Spending on Canadian Public Schools Increased More Than Necessary to Offset Enrolment and Inflation: Study

Students cross the street at Tomken Road Middle School in Mississauga, Ont., on April 1, 2021. The Canadian Press/Nathan Denette

A recent study finds that spending on public schools across Canada has increased by more than necessary to offset the effects of growth in student enrolment and inflation—in amounts totalling billions of dollars being additionally spent.

“Contrary to what we often hear, spending is on the rise in public schools across Canada, and in most cases, it’s outpacing inflation and enrolment changes,” said study co-author Jake Fuss, associate director of fiscal studies for the Fraser Institute, in a news release on Oct. 6.

The study, titled “Education Spending in Public Schools in Canada, 2022 Edition,” finds that seven out of 10 provinces increased their spending on public schools between 2012–13 and 2019–20, before COVID-19-related spending started.

The authors calculated that the amount increased from $61.5 billion to $72.5 billion during that period, representing a 17.8 percent increase ($11 billion) in nominal spending.

“Had inflation-adjusted per-student spending remained constant from 2012/13 to 2019/20, total spending would have been 1.2 percent lower,” they wrote, explaining that the adjusted spending in 2019–20 would have been $71.6 billion.

However, the 1.2 percent difference means that between 2012–13 and 2019–20, the total education spending on public schools surpassed the amount required to account for changes in enrolment and inflation by $898 million nationally, the authors noted.

The study found that the number enrolled in public schools grew by 4.1 percent from about 5.05 million students to 5.25 million during that time frame, while the per-student spending adjusted for inflation increased by 1.4 percent from $13,601 to $13,794.

“To properly evaluate public education spending in Canada, we have analyzed the effects of price changes (inflation) and enrolment increases or decreases by province,” the study said.

“Put another way, after accounting for the effects of enrolment and price changes, Canada saw an increase in spending of $194 per student over this time frame.”

On the provincial level, Nova Scotia saw the largest increase (17.5 percent) or an additional $2,241 in spending per student. Prince Edward Island came second (17.2 percent), followed by Quebec (12.7 percent), Newfoundland and Labrador (7.6 percent), and British Columbia (9 percent).

Three provinces, however, saw a decrease in their per-student spending, namely: Saskatchewan (-14.2 percent), Alberta (-12.6 percent), and Ontario (-1.3 percent).

The authors said compensation including salaries, wages, and pensions account for the largest share of growth in spending on public schools from 2012–13 to 2019–20, when compared to capital and other expenditures.

“In critical policy discussions, especially those that affect our children’s education, it’s important to understand exactly what’s happening with spending in public schools,” Fuss said.