Ontario Colleges Under Financial Duress as Funding Review Begins

Post by : Mina Rahman

Ontario's post-secondary institutions are encountering significant financial challenges due to dwindling revenues from international students. The Ford government has initiated a comprehensive review of the province's funding strategy for higher education.

Colleges and universities have navigated two consecutive years marked by budget reductions and workforce cuts following the federal government's implementation and subsequent tightening of international student permit limits. This policy change has drastically decreased the number of students that many colleges depend on.

The financial situation was already challenging. Shortly after the Progressive Conservatives took office in 2018, they enacted a 10% tuition decrease followed by a freeze, compelling colleges to increasingly rely on fees from international students. Prior to the permit caps, these students contributed around 30% of college funding in Ontario.

Nolan Quinn, the Minister responsible for Colleges, Universities, Research Excellence, and Security, recently confirmed that tuition will remain frozen until at least the end of the 2026–27 academic year. When pressed during a committee meeting, he did not comment on potential tuition increases thereafter.

Peggy Sattler, the NDP's spokesperson for the post-secondary sector, expressed concern about the uncertainty, highlighting Ontario's status as having the lowest per-student funding across Canada.

"Rather than taking accountability, the government appears prepared to offload more expenses onto students," she stated.

Quinn, nonetheless, stressed that the province is taking these matters seriously. He indicated that a thorough evaluation of the funding formula is in progress, particularly looking at “weighted grant units” tied to specific academic programs. He indicated that revisions in this area may hold significant implications.

"It's been over a decade since we scrutinized the entire funding formula," Quinn commented. "Costs have evolved, and we’re assessing every aspect of it."

Industry leaders assert that immediate reforms are necessary. Colleges Ontario reported $1.8 billion in cuts, the suspension of 600 programs, and the loss of 8,000 jobs, warning that stability in the system is waning.

Ontario's universities are experiencing similar issues. The Council of Ontario’s Universities anticipates a collective deficit of $265 million this year, urging for increased operating funds to ensure the resilience and longevity of the post-secondary framework.

"Stable and sustainable funding is crucial," they stated. "Strong universities are essential for Ontario to compete and lead in the industries that will define the province’s future."