Edited by Maham Qaiser
On February 26, 2024, the Minister of Colleges and Universities (Jill Dunop) announced a $1.3 billion investment to Ontario post-secondary institutions. This investment would freeze tuition costs to Ontario residents as well as funding to support research and innovation. Along with this, new legislation, if passed, would support student mental health, safe and inclusive campuses and allow for increased transparency of fees (for example, textbook fees would be featured on the course syllabus). This announcement comes as a continuation of the Ford government’s continued freeze on domestic tuition which was implemented in 2019. This resulted in a 10% reduction in fees due to Ontario having the highest university tuition rates in the country. Since this implementation, students and parents have saved approximately $1,600 per year on average for university and an estimated $350 per year on average for college
the $1.3 Billion investment will be spread widely as such…
$903 million over three years through the new Postsecondary Education Sustainability Fund starting in 2024-25, including $203 million in funding for top-ups for institutions with greater financial need.
$167.4 million over three years in additional funding for capital repairs and equipment.
$10 million in additional one-time funding through the Small, Northern and Rural Grant for colleges and Northern Ontario Grant for Universities in 2024-25. This funding will support financially vulnerable institutions while the government works with them on efficiency initiatives.
$15 million over three years beginning in 2024-25 through the Efficiency and Accountability Fund to support third-party reviews that will identify actions institutions can take to drive long-term cost savings and positive outcomes for students and communities. These reviews will target structural issues as well as operational policies in order to improve sustainability and student experiences.
$100 million in 2023-24 to support STEM program costs at publicly assisted colleges and universities with enrolments above currently funded levels.
$65.4 million to support research and innovation, including $47.4 million for the infrastructure refresh of Ontario’s Advanced Research Computing systems and $18 million for their ongoing operations and maintenance.
$23 million to enhance mental health supports, including $8 million for the Postsecondary Mental Health Action Plan over the three years.
https://news.ontario.ca/en/release/1004227/ontario-investing-nearly-13-billion-to-stabilize-colleges-and-universities
Under the previous policy, students were subject to paying a tuition cost that allowed 3% increases each year. Nonetheless, schools have the ability to increase tuition by up to 5% for out-of-province domestic students Despite this, this short-term investment does not solve the underlying issues of funding within the sector. As much as post-secondary institutions welcome this funding, it is simply not enough.
Government experts suggest Ontario should end its post-secondary tuition freeze and increase per-student funding to its universities and colleges. A report called “Ensuring Financial Sustainability for Ontario’s Post-secondary sector,” also recommended sufficient financial aid for students based on need. It found the institutions’ dependence on international students, especially the province’s colleges, needs to be recognized as a “financial risk.”
This also comes at a time when 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 cut, with Ontario seeing its allotment cut in half. Not to mention, Higher Education Strategy Associates said Ontario’s post-secondary funding is dreadful 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. Nevertheless, a panel has been set to provide advice and recommendations to the minister by the summer on a “long-term tuition fee policy that considers access to and quality of the learning experience,” the government said.
This remarkable investment highlights the instability of the post-secondary sector. The lack of funding has caused universities and colleges to rely on international students as well as needing to increase tuition costs for Ontarians and for out-of-province domestic students. However, more transparency will be provided to students to anticipate additional costs as well as understanding how tuition fees are used in colleges and universities.