Parliamentary Budget Officer
Summary
In Canada, education is largely a provincial domain. The notable exception is education for First Nations students living on reserve. This responsibility falls squarely with the Minister of Indigenous and Northern Affairs (INAC). After comparing and analyzing data on federal and provincial education spending, PBO found evidence that INAC funding mechanisms:
- do not adequately take into account important cost drivers for band-operated schools;
- favour students living on reserves who attend provincial schools; and
- put band-operated schools in remote northern regions at significant disadvantage.
The funding shortfall – the difference between INAC funding and funding that would occur under the provincial formula — is the result of INAC not adequately costing for operating small schools in remote northern regions. In addition, band schools face higher costs because of:
- higher incidence of socio-economic disadvantage;
- commitments to provide culturally relevant instruction in indigenous languages; and
- large numbers of students for whom English or French is a second language.
- The incidence of children requiring special education support is also higher.
PBO estimates that in the medium term, new investments in education program spending announced in Budget 2016 could begin to address funding shortfalls for band-operated schools.
High and Low PBO Estimates of Funding Shortfalls to Band-operated Schools and Recent Budget Announcements:
- Actual 2016 Budget: $2,600.8B
- Low PBO Estimate: $1,799.4B
- High PBO Estimate: $3,520.3