FUNDING FOR POST-SECONDARY EDUCATION …

1 FUNDING FOR POST-SECONDARY EDUCATION . EDUCATION from the CST into a dedicated transfer have taken place in recent decades but also removed FUNDING FOR. POST-SECONDARY . payment, doing so would be merely symbolic unless the accountability. These cuts have been accompanied by federal government attaches conditions to the FUNDING . a massive increase in user fees and a decrease in the The Canadian Federation of Students and Canadian quality of EDUCATION . Association of University Teachers argue that the most EDUCATION . The lack of national oversight of POST-SECONDARY effective way to support an affordable and high quality EDUCATION has led to drastically different levels of access POST-SECONDARY EDUCATION system is through a federal act that would enshrine Canada-wide standards and define across the country.

2 At a time when POST-SECONDARY Fall 2013. EDUCATION is becoming vital to Canada's long-term the requirements of transfer payments. economic and social health, it is increasingly essential An act would tie FUNDING to a commitment from the that the federal government show leadership. Universities and colleges in Canada are funded through despite the federal government's central role in post - provinces to uphold a set of principles, namely public two main sources: government grants and individual secondary EDUCATION , Canada remains the only major administration, affordability, comprehensiveness, Sources: user fees. Over the past two decades, there has been a industrialised country without national oversight over collegial governance, and academic freedom. In return 1. Canadian Association of University Teachers.

3 2012-2013 Almanac of fundamental shift in the ratio between the two. higher EDUCATION . for upholding these principles, provincial governments POST-SECONDARY EDUCATION in Canada , September, 2012. would receive increased and predictable FUNDING from 2. Malcolm Tight. International Handbook of Higher EDUCATION . In the 1960s and 70s, governments were responsible for Routledge Publishing, April 2009 HISTORICAL OVERVIEW: the federal government. more than 90 percent of POST-SECONDARY costs. In the 3. Following the creation of the CHT, all ten provinces and the federal FEDERAL FUNDING IN CANADA. government signed a binding agreement that guaranteed major 1980s, the government's share stood at 84 percent of Indeed, Canada's health care system serves as a living increases in health FUNDING to the provinces through increased federal overall FUNDING .

4 Two decades later, government FUNDING Pre-WWII (1867 to 1945). example of the type of federal-provincial relationship transfers, and an assurance from the provinces that their health care accounts for only 57 percent. Higher tuition fees have currently being contemplated by many in the higher systems would meet standards set out in the Canada Health Act and Prior to the Second World War, universities received that funds in the CHT would be used solely for health care. replaced almost all of the lost government FUNDING (see EDUCATION community. The Canada Health Transfer very little public FUNDING and community colleges did 4. Canadian Association of University Teachers. 2012-2013 Almanac of Figure 3).1. provides accountability to the federal government for POST-SECONDARY EDUCATION in Canada , September, 2012.

5 Not yet exist. The FUNDING for most academic programs the large sums of money transferred and guarantees the 5. Canadian Association of University Business Officers. A Point of No In recent years, there have been some efforts by the was tied to the church as well as private donations provinces stable FUNDING . The federal Ministry of Health Return: The Urgent Need for Infrastructure Renewal at Canadian federal government to restore the FUNDING that had and substantial tuition fees. A very small portion of the oversees the transfer, ensuring that the provinces comply Universities, , 2009. been cut in the 1990s. However, by late 2008 the Canadian population attended university and the vast with the standards set out in the Canada Health Act. Canadian economy had entered a recession cycle majority of students came from the wealthiest families.

6 Similar to that of the mid-1990s. At the CONCLUSION end of 2012, the government expected Governments are post -War (1946 to 1976). The shift from a cost-sharing to block- FUNDING model has to post a deficit of close to $50 expecting to post deficits Following the War, veterans were not only helped hide the magnitude of FUNDING cuts that billion. Consequently, governments are expecting to post deficits for the for the coming years given generous grants to enroll, which resulted in a major increase coming years and are contemplating and are contemplating in POST-SECONDARY participation. By further cuts to spending on social FIGURE 5: Average domestic programs, including POST-SECONDARY further cuts to spending the mid-1960s, nearly all FUNDING undergraduate arts and science on social programs, for Canadian universities and colleges was provided by federal and tuition fees in 2013-14 by province.

7 Including POST-SECONDARY POST-SECONDARY provincial governments. EDUCATION : A Shared EDUCATION . Starting in 1967, federal FUNDING was Responsibility provided on a cost-sharing model. The provinces made spending decisions and administered the system and While some politicians view POST-SECONDARY EDUCATION $5,870 the federal government matched their spending dollar- $5,029 $2,644 as the sole jurisdiction of provincial governments, AB for-dollar. Under this arrangement, federal expenditures BC $3,779 NL a distinction must be drawn between jurisdiction on higher EDUCATION tripled. MB and responsibility. Although Canada's Constitution $2,653 places most social programs, including EDUCATION , QC Abandoning the Cost-Sharing Model $6,394 $5,696 within the jurisdiction of provincial governments, it SK PEI (1977 to 1995).

8 Does not relieve both levels of government of their $7,259 $6,113 responsibility to ensure the best possible system of Looking to balance the budget by cutting public ON NB $6,185. POST-SECONDARY EDUCATION . Constitutionally, health spending, the federal government abandoned the NS. care is a realm of provincial jurisdiction, yet it is subject 1:1 cost-sharing model and created the Established to federal legislation that sets standards for care and Program Financing (EPF) framework in 1977. Under FUNDING , and ensures universal access. The federal EPF, FUNDING was transferred to the provinces through government has the ability to use its spending powers two mechanisms: tax points and cash transfers. Tax to intervene in areas of provincial jurisdiction without points are a transfer of federal taxing authority to altering the Constitution's division of powers.

9 However, the provinces, under which the federal government CANADIAN FEDERATION OF STUDENTS CANADIAN. CANADIAN FEDERATION. F EDERAT OF STUDENTS. ION OF ST UDENT S FS- FC A. decreases corporate or personal income tax rates by the end of the decade, federal transfers for post - IMPACT OF FUNDING CUTS. to allow a provincial tax increase without increasing secondary EDUCATION remained $4 billion per year less in the overall level of taxation. Cash transfers are funds Reductions in federal FUNDING for POST-SECONDARY institutions has 2000 than in 1990. FIGURE 3: University Operating transferred directly from federal to provincial coffers. resulted in increased user fees and lower quality POST-SECONDARY EDUCATION . The large increase in university class sizes seen in recent Revenue divided between private Although transfers are made with an intended 2001 to the Present FUNDING and government FUNDING destination, such as health care or EDUCATION , without years is one direct example of this.

10 Institutions have increasingly In 2004, under pressure from provincial governments and turned towards lower paid, part-time and sessional instructors to binding legislation and agreements with provincial activists to improve the stability and accountability of governments, the provinces are free to spend the funds teach undergraduate classes. Between 1990 and 2006, the ratio FUNDING for health care, the federal government created of students to full-time faculty members increased by almost 40. as they choose. a dedicated transfer payment for health, by splitting the Throughout the 1980s, federal transfers for post - CHST into two transfers: the Canada Health Transfer 100%. secondary EDUCATION as a share of GDP started steadily (CHT) and the Canada Social Transfer (CST).