Alberta Budget 2025: School Board Stakeholder Brief

Executive Summary

Budget 2025 delivers a 4.5% increase in Education operating expense to $9,883M, with $814M allocated over three years for K-12 enrolment growth. The most significant structural change is the revision of the funding formula from a three-year to a two-year enrolment average, providing $55M in 2025-26 and $94M annually thereafter to be more responsive to high-growth school authorities. Classroom complexity funding rises to $55M, and $2.6B over three years supports school construction including the SCAP accelerated program. However, education property tax is increasing after the 2024-25 freeze, school jurisdiction compensation at $7.5B faces collective bargaining pressure, and the pace of new school delivery may not match the speed of enrolment growth.

Top 5 Relevant Budget Measures

1. Enrolment growth funding at $814M over three years -- including $54M additional in 2025-26 and $348M over the following two years, on top of previously announced increases. This addresses the core pressure from Alberta's continued population growth.

2. Funding formula revision to 2-year enrolment average -- replacing the three-year average, with $55M in 2025-26 and $94M added in each of the following two years. This makes the formula more responsive to rapidly growing school authorities while shielding those with declining enrolment.

Classroom complexity at $55M in 2025-26 -- including training and hiring more educational assistants and specialists to support students with complex needs. Combined with $1.6B in specialized learning supports for vulnerable students.

School construction at $2.6B over three years -- including $1.68B for previously announced projects, SCAP with $618M for accelerating 22 projects, $150M for modular classrooms, $62M for planning 30 new schools and 8 modernizations, and $12M for charter schools.

Operations and maintenance increasing $25M in 2025-26 -- rising to $34M in 2026-27 and $31M in 2027-28, covering rising costs of maintenance, insurance, and utilities to keep schools safe and operational.

Risks

Education property tax escalation. EPT revenue is rising from $2.73B to $3.12B in 2025-26 after the 2024-25 freeze, on its way to covering one-third of Education operating expense. School boards may face community pushback when property tax bills increase, even though EPT rates are set provincially.

Funding formula winners and losers. The shift from three-year to two-year enrolment averages benefits rapidly growing boards but may create adjustment challenges for boards with stable or declining enrolment. Boards that previously benefited from the three-year smoothing effect may see reduced funding.

Collective bargaining costs. School jurisdiction compensation at $7.5B in 2025-26, rising to $8.2B by 2027-28, faces collective bargaining pressure. The $4B contingency partly addresses compensation pressures, but final agreements may exceed budgeted amounts.

School construction lag. Despite $2.6B in school construction investment, the time from approval to occupancy for new schools is typically 3-5 years. Rapidly growing communities may experience portables and overcrowding before permanent spaces are ready.

Student complexity increasing. While $55M for classroom complexity is a welcome increase, the actual demand for educational assistants, specialists, and mental health supports may exceed this allocation. The expansion of mental health classrooms from 20 to 60 for clinical support acknowledges growing student mental health needs.

Opportunities

Responsive funding formula. The two-year enrolment average is a significant structural improvement for high-growth boards. It reduces the lag between when students arrive and when funding follows, improving boards' ability to hire staff and expand programs in response to growth.

SCAP acceleration. The School Construction Accelerator Program's $618M for advancing 22 projects and $150M for modular classrooms provides faster delivery mechanisms. Boards that have been waiting for new school approvals may see accelerated timelines.

Classroom complexity support. The $55M for hiring educational assistants and specialists, combined with the expansion of mental health classrooms to 60, provides resources to address the increasingly diverse needs in classrooms. This funding can improve both student outcomes and teacher working conditions.

Career education expansion. The $102M over three years for career education supports hands-on learning programs that prepare students for skilled trades and other careers. This aligns with the government's broader workforce development emphasis.

Operations and maintenance increase. The $25M increase in 2025-26 provides relief for boards facing rising utility, insurance, and maintenance costs. This helps maintain facility quality without diverting instructional funding.

Likely Government Intent

The government is responding to the most visible impact of population growth -- crowded schools and growing wait lists for new facilities. The $814M enrolment growth funding, formula revision, and SCAP acceleration demonstrate political awareness that parents expect adequate school spaces. The classroom complexity funding responds to growing public and teacher advocacy about inclusive education challenges. However, the funding formula revision and property tax increase signal that the government expects the education system to operate more efficiently and for property taxpayers to share the cost of education growth. The contingency for collective bargaining suggests the government anticipates significant compensation negotiations.

Immediate Questions to Ask Ministries

1. Education: What is the per-pupil funding rate under the revised 2-year formula, and how does it compare to the previous 3-year formula for our board?

2. Education: How will the $55M classroom complexity funding be allocated among school boards, and what reporting requirements apply?

3. Education: What is the prioritization process for SCAP projects, and when will boards receive decisions on new school and modernization projects?

4. Infrastructure: What is the construction timeline for previously announced school projects in our jurisdiction?

5. Treasury Board and Finance: What is the projected education property tax rate increase for 2025-26, and how will the change be communicated to property owners?

48-Hour Action Checklist

• Model own board funding under the revised 2-year enrolment average formula
• Review SCAP project applications and status for own jurisdiction
• Assess classroom complexity needs data against the $55M allocation methodology
• Brief trustees on budget changes, funding formula impacts, and EPT increases
• Contact Education ministry for detailed per-board funding allocation guidance
• Identify modular classroom needs for immediate 2025-26 application
• Review collective bargaining mandate against budgeted compensation amounts

30-Day Monitoring Checklist

• Prepare revised board budget incorporating new provincial funding allocations
• Engage Education ministry on SCAP project decisions and construction timelines
• Assess specialized learning support allocation against student assessment data
• Monitor education property tax rate announcements and prepare community communications
• Review operations and maintenance cost projections against budget allocation
• Coordinate ASBA advocacy on funding adequacy and formula implementation
• Track career education funding allocation for program planning

Suggested Message Frames

Frame 1 -- Investing in Students: Budget 2025 invests $814M in enrolment growth funding and $55M in classroom complexity support because every Alberta student deserves quality education. School boards are committed to using these investments to maintain educational excellence amid unprecedented growth.

Frame 2 -- Growth Response: Alberta school boards are managing the largest enrolment growth in a generation. The revised funding formula using two-year averages is a meaningful improvement that gets resources into classrooms faster. Combined with $2.6B in school construction, we are building the system students need.

Frame 3 -- Community Foundations: Schools are the foundation of every Alberta community. When families move to Alberta, the first thing they look for is good schools. Budget 2025 investment in education supports the community infrastructure that makes Alberta attractive to the workers and families the economy needs.

Opposition Narratives to Anticipate

"Education spending is growing faster than other sectors." The 4.5% increase reflects enrolment growth, not discretionary expansion. Counter with per-pupil funding data showing that growth in spending matches or trails growth in student population.

"School boards are inefficient and waste money on administration." Respond with data on the proportion of funding directed to instruction versus administration. Governance and system administration at $285M represents less than 3% of total education operating.

"Education property tax increases are a hidden tax grab." Clarify that EPT is a provincial tax collected through municipal property tax systems. Boards do not set EPT rates and should not be held responsible for provincial tax policy decisions.

Data Points to Monitor

• Per-pupil funding rates under the revised 2-year formula by school authority
• SCAP project decisions, construction timelines, and modular classroom deployments
• Classroom complexity funding allocation methodology and board-level amounts
• Education property tax rates and municipal requisition amounts
• Enrolment counts by school authority relative to funding formula calculations
• Collective bargaining outcomes and compensation cost trends
• Specialized learning support utilization and unmet needs data
• Operations and maintenance cost trends versus funding
• Career education program enrollment and outcomes
• School construction progress reports and occupancy timelines