiencies that have been implemented successfully by other Boards have to receive consideration and evaluation for possible use by OCDSB.

In our opinion, for a variety of reasons, justification does not exist to simply have the government finance the proposed OCDSB deficit for 2002-2003. Trustees would not be motivated to effect obvious cost efficiencies if additional funding were provided. The Board of Trustees that was elected in 2000 has already demonstrated a different philosophy of education to the Province-wide legislation, and an unwillingness to accept many improvements in economy and efficiency. Taxpayers ought to be asked to furnish dollars when needed, but only after all reasonable cost improvements have been implemented. Education policy in Ontario specifies that education equity should exist across the Province. Consequently, the Trustees of the OCDSB ought to have judged their decisions in relation to other regions of Ontario. Any request for "special treatment" by OCDSB should be logical and well documented. We have not seen convincing documentation or rationale within the OCDSB for many of the Trustees' decisions.

Our mandate did not include an analysis of the Province's funding formula. That issue is currently under investigation. Our focus must be upon the 2002-2003 school year in total, and what has to be accomplished commencing in September 2002 to result in a balanced budget for 2002-2003. Now is too late to effect some of the cost efficiencies for September 2002, given possible legal implications and moral obligations. However, various cost savings procedures can be introduced immediately, to have effect in January or September 2003.

We have been able to identify certain cost improvements that can be legally implemented quickly, such as reductions to transportation, the number of schools, certain instructional service programs, and education centres. (See the Report's Appendices, especially D and E.) These immediate cost improvements could have previously been made gradually, over the past couple of years, and through effectively using the transition funding. As stated, Trustee procrastination could hinder transition.

Based on the evidence that we have seen, we are not convinced that the majority of the Trustees of the OCDSB, no matter how dedicated each may be, have voted decisively in the past two or more years to carry out attainable savings. The role of a Trustee of a School Board should involve balancing the interests of citizens of Ontario with the needs of students and parents in their school district.

Providing governance to a School Board with an annual budget of over one-half of one billion dollars requires financial skills and a willingness to make objective monetary decisions. Our investigations of the recent five years of financial data of OCDSB indicate that problems will recur unless governance changes are made. Our report provides some suggestions for improving governance and accountability. Specific education courses are needed for Trustees. However, more extensive oversight may be needed for the OCDSB. Guidance for Trustees is available in various documents, including the "Budget Speech" and "Budget Papers" from Ontario Budget 2001 and the technical papers thereto.