Sustaining acceptable service in large facility networks is a complex task, particularly under limited budgets, rapid deterioration, and increasing service demands. Policymakers are, therefore, challenged to make efficient balance between the construction of new facilities and the renewal of existing ones to suit both the short and the long-term needs. To support policy-makers, this paper proposes an efficient decision support system using the System Dynamics (SD) simulation technique to analyse the impact of various budget allocation policies and to optimize policy decisions. The proposed system dynamics model was tested using a case study from the Toronto District school Board involving more than 400 schools. It can find the optimum budgeting strategy that minimizes the overall facility condition index and total life cycle cost over a long-term strategic plan. The system dynamics model proved its ability to find a budget allocation policy with much better results than the typical enrolment-based approach.