Busing costs drive school boards deep into deficit

Two eastern Ontario school boards say students could suffer if the province doesn't help absorb a sudden increase in transportation costs forced on them by recent arbitration.

The Upper Canada District School Board (UCDSB) and Catholic District School Board of Eastern Ontario (CDSBEO) areeach facing hugedeficits for2017-2018.

The impact on students could be very real.- John McAllister, UCDSB chair

The UCDSB overspent its transportation budget last school year by $9.5 million, while the CDSBEO overspent by $5.8 million.

"We are in crisis mode right now," said UCDSB chair John McAllister, who said the board is now facing an annual increase of $10 million to transport students. The CDSBEO's future cost increase isn't known.

On top of that, the two boards are facing a combined bill of about $30 million in retroactive payments, all thanks to an arbitrator's ruling.

"I mean we just don't know how we're going to do this without cutting programmingor reducing transportation,"McAllistersaid."In other words, the impact on students could be very real."

The UCDSB covers an area the size of Prince Edward Island, transporting 20,000 of its 27,000 students by bus.

'We just don't know how we're going to do this'

6 years ago

Duration 0:35

John McAllister, chair of the Upper Canada District School Board, says students could suffer if the province doesn't help the board cover a $10 million increase in the annual cost of transportation.

Arbitration drove costs up

The suddenhike in transportation costs began with a lawsuit launched in 2012 by a group of bus companies.

The companies were upset with the province for enacting theBroader Public Service Procurement Directive, which forced school boards to open transportation contracts to competitive bidding, but ultimately forced many smaller operators out of business.

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An injunction was orderedand the province instructed Student Transportation of Eastern Ontario (STEO) not to adjust its rates, stalling annual increases.

An arbitrator brought in this year to resolve the issue ordered the increases reinstated, plus retroactive payments.

Frank Healey, who owns HealeyTransportation Ltd. in Smiths Falls, Ont., said thebus operators simply couldn't continue without seeking arbitration.

"Itis a dramatic increase because it represents eight or nine,perhaps even 10 years of adjustment all at once for them," said Healey, whois also president of the Independent School Bus Operators Association.

"It has hit those school boards dramatically, and I know it's impacted their budgets very negatively."

In the case of the CDSBEO, the ruling has suddenly thrust its budget well into the red.

"Prior to the arbitration award being granted, the CDSBEO would have presented a compliant budget for 2017-2018 with a surplus of over $3.57 million," said BonnieNorton, the board's associate director of education and treasurer.

Help from province

The Ministry of Education said it's aware of the concerns of the UCDSB and CDSBEO, and is working to "find solutions to ensure the sustainability of student transportation and education."

The ministry said it's providing school boards in Ontario with a projected $961.4 million for student transportation, and said the boardsare responsible forallocatingthat money to meet local needs and priorities.

McAllister said the two boards have been in communication with elected officialsand arehoping to set up a meeting with the education minister to discuss the need for more funding to balance the books.

"We may have to take a good look at all facets of our operation and reduce reduce service to parents and reduce service to students," said McAllister.

The board begins next year's budget process in January.