OCDSB projecting $3.5M ‘transitional’ deficit in 2026-27 under provincial supervision

The Ottawa-Carleton District School Board. (Tyler Fleming / CTV News Ottawa)

The Ottawa-Carleton District School Board is projecting a $3.5 million budget deficit in the next school year after a provincially appointed supervisor was hired to comb through the books of Ottawa’s largest school board.

The Ontario government appointed Robert Plamondon to oversee the school board in 2025 after four straight deficit budgets. Since his appointment, he has announced cuts to teaching jobs due to declining enrolment and non-teaching positions to reduce overhead.

Despite these measures, the board is still projecting a deficit next school year, which it calls “transitional,” and says would have been significantly higher without cost-saving exercises.

“By optimizing central administrative functions and reducing costs, the District avoided what would have been an $18.5 million deficit,” the OCDSB said.

“The Student Focused Resource Optimization Project, launched in December 2025, has yielded permanent operating savings of about $15 million… These include a 16 per cent reduction in the costs related to board directors and supervisory officers, and an overall reduction in board administration costs of 11 per cent.”

The board’s net accumulated deficit will rise to $12.5 million next school year. The OCDSB says it is exploring available mechanisms with the province to address this deficit.

The board says measures will be sought during the 2026-27 school year to reduce the deficit further, including attempting to increase enrolment and through selling unused facilities. It also says some savings will not be realized until later years, such as through the gradual phase-out of Elementary Alternative program, Middle French Immersion, and through the implementation of Early French Immersion in all community elementary schools.

Declining enrolment creating pressure

The OCDSB says declining enrolment caused by demographic changes and other factors is creating a new financial pressure over the prior year.

“Various reasons contribute to the decline including lower birth rates and limits on immigration,” the board says. “Having fewer students reduces the financial resources available to the Board because the funding model heavily relies on Average Daily Enrolment (ADE) as a primary factor in determining the amount of provincial grants provided by Core Ed funding.”

A report in April projected a drop of 766 elementary school students in the next school year, and 938 fewer secondary school students, though the board said part of the decline in secondary school enrolment is due to transitioning students over the age of 21 to the Continuing Education Day School Model.

The OCDSB anticipates an $8.5 million loss in provincial funding next year due to declining enrolment.

Despite this, the OCDSB is projecting a $12.9 million increase in year-over-year Core Ed funding, driven by provincial grants, additional transportation funding, and increased qualification and experience funding. Core Ed funding represents 87 per cent of the board’s total revenues.

The $1.255 billion budget for 2026-27 was approved June 30.

OCDSB CEO Stacey Kay said in an email to families that the budget includes new classroom investments, such as 21.5 new educational assistant positions, the opening of the new Brian Mulroney Elementary School this fall and ongoing work on a new secondary school in Half Moon Bay.

Education Minister Paul Calandra says the OCDSB will remain under supervision in September; however, elections will still be held for trustees this October.

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