Ontario universities need government support, almost half running deficits and putting student services at risk, says council
Almost half of Ontario’s universities are now running deficits, with schools warning that student services will face cuts if the government does not provide a bump in funding and also allow tuition to rise by at least five per cent this fall.
Steve Orsini, who heads the Council of Ontario Universities, says the Ford government must “urgently” address schools’ financial situations, given that at least 10 of the province’s 23 publicly assisted universities are now projecting budget deficits totalling $175 million, with that number expected to rise to $273 million in 2024-25.
“Universities are at a breaking point now with years of declining real, per-student funding,” Orsini said in a telephone interview before speaking to the province’s pre-budget consultation held Tuesday in Oakville.
Pressure is coming from several fronts, he added, whether it be tuition cuts and freezes imposed by the province, unexpected pandemic-related expenses, or the additional salary costs they face given the raises employees are receiving to make up for the wage-capping Bill 124, which has been declared unconstitutional. (So far, schools have paid out $335 million.)
Universities are “demonstrating that we’re doing our part in belt-tightening, and we are committed to finding efficiencies,” said Orsini. “But we’re at the point where you can’t tighten your belt any further without cutting into services. That’s the concern we have right now.”
Students could see fewer services such as mental health supports or career counselling, or in incubation development programs or extracurricular activities, added Orsini, who is the council’s president and CEO.
“We’re now seeing universities pull back in these important areas that are really critical to student success.”
Colleges and Universities Minister Jill Dunlop has said the province needs to ensure schools are operating efficiently before it will boost their budgets or allow tuition fees to increase.
A blue-ribbon panel she struck recommended an immediate 10 per cent funding increase to universities and a five per cent tuition fee increase for this fall.
Shortly after taking office in 2018, the Ford government slashed tuition fees by 10 per cent and has frozen them since.
The blue ribbon panel did say that while staff salaries were among the lowest in the country on a per-student basis, there was “considerable room for improvement” in administrative costs, including space and other non-labour areas.
Provincial grants for schools have dropped more than 30 per cent since 2006-07, and universities have taken in 20,000 more Ontario students than they are funded for, the council has said.
A spokesperson for Dunlop said the government is “carefully reviewing the Blue Ribbon Panel’s recommendations as we focus on creating a sustainable path forward,” which will include funding and tuition levels for this fall.
“We look forward to continuing the work with colleges and universities to ensure the post-secondary education sector remains financially stable and focused on providing the best student experience possible,” said Liz Tuomi, Dunlop’s press secretary and senior communications adviser.
New Democrat MPP Peggy Sattler, her party’s post-secondary education critic, said last November that “the University of Waterloo will end this year with a $15-million operating budget deficit,” and noted others such as Queen’s University and Wilfrid Laurier were also in the red.
“The University of Guelph has reported budget deficits for three consecutive years,” she said.
Deficits mean “program cuts and hiring freezes, hurting students and undermining the quality of university education,” she has warned.
This article was reported by The Star
