Fair Funding for Students
Underfunding + Increased Costs = Cuts to Education
View HDSB Fair Funding for Students Infographic
The HDSB provides education for approximately 65,000 students in 113 schools and learning centres across Halton. In the last two years the HDSB has made significant reductions to eliminate the structural deficit and address enrolment decline and funding limitations. Even so, we have budgeted for a $7.1 million deficit and are required by regulation to eliminate this deficit next school year (2026-2027).
To manage significant financial pressures, the HDSB has implemented cost-saving measures, with more reductions planned for the 2026–2027 school year. These changes are necessary to balance the budget within current provincial funding limits. A cautious approach to the 2025–2026 budget aims to contain costs while minimizing the impact on students, but system-wide adjustments are unavoidable.
While there is increased provincial funding for student transportation and temporary accommodations, other areas remain underfunded. Challenges include rising costs for supply staffing, increased employer contributions to CPP and outdated benchmarks for classroom technology and learning resources.
The 2025–2026 budget includes a $7.1 million deficit (0.83% of total funding), which will be covered by reserves, pending approval from the Ministry of Education. To help address these pressures, the proposed budget includes $9 million in reductions and the elimination of 90 staff positions. These changes will have a direct impact, including larger class sizes in some areas, reduced support for special education, and limited ability to maintain school buildings and renew classroom resources and technology.
Why We're Still Building Schools
Although overall student enrolment across the HDSB is declining, some communities within our region are growing quickly and need new schools. This creates funding challenges, as provincial funding is largely based on total enrolment – meaning fewer students overall can limit available resources, even when new schools are needed in high-growth areas.
Funding
Over the last few years, funding for the HDSB has not kept pace with costs. We have experienced challenges similar to other Ontario school boards:
- Inflation pressures and increased market costs are not reflected in the funding, with costs of contracted goods and services increased by approx. 50%.
- Federally mandated enhancements to CPP, which are not funded provincially, have caused increased costs of $6M for HDSB.
- The Core Education Funding formula has not changed in regards to Workplace Safety and Insurance Board (WSIB) benefits, while costs have tripled in the last six years.
- Funding for supply staffing has not kept pace with increasing costs of replacing staff on leaves.
- Rising costs associated with technology infrastructure, including broadband expansion and enhanced cybersecurity measures are not fully funded and funding has not kept pace with increased costs.
- The removal of top-up funding for school operations has resulted in a $2.6 million loss for the HDSB. This financial impact is further compounded by declining student enrolment, even as the costs to operate schools continue to rise.
Budget Pressures
The most significant areas underfunded by the Ministry compared to current needs include:
- Special education
- Student mental health and well-being
- Supply staffing costs (teachers and educational assistants)
- Federally mandated enhancements to CPP, as well as increased WSIB claim costs
- Learning resources, technology and IT infrastructure
How School Boards are Funded
The HDSB receives the majority of its funding from the Ontario Ministry of Education through the Core Education Funding. Most of this funding is restricted by mandated class sizes and staffing ratios, while other areas are designated by the Ministry to fund specific areas. The main areas where funding is restricted to specific use include: special education, student mental health and well-being, indigenous education, student transportation, temporary accommodations and capital funding. Learn more about how school boards receive funding by visiting the
Ministry of Education webpage.
Changes to how education is funded have affected the HDSB directly:
- Funding for special education has been reallocated provincially, with HDSB losing approx. $20M
- Top-up funding for school operations has been removed, resulting in $2.6M less for school operations
- $1.4M less funding for learning resources and classroom computers
- $1,147 less than Provincial average funding per student and $174 less funding per student than similar boards
Impact of US Tariffs and Economic Uncertainty
Recent economic uncertainty about tariffs and the restrictions on US procurement for the public sector may result in additional cost pressures, and Core Education Funding may not account for these cost increases. Chair Collard has issued a letter to the Ontario Ministry of Education drawing attention to the funding school boards will need to ensure the US tariffs do not negatively impact student achievement and well-being.
The evolving economic landscape and uncertainty about tariff implications is being reflected in discussions with vendors, as staff renew services and contracts. The HDSB has procured learning resources, software licenses, construction materials, furniture and equipment from the US, whether directly from a US vendor or through a Canadian distributor. At the April 1, 2025 Board Meeting, Trustees approved a motion directing the HDSB to give preference to Canadian vendors. On April 7, 2025 the Government of Ontario issued a Procurement Restrictions Policy, outlining restrictions on use of US-based vendors. School boards typically conduct a competitive procurement process and select vendors based on best value for money. There is a possibility that, with these restrictions, the cost of procuring goods and services will increase. Most non-compensation benchmarks in the funding formula have remained unchanged since 2008, while inflation alone increased over 40% in this time span.
What Can You Do?Share this information with other HDSB families and your school council.
Contact your local MPP about these areas of concern:
Contact Your Local MPP
Additional Information