TVDSB faces $32M deficit amid accusations of mismanagement and underfunding

For the next school year, Thames Valley District School Board is looking at a $32 million deficit. CTV London’s Reta Ismail has more details.

The Ontario government is calling it financial mismanagement. The Thames Valley District School Board (TVDSB) says it’s a funding shortfall. Critics say it’s both.

The debate follows the release of a report showing the TVDSB is now projecting a $32 million deficit for the 2024-25 school year, nearly double the initial estimate presented to trustees.

Ontario Education Minister Paul Calandra said he is disappointed by the board’s deepening financial problems, but insisted steps are being taken to restore accountability.

Back in April, the province appointed Paul Boniferro as supervisor of the board, citing concerns over financial irregularities. That decision followed an audit revealing a significant deficit and questionable expenditures, including a controversial senior administrative retreat.

Calandra said Boniferro is now working to restore fiscal responsibility and ensure funding is directed toward students and teachers in the classroom.

The TVDSB’s report, released Monday, outlines a long-term plan to eliminate the deficit. It stated that the board is in a “structural deficit position” due to an imbalance between revenues and expenditures.

“As such, difficult decisions and prioritization of resources are required,” the report read.

“TVDSB remains committed to prioritizing reductions that minimize impacts in the classroom.”

The board also said staffing reductions are expected due to declining enrolment, and surplus land sales will be considered to reduce the budget deficit.

Former board chair Beth Mai acknowledged the inappropriate spending in recent years, but said the underlying problem is chronic underfunding from the province.

“What happened this past year with the senior administrative retreat, for which funds were repaid, is indicative of inappropriate spending,” Mai said in a statement to CTV News.

She added that while the supervisor may be able to restore financial stability in the short term, a structural deficit cannot be resolved without increased provincial funding.

“The minister’s focus on school board ‘scandals’ whose financial implications pale in comparison to the province’s funding issues feels inauthentic, like a distraction from the root causes of school board funding crises, which lie squarely at his feet,” she said.

Critics say both the government and the board share blame for the current situation.

Education analyst and researcher Debbie Kasman said underfunding is a provincewide issue, but that’s only part of the story.

“There is also financial mismanagement by school board trustees and senior management, as well as a lack of oversight by the provincial government, which makes this problem extremely complex,” Kasman said.

She is calling for an overhaul of school board governance, including eliminating elected trustees and strengthening Parental Involvement Committees.

“These committees should continue to be mandatory in every school board, operate in an advisory capacity, and enhance parent engagement, student achievement and well-being,” she wrote.

The TVDSB report indicates further updates on the board’s financial recovery plan will be released in the coming months.