canada's approach to school funding

7/30/2019 Canada's Approach to School Funding

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Canadas Approachto School Funding

The Adoption o Provincial Controlo Education Funding in Three Provinces

Juliana Herman May 2013

WWW.AMERICANPROGRESS.O


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Canadas Approachto School FundingThe Adoption o Provincial Control

o Education Funding in Three Provinces

Juliana Herman May 2013

i l

i


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1 Introduction and summary

5 Background

7 Alberta

15 British Columbia

21 Ontario

29 Lessons: What can the United States learn from Canada?

33 Conclusion

35 About the author and acknowledgements

37 Appendix

41 Endnotes

Contents


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Introduction and summary | www.americanprogress.

Introduction and summary

Te academic success o Finland, Souh Korea, and ohers on recen inernaional

ess has sparked a renewed ineres among educaors and hose concerned wih

educaion policy in he Unied Saes in looking o oher counries or examples o

how we migh improve our educaion sysem. eacher raining and qualiy in lead-

ing counries has received a lo o atenion, bu we should also be paying atenion

o and rying o learn rom he way oher counries und heir schools. Many high-

achieving counries have atained greaer equiy in heir sysems o school nance,

and heir mehods and approaches can and should serve as examples or how U.S.saes could implemen more equiable unding schemes.

Specically, his repor looks a how our neighbor o he norh, Canadaa coun-

ry ha has consisenly preormed well on inernaional essunds is schools.

Several provinces have successully implemened school-unding sysems ha are

more equiable han hose in mos U.S. saes. o deermine how Canada has gone

abou designing a more equiable school-unding scheme, his repor ocuses on

hree provincesAlbera, Briish Columbia, and Onarioeach o which has

adoped provincial-level unding sysems ha aim o achieve greaer school-und-

ing equaliy and equiy. In hese sysems he provincewhich in erms o govern-

men organizaion roughly parallels he sae level in he Unied Saeshas aken

on ull responsibiliy or is own educaion unding.

Tis repor explores he design o hese hree provinces dieren school-unding

sysems. For each province, we look a where educaion dollars come rom; who

has he axing auhoriy; how school resources are allocaed and wheher ha

allocaion is more or less equiable; and wha oher educaion money is raised and

how ha migh impac he broader goal o equaliy and equiy o school resources.

A ew key ndings emerge rom his analysis:

Tese hree provinces have successully ransiioned rom a join provincial-

local unding sysem o a provincial-level unding sysema sysem ha has he

poenial o promoe a leas equaliy, i no equiy, in school unding.


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2 Center or American Progress | Canadas Approach to School Funding

Each province has aken a dieren approach o designing and implemening a

provincial-level unding sysem, which has included ailoring heir sysem based

on specic needs and prioriies. Tis is especially rue regarding he role and use

o local propery-ax dollars under he provincial-level unding sysem. Albera,

Briish Columbia, and Onario hus provide hree dieren models o how such

a sysem migh work.

Tere is a grea deal o exibiliy when i comes o deermining how much

power local boards and schools reain in erms o heir abiliy o raise local axes,

undraise, or charge school ees. o highligh his poin, in no case were schools

denied he abiliy o raise addiional unding, bu he parameers o ha varied

depending upon he province.

Each province mainains and reinorces a srong commimen o local conrol o

educaion. School boards, or he mos par, have he power over and auhoriy

o decide how o spend and allocae unding, despie he provincial-level undingsysem. School boards are eleced in Albera,1 Briish Columbia,2 and Onario.3

A provincial-level unding sysem may allow or more sable and predicable

school budgeing. Funding schools a he provincial level creaes a broader ax

base han he more radiional sysem ha depends on local propery wealh,

which has ineviable ye less predicable and oen very unevenly dispersed uc-

uaions in value and hus revenue.

Tese provincial-level unding sysems serve as a clear reminder o he key dis-

incion beween equaliy and equiy and underscore he ac ha how dollars

are allocaed is jus as imporan as he amoun and sources o unding.

Provincial-level unding sysems are no wihou drawbacks and are no a

oolproo plan or eiher sufcien or equiable school resources, bu hey may

oer a way o implemen a more equiable unding sysem and hereore are

worhy o sudy.

Saes in his counry should no be araid o underaking sysemaic unding.

Cerainly, here will be poliical and implemenaion challenges, bu a growingnumber o policymakers, voers, advocaes, eachers, parens, and sudens are

becoming dissaised wih he saus quo. Quesions o educaion governance and

school nance require boh bold hinking and innovaive acion.


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Introduction and summary | www.americanprogress.

I is imporan o noe ha his repor only looks a he mehod o unding school

disrics. I does no address he essenial quesions o how unds are disribued

o schools wihin a disric or he capaciy o he provinces or school boards o do

so. Ye or a sysem o be ruly equiable, i mus allocae dollars a all levels based

on suden needssomehing ha many school disrics ail o do in he Unied

Saes. Adoping a more equiable sysem o unding school disrics and evenmoving o a sae-level unding sysem would hus only be one elemen in creaing

and implemening a ully equiable school-unding sysem.4

Finally, we know ha adoping equiable unding sysems will no in isel lead o

equal educaional opporuniies, bu equiable school unding is an essenial acor

in creaing a sysem in which all sudens have access o a high-qualiy educaion

and hereore have he chance o achieve academic success.


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Background | www.americanprogress.

Background

For progressive educaion reormers, equiy in school unding means ha all

disrics and schools receive resources based on he educaional needs o heir

specic sudens. Wheher educaion unds are rom ederal, sae, or local govern-

mens, hey are allocaed based on he diering needs o sudens and no based

on he wealh o a disric or school. Some sudenssudens wih special educa-

ional needs or English language learners, or examplerequire more resources in

order o have equal educaional opporuniies. Wihou exra resources, such su-

dens are much less likely o be academically successul and o do well in odayschallenging and compeiive global economy.

Educaion expers such as Marguerie Roza5 and Proessor Bruce Baker6 have

documened specic shorcomings wih he curren school-unding sysem in he

Unied Saes. Tey poin ou ha mos saes have ailed o adop and imple-

men equiable unding sysems. Insead, over ime saes have cobbled ogeher a

pachwork sysem o unding schools whereby school disrics are unded by an

illogical and disorganized combinaion o ederal, sae, and local resources.

For schools and disrics across he counry, unding rom local sources makes up

abou 40 percen o all school resources.7 Te large majoriy o his unding comes

rom local propery axes. Tis means a disrics abiliy o raise money locally

depends on is wealh. In pracice, his means propery-rich disrics are able o raise

more money, oen wih lower ax raes, while propery-poor disrics sruggle o

raise he needed resources or educaion, even when employing higher ax raes. In

general, saes have adoped sae-unding sysems ha are aimed a [a]ccouning

or dierences in he abiliy o local public school disrics o cover hose coss o

raise educaion dollars, according o a 2012 CAP repor, Te Sealh Inequiies o

School Funding.8

Bu in mos cases, hese sysems have ailed o eliminae he grossinequiies in unding ha exis beween low- and high-wealh school disrics.9 As a

resul, many high-povery disrics and schools coninue o receive ewer sae and

local resources han heir low-povery counerpars, despie he documened need

or greaer resources in hose disrics and schools.


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Policymakers have spen decades o work and millions o dollars rying o reool

he exising sae-unding sysems in order o make hem equiable and o provide

resources o he sudens who need hem mos. Bu i is ime o recognize ha

simply puting paches on he exising hodgepodge mehod o unding schools

will no be enough. I a ruly equiable sysem is o replace he curren one, poli-

cymakers and advocaes need o rehink enirely how public schools in he UniedSaes are unded.

Forunaely, here is no need o sar rom scrach. Former Presiden Richard

Nixons Commission on School Finance and he Cener or American Progresss

Vice Presiden or Educaion Policy Cynhia Brown, or example, have boh pro-

posed ha, Sae governmens assume responsibiliy or nancing subsanially

all o he nonederal oulays or elemenary and secondary educaion wih local

supplemens provided up o a level no o exceed 10 percen o he Sae alloca-

ion.10 Tis proposal is no unlike he sysems implemened in Albera, Briish

Columbia, and Onario.

A litle background on educaion in Canada and in hese hree provinces: Unlike

in he Unied Saes, here is no ederal deparmen or minisry o educaion in

Canada. Te Canadian Consiuion gives exclusive power o make Laws in rela-

ion o Educaion o he provincial legislaures.11 Despie his provision, provin-

cial governmens have hisorically shared responsibiliy or unding schools wih

local municipaliies and school boards.

Over he pas ew decades, however, Albera, Briish Columbia, and Onario

hree o he our mos populous provinces12 wih suden populaions o a similar

size o hose in mos U.S. saeseach moved o a unique version o a provincial-

unding sysem. Tese provinces also happen o be Canadas rs-, second-, and

hird-ranked provinces on he 2009Program for International Student Assessment,

orPISA, reading secion, and would have been he h-, sixh-, and eighh-ranked

counries in he world13 i ranked individually. On he more recen Trends in

International Mathematics and Science Study, or IMSS, boh Onario and Albera

scored above average in mah and science or ourh grade, and saisically he

same or beter han he Unied Saes or eighh-grade mah and science.14 Teir

size, srong academic success, and unique approaches o unding make heminsrucive vehicles o sudy.

Les ake a closer look a each province in urn.


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Alberta | www.americanprogress.

Alberta

Albera has almos 600,000 public-school sudens, which is roughly similar in size

o each o he suden populaions in Oregon and Uah.15 Tese sudens atend

schools across 64 school boards wih an educaion budge o abou $5.5 billion.16

On he 2009 PISA, Albera was second in he world in reading and eighh in mah.17

Prior o is 1994 reorm eors,18 Alberas educaion-unding sysem was similar

o he sysems in many U.S. saes. Schools were unded hrough a combinaion

o local axes levied and colleced by municipaliies and revenue rom he pro-vincial governmen. Te Calgary Board o Educaion, or example, raised abou

40 percen o is revenues hrough he local ax base.19 Ye as he ormer Albera

Educaion Miniser Gary Mar explained, under his dual-unding sysem, he per-

suden amoun ha school boards had o spend was deermined by he wealh

o he local ax base, insead o by he needs o he sudens. As a resul, large

inequiies exised, said Mar.20

When he lae Albera Premier21 Ralph Klein came o power in 1993, his govern-

men underook a signican reorm o he educaion-unding sysemone ha

wen righ o he hear o unding inequaliy.22 I adoped a new sysem under which

he province would be responsible or providing all unding or Alberas schools.23

Te province would se he unding level and deermine he mehod o unding allo-

caion. Individual school boardswih he excepion o separae religious boards

would no longer raise general school unds hrough local axaion.24

Albera ook an innovaive approach in designing is new provincial-level unding

sysem. Te miniser o educaion deermines each school boards educaion-oper-

aing budge using he provinces allocaion ormula;25 boards hen receive his

unding allomen rom a combinaion o propery axes and general provincialrevenues.26 Overall, propery axes conribue abou 32 percen o he oal provin-

cial educaion budge.27 Te key disincion is ha under he provincial-level und-

ing sysem, local school disrics no longer se heir own propery-ax raes nor

do hey spend he money raised rom propery axes locally.28 Insead, under he


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provinces educaion saue, called he School Act, he Albera provincial govern-

men has he auhoriy o levy axes or school purposes;29 and he lieuenan gov-

ernor in council30 ses he propery-ax raes or he enire province.31 Tese raes

are uniorm across he province wihin a ax caegory bu may vary by caegory.32

o illusrae his poin, in 2012 he residenial and armland rae was 2.7 mills and

or nonresidenial propery i was 3.97 mills.33

Ineresingly, he provincial govern-men saes ha since assuming responsibiliy or educaion propery axes, he

province has cu residenial educaion propery ax raes by 64.7 percen.34

Alberas School Actrequires municipaliies o levy hese ax raes on all assess-

able propery,35 bu insead o urning he money over o school boards, he

municipaliies pay he money o he province. Specically, he money goes o a

newly creaed eniy called he Albera School Foundaion Fund, or ASFF.36 Te

und collecs all o he propery axes raised or school purposes in he province

and hen makes paymens o each school board on a per-pupil basis.37 Each

board hus receives he same amoun per pupil. Te amoun is deermined bysimply dividing he oal amoun raised rom propery axes by he number o

eligible sudens in he province.38

According o Alberas governmen, Pooling he educaion propery ax in he

ASFF ensures ha sudens receive a qualiy educaion regardless o heir munici-

paliys [propery] assessmen wealh.39 Or, as he Albera Minisry o Municipal

Aairshe provincial deparmen responsible or assising municipaliies wih

local governmenphrases i, he und creaes equiable unding or sudens no

mater where hey live.40 Logisically, propery axes could roll up o he provin-

cial level wihou being segmened ino a separae und, bu Albera specically

chose o creae he ASFF in order o allow or he separae accouning o educa-

ion propery ax unding.41 Te advanage o his approach is ha he separae

und provides ransparency o voers. Ofcials are able o ensure ha all propery-

ax revenue raised or school purposes is spen enirely on sudens.

Albera has radiional public school boards such as hose in he Unied Saes,

bu hey also have wha are called separae school boards.42 Tese separae

school boardsare, in essence, or public religious schools.43 Members o eiher he

Roman Caholic or Proesan aih can choose o orm a separae school board inorder o educae he children o heir aih.44 (Tough i here is sufcien space

and resources, any child regardless o aih may enroll in a separae school.45) In

Albera here are 17 separae school boards ou o a oal o 64 school boards.46

Tis covers abou 23 percen o sudens in public schools.47 Unlike radiional


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Alberta | www.americanprogress.

school boards, separae school boards are no required o paricipae in he

Albera School Foundaion Fund.48 Tey can insead choose o op ou and raise

par o heir operaion unding rom locally designed propery-ax sources.49

Heres how i works: I a separae board chooses o op ou, i requisiion[s]

and collec[s] propery ax money rom he municipaliies direcly and spendshose dollars direcly on is sudens, insead o deposiing hem ino he und.50

Tese dollars come rom axes on he propery o only hose who share he same

religious aih as hose o he separae school board.51 Tus, or example, a Roman

Caholic separae school board would be unded by propery axes paid by Roman

Caholics who live in he relevan municipaliy.

I an oped-ou separae school board receives less rom propery axes han he

per-pupil amoun i would have received i i had paricipaed in he Albera

School Foundaion Fund, hen he und ops o provides addiional money

ohe separae board o bring is propery-ax unding o he per-pupil amounreceived by every oher school board in Albera.52 Tis ensures ha he separae

school boards choice o paricipae in he und is a rue choice. On he oher

hand, i he separae school board receives more in propery axes han i would

have received rom he ASFF, he board mus pay he dierence o he und.53 Tis

ensures ha separae boards do no receive any nancial advanage rom oping

ou. All o Alberas separae school boards have oped ou o he Albera School

Foundaion Fund.54 Oping ou allows he religious communiy o use is dollars

o und is schools, poenially creaing a sronger sense o religious communiy.

Te Unied Saes, o course, does no have public religious schools, bu he separae

board sysem is a wis on he Albera school-unding sysem and hus provides an

alernaive model or a provincial-level unding sysem. I local communiies in a

sae eel srongly ha hey would like heir ax dollars o und primarily heir own

schools, raher han having ha money pooled, saes could se up a similar op-ou

sysem. Equaliy would be mainained by limiing he amoun per pupil ha disrics

could spend rom money raised locally o he same amoun ha he communiy

would have received had i paricipaed in he pooled sysem. Furher, disrics

would be required o direc o he sae pool any money hey raise in excess o he

amoun hey would have received had hey paricipaed in he sae pool.

On op o each school boards allomen rom he Albera School Foundaion

Fundor he propery axes raised locallyeach disric receives he res o

is operaing budge, as deermined by he provinces allocaion ormula, rom


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Alberas general revenue und.55 Te general revenue und is made up o income

ax, royalies, gaming, Federal ransers and invesmen income and oher rev-

enue sources.56

Alberas allocaion ormula is designed o equiably disribue provincial unding

o suppor he educaion o all Albera children.57

Te ormula has ve caegories:

1. Base insrucion unding

2. Addiional unding or dierenial cos acors

3. argeed unding or provincial iniiaives

4. Oher provincial suppor unding

5. Capial unding58

ogeher, hese caegories comprise abou 25 dieren educaion grans.59 Te

base insrucion unding is provided per pupil based on he sudens grade level

and or 10h- o 12h-grade sudens on he ype and number o course credis.60

Addiional unding is provided based on he addiional needs o he disrics

sudens or he disric as a whole.61 Te ormula, or example, akes ino con-

sideraion he socioeconomic saus o he suden populaion, he addiional

needs o English language learners, or he increased coss o operaing small

schools by necessiy.62

In conras o several sae-unding ormulas in he Unied Saes, in considering

socioeconomic saus he Albera ormula regards no only household income

or a basic povery measure, bu also oher acors such as he educaion o he

sudens mohers, he percen o single-paren households, homeowners, and

parens wihou possecondary educaion, and he rae o ransience o he suden

populaion.63 Te addiional unding is deermined a he disric level, no a he

school level, and hus is based on he disrics needs as a whole.64 argeed und-

ing is provided or hings such as suden healh or school improvemen.65

Albera does provide some public unding or privae schools. Abou 4 percen

o Alberas sudens, or 24,000 pupils, atend privae schools.66 Privae schools

classied as level 1 receive 60 percen o he base insrucion rae or school

jurisdicions, and level 2 schools receive 70 percen o he applicable grans.67


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Alberta | www.americanprogress.o

TAXES

SCHOOL-DISTRICT LEVEL

Property

PlebisciteLimit: 3 percent

of budget maximum

Schools

Fundraising

Provincial government

General revenueAlberta School

Foundation Fund

PeopleIncome taxes, corporate taxes, royalties,

investments, and gaming

Student fees

Alberta school-funding formulasets per-district amount

Sets per-pupil dollar amount(about 32 percent)

School district

SCHOOL LEVEL

PROVINCE LEVEL

Sets tax rates

School funding in Alberta


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o become a level 2 school and receive addiional unding, privae schools mus

agree o addiional accounabiliy requiremens dicaed by he provincial gov-

ernmen.68 Privae schools can also receive resources rom oher specic unding

grans.69 Bu public unding or privae schools only comes rom provincial general

revenues.70 Privae schools receive no propery-ax revenue.71

Alhough no direcly relaed o he equiy o he unding sysem, Albera has also

aken seps o increase he sabiliy o school unding and has hus improved he

abiliy o disrics and schools o budge successully. Te province has ried o

esablished a hree-year unding cycle or educaion, creaing sabiliy and predic-

abiliy so ha sudens, parens, eachers, suppor sa and school boards can

keep heir ocus on he classroom resuls ha mater mos 72 and make longer

erm plans or educaional programming.73

Despie changes in is school-unding sysem and he move o provincial-level

unding, he Albera educaion-governance srucure coninues o promoe localconrol and local decision making by individual school boards. School boards are

given a lo o exibiliy when i comes o how hey spend heir school-unding

allocaions. According o Albera school ofcials, approximaely 98 percen o

unding is exible, meaning school auhoriies have discreion o use he unds

o mee he needs o heir sudens, as long as he boards decisions are consis-

en wih Alberas School Actand oher sauory and regulaory requiremens.74

Even hough he province may deermine a boards oal school budge allocaion

hrough a complex unding ormula wih ve caegories and numerous subcaego-

ries, a school board iswih a ew excepions75no acually required o spend

he money i receives or a given caegory on only ha caegory. I is up o he

board o recognize he unique needs o is sudens and decide how o allocae

unds appropriaely o mee hose needs.

Te School Actdoes no srip school boards o all power o raise unds locally.

Te inen is o provide all he unding needed a he provincial level, bu boards

are sill permited o hold a plebiscie in order o ge approval o levy a special

school ax.76 Te School Actdoes limi he amoun his levy can raise o be a

mos 3 percen o he boards budge or he applicable year.77 Tis ensures ha

i a board does choose o raise money locally, he amoun does no signicanlyundermine he broader equaliy and equiy principles o he unding sysem.

Boards and schools are also permited o collec ees and o undraise, hough

only or specically permited purposes.78 Schools canno charge uiion ees or

residen sudens, or example, as public educaion mus be oered ree o charge.


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Alberta | www.americanprogress.o

Bu hey can charge ees or nonresidens or inernaional sudens and can charge

all sudens ees or alernaive programs, copies o suden records, early child-

hood services, ransporaion ees, coninuing educaion, insrucional supplies,

and maerials.79

Schools are also permited o raise unds o suppor exra services and acivi-ies, bu canno spend undraising resources on core iems.80 Te deniions

o hese erms and he boundaries creaed by heir limiaions are no immedi-

aely apparen and hus may creae an opening o undermine he equaliy in he

provinces sysem. For he 201112 school year, undraising, gis, and donaions

made up almos 3 percen o oal school revenues, while ees made up jus more

han 1 percen.81 As a whole, his is generally consisen wih he idea ha a und-

ing sysem migh allow up o a 10 percen variaion in unding levels no based

on dierences in needs and sill be equiable. Te acual impac on equaliy and

equiy, however, depends on he disribuion o hese resources among schools. I

a ew boards and schools raised he large majoriy o addiional unds while ohersreceived only small addiional amouns, his would be inconsisen wih he goal

o esablishing an equiable unding sysem.

Alberas unding reorm and curren sysem is no wihou criics. Proessors

Dean Neu o he Universiy o Calgary and Alison aylor o he Universiy o

Albera have noed ha he impac o Alberas new, more equiable provincial-

level unding sysem was no he same or all school boards.82 Aer he sysem was

reormed in 1994, some boards such as Calgarys saw a disproporionally greaer

reducion in per-pupil unding, relaive o he province as a whole.83 Tis criicism

is oen ound in discussions abou changing or even merely adjusing school-

unding sysems. Moving rom an inequiable sysem o an equiable sysem will

impac disrics dierenly depending on heir curren unding sysem and und-

ing levels relaive o oher disrics, bu he specic impac can be alleviaed by

careully designing a phase-in or unding changes ha mainains, a leas iniially,

curren unding levelsha is, one ha holds disrics harmless by mainaining

heir curren unding levelsor insead levels up all disrics. I is imporan o

remember ha he goal o an equiable unding sysem is ulimaely o provide

resources based on he needs o sudens, and i is hose needs, no curren und-

ing levels, which should drive uure resource allocaions.

In anoher paper, Neu and aylor along wih co-auhor Frank Peers, a proessor a

he Universiy o Albera, have also quesioned wheher he new unding sysem

acually reduced variance in unding across disrics. Teir analyses sugges ha


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he overall variabiliy o unding has remained abou he same under he new

unding mechanism.84 Bu aylor, Neu, and Peers poin ou ha he reason

or his may be ha he previous unding mechanisms did a reasonable job in

compensaing or he dierenial axaion capaciies o school disrics in Albera,

somehing ha researchers have ound no o be rue or many U.S. saes.85 I is

also imporan o noe ha variance in per-pupil unding is no inherenly bad. Inac, here oen is variance in an equiable unding sysem because in such a sys-

em hose sudens wih greaer needs receive greaer resources. Te key quesion

is he source o he variance: propery wealh or suden need?

As a nal cavea, i is no clear ha he acual moivaion behind Alberas unding-

sysem reorm was pro-educaion. Alhough he provinces miniser o educaion

saed ha one o he raionales or resrucuring was o provide more dollars or

he classroom,86 some believe ha he rue purpose o he reorm was o cu coss

and reduce he amoun spen on educaion by resricing he abiliy o school boards

o levy high propery axes.87 Te reorm package did include an approximaely12-percen reducion in educaion unding over a our-year period.88 Since a leas

2006, however, he province has increased overall unding by abou $1 billion. 89

Similarly, he Albera School Boards Associaion has poined ou ha he provin-

cial-unding allocaion deermines how unds are allocaed o school boards,

bu does no address he issue o wheher ha unding level is enough o mee he

needs o Alberas sudenshe amoun o money disribued is deermined by

he provincial governmens budge.90 I is cerainly possible o have an equiable

unding sysem ha ails o provide sufcien overall unding or schools, and he

wo issues mus no be conaed.


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British Columbia | www.americanprogress.o

British Columbia

Briish Columbia has jus more han 550,00091 public-school sudens enrolled in

1,600 schools across 60 school boards.92 For he 201112 school year, he prov-

ince spen more han $4.6 billion on educaion, excluding capial unding.93

Briish Columbia was one o he rs provinces o move o a provincial-level und-

ing sysem, insiuing he reorms in he early 1990s. Briish Columbias school-

unding sysem is similar o ha o Albera, embracing unding equaliy and

provincial-level responsibiliy or he provision o educaion resources.94 BriishColumbias School Actrequires ha all residen children mus be provided wih an

educaion ree o charge,95 and ha he goal o is unding sysem is o allocae

resources so ha sudens in all disrics have an equal opporuniy o receive

a qualiy educaion.96 Te province has generally succeeded in implemening

an enirely provincial-level unding sysem: For he 201213 school year, 94.4

percen o he oal budgeed revenue or Briish Columbias 60 school boards will

come rom he province.97 Te res will come rom sources such as uiion paid by

inernaional sudens, ees, and aciliy renal charges.

Te provincial governmen deermines he oal provincial educaion operaing-

gran level.98 Tis gran is hen allocaed o school boards using Briish Columbias

unding-allocaion ormula.99 Te provincial educaion grans are a combina-

ion o propery axes and general provincial unds.100 Te School Actgives he

provincial governmen he power o levy a school ax on propery and gives he

lieuenan governor in council he power o se ax raes.101 Tese propery raes

can vary among, and even wihin, school disrics and among ypes o propery,

wih he excepion ha here is a provincewide rae or nonresidenial propery.102

Tus, or example, in 2012 he propery-ax rae in Vancouverhe provinces

larges ciywas $1.3646 per housand dollars o valuaion, while he rae orAbbosordan hour awaywas $2.2716 per housand dollars.103 Mill raes

are deermined hrough a process ha considers propery value and densiy.

Vancouver has boh high propery values and high densiy, whereas Abbosord is

a mix o rural and ciy properies, and he values aren as high.


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Residenial propery axes und abou 13 percen o educaion coss, while

nonresidenial axes und abou 19 percen.104 Municipaliies collec hese axes

and hen urn hem over o he provinces miniser o nance.105 Unlike Alberas

sysem, however, Briish Columbia does no allocae propery axes separaely

rom he general revenue unds. Tey are allocaed ogeher hrough he unding-

allocaion ormula. While here is a specic propery ax known as he schoolax, i does no necessarily und only educaion or even direcly correlae wih he

unding or schools.

Briish Columbias allocaion ormula disribues operaing unds in hree chunks:

1. Basic allocaion gran, which comprises abou 80 percen o all provincial

operaing unding106

2. Grans based on unique suden needs, which comprise abou 12 percen

o unding107

3. Grans based on unique disric needs, which comprise abou 8 percen

o unding108

Note: Capital funding is provided through a separate grant.109

Under he heading o unique suden needs are addiional resources or he exra

needs o English language learners, or special-educaion services, and or vulner-

able sudens, he deniion o which includes, among oher characerisics, hose

living in povery, and hose rom single-paren homes and wih aduls who did no

graduae high school.110 Disric needs include, or example, small sizeless han

250 elemenary sudenslow or declining enrollmen, or he rural naure o he

disric.111 Te unding ormula also provides addiional resources o disrics wih

higher average eacher salaries relaive o he provincial average.112 Tis adjus-

men is no inherenly inequiable and in ac migh promoe equiy i is purpose

is o adjus or higher coss o living. Bu i in is implemenaion his provision

compensaes some owns or choosing o pay heir eachers more han oher

disrics or allows more experienced and hus higher-paid eachers o cluser in

some disrics by providing hose disrics wih he exra money needed or hoseeachers, he inclusion o his adjusmen migh undermine equiy.


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TAXES

Property

Local referendumLimited to funding select

education purposes


Provincial general revenue

PeopleIncome taxes, sales tax, corporate tax, and fees

About 32 percent

of total funding

School district

SCHOOL LEVEL

PROVINCE LEVEL

Sets tax rates


School-funding formula determines funding amount foreach district (94.4 percent total education revenue)

School funding in British Columbia


24/52


Te percenage o unding allocaed or each o hese hree chunks is imporan

because i shows ha he large bulk o unding is allocaed on he grounds o

equaliyhe same amoun or each suden, regardless o needs. Addiional

unding is provided based on suden and disric needs, bu considering he

research on he size o he addiional resource weighs needed or poor sudens,

he Briish Columbia sysem is no as equiable as i migh be. Ye even adopingan equal per-suden unding sysem migh be progress or many U.S. saes.

Similar o Albera, local conrol o educaion coninues o be prominen in

Briish Columbia, despie he provincial-level unding sysem. According o he

provincial Minisry o Educaion, boards decide how o allocae heir provin-

cial grans based on local spending prioriies.113 O course, school boards sill

have o ollow provincial laws and regulaions and, as is oen rue in he Unied

Saes, personnel and eacher-salary coss can consume a signican porion o

a disrics budge. School disrics may hereore no eel ha hey have much

conrol over heir budges. Tis, however, is he resul o acors unrelaed ohe ac ha he province employs a provincial-level unding sysem, and he

wo should no be unairly linked.

Also as in Albera, provincial-level unding and a ocus on equaliy and equiy

does no mean ha here is no variance in per-pupil expendiures among school

disrics. In he 201213 school year, Alberas average budgeed operaing expen-

diure per pupil was $9,092 in Canadian dollars, bu he range or disrics wih a

leas 500 sudens was rom $16,952 in he own o Haida Gwaii o $8,073 in he

ciy o Chilliwack. Moreover, only 21 o he 60 disrics are wihin $500 dollars

per pupil o he provincial average.114

Even wih he provincial-level unding sysem, school boards in Briish Columbia

sill have he power o raise money locally and rom local propery axes.115 Te

School Actallows boards o auhorize he holding o a local reerendum o raise

money or selec educaion purposeso provide or new programs, o enhance

exising programs[,] or addiional aciviies or sudens or or local capial proj-

ec iniiaives.116 Bu he School Actis very clear ha hese unds canno be use[d]

o und operaing decis.117 Reerendums are good or only one year and mus be

reapproved annually by voers or he addiional unding o coninue.118

Unlike inAlbera, here is no maximum amoun ha a school board can raise hrough a re-

erendum. Briish Columbia has insead chosen o proec is goals o equaliy and

equiy by resricing he use raher han he amoun o unds, much akin o wha

Albera does or ees and undraising. Ye despie he ac ha school boards have


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his reerenda power, his provision has rarely been used. According o Briish

Columbias 2012 o 2013 annual school disric budges repor, no school disric

has included revenue rom a school-reerendum ax in is budge.119

School boards, however, do appear o use heir power o charge eesin cerain

circumsancesand o undraise. According o he Briish Columbia eachersFederaion, he provincewide umbrella eachers union o which all public-school

eachers belong,120 in he 201011 school year, disrics raised $175.4 million

in school-generaed unds121abou 4 percen o he oal budge.122 More

signicanly or equaliy purposes, he op undraising disrics raised a oal o

$97,538,42655 percen o he oal amoun raisedwhile he botom 10 dis-

rics raised only $2,423,502, or 1.4 percen o he oal.123

I is imporan o recognize ha merely implemening an equal-unding sysem on

paper does no ensure his sysem is acually execued in any given year. During

he 201112 school year, or example, he provincial-unding gran included ahold-harmless provision.124 Tis means ha regardless o wha suden enrollmen

was in all 2011, or wha he needs o he sudens acually enrolled were, each

school board received a leas he same amoun in unding as i received in all

2010.125 Such hold-harmless provisions can be essenial or sabiliy when imple-

mening a new unding sysem or in he wake o signican and unanicipaed

changes in disric composiions; ouside o such special circumsances, however,

hese provisions can undermine he principle ha educaion unds be allocaed

based on he needs o sudens. Tis is paricularly rue i he legislaure has

allocaed a limied amoun o money or a given year; a hold-harmless provision

in his case can ake resources away rom he sudens who need i he mos. Tus,

even hough Briish Columbia seems o have adoped a more equiable unding

sysem or he 201112 school year, is acual implemenaion may have been less

equiable han appearances sugges.126

I is also imporan o noe ha Briish Columbia spends less on educaion in

general han he res o he counry. In a 2012 documen, he Briish Columbia

eachers Federaion oulined how he province has allen behind he res o

Canada in erms o school-unding levels. According o he ederaion, he

province ranks las among Canadas 10 provinces in operaing expendiures,oal expendiures, and oal expendiures per suden and per capia.127 Briish

Columbia also ranks 9h ou o he 10 provinces in he percen o is gross domes-

ic produc spen on educaion.128 Tis highlighs a key disincion beween he

mehod o allocaing unding and he level o unding, boh o which are essenial


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o ensuring sudens have he resources hey need o succeed. Tere are, however,

wo imporan caveas. Firs, i can be hard o compare sheer expendiures across

provincesas i is across saesbecause here are dierences in cos o living,

among oher variaions, and poenially dierences in how educaion coss are

caegorized and couned. Second, spending unding more producively may lead

o, and hereore allow or, lower levels o overall unding, while sill providing heresources ha each school needs.


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Ontario | www.americanprogress.o

Ontario

Onario has he larges number o sudens in public school o any Canadian

province. Wih more han 2 million public-school sudens, is school sysem is

larger han hose o 45 saes and he Disric o Columbia.129 For he 201213

school year, Onario spen more han $20 billion on educaion.130 Despie is large

suden populaion, Onario has consisenly perormed well on inernaional

ess, including he 2009 PISA.131

Beore Onarios educaion-unding-sysem reorm eors in 1998, school boardswere unded hrough a join provincial-local unding sysem. Boards had he

power o se and levy local propery axes.132 Tis allowed boards o raise addi-

ional revenue above and beyond he provincial allomen, and boards cerainly

exercised his opion.133 As a resul, as seen elsewhere, here was inequiable

variaion in he spending by school boards, variaions ha ranged rom $4,723 o

$9,148 per pupil.134 Boards wih richer propery-ax bases, paricularly commer-

cial propery-ax bases, were able o raise and spend more han ohers.135 Similar

o U.S. saes, he province provided addiional grans o poorer school boards in

order o ose he dierences in propery-ax wealh, bu hese grans were only

paid up o a se per-pupil ceiling.136 I was a ceiling ha propery-rich owns ar

exceeded hrough locally raised unding and hus he provinces equalizaion-gran

measure ailed o curb he educaion-unding inequiy.137As R.D. Gidney, auhor

oFrom Hope to Harris, a book deailing changes o Onarios school sysem,

reminds us, Te excessive reliance on local ax wealh ha[d] lead o unaccep-

able dierences in programs and services across he province.138 As a provincial

educaion-nance commission explained a he ime:

[W]e have stressed the importance of equality of educational opportunity in

Ontarios education system Having looked at the distribution of wealthamong school boards in terms of taxation revenues we have become acutely

aware of wide disparities Fairness is the key and that mean[s] the abil-

ity to provide a fair share of the available resources to each pupil, irrespective

of location of residence.139


28/52


o address hese inequiies, Onariowhich a he ime was led by he ory con-

servaive governmen o Mike Harrismoved he province o a provincial-level

unding sysem. Tese eors were ulimaely par o a package o larger educa-

ion-reorm eors sared in 1995. Tough Onarios school-unding sysem

similar o ha o is counerpars in Albera and Briish Columbiaemploys

equaliy and equiy principles, i works slighly dierenly han he sysemsin hose provinces. Akin o oher provinces, school boards in Onario los he

radiional power o raise signican amouns o educaion unding by seting and

levying local propery axes. Tis power was ranserred o he provincial govern-

men. Bu unlike in he oher provinces, Onarios boards acually los all power o

raise any unding rom local propery axes. Tey do no have he power o hold

a plebiscie such as in Albera or a reerendum such as in Briish Columbia.

Each school boards operaional-unding level is deermined by he Onario

miniser o educaion using he provincial-unding ormula.140 Similar o he oher

provinces, his unding comes rom a combinaion o propery axes and provin-cial general revenue.141 Te provincial governmen ses he propery-ax raes and

local municipaliies levy ha rae. Bu unlike in he oher provinces, he educaion

propery axes are no passed on o he provincial governmen; insead, revenue

colleced rom axes on local propery is spen by he local school disrics.142

Placing he power o se he local propery-ax raes in he hands o he provin-

cial nance miniser insead o in he hands o he local school board means ha

he provincial governmen deermines how much money each disric has o

spend rom propery ax dollars.143 Tis process allows Onario o implemen he

principles o equaliy and equiy by seting he ax raes o ensure ha he amoun

o revenue raised locally is a mos equal o, i no much less han, he boards

operaional-unding allocaion. Under his sysem, disrics receive varying per-

cenages o heir unding rom propery axes, wih propery-rich disrics geting

a high percenage o oal unding rom propery axes, bu he oal amoun o

money received by a school disric is he amoun se by he provincial-unding

ormula and hus i has greaer poenial o be air and equiable. As Onarios Fair

ax Commission explained, giving he provincial governmen he responsibiliy

or seting educaion propery-ax raes a he provincial level and hus he abiliy

o conrol he amoun o money raised locally, combined wih he removal o localaxing auhoriy ensure[s] ha [public] pressure is kep on he provincial govern-

men o mainain a realisic level o ormula unding or educaion, or all school

disrics in he province.144


29/52


Onario regulaes how much is raised by each localiy, which enorces and ensures

educaion unding equaliy and equiy, bu he specic design o is sysem also

allows localiies o spend heir own ax revenues on heir schools. Te later prin-

ciple, spending local unding locally, is oen perceived as an essenial elemen o

local conrol over and invesmen in educaion. Local communiies can coninue

o eel invesed in heir schools because hey know heir ax dollars direcly undheir schools.

Seting he propery-ax raes a he provincial level also allows he province o

regulae he oal percenage o educaion unding ha comes rom propery

axes, since whaever is no raised rom propery axes is paid rom he provinces

general revenue undswih a ew addiional adjusmens or oher revenue

sources. Overall, Onario has made he decision o reduce he percen o unding

ha comes rom propery axes. When he reorm was inroduced in 1998, or

example, he province cu residenial propery axes by hal, amouning o $2.5

billion in savings, and replaced his unding wih general revenue unding.145

Tese provincially se ax raes can vary among, or even wihin, school disrics

and or dieren classes o propery, bu here is a uniorm ax rae or all resi-

denial propery and anoher uniorm rae or all arm propery.146 In 2012 he

residenial-propery ax rae was 0.221 percen o he assessed value o he prop-

ery, while each school disric had dieren raes or business properies.147 Te

local municipaliy levies hese ax raes and hen urns he unds raised over o he

applicable school board, wheher i is o a public school board or o a separae reli-

gious school board.148 As is he case in Albera, propery in Onario can be axed

separaely o und a separae school board, and in hese cases, unds are urned

over direcly o he separae board insead o being given o he general public

school board.149 A member o he Roman Caholic aih, however, is no required

o allocae his or her propery-ax dollars o he Roman Caholic school board;

insead, hese propery owners and enans can choose o direc heir propery-ax

dollars o any board in heir geographical area.

Te provincial minisry o educaion deermines he specic amoun o general

revenue unds ha a disric receives by subracing rom each school boards

oal unding allocaion he amoun received rom local propery axes, uiionees rom cerain classes o sudens, and expenses saved due o srikes.150 Tus,

general revenue unds bring he oal or each board up o he amoun se ou by

he unding ormula.151 Tis revenue comes rom he consolidaed revenue unds,

which have several sources, including personal income ax, personal income-ax


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surcharges, corporae income ax, excise and sin axes, resource-exracion axes,

axes on esaes and capial gains, licensing, general sales ax, and payroll axes.152

In 1998 Onario, as par o is larger educaion-reorm package, underook a

signican consolidaion eor153 ha resuled in he provinces 2,051,865 su-

dens being governed by only 72 school boards, down rom 129, o which only31 are English public boardshe ype o board mos akin o hose in he Unied

Saes.154 Since he reorm, Onario now looks more like Florida, which has 75

school disrics or is 2.6 million sudens and less like he sae o New York,

which has 727 school disrics, even excluding charer schools, or is 2.7 million

sudens.155 Te smaller number o boards may impac he logisical elemens

o implemening and running a provincial-level unding sysem, making such a

sysem easier or some saes han ohers.

Much akin o he unding ormulas o Albera and Briish Columbia, Onarios

unding ormula allocaes resources in hree broad caegories:156

1. Basic unding or general coss such as sa salaries, exbooks, classroom com-

puers and oher supplies

2. Funding or he unique needs o sudens and disrics such as English language

learners, special educaion services, and remoe or rural schools

3. Capial unding

Noably, Onario breaks is basic unding gran down urher ino a gran or suden

cosshe Pupil Foundaion Gran, which covers classroom eachers, exbooks,

supplies, and library services, among oher hings; and a gran or school adminisra-

ive and leadership cosshe School Foundaion Gran, which covers he salaries

o principals, vice principals, school secrearies, and he cos o ofce supplies.157

Te disincion beween hese wo grans is signican. School boards can spend

School Foundaion Gran unds on coss ha would oherwise all under he Pupil

Foundaion Gran, bu hey canno do he reverse. Pupil Foundaion Gran unds

canno be spen on expendiures ha qualiy as school adminisraive and leadership

coss. In addiion, he Pupil Foundaion Gran is a per-suden allocaion based onhe boards average daily enrollmen and is no based on he oal enrollmen.158 Te

use o he average daily enrollmen can adversely impac disrics ha have less con-

sisen atendance o heir sudens, reducing heir unding even hough he disric

is sill responsible or educaing all o is enrolled sudens.


31/52


TAXES


Property

Schools

Fundraising

Provincial general revenue

PeopleIncome tax, corporate tax, sales tax, and licensing

Student fees

Provincial funding formuladetermines the amount of funding

each school board receives

School district

SCHOOL LEVEL

About 37 percent of total funding


Sets tax rates

PROVINCE LEVEL

School funding in Ontario


32/52


For he 201213 school year, he Pupil Foundaion Gran makes up abou 45 per-

cen o Onarios oal gran allocaions wih special grans or unique needs mak-

ing up anoher 44 percen and he reshe remaining 11 percenspread across

he School Foundaion Gran and a Deb Service Gran.159 Te specic deails o

hese grans and he ormulas used o calculae hem are beyond he scope o his

repor, bu hey are, o say he leas, complex.

Despie his complexiy in unding-level deerminaion, Onarios provincial-level

unding sysem, as in oher Canadian provinces, coninues o give school boards

he power and exibiliy o decide how o spend heir resources. According o

he ofce o Onarios minser o educaion: Boards use [he] money [provided

by he province] o make he local decisions needed o educae heir sudens.160

Tese decisions, o course, mus be consisen wih OnariosEducation Actand

oher relevan regulaions and memoranda.161 Tere are some blocks o unding

ha are allocaed or specic purposes and mus be spen on hose purposes, bu

his impacs only a small percenage o unding. For example, disrics mus meecerain class-size arges, and are no permited o spend more money on board

adminisraion or governance han allocaed under ha specic gran, while he

special-educaion gran mus be spen on special-educaion services.162

School boards in Onario, unlike boards in Albera and Briish Columbia, do no

have he power o raise money rom local propery axes, having been sripped o

his power enirely. Bu Onarios boards and schools are permited o charge ees

and engage in undraising in limied circumsances and or cerain purposes. Te

Onario Minisry o Educaion recenly released guidance or boards on hese

purposes.163 Under hese guidelines boards are permited o charge all sudens

ees or enhancemens or supplemenary-learning maerials beyond he core

curriculum.164 Te guidelines make clear ha here should be no ees charged or

day-school programs.165 Moreover, he ees levied by boards mus be consisen

wih he boards mission and values, and hey mus be volunary.166 Sudens mus

be able o paricipae in school aciviies and evens regardless o heir abiliy o

pay or hem.167 Te guidelines also recognize ha addiional parenal suppor o

sudens can come in orms oher han jus money, bu also in ime voluneering

in classrooms, which raises a dieren kind o inequiy issue.168 Ineresingly, he

guidelines consider Advanced Placemen, or AP, courses as opional program-ming or which a ee can be charged.169


33/52


Te undraising guidance species ha []unds can be raised or a paricular

school or on a board level.170 Funds, however, canno be used o replace public

unding or educaion or o suppor iems unded hrough provincial grans,

such as classroom learning maerials, exbooks and oher specic purposes.171

ogeher, ees or enhancemensprograms and services beyond sandard

public educaionand undraising eors can produce a signican amoun ounding or disrics and schools. As is he case in oher provinces, his abil-

iy o raise ees creaes he possibiliy ha some schoolsmos likely richer

schoolswill raise more revenue han oher less well-o schools, hereby

undermining equiy. Bu he degree o inequiy depends on how much money is

raised and wheher i amouns o a signican percenage o he schools provin-

cially approved operaing budge.

Onarios sysem has ulimaely achieved scal neuraliy, as under is educaion-

unding sysem here is no relaionship beween educaional-spending per pupil

and local-propery wealh per pupil, according o a repor in heAlberta Journal ofEducation.172 Tis should be he goal o all educaion-unding sysems and some-

hing o which U.S. saes should aspire in designing heir sysems. Sill, he poin

remains ha unding equiy requires he equiable disribuion o resources down

o he school level and no jus o school boards. Tis is an area where Onario sill

needs o improve beore i can consider isel as having a ruly equiable educa-

ion-unding sysem.


34/52


35/52

Lessons: What can the United States learn rom Canada? | www.americanprogress.o

Lessons: What can the United

States learn from Canada?

Tere are seven key lessons ha he provincial-level educaion-unding experi-

ences o Albera, Briish Columbia, and Onario have or U.S. saes looking o

reorm heir school-unding sysems.

Firs, he mos signican akeaway rom he Canadian experience is ha a provin-

cial- or sae-level unding sysem can work successully o creae equiy and no

jus in small saes such as Hawaii. Onario has a very large suden populaion

more han 2 millionand has successully implemened such a sysem.

Second, hese hree provinces were able o successully ransiion rom unding

sysems ha looked more like hose o U.S. saeswhere local boards se ax

raes and raised some porion o unds locallyo a sysem unded a he provin-

cial level wih greaer equaliy, i no oal equiy. Tis conversion debunks he idea

ha sysemaic change in school unding is no possible and ha we are simply

suck wih he saus quo.

Tird, on a more echnical level, hese hree provincial examples show ha here

are several dieren models or implemening a provincial- or sae-level unding

scheme. In each case, he provincial governmen ses he propery-ax raes and

makes up he remaining unding gap wih general revenue unds, bu wihin his

general ramework, provinces decide which specic approaches work bes or

hem based on heir prioriies and goals. U.S. saes could do he same. I saes, or

example, adoped a sae-level unding sysem and se he ax raes or educaion,

hey could decide wheher propery axes coninue o comprise a large porion o

educaion unding or insead would make up only small porion o ha unding.

Saes could decide wha happens o he propery axes ha are raised: Do hey

roll up ino a separae und as is he case in Albera, and i so, is here an opion oop ou? Or are he unds raised and spen locally as is he case in Onario? Is here

even a separae propery ax or educaion purposes, or, ollowing he example o

Briish Columbia, are propery axes unneled ino he general revenue und and


36/52


used o suppor a range o provincial services? Are ax raes consisen across he

sae or do hey vary based on geographical locaion and/or propery ype?

Tese examples show ha here is also a lo o exibiliy when i comes o deer-

mining how much power local boards and schools migh reain in erms o heir

abiliy o raise local axes, undraise, or charge school ees. Te ourh lessonCanada can each us is ha saes could decide wheher local boards have he

power o raise money; he amouns ha could be raised; he mechanisms by

which hese unds migh be raised such as propery axes, reerendums, ees, and

uiion; and he purposes or which hese unds could be used. Saes could have

he opion o implemening an overall amoun ha could be raised or o seting a

percenage caphe approach used in Alberaor saes could simply limi he

addiional unding raised or specied purposes. I he later, saes would have

he abiliy o dene wha hose purposes are and o make decisions abou how

careully and prescripively such purposes are dened and laid ou in governing

regulaions, or alernaively in nonbinding guidance.

Tese are very imporan decisions or a sae o make, as i is cerainly possible o

imagine equaliy and equiy being subsanially undermined i wealhier schools

engage in signican undraising eors ha poorer schools are simply unable o

mach. Tis is a prevalen phenomenon in U.S. schools oday. Even under ormer

Presiden Richard Nixons Commission on School Finance and he Cener or

American Progresss Cynhia Browns proposals, schools would be permited o

raise up o 10 percen o heir sae-deermined budges rom local sources. Tus,

here is cerainly leeway in wha i means o undermine equiy. I canno be over-

looked ha boards in he hree provinces, even when given he laiude o raise

addiional dollars, have no always exploied his power. School boards in Briish

Columbia, a leas or he 201213 school year, chose no o include in heir bud-

ge resources rom local undraising, despie being permited o raise such money.

I is unclear wheher school boards in he Unied Saes would make he same

decision and dieren boards migh make dieren choices, based on, or example,

prioriies or nancial abiliy.

Fih, a consisen heme o each provincial-unding sysem is ha while unding

may be provided a he provincial level, here is a srong commimen o localconrol over educaion. School boards decide how o spend and allocae he large

share o unding based on he boards local needs and prioriies. Tis is rue even

hough he ormula may allocae unding wih a specic purpose in mind based on

a complex lis o acors. Tere are some resriced unding sreams, much akin o


37/52

Lessons: What can the United States learn rom Canada? | www.americanprogress.o

caegorical educaion grans in he Unied Saes, bu hese are he excepion and

no he rule. Considering he naure o he U.S. educaion-unding sysem, school

boards in hese Canadian provinces may in he end acually have more local ex-

ibiliy and conrol over how o spend heir unding han some or many school

boards in he Unied Saes.

Sixh, in addiion o equaliy and equiy in school unding, a provincial-level

unding sysem oers he chance or a sae o do wha Albera has ried o do and

provide disrics wih a sable and predicable level o educaion unding by esab-

lishing a muliyear school-unding cycle. Funding schools enirely a he provin-

cial level creaes a signicanly broader ax base, boh in erms o propery-derived

and general revenue resources, which allows he province o make longer-erm

commimens. Sabiliy and predicabiliy in unding can be essenial or disrics

and schools in erms o making hiring and resource-allocaion decisions. Tis,

o course, similar o unding ormulas generally, depends on provincial ollow-

hrough. Sabiliy is only acually creaed i Albera sicks o he unding cycle ilays ou; i is possible or such commimens o be more rheorical han real.

Te sevenh and nal akeaway is ha hese hree provincial approaches clearly

demonsrae ha here is an imporan disincion beween equaliy and equiy.

Te unding ormulas employed by Albera, Briish Columbia, and Onario seem

o do a good job o achieving equaliy in unding, allocaing large chunks on a per-

pupil basis, bu i is less clear wheher hese unding ormulas are ully equiable.

In Briish Columbia, or example, he basic allocaion gran, which is in essence

a per-pupil gran, comprises 80 percen o he oal provincial-operaing und-

ing gran while he unding allocaions based on he unique suden needshe

equiable undingis only 12 percen. Proessor Joe Garcea and Dusin Munroe

o he Universiy o Saskachewan commened:

How much it has enhanced equity, however, is open to question. Given that the

funding formulas are based largely on a per-student basis, it may be more accu-

rate, appropriate, and prudent to say that there has been an increase in the level

of equality rather than the level of equity per se. 173

I would be remiss no o poin ou ha provincial-level or sae-level unding sys-ems cerainly have limiaions and poenial drawbacks. Te success o a provin-

cial- or sae-level sysem, or example, depends on having a solid unding ormula

and sufcien unding levels so ha all schools acually receive he resources hey

need o educae heir children. Equaliy and even equiy in unding speaks o he


38/52


mehod o unding, no o he amoun. Choosing o und a he provincial level

means ha he amoun o unding is a he whim o voers in he province as a

whole, raher han o a smaller geographical subse o voers as is he case in a

municipaliy or school disric. Tis broader pool o voers may no have he same

commimen o educaion as some smaller groups do i allowed o make heir own

scal-eor deerminaions. Harvard Universiy proessors Jal Meha and RoberSchwarz believe ha Canadasand specically Onariosacademic success is

due in par o a srong culural commimen o educaion or all children:

[]here is a broadly shared norm ha sociey is collecively responsible or he

educaional welare o all o is children.174

A caveat

Canada, similar o he Unied Saes, is a large, geographically dispersed, and

culurally heerogonous naion.175 Bu is level o child povery is almos hal heUnied Saes12 percen compared o 22 percen176and povery in he Unied

Saes is oen concenraed in cerain school disrics and schools, which oen

magnies he eecs ha povery can have on suden achievemen.177 Te level o

income inequaliy in Canada is also less han i is in he Unied Saes, paricularly

in he case o disposable income, hough inequaliy in boh counries exceeds

he average among Organisaion or Economic Co-operaion and Developmen

counries.178 Tese dierences may mean i will be more challenging or he

Unied Saes o adop and execue a school-unding sysem similar o Canadas

provincial-level unding sysem.


39/52

Conclusion | www.americanprogress.o

Conclusion

Te Unied Saes can learn a lo rom he educaion sysems in oher counries,

and in he case o school nance, U.S. sae governmens have a lo o learn.

Albera, Briish Columbia, and Onario, he hree Canadian provinces explored

in his repor, provide models highlighing how one ype o educaion-unding

sysema provincial-level sysem, or in he Unied Saes, a sae-level sysem

migh work. Tis model is jus one way and cerainly no he only way o imple-

men a more equiable mehod o unding schools.

Ulimaely, wha maters mos is ha all schools receive he resources hey need

o successully educae heir sudens. Te curren sysem in mos U.S. saes

a join local-sae unding schemehas oen ailed o achieve his goal, even

aer years o improvemen eors and numerous reorms. When he saus quo

isn working, despie repeaed atemps o x he siuaion, i may be ime o ry

somehing new.


40/52


41/52

About the author and ack nowledgements | www.americanprogress.o

About the author

Juliana Herman is a Policy Analys wih he Educaion Policy eam a he Cener

or American Progress, where her work ocuses on school nance and governance.

Juliana received her law degree rom Yale Law School and her bachelors degree in

poliical science and American hisory rom he Universiy o Pennsylvania.

Acknowledgements

Tis paper is par o a larger muliyear projec on governance conduced

in parnership wih he Tomas B. Fordham Insiue, which evaluaes he

governance arrangemens o our naions K-12 educaion sysem and how hey

may be improved. We hank he Fordham Insiue or heir houghul review and

commens. We also graeully acknowledge he Eli and Edyhe Broad Foundaion

or heir sponsorship o his publicaion and heir ongoing suppor o oureducaion programs.

Te auhor would like o hank Proessor Scot Davies o McMaser Universiy;

Dave Duerksen o he Funding & Compliance Branch a he Briish Columbia

Minisry o Educaion; Michael Fullan, proessor emerius a he Universiy o

orono; Proessor Daniel Lang o he Universiy o orono; Ian Henderson

o he Educaion Finance Branch a Onario Minisry o Educaion; George

Lee and Brad Smih o he School Finance Branch a he Albera Minisry o

Educaion; Proessor Ben Levin o he Universiy o orono; Gordon R Tomas

o he Albera eachers Associaion; and Proessor Charles Ungerleider o he

Universiy o Briish Columbia or all heir experise and help reviewing dras.


42/52


43/52

Appendix | www.americanprogress.o

Appendix

Education in three provinces

Province Year of reform Student population Number of school boards

Alberta 1994 593,677179 64180

British Columbia 1993 564,530181 60182

Ontario 1998 2,051,865183

72184

Provincial-level funding systems

ProvinceWho sets fund-

ing level?

Who sets property-

tax rates?

What makes up the funding

allotment?

Local fundin

authority?

Alberta ProvinceProvincial lieutenant

governor in council185

Property taxes and general provincial rev-

enues (income tax, royalties, gaming, ederal

transers, investment income, and other

revenue sources)186

Yes; districts and

schools

British Columbia Province

Lieutenant governor

in council

General revenue unds, o which

some are property taxes

Yes; districts and

schools

Ontario ProvinceProvincial nance

minister

Property taxes and provincial general revenue

(including personal income tax, personal

income-tax surcharges, corporate income

tax, excise and sin taxes, resource-extraction

taxes, taxes on estates and capital gains,

licensing, general sales tax, and payroll

taxes)187

Yes; schools

No; districts

Education property taxes

ProvinceWho sets property-

tax rates?

Can the

rates vary?

What way do the

rates vary?

Where do local prop-

erty-tax dollars go?

Percent o

cation fun

AlbertaProvincial lieutenant

governor in councilYes

Uniorm across the

province within a tax

category, but may vary

by category188

Roll up to the Alberta

School Foundation Fund32 percent1

British ColumbiaLieutenant governor in

councilYes

Vary among and within

school districts and

among types o property;

but there is a province-

wide rate or nonresiden-

tial property190

Municipalities collect these

taxes and then turn them

over to the provinces

minister o nance. They

are then deposited into

general revenue unds

32 percent1

OntarioProvincial nance

ministerYes

Vary among and within

school districts andor dierent classes o

property, but there is a

uniorm tax rate or all

residential property and

derived rom that rate,

or all arm property192

Spent by the local district 37 percent1


44/52


Alberta funding formula

Categories of operational funding Description Amount in 2012-20

Base instruction undingPer pupil based on the students grade level and or 10th- to 12th-

grade students on the type and number o course credits$3,853,471,000

Additional unding or dierential cost actors

Based on the additional needs o the districts students or the

district as a whole, or example, socioeconomic status o the

student population or the increased costs o operating necessarysmall schools

$1,658,729,000

Targeted unding or provincial initiatives Specic programs such as student health or school improvement $78,802,000

Provincial total operating budget $5,591,002,000British Columbia funding formula

Categories of operational funding Description Amount in 2011201

Basic allocation grant About 80 percent o provincial-operational unding196 $3,642,882,790

Grants based on unique student needs

About 12 percent o unding; additional resources or the extra needs o

English language learners, or special education services, and or vulnerable

students, considering poverty, those rom single-parent homes, crime, and

adults without a high school diploma

197

$539,079,610

Grants based on unique district needsAbout 8 percent o unding; small size, the rural nature o the district, districts

with higher average teacher salaries.198$342,806,523

Other grantsHoldback allocation, enrollment-decline protection, ormula transition, and

unding protection$107,840,997

Provincial total $4,632,609,920

Ontario funding formula

Categories of operational funding Description Amount in 201220

Basic undingAbout 45 percent o unding; or general costs, such as sta salaries, textbooks, class-

room computers, and other supplies200$9,777,100,000

Funding or the unique needs o students

and districts

About 44 percent o unding; such as English language learners, special education

services, and remote or rural schools201$9,254,400,000

School oundation grant About 7 percent or school administrative and leadership costs202 $1,404,900,000

Provincial total $20,436,400,000


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Appendix | www.americanprogress.o

Local funding authority

Province

Can districts

raise money

locally?

Restrictions?Can schools raise

money locally?

Fees: Restrictions or

guidelines?

Fundraisin

Restrictions

guideline

Alberta YesUp to 3 percent o the

boards budget or the yearYes

Fees: or alternative pro-

grams, copies o student

records, early childhood

services, transportation

ees, continuing education,instructional supplies, and

materials203

Fundraise: to su

extra services a

activities, but n

core items204

British

Columbia

Yes; local reer-

endum

For select educational

purposes: to provide or

new programs, to enhance

existing programs[,] or

additional activities or

students or or local capital

project initiatives.205 But

not to und operating

costs

Only good or one yearand must be reapproved

each year to continue206

Yes

Fees: The School Act lists

several purposes or which

boards may charge student

ees, including or specialty

academy, dened as in

addition to the standard

education program and

refect[ing] an emphasis

on a particular sport, activ-

ity or subject area207

Fees cannot be chargedor educational resource

materials necessary to par-

ticipate in the educational

program208

Ontario No N/A Yes

No ees charged or day-

school programs;

ees or enhancements or

supplementary learning

materials beyond the core

curriculum; must be con-

sistent with the boards

mission and values and

voluntary209

Funds not repla

public unding

education or to

support items u

through provinc

grants, such as

classroom learn

materials, textb

210 and othe

specic purpose


46/52


47/52

Endnotes | www.americanprogress.o

Endnotes

1 Alberta Ministry o Education, Role o School Boards,available at http://education.alberta.ca/admin/role.aspx (last accessed April 2013).

2 British Columbia Ministry o Education, School TrusteeElection Procedures in British Columbia (2011),

available at http://www.bced.gov.bc.ca/legislation/trustee_election/.

3 Ontario Education Act (R.S.O. 1990), Part VII, availableat http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e02_e.htm#BK206(last accessed May2013).

4 Heather Barondess, Carrie Hahnel, and JonathanStewart, Tipping the Scale Towards Equity: MakingWeighted Student Formula Work or Caliornias High-est-Need Students (Oakland, Caliornia: The Education

Trust-West, 2012).

5 Marguerite Roza, How Current Education GovernanceDistorts Financial Decisionmaking. In Paul Manna andPatrick McGuinn, eds., Education Governance for theTwenty-First Century: Overcoming the Structural Barriersto School Reform (Washington: Brookings Institution

Press, 2013).

6 Bruce D. Baker and Sean P. Corcoran, The Stealth Ineq-uities o School Funding: How State and Local SchoolFinance Systems Perpetuate Inequitable StudentSpending (Washington: Center or American Progress,2012).

7 Cynthia Brown, Toward a Coherent and Fair FundingSystem. In Paul Manna and Patrick McGuinn, eds., Edu-cation Governance for the Twenty-First Century: Overcom-ing the Structural Barriers to School Reform (Washington:Brookings Institution Press, 2013).

8 Baker and Corcoran, Stealth Inequities o School Fund-ing.

9 Ibid.; Bruce Baker, David Sciarra, and Danielle Farrie, IsSchool Funding Fair? A national Record Card Second

Edition: June 2012 (Newark, New Jersey: EducationLaw Center, 2012).

10 Presidents Commission on School Finance, Schools,People, and Money: The Need for Educational Reform (U.S.Government Printing Oce, 1972); Brown, Toward aCoherent and Fair Funding System.

11 Paul Manna and Patrick McGuinn, eds., EducationGovernance for the Twenty-First Century: Overcoming theStructural Barriers to School Reform (Washington: Brook-ings Institution Press, 2013).

12 Statistics Canada, Table 0510005 Estimates o Popula-tion, Canada, provinces and territories, available athttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid= (lastaccessed April 2013).

13 Tamara Knighton, Pierre Brochu, and Tomasz Gluszyn-ski, Measuring Up: Canadian results o the OECD P ISAStudy The Perormance o Canadas Youth in Reading,Mathematics and Science 2009 First Results or Canadi-ans Aged 15 (Ottawa: Ministry o Industry, 2010).

14 U.S. Department o Education, National Center orEducation Statistics, Highlights From TIMSS 2011: Math-ematics and Science Achievement of U.S. Fourth- andEighth-Grade Students in an International Context(U.S.

Department o Education, 2012), available at http://nces.ed.gov/pubs2013/2013009.pd.

15 National Center or Education Statistics, Common CoreData Set, 20102011, available at http://nces.ed.gov/ccd/bat/index.asp (last accessed April 2013).

16 Alberta Ministry o Education, Education Funding inAlberta Kindergarten to Grade 12 2013/2014 SchoolYear (2013), available at http://education.alberta.ca/media/6858004/booklet2013.pd.

17 Government o Alberta, Albertas 15-year oldsplace among worlds best in reading, scienticand mathematical literacy, Press release, Decem-ber 7, 2010, available at http://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E-4054CA4138.html.

18 Dean Neu and Alison Taylor, Funding Mechanisms,Cost Drivers, and the Distribution o Education Funds inAlberta: A Case Study, The Alberta Journal of EducationResearch 46 3 (2000).

19 Ibid.

20 Dean Neu, Frank Peters, and Alison Taylor, FinancialReorms in Alberta: The Impact on School Districts,Journal of Education Finance 27 (4) (2002).

21 The premier is the head o the provincial governmentand the equivalent to a governor in the United States.

22 Neu and Taylor, Funding Mechanisms.

23 Neu and Taylor, Funding Mechanisms. These reormswere part o a broader package o reports that includ-ed: a 12.4 percent reduction in education unding overa our-year period; a 5 percent wage rollback or public-sector workers, including teachers; a more equitableblock o unding ramework, which determined howmuch unding each school board would receive; anda cap on administrative expenditures in the supportblock at 4 percent o unds available or instruction.

24 Neu and Taylor, Funding Mechanisms.

25 Government o Alberta, Funding Manual or SchoolAuthorities 2012/2013 S chool Year (2012), available athttp://www.education.alberta.ca/media/6661328/2012_2013undingmanual_updated_january_2013.pd.

26 Alberta Ministry o Municipal Afairs, Education Proper-ty TaxFacts and Inormation, available at http://www.municipalafairs.gov.ab.ca/1607.cm(last accessed April2013).

27 Alberta Ministry o Municipal Afairs, EducationProperty Tax Requisition available at http://www.mu-nicipalafairs.alberta.ca/1662.cm (last accessed April2013).

28 Alberta Ministry o Municipal Afairs, Education Prop-

erty TaxFacts and Inormation.

29 Province o Alberta School Act, (2000)Div. 4. Sec. 173, available at http://www.qp.alberta.ca/1266.cm?page=s03.cm&leg_type=Acts&isbncln=9780779733941 (last accessed May2013).

30 According to the Alberta lieutenant governors website,The Lieutenant Governor in Council appears in manygovernment documents, such as acts o legislation.
http://education.alberta.ca/admin/role.aspxhttp://education.alberta.ca/admin/role.aspxhttp://www.bced.gov.bc.ca/legislation/trustee_election/http://www.bced.gov.bc.ca/legislation/trustee_election/http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e02_e.htm#BK206http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e02_e.htm#BK206http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://nces.ed.gov/pubs2013/2013009.pdfhttp://nces.ed.gov/pubs2013/2013009.pdfhttp://nces.ed.gov/ccd/bat/index.asphttp://nces.ed.gov/ccd/bat/index.asphttp://education.alberta.ca/media/6858004/booklet2013.pdfhttp://education.alberta.ca/media/6858004/booklet2013.pdfhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://www.education.alberta.ca/media/6661328/2012_2013fundingmanual_updated_january_2013.pdfhttp://www.education.alberta.ca/media/6661328/2012_2013fundingmanual_updated_january_2013.pdfhttp://www.municipalaffairs.gov.ab.ca/1607.cfmhttp://www.municipalaffairs.gov.ab.ca/1607.cfmhttp://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.qp.alberta.ca/1266.cfm?page=s03.cfm&leg_type=Acts&isbncln=9780779733941http://www.municipalaffairs.gov.ab.ca/1607.cfmhttp://www.municipalaffairs.gov.ab.ca/1607.cfmhttp://www.education.alberta.ca/media/6661328/2012_2013fundingmanual_updated_january_2013.pdfhttp://www.education.alberta.ca/media/6661328/2012_2013fundingmanual_updated_january_2013.pdfhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://www.alberta.ca/acn/201012/29637C1D1C216-B57B-C0EF-BEC18E4054CA4138.htmlhttp://education.alberta.ca/media/6858004/booklet2013.pdfhttp://education.alberta.ca/media/6858004/booklet2013.pdfhttp://nces.ed.gov/ccd/bat/index.asphttp://nces.ed.gov/ccd/bat/index.asphttp://nces.ed.gov/pubs2013/2013009.pdfhttp://nces.ed.gov/pubs2013/2013009.pdfhttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csidhttp://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e02_e.htm#BK206http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e02_e.htm#BK206http://www.bced.gov.bc.ca/legislation/trustee_election/http://www.bced.gov.bc.ca/legislation/trustee_election/http://education.alberta.ca/admin/role.aspxhttp://education.alberta.ca/admin/role.aspx


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Legally, it reers to the Lieutenant Governor actingon, and with, the advice o the Executive Council orCabinet. When the Cabinet makes a decision and ithas been approved by the Lieutenant Governor, it issaid to have been made by the Lieutenant Governor inCouncil. Province o Alberta, Oce o the LieutenantGovernor, Requests and contacts, available at http://www.lieutenantgovernor.ab.ca/117.htm(last accessedApril 2013).

31 Province o Alberta School Act, Div. 4 Sec. 174(1).

32 Province o Alberta School Act, Div. 4 Sec.174(2).

33 Alberta Ministry o Municipal Afairs, Education Prop-erty Tax RequisitionFacts and Inormation. A mill rateis a property-tax rate measured in tenths o a penny.

34 Alberta Ministry o Education, Education Property Tax,available at http://www.education.alberta.ca/admin/unding/tax.aspx (last accessed April 2013).




38 Alberta Ministry o Education, Education Property Tax.

39 Alberta Ministry o Municipal Afairs, Education Prop-

erty TaxFacts and Inormation.

40 Alberta Ministry o Municipal Afairs, Education Prop-erty Tax Requisition

41 Alberta Ministry o Education, Education Property Tax.

42 Province o Alberta School Act, Div. 2 Sec. 59.

43 Jal D. Mehta and Robert B. Schwartz, Canada: Looksa Lot like Us but Gets Much Better Results.In Marc S.

Tucker and Linda Darling-Hammond, eds., SurpassingShanghai(Cambridge: Harvard Education Press, 2011);R.D. Gidney, From Hope to Harris, The Reshaping oOntarios S chools (Toronto: University o Toronto,2002).

44 Province o Alberta School Act, Div. 2 Sec. 212; AlbertaMinistry o Education, Fair and Equitable Funding,

available at http://www.education.alberta.ca/parents/educationsys/ourstudents/iii.aspx (last accessed April2013).

45 Alberta Ministry o Education, Opportunities orChoice in Education, available at http://education.alberta.ca/parents/educationsys/ourstudents/iv.aspx(last accessed April 2013).

46 Alberta Ministry o Education, Role o School Boards,available at http://education.alberta.ca/admin/role.aspx (last accessed April 2013).

47 Alberta Ministry o Education, Education Funding inAlberta Kindergarten to Grade 12 2011/2012 SchoolYear (2011), available at http://education.alberta.ca/media/954300/nalbooklet.pd.

48 Alberta Ministry o Education, Funding Manual or

Sc

canada's approach to school funding

Documents