Understanding Government Funding of Private Schools in Canada
- pritimama .
- Oct 26
- 3 min read
A recent examination of property tax allocation revealed that 37% is directed towards funding Provincial Education.
Considering the recent teachers' strike and with children currently in the public education system, questions arise regarding the Alberta Government's potential use of "Education Taxes" to fund for-profit businesses. Further research into these statistics is warranted and will be addressed in a future post.
However, initial findings have uncovered other noteworthy facts, leading to a critical question:
Should public tax dollars be allocated to for-profit schools, and if so, what benefits accrue to all taxpayers?
Education In Canada
In Canada, education is a cornerstone public service. Taxpayers pay into provincial systems expecting that money will ensure universal access to quality schooling for all children. Yet in many provinces, “choice” for families—by way of independent or private schools—has been supported with public funds.
This practice prompts a set of tough questions: Should tax dollars collected for the public education system be redirected, even indirectly, to private schools? What are the implications for equity, transparency and the health of our public school system?
How the system currently works
To Understand the system across Canada here are some relevant facts:
To understand the current system of public funding for private schools across Canada, the following facts are relevant:
In British Columbia, private schools receive operating grants from the provincial government. These grants are approximately 50% or 35% of the funding received by public schools per student. The specific amount depends on tuition rates and spending levels CCPA.
For the current school year in British Columbia, it is projected that private schools will receive approximately $491 million in public funding CCPA.
In Alberta, private schools receive approximately 70% of the per-student operational grants that public school boards receive. This is higher than in most other provinces Alberta Teachers Association
However, in Alberta, property tax revenues designated for education – specifically, the "education property tax" – are explicitly directed to the public and separate (Catholic) school systems. These funds may not be legally allocated to private schools Alberta.ca
This data show two things.
First: public funding of private schools is a real phenomenon in many provinces (though the mechanics and amounts vary).
Second: the sources of funding matter—whether it’s a dedicated education tax, general revenues, or tax benefits for private institutions.
Why this matters: Equity and transparency concerns. Several concerns raised by critics of public funding for Private (For Profit) schools include,
Redirection of public funds; If public monies that might otherwise go into the public system, instead subsidizes private (for profit) schools, this could diminish the resources available for the students remaining in the public sector. For example, one commentary on Alberta’s system argues that whereas parents may only pay a modest amount in education-property tax, private schools may receive thousands of dollars per pupil of public funding. Alberta Teachers' Association
Two-tiered system risk; When private schools get public support and charge tuition, this may lead to an education system with diverging tracks: those who can afford tuition with subsidies and those who rely on the public system. Some critics suggest that this undermines the principle of universal access and equal opportunity. Alberta Teachers Association+1
Transparency and accountability Public schools are subject to publicly elected school boards, accountability to taxpayers, and publicly reported metrics. Private schools—even when publicly funded—may operate under different governance, raising questions about how effectively public funds are overseen and whether conditions (for example around tuition, admissions, teacher qualifications or equity) are enforced. schoolpublicpolicy
Source of funds and public expectations Taxpayers may implicitly assume that the “education tax” they pay ensures public schooling. If funds instead support independent institutions, that assumption may be violated. In Alberta, for example, the education property tax is legally designated for public and separate schools only. Open Alberta+1
Arguments in favour of public funding for private schools:
Proponents say that subsidizing private schools can relieve pressure on the public system (i.e., fewer students in public schools means fewer resources needed). For example, a study from the Fraser Institute argued that in B.C., independent schools cost the government less per student on average than public schools, thus delivering savings to taxpayers. Education News Canada
Some argue that families already pay taxes and thus merit some public support for the schooling of their children, even in independent systems.
Supporters may claim that offering choice improves overall educational quality through competition and innovation.
Resources:
