TORONTO, April 9, 2025 – “Now, more than ever, is the time for the provincial government to invest in the university talent, and research and innovation that Ontario needs to seize opportunities for protecting and growing Ontario’s economy.
With rising costs, trade disruptions and economic uncertainty, our province faces challenges that threaten our prosperity. But Ontario has a powerful advantage – our universities. By training the workforce of tomorrow, sparking the research and innovation that drive new industries and supporting the businesses that keep our economy strong, universities are essential partners in achieving the solutions Ontario needs to drive economic growth.
Ontario can emerge as a global leader by attracting the best and the brightest talent, increasing productivity, driving innovation and leading in the industries that will shape our future such as AI, fintech, critical minerals, advanced manufacturing, life sciences and nuclear energy.
A recent Ipsos opinion poll found that over three-quarters of Ontarians believe the talent at universities is vital to Ontario’s economic future, and without financially sustainable universities, Ontario won’t have the skilled workforce to protect against growing trade threats.
Despite their vital role, universities are restricted by broken funding levers that limit their ability to continue to innovate and develop the workforce of tomorrow, who will help our economy grow. Chronic university underfunding puts our students, industries and Ontario’s economic future at risk.
After years of declining per student funding and cut and freeze to tuition, Ontario’s universities will have no choice but to continue cutting essential programs – programs that our students and economy rely on. Over the last few years, universities have made more than $550M in budget cuts. Without significantly increasing base operating funding, the situation will only worsen.
That means fewer student services, fewer work-integrated learning opportunities, and reduced support for the technology transfer and start-up incubation programs that drive Ontario’s innovation economy. Cuts like these risk weakening the very institutions that fuel Ontario’s success, undermining competitiveness at a time when we face increasing economic threats from the United States.
Without additional investments, Ontario’s universities will not be able to meet growing enrolment demand as they face rising costs and growing deficits. The impact on student services is growing – and Ontarians are worried.
The same Ipsos research confirms that once Ontarians understand the financial situation universities are facing, 7 out of 10 say they are concerned. And as Ontario focuses on strengthening its economy, 78% of Ontarians say they support funding from the provincial government to avoid cuts to university programs and student services.
But to help Ontario create jobs, grow industries and strengthen the economy, the government must significantly increase per student base operating funding to support our universities – the talent and innovation they bring – today.
Ontario’s universities are looking to the 2025 Ontario Budget to:
- Double the time-limited Sustainability Funding and convert into base funding to ensure Ontario universities have the financial resources to help grow and protect the economy.
- Boost operating grants for Northern and bilingual programming to reflect the higher costs and special needs of delivering these programs.
- Announce a multi-year plan that will close the funding gap in order to grow the talent pipeline by creating more spaces to meet the increasing enrolment demand by Ontario high school students applying to an Ontario university.
- Boost operating and capital funding for research to help drive innovation, get shovels in the ground, build homegrown industries, attract the best and the brightest, and reduce reliance on the United States.
Ontario’s future prosperity depends on a properly funded university system.
Now is the time to invest in the growth of what Ontario’s economy needs – university talent, research and innovation.”
– Steve Orsini, President and CEO, Council of Ontario Universities
See the backgrounder for further information: