PUBLIC EDUCATION FOR THE PUBLIC GOOD - a national vision for Canada's post-secondary education system
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PUBLIC
EDUCATION
public education for the public good • Canadian federation of students
FOR THE
PUBLIC GOOD
a national vision for Canada’s
post-secondary education system
Canadian federation
of studentsCanadian Federation of Students 338 Somerset Street West Ottawa, Ontario K2P 0J9 Tel: (613) 232 7394 Fax: (613) 232 0276 E-mail: web@cfs-fcee.ca Web: www.cfs-fcee.ca This report is available in digital form on the Federation’s website at www.cfs-fcee.ca
The Canadian Federation of Students
With over 600,000 members, represented by more than 80 students’ unions in all ten provinces, the Canadian Federation of Students is the
voice of post-secondary students in Canada. The Federation and its predecessor organisations have represented students in Canada since
1927. The Federation represents full- and part-time students at the college, undergraduate, and graduate levels.
British Prairies Ontario Ontario Ontario Québec Newfoundland
Columbia Alberta College of Art Algoma University (cont’d) (cont’d) Concordia Student Union and Labrador
University of British and Design Students’ Students’ Union McMaster University Trent Central Student Concordia University Grenfell Campus Student
Columbia Students’ Association Association général des Graduate Students’ Association Graduate Students Union
Union Okanagan Brandon University étudiantes et étudiants Association Association Marine Institute Students’
Society of Graduate
Camosun College Students’ Union du Collège Boréal Nipissing University Students of the Dawson Student Union Union
Student Society Graduate Students’ Brock University Student Union University of Western Memorial University of
Post-Graduate Students’
Capilano Students’ Association of the Graduate Students’ Ontario College of Art Ontario Society of McGill Newfoundland Students’
Union University of Calgary Association and Design Student Wilfrid Laurier University University Union
Douglas Students’ Union First Nations University Carleton University Union Graduate Students’ Graduate Students’
of Canada Students’ Students’ Association Student Federation of Association Union of the Memorial
Emily Carr Students’ Association Carleton University the University of Ottawa University of Windsor Maritimes University of
Union Newfoundland
University of Manitoba Graduate Students’ Graduate Students’ Students’ Alliance Cape Breton University
Kwantlen Student Students’ Union Association Students’ Union College of the North
Association Association des University of Windsor
University of Manitoba Association étudiante de étudiant(e)s diplômé(e)s Graduate Students’ Holland College Student Atlantic Students’ Union
College of New Graduate Students’ la Cité collégiale de l’Université d’Ottawa Society Union
Caledonia Students’ Association
Union Student Association of Queen’s University University of Windsor King’s Students’ Union
University of Regina George Brown College Society of Graduate and Organization of Part-time
North Island Students’ Professional Students Mount Saint Vincent
Students’ Union Glendon College Student University Students
Union University Students’
Association étudiante de Union Ryerson Students’ Union York Federation of Union
Northwest Community l’Université de Saint- Students
College Students’ Union University of Guelph Continuing Education University of New
Boniface Central Student Students’ Association of York University Graduate Brunswick Graduate
Okanagan College University of Association Ryerson Students’ Association Students’ Association
Students’ Union Saskatchewan Students’ University of Guelph Saint Paul University Student Union of
College of the Rockies Union Graduate Students’ Students’ Association NSCAD
Students’ Union University of Association University of Toronto University of Prince
Selkirk College Students’ Saskatchewan Graduate Lakehead University Scarborough Campus Edward Island Student
Union Students’ Association Student Union Students’ Union Union
Students’ Union of University of Winnipeg Laurentian Association University of Toronto University of Prince
Vancouver Community Students’ Association of Mature and Part-Time Graduate Students’ Edward Island Graduate
College Students Union Student Association
Thompson Rivers Laurentian University University of Toronto Association générale des
University Students’ Graduate Students’ Students’ Union étudiants de l’Université
Union Association Sainte-Anne
University of Toronto
Vancouver Island Laurentian University Mississauga Students’
University Students’ Students’ General Union
Union Association Association of Part-Time
Association des Undergraduate Students
étudiantes et étudiants at the University of
francophones de Toronto
l’Université Laurentienne
Laurentian Students’
Uniontable of contents
1 overview
forEword
Public opinion polling
Recommendations
6 Funding and LEGISLATION
Post-secondary education in canada
Student Debt
User fees and the income tax system
International Students
A post-secondary education act
16 Aboriginal Education
Educational Attainment levels
Post-secondary student support program
18 Research and innovation
commercialisation of university research
business investment in research
graduate student funding
EDUCATION STATISTICS
22 TRAINING AND EMPLOYMENT
Educational requirements
Youth Un- and under- Employment
Internships and Unpaid Work
24 Supporting information
Costing of recommendations
Referencesoverview
Public education
for the public good
SUSTAINABLE INVESTMENT IN EDUCATION REQUIRES NATIONAL LEADERSHIP
Attainment of a post-secondary education has become a which they study. In addition, Aboriginal peoples–the fastest
prerequisite to participate in the Canadian workforce. This growing population in Canada–are still largely shut out of
shift was precipitated by a recession that resulted in the post-secondary education, and are thereby prevented from
near-collapse of Canada’s manufacturing sector, but it reflects contributing to the knowledge economy.
a broader shift that has been happening for the past two Three decades of public funding that has failed to keep up
decades in Canada and around the world. with enrolment growth has had a notable impact on students’
Canada’s youth are facing challenges unseen by previous education experience. Class sizes have increased, while
generations: record-high levels of student debt and a post- required infrastructure repairs have gone largely unaddressed.
secondary education system with tuition fees that have tripled Average tuition fees have increased at three times the rate
since the 1990’s; youth unemployment levels that are twice of inflation in the last year alone. As the primary lenders of
as high as the unemployment levels faced by the general student loans, the federal government plays a pivitol role in
population; and the baby boomer generation is working longer determining the impact of student debt. While the current
or re-entering the workforce after retirement, making it difficult funding model is unsustainable, there are realistic options
for new graduates to find jobs. All this coupled with current within reach.
federal student debt at over $15 billion, not including provincial Investments in students, colleges, and universities are
or private debt, means Canadian youth are now the most investments in Canada’s future. It is time for bold leadership.
indebted generation in the country’s history. This debt will have Maintaining Canada’s strong economic position requires
far-reaching implications for Canada’s economy and socio- leadership at the federal level, and a substantial reinvestment
economic equality. in students, colleges and universities, and post-secondary
Without federal direction, provinces’ post-secondary research. This document outlines students’ recommendations
education systems are taking divergent paths. Provinces have for the federal government to build and maintain a strong
the ability to set tuition fees at whatever level they see fit, post-secondary education system that ensures a prosperous,
resulting in students facing significantly different challenges equitable future for generations to come.
in accessing higher education depending on the province in
Canadian federation of students a national vision for post-secondary education
1Canadians support
ACCESSIBLE Public education
A majority of Canadians AGREE that:
• a university or college education is more important than ever to succeed in today’s society;
• the federal government should attach conditions to dedicated transfer payments to the provinces;
• the government should invest more in post-secondary education, even if it means they have to pay slightly more in taxes;
• the government should invest in making college and university more affordable, even if it means a small increase in taxes; and
• education is a common good and should be paid for by the government.
should tuition fees be What is the most important thing it is more difficult to get a the quality of education
increased, frozen, or for government to do for college university or college education has suffered because of
reduced? and university education? than it was ten years ago. inadequate government funding.
35% 51%
45% 17%
16%
11%
15% 5%
5%
Reduced lower tuition fees and student debt AGREE - 51% AGREE - 47%
invest more in research disagree - 33% disagree - 39%
Frozen
create more spaces for qualified students no opinion - 16% no opinion - 14%
increased reduce class sizes by hiring more professors
Not Sure/No Opinion Not Sure/No Opinion
Public opinion polling results are taken from a Harris/Decima random telephone survey of 2,000 adult Canadians conducted between
November 7 and November 18, 2012. The poll was commissioned by the Canadian Association of University Teachers and the Canadian
Federation of Students. National results are considered accurate within 2.2 percentage points, 19 times out of 20.overview
70% of canadians think
Young people have to take
on too much debt today to
65% of canadians want the get a university or college
80% of canadians oppose federal government to set education.
increases in tuition fees. of conditions on transfer payments
those, 35% support a reduction to ensure provinces use the
from current levels. money as intended.
high fees push students to work
more, study less
Students are struggling to pay for their post-
secondary education more than any previous working has a negative Far More Students
generation. Record-high tuition fees combined STUDENT unemployment effect on academics today work during the
with the recession means that those in vulnerable remains high 75% school year
groups, including Aboriginal and other racialised
students and those with disabilities, are facing 20% 60% 60%
increasing barriers to post-secondary education. 15% 45%
Higher costs and fewer summer employment 40%
opportunities have contributed to an increasing 10% 30%
number of students working during the academic 5% 20%
15%
year.
0% 0% 0%
Students have reported that working in low-wage, 2008 2009 2010 2011 2012 YES NO 1976 2006 2012
low-skilled jobs while studying often has a negative
PERCENT OF STUDENTS WHO WERE students who were asked if they PERCENT OF STUDENTS WHO Worked
impact on their academic performance and the
UNEMPLOYED DURING THE SUMMER thought working had a negative During the Year While Attending
quality of their educational experience, particularly
effect on academic performance University
when one is working more than 20 hours per week.
Canadian federation of students a national vision for post-secondary education 3Taking advantage of Canada's
current relative economic
strength, compared to other
industrialised countries, requires
leadership at the federal level and
an investment in students, as well
as in colleges and universities.
This document outlines SEVEN
recommendations for the federal
government to build and maintain
a strong post-secondary system
that trains a workforce capable of
competing in today's economy.overview
Recommendations
for a prosperous and productive future for all Canadians
1 Make a direct investment of $7.5 billion to reduce
existing student debt by half in the next three years.
The total outstanding student debt owed to the
federal government must be substantially reduced,
5 Remove targeted research funding earmarks within the
granting councils and award research funding based
on academic merit determined through a peer review
process. Increase the number of Canada Graduate
and steps must be taken to prevent current and Scholarships to be consistent with average program
future students from accumulating education-related growth and distribute them proportionally among the
debt. research councils according to enrolment figures.
2 Increase the value and number of non-repayable
grants available to students by redirecting funds
allocated to education-related tax credits and savings
schemes to the Canada Student Grants Program, and
6 Increase funding by $10 million to Statistics Canada’s
education branch for the collection and analysis of
statistics to properly track the impact of student debt
on post-secondary education completion rates and the
allow graduate students to qualify for grants under fulfillment of labour-market demands.
the program.
3 Implement a federal Post-Secondary Education Act
in cooperation with the provinces, modeled after the
Canada Health Act, accompanied by a dedicated
cash transfer with funding allocated to:
7
Develop a national strategy to address youth
unemployment, underemployment, and unpaid
internships that includes as a first step, collecting
relevant employment data on recent graduates
- address shortfalls in funding since 1992; and restoring funding for the Canada Summer Jobs
- reduce tuition fees to 1992 levels; and Program.
- address deferred maintenance costs at
Canada’s colleges and universities.
4 Remove the funding cap on increases to the Post-
Secondary Student Support Program and ensure that
every eligible First Nations, Inuit, and Métis learner is
provided funding.
Canadian federation of students a national vision for post-secondary education 5Canada’s post-secondary
education system
For over half a century, the federal Federal funding cuts led most provinces federal government must re-prioritise
government recognised the crucial to reduce funding for higher education affordable, accessible, high quality post-
role post-secondary education plays and paved the way for a significant secondary education.
in increasing social and economic shift in how Canada funds universities Canadians overwhelmingly agree that
equality and driving economic growth and colleges. Today, nearly half of the the federal government must provide
and innovation. The substantial public operational funding for universities more support for post-secondary
investments that led to the expansion of comes from students themselves. education.
universities and the creation of colleges Canada’s public funding covers just
in the 1960s were based on the belief 57 percent of the cost of university Investments in social programs, such
that access to post-secondary education and college education (Figure 1.2), as health care and post-secondary
should be dictated by a student’s ability compared with the Organisation education, regularly rank as top
and desire to learn, not by a student’s for Economic Co-operation and priorities for Canadians. In a recent
financial means. Development (OECD) average of 68 poll conducted by Harris/Decima, only
percent. Canada’s university tuition 8 percent of Canadians identified tax
Over the past three decades, Canada’s cuts, and only 12 percent identified
public post-secondary education system fees are also among the highest in
the OECD. If Canada is to maintain its deficit reduction, as the most important
has become markedly less public. priority for the federal government. By
Beginning in the 1980s, the federal educational edge at the post-secondary
level, it is going to have to address comparison, over 60 percent identified
government limited the increases in investments in social programs,
funding transfers to the provinces for these public-funding shortfalls.
reducing unemployment, or reducing
post-secondary education, resulting in Prior to these cuts, access to post- poverty as their top priority.
a decrease in per-student funding. In secondary education was similar from
1995, the federal government made one province to province. Now, the province
of the deepest funding cuts to social that a student lives in is a key factor
programs in history by slashing transfers in determining the individual cost of
to the provinces by $7 billion. In every post-secondary education because
province, with the exception of Québec, tuition fees vary so widely. For example,
this funding cut was passed on directly an undergraduate students in Ontario
to students in the form of massive pay about three times as much as their
tuition fee increases. Despite the federal peers in Newfoundland.
government posting multi-billion dollar In order to reduce inequalities
surpluses in the late 1990s and early across socioeconomic groups
2000s, funding for post-secondary and regional differences—and
education was never restored. to increase the country’s global Annual cost of corporate tax
economic competitiveness—the
cuts to the government.
Public education for the public good Canadian federation of studentsIS Canada’s higher education system economically competitive?
Funding and governance
According to the World Economic Forum’s annual report on economic competitiveness,
Canada’s higher education system is failing to keep pace with other countries in equipping
citizens with the skills needed to advance the domestic economy and remain globally
competitive.
CANADA WAS RANKED:
8 12 15
Despite public opinion, the federal
government has prioritised tax cuts th th
th
and deficit reduction over essential {2010}
investments in Canada’s social {2011 }
programs. Reducing the government’s
16
fiscal capacity by multi-billion dollar tax {2012}
cuts over the past decade undermines
the federal government’s ability to
the data suggest a slight th
downward trend of [Canada’s] {2013 }
adequately fund training both for the
performance in higher education...
country’s future workforce and for out-of
work Canadians. driven by lower university enrollment rates
If the government were to shift its
and a decline in the extent to which staff is being
priorities, it could provide the necessary trained at the workplace.”
funding to make education affordable -World Economic Forum Report on Economic Competitiveness
for all Canadians while also improving
the quality and facilities of Canadian
colleges and universities.
Figure 1.1: 2012-13 World Economic Forum: Global COmpetitiveness INDEX, Higher
Education rankings (Effectiveness of the higher education sector in developing
an economically competitive society).
#1 #2 #3 #4 #5 #6
finland singapore Germany switzerland Belgium netherlands
#7 #8 #9 #10 #11 #12
60% of Canadians agree that
investing in social programs,
and reducing poverty and United States SWEDEN new zealand Taiwan Iceland
unemployment are higher
priorities than tax cuts and #13 #14 #15 #16
deficit reduction.
Austria Denmark Australia Canada
7FIGURE 1.2: university operating
revenue divided between private Fees are a barrier: Let the
funding and government funding.
100%
income tax system work
80%
The federal funding cuts of the 1990s passed lower for female graduates who, on average,
an increasing proportion of the cost of post- earn only an additional $48,000.
60% secondary education onto students. Although Given that at least 70 percent of new jobs
government funding used to cover up to 80 require some form of post-secondary
40% percent of an institution’s operating budget education, higher education is increasingly a
three decades ago, it now only covers roughly prerequisite to participate in the labour market
20% 50 percent, with tuition fees making up the and to earn an average income. It is not a
difference (Figure 1.2). guarantee of future wealth.
0% In the last fifteen years, tuition fees have Education not only benefits the individual, but
1982 1992 2002 2012 become the largest expense for university and all of society as well. Populations with higher
college students increasing, on average, over levels of education statistically have better
TUITION and other fees
five times the rate of inflation (Figure 1.4). High health outcomes, lower poverty rates, and
government funding tuition fees limit access to post-secondary lower crime rates.
education for students from low- and middle-
income households. At their current rate of The current funding model forces individuals
increase, tuition fees are estimated to exceed to shoulder significant costs for a college or
FIGURE 1.3: TUITION FEES have INCREASED all other student expenses combined in five university education, neglecting the substantial
FASTER than all other student costs. years. public benefit of post-secondary education.
Statistics Canada has determined that students The most efficient and effective method of
40% financing post-secondary education is through
from low-income families are less than half as
likely as those from high-income households to a progressive income tax system.
30%
pursue a university education. They have also Such a system ensures that the wealthy and
found that finances were the most frequently- poor are taxed in a fair manner by reflecting
reported reason high school students did not their respective ability to contribute, and
20% pursue post-secondary education. the subsequent personal economic benefit
Tuition fees act as a flat tax—a cost applied to obtained as a result of their education.
all students at the same rate, regardless of their Canadians have made it clear that they are
10% financial resources. While some think tanks and comfortable with increased government
governments have exaggerated the personal spending to improve access to post-secondary
benefits of a college or university credential education. According to a recent Harris/
0% to justify high tuition fees, the reality is much Decima public opinion poll, Canadians rank
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
more modest. The OECD reports that male tuition fee reductions as the top priority for
graduates earn only an additional $100,000 government investment in education.
TUITION fees FOOD over their lifetime. The return is substantially
PUBLIC TRANSPORTATION RentFunding and governance
Figure 1.4: Tuition Fees Grow
Dramatically Faster Than inflation.
TUITION fee increases
inflation
50%
The same poll also found that 67 percent of While new infrastructure is welcome, it only
Canadians want the federal government to increases the funds needed to maintain and 40%
exercise more control over transfers to the renovate infrastructure on campuses, a cost
provinces for post-secondary education. that is already over $1 billion per year, and
The benefits of investing in higher education does little to address existing renovation and 30%
go well beyond the individual. A highly maintenance needs.
educated workforce increases the tax base and University and college budgets are strained
reduces the cost of a number of other publicly- to such an extent that deferred maintenance 20%
funded social programs, including health care, poses serious health and safety risks at many
public safety, and employment insurance. schools across the country. In 2009, the 10%
A recent report by the OECD found that Canadian Association of University Business
the direct public benefit of investing in post- Officers estimated that the total value of
secondary education was in excess of $100,000 deferred maintenance on Canadian campuses 0%
per individual, a 160 percent return on each was more than $5 billion, half of which is
dollar invested. considered urgent, a 35 percent increase in less
than a decade.
Since the cuts to federal transfer payments
in the 1990s, the quality of post-secondary Despite the moderate reinvestment in post-
education has declined. Class sizes have secondary education in recent years, the
increased substantially, while institutions federal government has done little to ensure
have pushed to casualise the academic that these investments will have their desired
workforce by replacing full-time tenured faculty impact.
members with overworked and inadequately
compensated contract academic staff. In
addition, between 1990 and 2006, the ratio of
students to full-time faculty members increased
by almost 40 percent.
Cash transfer payments for post-secondary
education are roughly $1.3 billion short of
1992 levels when accounting for inflation and
population growth.
64% of canadians believe that
The 2009 federal budget allocated $2 billion the cost of a post-secondary
to college and university infrastructure,
focused entirely on new building projects. education is too high.
Canadian federation of students a national vision for post-secondary education 9Student debt loads have never been higher... people
are graduating with $30,000 in student loans on top of
a generation
$5,000 in credit card debt... the result is that many
students fall into a hole they can’t easily climb out of.”
in debt
- Laurie Campbell, Executive Director, Credit Canada Canadians are making sacrifices to prepare themselves for an
evolving workforce. Past federal and provincial government
decisions are forcing students to take on more education-related
Figure 1.5: incidence and average amount of debt than any previous generation, while middle class earnings
student loan debt upon graduation. have largely stagnated in the past twenty years.
Skyrocketing tuition fees and the prevalence of loan-based financial
inflation assistance have pushed student debt to historic levels. This past
$26,000 year, almost 455,000 students were forced to borrow in order to
$24,000 finance their education. The amount owed to the Canada Student
Loans Program is increasing by nearly $1 million per day.
$22,000
In September 2010, the total amount of student loans owed to the
$20,000
government reached $15 billion, the legislated ceiling set by the
$18,000 Canada Student Financial Assistance Act. This figure only accounts
$16,000 for a portion of total student debt; it does not include provincial
and personal loans, lines of credit, and education-related credit
$14,000 card debt. In response, the government altered the definition of
$12,000 “student loan” to exclude over $1.5 billion in federal student loan
$10,000 debt. Even with this new definition, the federal student loan debt
surpassed the $15 billion limit. In response, the federal government
$8,000 again amended the Canada Student Financial Assistance Act in
$6,000 order to increase the limit to $19 billion while, at the same time,
1990 1995 2000 2005 2010 2012 dramatically reducing parliamentary oversight of the program.
Recommendation 1
Make a direct investment of $7.5 billion to reduce existing
student debt by half in the next three years. The total
outstanding student debt owed to the federal government
must be substantially reduced, and steps must be taken
number of canadians unable to make any to prevent current and future students from accumulating
education-related debt.
payments on their canada student loan
as of September 2013Funding and governance
The impact of debt on
students and society
High tuition fees force students to Research finds that debt levels have a
take on large amounts of debt in order direct impact on success and retention.
to cover the high up-front costs of Students with higher debt levels are far According to the Canada Student loans program:
pursuing post-secondary education. less likely to complete their degree or average tuition fees per year for the 2013
Many potential students are rightfully diploma.
kindergarten class when they
reluctant to take on this debt and After graduation, student debt distorts
associated risk. Of the 70 percent of reach university in 2026:
career choice, especially among
high school graduates who cite financial professionals. Studies of medical and
reasons as the main factor for not law students found that debt levels
pursuing post-secondary education, prompt these students to seek higher
one in four cited accumulation of debt paying jobs in fields or regions that
as the main deterrent. Those from $13,100 $13,700 $14,40 $15,100
marginalised communities, low-income
are not necessarily their first choice 0
or where demand is greatest. For
backgrounds, and single parents are example, student debt appears to be Tuition fee estimates based on provincial
more likely to be strongly averse to driving committed young doctors away
government policy announcements, and current
legislation, indexed to 2.5% above inflation.
accumulating student debt. from family practice and young lawyers
Funding post-secondary education away from public and community
through student debt is an unfair service work.
model. Requiring low- and middle- High levels of debt also discourage
income students to finance education individuals from starting a family, high levels of student debt are onE
through debt results in these students purchasing a home, or starting a of the primary effects of the move
paying more for education than
students who have the resources to pay
business. It also discourages graduates towards policy that downloads the
the full cost of their education up-front.
from pursuing low paying or volunteer costs of public education onto
experience in a career-related field that
Students who can afford to pay their may offer necessary experience to get a students and their families.”
fees up-front only pay the sticker price, middle-income job. - ALTERNATIVE FEDERAL BUDGET
while students who take on debt to Canadian Centre for Policy Alternatives
pay their fees must pay both the fees
and the accumulated interest on their
student loans. Such a system unfairly
burdens low- and middle-income
families.
Canadian federation of students a national vision for post-secondary education 11effective measures:
grants not loans
Creating the Canada Student Grants the Canada Student Grants Program, the
Program was an important first step to government could significantly reduce
meaningfully reduce student debt, however student debt.
a larger investment in up-front grants is
required. The total cost of tax credit and
education savings schemes currently
operated by the federal government are
anticipated to exceed $2.58 billion this year,
making these programs the government’s Recommendation 2
most expensive direct spending measure on Increase the value and number of non-
student financial assistance, by far. repayable grants available to students
Amount that the Canada Student Loans Despite their substantial price tag, the by redirecting funds allocated to
Program expects to lend for education tax credit and savings programs education-related tax credits and
the 2013-14 year. are poor instruments to improve access savings schemes to the Canada
to post-secondary education and relieve Student Grants Program, and allow
student debt. All students qualify for tax graduate students to qualify for grants
credits, regardless of financial need, which under the program.
ultimately benefits those with the lowest
amount of debt and those from high-income
backgrounds. Furthermore, saving schemes
have largely benefitted those from higher- (Canada Education Savings Grants) give
income brackets, as individuals from low- scarce public funds to the wrong
income families often do not have the funds households... the CESG program should
necessary to invest in the first place. be discontinued.”
If this $2.58 billion were used for up-front - Kevin Milligan
grants instead, it would turn every dollar
UBC Economist
loaned by the Canada Student Loans
Program (CSLP) into a non-repayable grant.
Approximate cost of education tax The CSLP expects to lend approximately
credits and savings schemes $2.46 billion during the 2013-14 academic
year. By shifting money spent on education-
for 2012-13. related saving schemes and tax credits toFunding and governance
INTERNATIONAL STUDENTS
in canada GDP Contribution of
International Students to the
Canadian Economy in 2011:
$8
While all students in Canada have faced and decrease shortfalls in the aging labour
dramatic fee increases over the last market.
decade, tuition fee regulation has rarely The federal government anticipates
applied to international students. By fall significant shortages in the labour market
2013, average tuition fees for international over the next 15 years. Specifically, it is
undergraduate students were $19,514, estimated that there will be more than two
more than three times the already high million job openings over the next decade.
fees paid by Canadian residents (Figure Figure 1.6: Average Undergraduate Tuition Fees
1.6). At some universities, international By increasing the number of international for Domestic and International Full-Time Students
students pay over $23,000 per year in students who make Canada their IN CANADA.
tuition fees, and this figure rises to over permanent home, the expected shortage
$25,000 for some graduate programs, and of skilled workers could be significantly $4,724 $14,487 2008
a staggering $57,000 per year for some eased. A greater number of international
professional programs, such as dentistry students making the transition to the
and law. domestic workforce, particularly in key
$4,917 $15,674 2009
sectors and regions, will help meet
High differential fees are an unfair burden upcoming skills shortages and help ensure
and a barrier to post-secondary education that the Canadian economy continues to
for international students. Ultimately, grow. $5,146 $16,768 2010
such fees could threaten Canada’s ability
to attract and retain foreign scholars There will be strong competition for
from diverse backgrounds. According to future international students among
the federal government’s own research, Canada’s peer countries, as other leading $5,313 $17,571 2011
immigrants who have previously worked jurisdictions are equally aware of the
or studied in Canada have the easiest time benefits of international education and
integrating into the Canadian workforce are pursuing their own strategies to
and prospering in Canadian society. attract larger shares of students , including $5,581 $18,641 2012
reducing and eliminating tuition fees
International students already contribute altogether.
over $8 billion annually to the Canadian
economy. Their potential contribution as Eliminating differential fees for international
residents and citizens, if naturalised, would students would greatly increase Canada’s $5,772 $19,514 2013
present a boon to the Canadian economy ability to attract international students.
international student tuition fees
Domestic student tuition fees
Canadian federation of students a national vision for post-secondary education 13a post-secondary education act
CREATING Accountability for Federal Cash Transfers for A Federal Post-Secondary
Federal Funding Post-Secondary Education Education Act
Although the federal government is one To return to a level of federal funding The adoption of a federal post-secondary
of the single largest sources of funding equivalent to the level before the cuts of education act would establish conditions
for post-secondary education, there is no the mid-1990s would mean a dedicated on the provinces for receiving post-
regulatory system to ensure that the monies post-secondary education transfer to the secondary education transfer payments.
transferred to provincial governments provinces of approximately $5.08 billion. Such legislation would require provinces
actually make it into the post-secondary The federal government currently allocates to uphold principles similar to those
education system. Without accountability just over $3.75 billion to post-secondary found in the Canada Health Act: public
measures for federal funding transfers, education as part of the Canada Social administration, comprehensiveness,
provincial governments are free to Transfer; however, there is no requirement universality, portability, and accessibility.
misallocate transfers intended for post- for the provinces to spend this money In return for upholding these principles,
secondary education to other provincial on increasing access to post-secondary provincial governments would receive
priorities. education. Pairing a funding increase with adequate and predictable funding from the
Under previous federal-provincial cost- a new post-secondary education act is federal government.
sharing models, the provinces had to invest essential to ensuring additional funding
their own funds in order to receive federal reaches post-secondary institutions to
transfers. If a provincial government chose address increased costs and deteriorating
to cut funding, federal transfers would be infrastructure.
reduced by a proportionate amount. The
current block-funding model—the Canada
Since the funding cuts in the early 1990s, Recommendation 3
full-time enrolment has increased 55.1 Implement a federal Post-Secondary
Social Transfer—has no requirement that percent, resulting in an increase of $1.33
provincial governments maintain their Education Act in cooperation with the
billion in costs to the system that are yet to provinces, modeled after the Canada
funding in order to receive federal money. be addressed by the federal government.
Indeed, there have been numerous Health Act, accompanied by a dedicated
Additionally, similar to the health care cash transfer with funding allocated to:
examples of provincial governments system, university and college-related costs
receiving additional federal funds and - address shortfalls in funding since 1992;
increase at a much higher rate than the - reduce tuition fees to 1992 levels; and
then reducing their provincial contribution. standard Consumer Price Index. Over the
For example, in 2008, the Government of - eliminate deferred maintenance at
previous eighteen years there has been, Canada’s colleges and universities.
British Columbia cut funding to universities on average, an annual post-secondary
in the same year that it received new post- education-related inflation of three percent,
secondary education funding from the per year, or about $1.87 billion over that
federal government. This approach has period.
lead to significant variations in provincial
funding and policies. Tuition fees now differ
greatly from province to province, creating
unequal access to education depending on
a student’s province of study (Figure 1.7).Funding and governance
Figure 1.7: Map of tuition fees across Canada.
Average domestic undergraduate arts and sciences tuition fees in 2013-2014.
$2,644
NL
$5,670
AB
$5,029 $3,779
BC MB
$2,653 $5,696
QC PEI
$6,394
SK
$7,259
ON
$6,113
NB $6,185
NS
Figure 1.8: Tuition fee levels, 1992 to 2015.
in current dollars $9,231
2015 1992
$9,000 $8,815
$8,000 $7,649
$6,741 $6,743
$7,000 $7,259 $6,449
$6,000 $$5,637 $6,394 $6,185
$
$5,670 $6,113
$5,000 $5,696
$5,029
$ $4,064
$4,000 $3,160
$3,779 $2,743
$3,000
$2,653
$
$2,644
$2,000 $2,105
$1,962 $2,016 $2,120 $2,147
$1,000 $1,551 $1,591 $1,671 $1,442
$1,115
$0
BC AB SK MB ON QC NB PEI NS NL
Canadian federation of students a national vision for post-secondary education 15Keeping the promise of aboriginal
education AND PROSPERITY
Access to post-secondary education plays a degree compared to 23 percent of the total costs of tuition fees, books, supplies, travel, and
pivotal role in the creation of a more equitable, population. living expenses.
financially stable and sustainable society. Yet, This low-level of educational attainment is in In 1968, Aboriginal Affairs and Northern
there is great disparity in access across the stark contrast with the right to education for Development Canada (AANDC), formerly the
country, not only affecting students, but Canada Aboriginal peoples laid out in a series of treaties Department of Indian and Northern Affairs
as a whole. signed over the course of several decades and Canada, began providing direct funding for
As with most OECD members, Canada’s recognised in Canada’s Constitution. First Nations and Inuit students to pursue post-
economic future depends on its ability to In spite of the economic and legal necessity secondary education. In 1977-78, only 3,600
meet the challenge of an aging workforce and to ensure access to education for Aboriginal students received funding; by 1999-2000, over
relatively low domestic birth rates. Unlike peer peoples, funding for their education has 27,000 students were federal funding recipients.
countries, however, Canada has an advantage remained stagnant for over a decade. The Nevertheless, educational attainment levels of
with its rapidly growing Aboriginal population. participation rates in post-secondary education Aboriginal peoples remained significantly lower
Canada’s Aboriginal population is growing at six can be attributed to the significant and complex than the overall population (Figure 2.2).
times the rate of the non-Aboriginal population barriers to access that Aboriginal students face. Before 1992, funding was determined by the
(Figure 2.1). According to the 2011 National Research has found that Aboriginal learners are number of eligible students and their expenses.
Household Survey, 1.4 million people, 4.3 much more likely to be reluctant to use loan- Between 1992 and 1997, the model shifted from
percent of Canada’s population, identified as based programs if they are in financial need. per-student funding to block funding, which
Aboriginal. Of these, 46 percent were under the Aboriginal students are also more likely to have was to be administered by local Band Councils.
age of 24. dependents which results in high costs due to In 1996, increases in funding to the PSSSP were
It is estimated that over 300,000 Aboriginal childcare and relocation, as well as a higher capped at two percent annually. As a result of
youth could enter the labour force in the next likelihood of entering post-secondary education this limit on increases, funding has been unable
15 years alone. In May 2009, the Centre for at a later age than non-Aboriginal Canadians. to keep pace with annual increases in the cost
the Study of Living Standards concluded that of living and tuition fees—which increased
Additionally, approximately 20 percent of on average by three percent this year. While
closing the education gap between Aboriginal the First Nations population is unemployed,
and non-Aboriginal students would lead to an approximately 27,000 Aboriginal students
including a staggering 41 percent of those in received financial assistance prior to the
additional $179 billion in direct GDP growth, the 15-24 year age group. Unemployment limits
and over $400 billion in total growth over the implementation of the funding cap, the number
financial resources for families to pay for the of students fell to just over 22,000 by 2006.
next 20 years. rising costs of college or university education.
Educational attainment levels among Aboriginal The lack of funding has meant that communities
Currently, the federal government provides administering the funds must make difficult
peoples remain significantly lower than the financial assistance to status First Nations and
non-Aboriginal population. In 2006, 34 percent decisions about who receives funding each
Inuit students through the Post-Secondary year. Between 2006 and 2011, over 18,500
of Aboriginal persons over the age of 25 did Student Support Program (PSSSP), which was
not have a high school diploma compared to 15 people were denied funding—roughly half of
created to facilitate access to post-secondary those who qualified. Because of the shortfall in
percent of the non-Aboriginal population. Only education by alleviating the financial barriers
8 percent of Aboriginal persons hold a university funding, priority is often given to shorter college
faced by Aboriginal students by covering theABORIGINAL EDUCATION
Figure 2.1: Aboriginal
population growth by
18%
province between
2001 and 2011.
programs—to the detriment of those interested in pursuing more 13% 20%
expensive professional or graduate programs of study.
According to the Assembly of First Nations, a total of $724 million
is required to ensure that no Aboriginal student is denied access 37%
to post-secondary education due to financial barriers, and that 41%
91%
those students who are funded receive an adequate level of 21%
31%
support. As AANDC currently provides $306 million, an additional
79% 66%
$418 million would be required. This funding would support a 60%
total of approximately 40,000 students across Canada.
The funding disbursed through the PSSSP has a proven track 33% 99%
record for those who can access it. Most Aboriginal students
who are able to receive funding through the PSSSP succeed in
completing their studies and go on to find meaningful work.
Regardless of their place of residence, the majority of Aboriginal
graduates return to work in their communities and are employed Figure 2.2: 25%
in their field of study, achieving economic self-reliance and Proportion of the 20%
helping to develop healthy and stable communities while population with a
improving the Canadian economy. 15%
university degree.
It is important to note that although the economic return for 10%
those who are able to access education is high, there is no federal non-ABORIGINAL
5%
funding support provided for non-status First Nations and Métis ABORIGINAL
students, in addition to funding restrictions currently impacting 0%
1981 1991 1996 2001 2006 2011
Aboriginal learners. As the situation currently stands, this limits
the potential for this population as well as Canada’s well being as
a whole.
The potential GDP contribution
ion
of Aboriginal Canadians over the bill
400
next twenty years if Aboriginal
Recommendation 4 education levels rose to match
those of the general population:
Remove the funding cap on increases to the Post-
Secondary Student Support Program and ensure that
every eligible First Nations, Inuit, and Métis learner is The cost per year to raise
provided funding. Aboriginal education levels lion
Mil
to match those of the 418
general population:
17Is Canada’s Drive to Commercialise University Research paying off?
The Centres of Excellence for FIGURE 3.1: INDIRECT GOVERNMENT SUPPORT for
500 Commercialization Research research and development through tax incentives.
450 (CECR)—the network established
by the federal government to 0.20
400 bring together industry and
academia— has reviewed 500 0.15
(percentage of GDP)
350 publicly funded projects over
the last ten years. Of these, 0.10
300 only 80 were identified for
250 commercial viability and, of 0.05
those, only 40 moved forward.
200 0.00
150 This means that 460
A
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spain
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CANAD
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Hunga
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repub
commercially-driven research
Portu
d king
100 programs, funded by the
South
Nethe
Czech
Unite
public, failed to produce
commercially viable results. Note: Finland, Sweden, Switzerland, Denmark, Germany, and Italy
provide no tax incentives for research and development to businesses
FIGURE 3.2: 3.5
3.0
business 2.5
expenditures on 2.0
research and 1.5
1.0
development 0.5
(as A share of gDp). 0
N
NY
ALIA
D
Japan
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S
rk
ia
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nd
m
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ITALY
A
s
norwa
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FINLAN
ERLAN
franc
SWEDE
CANAD
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AUSTR
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SWITZ
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UNITE
UniteSupporting research and innovation,
Research and Innovation
and investing in Canadians
In order for Canada to remain economically of research, to discouraging private market leads to fewer employment opportunities
competitive at a global level, it must secure innovation. for graduates in an already difficult job
its status as a centre for research and Since the late 1990s, a number of initiatives market. The result of this restructuring is
innovation. Investment in graduate studies have been undertaken to bend public that many highly skilled workers are often
provides the foundation for long-term university infrastructure to meet the unable to contribute their full potential, thus
innovation and trains the highly skilled government’s commercialisation objectives, undermining Canada’s global economic
workers and researchers needed to respond such as requiring publicly-funded research to competitiveness.
to the economic and social challenges that secure direct, private sector investment. Canada has consistently ranked low on
Canada faces now and will face in the future. measurements of innovation. The World
University research geared towards
Enrolment in graduate studies increased commercialisation is focused on generating Economic Forum’s annual competitiveness
by 41.5 percent between 1998 and 2008. products that may yield short-term results, report highlighted the need for Canada to
Despite this, there have only been modest with little consideration of long-term increase the sophisticated and innovative
funding increases to the federal research research and innovation goals. As research nature of private sector research and
granting councils and scholarships. The funding is increasingly directed in this way, development. This year, Canada slipped from
stagnation in federal funding for research basic research and academic pursuits are eleventh to sixteenth place for the quality
and graduate education limits the number of undermined. of scientific research institutions – a sharply
masters and doctoral students that receive declining trend over the past five years from
grants, thus limiting the pool of highly skilled Recent increases in funding for the federal Canada’s 2008-2009 ranking of fourth.
researchers to those who are able to afford it research granting councils, especially those
resources dedicated to graduate students, As this trend continues, private sector
personally or who are able to secure limited research and development infrastructure
institutional or industry funding. have disproportionately benefited applied
research programs that are designed to is being replaced with a publicly-backed
In spite of the relatively high number of pursue a commercialised research agenda university system that is forced to advance
university graduates, Canada ranks second- over basic, curiosity-driven research. private sector research, a collaboration that
to-last among peer countries for PhD does not have a consistent track-record
graduation rates, notwithstanding a dramatic Shifting the motivation for university research of successfully bringing innovations to the
expansion of graduate studies over the last away from the public interest and towards marketplace.
ten years. commercial interests has resulted in the
private sector increasingly relying on public The private sector’s encroachment on
infrastructure at universities for research universities undermines the independence
Commercialisation of research of the academy, as money for research is
and development, rather than investing in
Recent federal budgets have directed their own infrastructure. This dependence increasingly tied to entities outside the
research funding to meet the short-term contributes to lower private sector academic system. These corporations often
priorities of the private sector, undermining investment in research and development in influence decisions that are normally left to
basic research and long-term innovation. The Canada than in comparable countries. the research community, such as investment
drive to commercialise university research has in maintenance, research facilities, and new
far-reaching consequences—from limiting Discouraging private sector investment in infrastructure. The research community
academic freedom and public ownership its own research and development facilities can also come under pressure from private
Canadian federation of students a national vision for post-secondary education 19funders of research when outcomes are not However, there are currently no need-based
commercially favourable for those funders. grants available to graduate students from the
Despite the threat to the independence of federal government. Students from low-income
Figure 3.3: Graduate TUITION FEES university research resulting from an increased
reliance upon industry sponsorship, there
families have a harder time affording graduate
studies due to high tuition fees and the lack
compared to inflation. is currently no whistleblower protection for of financial assistance. In the absence of a
tuition fees
graduate students who wish to report research grants program, completion rates for graduate
Inflation
misconduct. degrees remain low.
$6,000
Canada Graduate Scholarships (CGS) provide
$5,000 Barriers to Access merit-based funding directly to graduate
Graduate students often face a variety of students. These scholarships are administered
$4,000
challenges in pursuing their studies, including through the granting councils and are one
$3,000 limited funding options, an increasingly of the main mechanisms for the federal
commercialised and restrictive research government to fund graduate studies. The
$2,000 environment, rising tuition fees, little access to limited number of scholarships available has
need-based grants, and high levels of student meant that many of the best and brightest
$1,000
debt from previous degrees. Last year, average researchers are unable to maximise their
$0 tuition fees for graduate students increased by potential. Increasing the number of CGS would
2.3 percent, to over $6,000 (Figure 3.3). help promote graduate research and ensure
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2012
that graduate students have the resources to
The financial burden of high fees for graduate focus on their research, which will pay long-term
students is exacerbated by the foregone dividends to Canada’s research capacity and
earnings from not being employed full-time, innovation.
along with substantial debts accumulated
from earlier degrees. Despite their significant
investment of time and money, a recent study
Figure 3.4: PhD Graduates
Recommendation 5
indicated that doctoral graduates earn little
more–and in some instances, less–than those
(Number of PhD graduates with only a master’s degree. Remove targeted research funding
per 100,000 people, aged 25-29). earmarks within the granting councils
350 Graduate Student Funding and award research funding based on
300 Funding for curiosity-driven grants in the social academic merit determined through a
sciences and humanities lags far behind the peer review process. Increase the number
250 applied sciences. Without proper levels of of Canada Graduate Scholarships to be
funding and support for graduate students, consistent with average program growth
200
Canada’s research and innovation capacity will and distribute them proportionally
150 continue to fall behind global competitors. among the research councils according to
An investment in graduate students will help to enrolment figures.
100
produce the highly skilled workers that Canada
50 needs to compete in the global economy.
1996
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Students often enter graduate programs with
substantial debt from their previous degree.Research and INNOVATION
Tracking success:
education statistics
Collectively, the federal and provincial governments spend billions on students, their first post-graduation interaction with the labour
of dollars each year on post-secondary education, but adequate market, and the relationship between education and employment.
data to fully analyse the effectiveness of that spending are not The YITS results are necessary for fulfilling Canada’s international
collected. A recent OECD report noted that Canada does not commitment to provide the OECD with comparable data on post-
provide sufficient post-secondary education indicators used to secondary education.
compare countries. Although the Council of Ministers of Education Without sufficient data, it is impossible for governments to make
has started to fund the collection of some of the missing data, it is informed decisions about post-secondary education policies and
not a sustainable solution to the federal government’s underfunding priorities. The absence of this information makes it extremely
of the education branch of Canada’s national statistical agency, nor difficult to conduct further research regarding Canada’s post-
does it make up for the entire shortfall. secondary education system.
Canada does not currently collect information about the age of While the impact of discontinuing this research is significant, the
students when they enter or leave the post-secondary education amount of funding necessary to properly conduct research on
system, nor are data collected on completion rates for higher students and the post-secondary system is relatively small. An
education or the average length that a student spends in the post- increase of $10 million, less than 0.3 percent of what the federal
secondary system. In a more general sense, Canada lacks much government spends on post-secondary education, would establish
of the data regarding both the inputs and outcomes of the post-
the resources needed to undertake this research.
secondary education system.
In May 2010, the Department of Employment and Social
Development (formerly Human Resources and Skills Development Recommendation 6
Canada) announced that it would cease funding the Youth in Increase funding by $10 million to Statistics Canada’s
Transition Survey (YITS) and the National Longitudinal Survey education branch for the collection and analysis of
on Children and Youth. These studies are primary sources of statistics to properly track the impact of student debt
information about who pursues post-secondary education and on post-secondary education completion rates and the
who does not. Among other things, they provide vital information fulfillment of labour-market demands.
Figure 3.5: The number of
education-related indicators 64% 57% 63% 37% 21% 30% 22%
Canada collects for assessment
by the OECD has declined
significantly.
2000 2002 2004 2006 2008 2010 2012
(Percentage of indicators collected for annual assessment)
Canadian federation of students a national vision for post-secondary education 21You can also read