FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO
FAO Releases Report on Ontario School Buildings

On December 17, the Financial Accountability Office of Ontario (FAO) released a report that reviews school buildings in Ontario, with a focus on school building condition, capacity and utilization. The report provides an estimate of the cost to maintain school buildings in a state of good repair and to address student capacity pressures over the next 10 years, with a comparison of the FAO's cost estimate to the amount of funding included in the 2024 Ontario Budget.

In the 2023-24 school year, there were 4,850 schools in 72 district school boards in Ontario. By school system, there were 3,033 schools in the English Public system, 1,331 schools in the English Catholic system, 167 schools in the French Public system, and 319 schools in the French Catholic system. 

As of March 31, 2024, the FAO estimates that the total replacement value of Ontario school buildings was $123.3 billion, which includes $80.9 billion for English Public system schools, $32.5 billion for English Catholic system schools, $3.0 billion for French Public system schools, and $6.9 billion for French Catholic system schools.

The FAO assessed Ministry of Education information on the condition of Ontario's school buildings and estimates that 3,037 schools (62.6 per cent) were in a state of good repair and 1,813 schools (37.4 per cent) were below a state of good repair, of which 1,781 schools required repairs and 32 schools should be replaced. The FAO estimates that the current cost to bring all school buildings into a state of good repair, also referred to as the infrastructure backlog, is $6.5 billion. Over the 10-year period, from 2024-25 to 2033-34, as school buildings continue to age and degrade, the FAO estimates that an additional $15.2 billion would need to be spent to maintain school buildings in a state of good repair, for a total cost of $21.7 billion over 10 years.

In the 2023-24 school year, there were 2.0 million elementary and secondary students in Ontario schools and the total classroom capacity was 2.3 million, which resulted in an average utilization rate of 87.6 per cent. The FAO estimates that 3,392 schools had utilization rates below 100 per cent, which included 858 schools with utilization rates below 60 per cent (also referred to as underutilized schools), and that 1,458 schools had utilization rates over 100 per cent (referred to as overcapacity schools). In overcapacity schools, the FAO estimates that there were 150,881 more students than spaces in 2023-24, resulting in the use of portables and other accommodation. After accounting for projected enrolment growth over 10 years, and Ministry of Education and school boards' policies, the FAO estimates that 172,187 student spaces will need to be built by 2033-34 to address permanent capacity pressures. To address this pressure, the Province would need to build the equivalent of 227 new schools at a cost of $9.8 billion over 10 years.

In total, the FAO estimates that it will cost $31.4 billion over 10 years to clear the infrastructure backlog and maintain school buildings in a state of good repair, and to address permanent capacity pressures. In comparison, the FAO estimates that the Province's 10-year capital plan in the 2024 Ontario Budget allocates a total of $18.7 billion for school buildings, which results in an estimated funding shortfall over 10 years of $12.7 billion.

For more information, read the full report here. 

Quick Facts: 

• Keeping assets in a state of good repair helps to maximize the benefits of public infrastructure and ensures assets are delivering their intended services in a condition that is considered acceptable from both an engineering and a cost management perspective.
• Of the 10 largest school boards by school building square footage, the Toronto District School Board (DSB) had the highest share of buildings below a state of good repair at 84.1 per cent, followed by the Thames Valley DSB at 52.5 per cent, and the Toronto Catholic DSB at 45.6 per cent.
• Of the 10 largest school boards, the Durham DSB had the highest proportion of overcapacity schools, with 69.2 per cent of schools operating above 100 per cent utilization, followed by the Thames Valley DSB (40.6 per cent of schools), the Waterloo Region DSB (39.0 per cent of schools), the York Region DSB (38.0 per cent of schools) and the Ottawa-Carleton DSB (35.4 per cent of schools).
• Across the 3,392 schools that were undercapacity (utilization less than 100 per cent) in the 2023-24 school year, there were 440,930 more spaces than students.
• Based on the amount of funding allocated in the 2024 Ontario Budget, the FAO estimates that after 10 years, the percentage of school buildings that are not in a state of good repair would increase from 37.4 per cent in 2023-24 to 74.6 per cent in 2033-34. By 2033-34, the infrastructure backlog would grow from $6.5 billion to $22.1 billion.
• The FAO estimates that the amount of funding in the 2024 Ontario Budget is sufficient to create 109,946 new student spaces by 2033-34. Combined with temporary capacity pressures, this would result in an estimated 68,299 more students than permanent school spaces in 2033-34, a decrease of 54.7 per cent from the 150,881 overcapacity students in the 2023-24 school year.