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Ontario expected to announce $1.2B for post-secondary sector

Ontario’s colleges and universities minister is expected to announce funding Monday for post-secondary institutions to respond to their precarious finances.

The $1.2-billion package will include a roughly $900 million stabilization fund delivered to colleges and universities over three years, a source with knowledge of the province’s plans told CBC Toronto last week.

Funding will be allocated based on the needs of individual institutions who apply for it, the source said. It will be conditional on audits and the government will be looking for financial efficiencies, according to the source.

There will also be no tuition fee increases for three years, the source said. 

A government-commissioned report released in November said that low levels of provincial funding to colleges and universities combined with a tuition cut and freeze in 2019 are posing a “significant threat” to the financial sustainability of the sector.

The report said that funding for publicly assisted colleges for full-time domestic students is at a lower level than every other province, while the Council of Ontario Universities has said at least 10 universities are facing operating deficits.

The expert panel recommended a one-time, 10 per cent increase in per-student funding to colleges and universities followed by inflationary increases in subsequent years, as well as a five per cent increase in tuition along with an “equally generous” increase to student aid.

Premier Doug Ford has already ruled out any tuition fee increases, but Colleges and Universities Minister Jill Dunlop is set to make an announcement today.

Dunlop’s announcement is set to come as post-secondary institutions have recently been saying their situation has grown even more dire following a federal announcement earlier this year that the number of visas for international undergraduate students will be slashed, with Ontario seeing its allotment cut in half.

A report last year by Higher Education Strategy Associates said Ontario’s post-secondary funding is “abysmal” and raising spending to the average of the other nine provinces would require $7.1 billion per year in additional funding — much higher than the current level of operating funding at around $5 billion.

“No province has underfunded post-secondary education more, and no province’s institutions have found so many ways to raise money from private sources,” the strategy firm wrote.

“On a per-student basis, the province funds universities at 57 per cent of the average of the other nine provinces; on the college side it is a mere 44 per cent. It is tenth out of ten in every interprovincial comparison of financing.”

The low levels of government funding have caused post-secondary institutions to increasingly turn to international student tuition fees, which are much higher than the rates for Canadian students.

Average university fees in 2020-21 were $7,938 for domestic undergraduate students and $40,525 for international undergraduate students, the auditor general said in a 2022 report.

The Smart Prosperity Institute, a University of Ottawa-based think tank, reported last year that Ontario universities nearly doubled international student enrolment between 2014 and 2015, and 2021 and 2022, and colleges more than tripled international enrolment.

Ontario’s government-commissioned report on post-secondary finances said international student revenue is now fundamental to the sector’s viability, greatly raising institutions’ risk exposure.

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