TORONTO, February 26, 2024 – “Today’s announcement, while providing short-term relief, falls far short of what the government’s own expert panel found was urgently required. Ontario’s universities now face an eight-year long tuition freeze without adequate multi-year base funding, which continues to undermine the financial sustainability of the sector.
The Blue-Ribbon Panel’s recommendations were clear: full implementation is critical for the sector’s survival, which would inject about $2.5 billion in ongoing base funding into colleges and universities over the next three years, with $1.9 billion in base funding specifically for universities.
The $903 million over three years announced today is a first step towards providing much-needed financial support for Ontario’s postsecondary sector, including $203 million for postsecondary institutions in greater financial need. These one-time investments, including $700 million for operating over three years for colleges and universities, will provide interim financial relief as we work with the government on a longer-term financial sustainability package.
We welcome the $23 million for enhanced postsecondary student mental health supports to help ensure access to critical resources. This investment will help defray some of the $1.6 billion in costs that universities invested in student support services last year.
Additional investments for research and innovation, northern and rural institutions and capital repairs and equipment will further support students and help close the funding shortfall in these areas.
Providing $93 million to universities to support unfunded STEM students is also welcome and an important recognition that the current funding cap on domestic students is restricting Ontario student access to a university education in the province. This one-time funding addresses only a portion of domestic students that are not currently funded by the province.
Keeping the current funding cap in place does not address the growing demand of Ontario high school students applying to an Ontario university, which has increased by more than 11 per cent since 2020 and is forecasted to grow in the future. As a result, more and more Ontario high school students will face greater barriers in enrolling in the program of their choice.
For years now, universities have faced mounting financial pressures that have created an increasingly untenable situation. There are at least 10 universities projecting operating deficits of more than $175 million this year, growing to more than $273 million next year.
Our universities are at a breaking point.
In fact, Ontario universities receive the lowest per-student funding in Canada and are only funded at 57 per cent of the national average. The 10 per cent tuition cut in 2019 and ongoing freeze, declining real per-student operating funding and the more than $345-million impact this year in repealing Bill 124, are further placing the education, programs and services students rely on at risk.
The recent federal announcement on the cap on international students further exacerbates the financial pressures and poses a significant risk to Ontario universities, even though their international undergraduate student enrolment has been stable over the last four years.
Ontario’s universities call for a fair allocation in international undergraduate study permit applications to avoid penalizing those who have been responsible and further exacerbating financial pressures on the university sector.
Despite these ongoing financial challenges, universities continue to do their part. With a long history of finding cost savings, Ontario’s universities remain committed to enhancing efficiencies. The sector will continue to adapt and evolve to better serve students and find even more innovative ways to drive greater efficiencies, as outlined in the sector’s efficiency update.
However, the funding gap is just far too large to close through efficiencies alone.
Ontario’s universities remain committed to working with the government on a longer-term solution to fix a broken funding model that is impacting all universities, so that they can continue to support student success and create the highly skilled talent and innovation our economy needs.
We are calling on the Ontario 2024 Budget to provide the additional multi-year base funding as recommended by the Panel.
Investing in universities is not just an investment in higher education; it is an investment in students, our economy and the province’s future.”
– Steve Orsini, President and CEO, Council of Ontario Universities