FINANCING UNIVERSITIES IN CANADA

Abstract

Underfunding is the paramount problem in Canadian universities. Operating revenue per student has declined in real terms by about 15 per cent over the past 15 years. During the past three decades, revenue from governments has increased from 60 per cent of the total revenue to 80 per cent, while fees revenue has declined from 26 to 16 per cent, with the result that universities are increasingly vulnerable to political control and to financial instability. The transfers of the federal government to provincial governments have financed much of provincial transfers to universities, but the former will be reduced for at least three years and may be abolished altogether. Provincial governments, particularly in Ontario and Quebec, have controlled tuition fees for twenty‐five years in order to increase accessibility, but there has been little change in the socioeconomic composition of university enrollment. Funding for university research generally has neglected overhead costs associated with maintaining the institutional infrastructure necessary for research. Although the federal government still provides more than half of the funding for university research, the share from provincial and non‐governmental sources has been increasing.