TORONTO — The Toronto District School Board (TDSB) has reported a $31-million operating surplus for 2025, significantly higher than the $7-million surplus originally projected, according to newly released financial statements.
The surplus comes after three consecutive years of deficits and follows the provincial government’s decision to place the board under supervision. However, the improved bottom line was not achieved through reduced spending. In fact, the board spent nearly $100 million more than planned in several areas, including instructional services, administration, and school operations and maintenance.
The key driver behind the surplus was higher-than-expected provincial funding. While the TDSB initially projected it would receive approximately $3.2 billion in core education funding, actual funding reached about $3.4 billion in 2025 — roughly $200 million more than anticipated.
The results were posted about six months after provincial supervisor Rohit Gupta assumed control of the board. The supervisor has chosen not to release the detailed variance report that traditionally accompanies TDSB financial statements, limiting public insight into specific spending and revenue discrepancies.
Trustees say the increase in provincial funding may be linked to court-mandated retroactive wage payments following a ruling that struck down the province’s former one-per-cent public-sector wage cap. Education analysts have cautioned that such funding is likely one-time in nature and may not address longer-term structural underfunding tied to inflation.
Despite overall higher spending, the board underspent in certain areas. Spending on “other programs” was about $53 million lower than projected, while expenditures on pupil accommodations — which include classroom materials, learning resources, and student support staff — were approximately $44 million below budget.
At the same time, administrative spending exceeded projections. The board spent roughly $105 million on administration in 2025, about $12 million more than budgeted, a point that has drawn criticism given the province’s ongoing focus on reducing bureaucracy in school boards.
Ontario Education Minister Paul Calandra has previously cited concerns over board management and administrative costs as justification for supervision. Trustees, however, argue that administrative staffing levels are appropriate for a board of TDSB’s size and complexity and that the focus on bureaucracy distracts from broader funding challenges.
Some trustees also questioned whether supervision was necessary, noting that with the actual level of provincial funding received in 2025, the board would have ended the year in surplus without extraordinary intervention.
The release of the 2025 financial results has sparked renewed debate over transparency, governance, and the sustainability of education funding in Ontario’s largest school board.