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"Inherently unfair": Concerns raised over private school spending

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Unlike public, separate, francophone and charter schools, private schools in Alberta are not required to publicly disclose their audited financial statements, despite receiving substantial public funding. This lack of transparency creates challenges in determining per-student spending in Alberta’s private schools. However, a window into these expenditures exists.

Many private schools are registered charities, requiring them to submit an annual Form T3010 filing with the Canada Revenue Agency. These filings – which are publicly accessible – offer key insights into a charity’s revenue and expenditures. 

ATA economist Neil Hepburn recently conducted an analysis of private school finances and was unsettled by what he found.

“I took this on to get a better understanding of per-student funding and expenditures in Alberta’s schools,” he explains. “What the numbers show is that many of Alberta’s private schools spend more than twice per student than public schools in the same area.”

Hepburn included in his analysis all the private schools that are registered charities. He focused on 15 private schools with per-student expenditures exceeding $20,000 per year. He excluded Parkland School in Red Deer, Foothills Academy and Calgary Academy in Calgary from the analysis, as these schools focus on students with complex needs and do not represent typical school operations. Schools were also excluded when school functions could not be disentangled from other charitable functions (most notable in a few church-affiliated schools).

Using the T3010 filings and enrolments from Alberta Education’s student population statistics, Hepburn determined that the per-student expenditure at these 15 private schools ranged from $23,254 to $39,501. In comparison, public schools in the competing areas spent $10,905 to $11,667 per student.

“That is a huge discrepancy,” Hepburn said. “A difference of more than $28,000 in one case.”

Each of these private schools received public funds through the Alberta Education Funding Manual, as Alberta Education grants are provided to accredited private schools. Private schools in Alberta are funded at a rate of 70 per cent, the highest in Canada, and are also able to charge tuition.

ATA president Jason Schilling said that this analysis is an important impetus for a conversation around private school funding and equitable opportunities for students.

“What these numbers scream to me is that choice in education does not mean equal opportunity for students,” Schilling said.

The higher level of spending in private schools provides those students with access to more staff supports, newer technology, specialized facilities and unique excursions. Schilling commented that all students in the province should have equitable access to such supports, programs and tools.

“Most schools across this province, when given the proper funding and supports, can do creative and innovative work for every kid in this province,” Schilling said. “Why would we select only a few schools to do this work and let the rest just get by? It’s inherently unfair.”

Schilling added that now is the time for teachers, parents and other public education supporters to talk to their MLAs about the issue of funding for private schools. The province’s budget survey, he said, represents an opportunity for everyone’s voice to be heard.

“The public should be paying to support the public system not private schools, so that we can create opportunities for every single student across the province.” ❚