I'm not sure how the system worked - - either each municipality funds its own schools, or, more likely, those municipalities which can't fund an adequate school system are eligible to apply for Provincial funding.
The City of Toronto, when I was going to high school, was the biggest one of about 23 municipalities which were later amalgamated with great fanfare into the Municipality of Metropolitan Toronto, a.k.a. "Metro." They amalgamated, as I understand the theory, because of the sheer waste of maintaining 23 police forces, 23 police chiefs, 234 Fire Departments, 23 Public Library Boards, 23 public school systems, 23 Medical Officers of Health, 23 Chief Coroners, etc., etc., all serving the same contiguous urbanized (or mostly urbanized) area. "Metro" was organized on the same lines (or similar) as NYC and its "borough" system, and consisted of I think six constituent municipalities - City of Toronto, Borough of North York, Borough of East York, Borough of York, Borough of Scarborough and Borough of Etobicoke.
Some services were 100% amalgamated into one, such as the police forces (Metro Police) while other services remained fragmented - - Metro Roads were responsible for maintaining major traffic arteries, but each of the Boroughs and the City of Toronto still had their own Public Works Departments, which serviced and maintained the local roads. There were still individual school systems and tax departments for the 5 boroughs and the City of Toronto. There were six City Halls (instead of 23) and one big new Metro Hall. Later still they scrapped the "borough system" and everything not amalgamated in the first amalgamation became amalgamated into the City of Toronto in the second amalgamation. Now there's no more Metro and no more North York, etc. but just one big City of Toronto.
The primary motive for each amalgamation as I could see it was the elimination of wasteful duplication of effort. The village I grew up in was absorbed into the City of Toronto, so it lost its unique school system, garbage collection etc. but for years managed to piss off the rest of the City by having its garbage picked up the old way - - twice weekly at the side of the house instead of once weekly at the curb like everyone else. No one was ever able to provide a satisfactory explanation why this should be the case, but this was where the Big Money and the Old Families resided and the situation continued till a few years ago when a "left-wing" City Council finally ended the practice.