Ontario takes control of London school board, launches probes at 3 others

Ontario has taken control of one school board over financial mismanagement, launched financial probes of three other boards and ordered a fifth board to repay costs for a trip to Italy to buy art.

New Education Minister Paul Calandra said Wednesday that the province is increasing accountability and transparency measures to address "failures" at several school boards, while serving notice to all boards that money needs to be prioritized to help students succeed and provide teachers with the resources they need.

"Some school boards treat hard-earned tax dollars like their own, spending them on luxury hotels, fine dining and first-class travel overseas, and booking extravagant retreats for meetings while accepting test results that in some cases show students struggling," Calandra said.

"Now it is beyond comprehension and just shows how out of touch some of the board executives have become with the real needs of the people of Ontario."

4 trustees of 1 board went to Italy to buy art

Four trustees with the Brant Haldimand Norfolk Catholic District School Board racked up $190,000 of the public's money for a trip to Italy to buy art for schools, a provincial governance review found. That included $63,000 to manage the fallout of the trip once it was exposed by the Brantford Expositor.

School board officials said in November 2024 they'd pay back the $50,000 they spent during the art-buying trip, including money spent on deluxe hotel rooms, a limo ride and $1,600 gourmet dinner.

Calandra has ordered the board to repay the cost of the trip as well as the $100,000 spent on art. The board did not immediately respond to a request for comment.

"The Brant Haldimand Norfolk Catholic District School Board went even further, travelling all the way to Italy using public funds to purchase artwork. Tax dollars were spent so that four trustees could enjoy fine wine and four-course dining at a Michelin star restaurant," Calandra said.

Another board organized $40K staff retreat to Toronto

The province has also appointed a supervisor to the Thames Valley District School Board in London after it conducted a review in the wake of a staff retreat to Toronto that cost about $40,000 and included a stay at the hotel connected to the Rogers Centre, where the Blue Jays play.

School board leadership revealed the price tag of sending 18 staffers to the retreat in September 2024, prompting sharp criticism from education unions and the public. 

It happened at the same time that the board was facing a $7.6 million budget deficit and teachers were dealing with shortages of classroom supplies. 

The province appointed PricewaterhouseCoopers to investigate the Thames Valley board's finances. It found the board has been running "significant" deficits for several years, which meant cutbacks to services for students.

Calandra said the investigation found "that a lack of financial oversight in the budgeting process has led to a deteriorating financial position."

"Yet, sending senior board officials to a retreat at the luxury SkyDome hotel in downtown Toronto was a priority amid a multi-billion dollar budget deficit," he said.

The Thames Valley board declined to comment Wednesday.

The London school board isn't the only institution under review. London Health Sciences Centre, which runs three hospitals, is also undergoing a detailed organizational review before it will consider replacing its board and CEO.

TDSB among others being investigated over spending

The province is also launching investigations at the Ottawa-Carleton District School Board, the Toronto Catholic District School Board and the Toronto District School Board over ongoing financial deficits and spending concerns.

Calandra said all three have failed to address ongoing, years-long deficits with no plan to return the books to the black.

"Not to sound like a big tough guy, but to be very clear, the resources that we provide, we're providing record level of funding. We expect that to be made available to teachers so that they can give our students the ultimate ability to succeed."

This week, the TDSB told parents in a memo it has launched its annual budget process. 

The province is leaving the door open to taking control of all three boards, depending on what the probes reveal.

TDSB to comply with probe but says it faces challenges

In a statement on Wednesday, the TDSB said it acknowledges the minister's remarks about its "multi-year deficit" and will co-operate fully with the investigation.

"The TDSB is committed to transparency and accountability in our budget-setting process. Each year, we consult with school communities to seek their input to support the decision-making process. In a report released earlier this year, staff identified several areas with opportunities to reduce spending and find efficiencies," the TDSB said in the statement.

At its April 30 finance, budget and enrolment committee meeting, the TDSB said staff will present options to trustees to balance the budget.

But the board added that it has made budget cuts in previous years due to financial challenges.

"It is important to note that while Trustees will continue reviewing the budget to find savings, we have already cut millions of dollars from the TDSB budget over recent years in the face of significant financial challenges that impact our ability to meet student needs," the TDSB said.

The TDSB said these financial challenges, which "disproportionately affect large urban boards," have resulted from "unfunded increases" in statutory benefits, such as Canada Pension Plan and Employment Insurance, from teacher salaries that are higher than "ministry funding benchmarks" and from the provincial moratorium on school closures. 

Complicating the situation is an estimated $1,500-shortfall in provincial funding per student when adjusted for inflation, it added.

The TDSB said it would hold a special meeting soon to discuss Wednesday's announcement.