Canadian Federation of Students (CFS) - Public Education for the Public Good - A National Vision for Canada's Post-Secondary Education System - October 2012

7/31/2019 Canadian Federation of Students (CFS) - Public Education for the Public Good - A National Vision for Canada's Post-Secondary Education System - October 2012

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With over 600,000 members, represented by more than 80 students unions in all ten provinces, the Canadian Federation of Students is thevoice of post-secondary students in Canada. The Federation and its predecessor organisations have represented students in Canada since1927. The Federation represents full- and part-time students at the college, undergraduate, and graduate levels.

The Canadian FederaTion oF STudenTS

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overviewFW

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Funding and governanCe

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reSearCh and innovaTion

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demographiC ChangeS

CT

TT STTS C

SupporTing inFormaTion

CST F CTS

FCS

1 - 5

6 - 15

16 - 19

20 - 23

24 - 26

Table oF ConTenTS


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1Canadian federation of students a national vision for post-seCondary eduCation

Since the 2008 global economic recession, Canadas road torecovery has been smoother than many other industrialisednations. round the world, countries are dealing with massivedebt resulting from ta cuts and stimulus spending byimplementing austerity measures. Canada is no eception. etdespite Canadas relative economic stability, many Canadiansparticularly students and youthcontinue to struggle with highunemployment and cuts to social programs.

lthough Canada showed signs of recovery following therecession, this past year has seen rising unemployment,

stagnating trade (ecept natural resources), and mountingpersonal debtparticularly education-related debtasthose affected by budget cuts and job losses return to schoolfor retraining. ecent reports from the World conomicForum and the rganisation for conomic Co-operation andevelopment (C) have shown a slip in Canadas rankingin higher education. oth organisations note Canadas lackof adequate training and development at the post-secondarylevel. Jurisdictional redundancies and high student debt dragdown national rankings, which are also impacted by declininglevels of private industry research and innovation. ccording

to the World conomic Forum, Canada has lost its position inthe top ten most economically competitive nations. t has beenreplaced by enmark, Taiwan, and celandnations that investheavily in public, post-secondary education.

ecord-high levels of student debt and a post-secondaryeducation system that is out of reach for an increasing numberof Canadians threaten Canadas long-term prosperity. Canadianyouth unemployment is double that of the general population.The baby boomer generation is working longer or re-enteringthe workforce after retirement, making it difcult for newgraduates to nd jobs. With current federal student debt

at over $15 billion, not including provincial or private debt,Canadian youth are now the most indebted generation in thecountrys history. This debt will have far-reaching implicationsfor Canadas economy and socio-economic equality.

n the absence of national policy on post-secondary education,provinces have the ability to set tuition fees at whatever levelthey see t. These provincial policies have resulted in studentsfacing signicantly different challenges in accessing highereducation depending on the province they are studying in. Thisdisparity threatens Canadas long-term economic stability and

social equality, and also impacts regional development andeconomic growth.

Three decades of public funding that has failed to keep upwith enrolment growth has had a notable impact on studentseducation eperience. Class sizes have increased while repairsto infrastructure have gone largely unaddressed. veragetuition fees have increased at three times the rate of ination inthe last year alone. s the primary lenders of student loans, thefederal government must take decisive action to progressivelyreduce student debt. While the current funding model isunsustainable, there are realistic options within reach.

nvestments in students, colleges, and universities areinvestments in Canadas future. Taking advantage of Canadascurrent relative economic strength, compared to otherindustrialised countries, requires leadership at the federal level.This document outlines key recommendations for the federalgovernment to build and maintain a strong post-secondaryeducation system that ensures a prosperous, equitable futurefor generations to come.

publiC eduCaTionFor The publiC goodiNVEstiNG iN Post-sECoNDarY EDuCatioN is aN iNVEstmENt iN CaNaDas FuturE


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CanadianS SupporTaCCeSSible publiC eduCaTion

Should tuition feeS beincreaSed, frozen, orreduced?

What iS the moSt important thing forgovernment to do for college anduniverSity education?

the quality of educationhaS Suffered becauSe ofinadequate governmentfunding.

Agree - 47%

DisAgree - 39%

No opiNioN - 14%

it iS more difficult today toget a univerSity or collegeeducation than it WaS tenyearS ago.

Agree - 51%

DisAgree - 33%

No opiNioN - 16%

a Majority of Canadians aGree tHat: a university r cllee educatin is mre imrtant tan ever t et by in tdays sciety;

te federal vernment suld aac cnditins t dedicated transfer ayments t te rvinces;

te vernment suld invest mre in st-secndary educatin, even if it means tey ave t ay slitly mre in taxes;

te vernment suld invest in makin cllee and university mre ardable, even if it means a small increase in taxes; and

educatin is a cmmn d and suld be aid fr by te vernment.

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reDuceD - 33%

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iNcreAseD - 16%

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Lower tuitioN FeesAND stuDeNt Debt - 5%

creAte more spAces ForquALiFieD stuDeNts - 19%

reDuce cLAss sizes by hiriNgmore proFessors - 13%

iNvest more iN reseArch - 11%


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3Canadian federation of studentsa national vision for post-seCondary eduCation

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61% of canadianS thinkgovernmentS are notdoing enough to makeSure that everyone WhoiS qualified haS a chanceto get a degree.

78% of canadianS oppoSeincreaSeS in tuition feeS.of thoSe 41% Support areduction from currentlevelS.

Students are struggling to pay for their post-secondary education more than any previousgeneration. ecord-high tuition fees combinedwith the recession means that those in vulnerablegroups, including boriginal and other racialised

students and those with disabilities, are facingincreasing barriers to post-secondary education.igher costs and fewer summer employmentopportunities have contributed to an increasingnumber of students working during the academicyear.

Students have reported that working in low-wage,low-skilled jobs while studying often has a negativeimpact on students academic performanceand the quality of their educational experience,particularly when one is working more than 20

hours per week.

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65% of canadianS Wantthe federal governmentto Set conditionS ontranSfer paymentS toenSure provinceS uSethe money aS intended.


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taking advantage of canadaScurrent relative economicStrength, compared to other

induStrialiSed countrieS, requireSleaderShip at the federal leveland an inveStment in StudentS,aS Well aS in collegeS anduniverSitieS. thiS document

outlineS eight recommendationSfor the federal government tobuild and maintain a StrongpoSt-Secondary SyStem thattrainS a Workforce capable ofcompeting in todayS economy.


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reCommendaTionSFor a ProsPErous aND ProDuCtiVE FuturE For all CaNaDiaNs

Implement a federal Post-Secondary Education Act

in cooperation with the provinces, modeled after theCanada Health Act, accompanied by a dedicated cashtransfer with funding allocated to:- address shortfalls in funding since 1992;- reduce tuition fees to 1992 levels; and- eliminate deferred maintenance at Canadas

universities and colleges.

1

Cut student loan debt in half by 2015. In orderto address rising student loan debt, the federal

government must, in consultation with the provinces,implement an accelerated debt reduction programthat sets benchmarks and includes both up-front andpost-graduation measures to reduce student debt.

2Increase the value and number of non-repayablegrants available to students by redirecting fundsallocated to education-related tax credits and savingsschemes to the Canada Student Grants Program, andallow graduate students to qualify for grants under the

Program.

3

Increase funding by $10 million to Statistics Canadasbranch for the collection and analysis of post-secondary education statistics in order to properlytrack the impact of a reduction in student debt onpost-secondary education completion rates and thefulllment of labour-market demands, as well as toprovide accountability for the funds allocated toreducing debt.

4

Remove targeted research funding earmarks within the

granting councils and award research funding basedon academic merit determined through a peer-reviewprocess.5Increase the number of Canada Graduate Scholarshipsto be consistent with average program growth anddistributed proportionally among the research councilsaccording to enrolment gures.

6

Remove the funding cap on increases to the Post-Secondary Student Support Program and ensure thatevery eligible First Nations and Inuit learner isprovided with adequate funding to attend post-secondary education.

7

Act to safeguard and strengthen Canadas reputation ascountry of choice for international students by:- regulating the fees charged to international students;- prohibiting private institutions from hosting

international students; and- combining the Off-Campus Work Permit and

Post-Graduation Work Permit into the StudyPermit (Student Visa).

8


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For over half a century, the federalgovernment has recognised the crucialrole post-secondary education plays indriving economic growth, innovation,and in increasing social and economicequality. The substantial publicinvestments that led to the epansion ofuniversities and the creation of collegesin the 1960s were based on the beliefthat access to post-secondary educationshould be dictated by ability and desire,

not nancial means.Canadas public post-secondaryeducation system has become markedlyless public over the past three decades.eginning in the 1980s, the federalgovernment limited the increases intransfers to the provinces for post-secondary education, effectivelydecreasing per-student funding. n 1995,the federal government made one ofthe deepest funding cuts in history by

slashing transfers to the provinces forsocial programs by $7 billion. n everyprovince, with the eception of Qubec,this funding cut was passed on directlyto students in the form of massivetuition fee increases.

espite the federal government postingmulti-billion dollar surpluses in thelate 1990s and early 2000s, funding forpost-secondary education was neverrestored.

These cuts led most provinces to spendless on higher education and paved theway for a shift towards private fundingas the main source of revenue forCanadas universities and colleges.

Today, post-secondary institutions relylargely on private sources of funding,primarily through tuition and ancillaryfees, to cover operating costs.

early half of the operational fundingfor universities today comes fromstudents themselves (Figure 1.2), withinstitutions like the niversity of Torontoreceiving more from students than fromthe government.

Prior to these cuts, access to post-secondary education was similar fromprovince to province. Today, tuition feesvary widely and provincial residenceis now a major factor in determiningthe individual cost of post-secondary

education.n order to both reduce inequalitiesacross socioeconomic groups andregional disparities and to increase thecountrys economic competitivenessinternationally, the federal governmentmust once again make affordable, highquality post-secondary education a highpriority.

Canadians overwhelmingly believe thatthe federal government must providemore support to post-secondaryeducation. While Canadas socialprograms are often targeted for budgetcuts, funding such programs is necessaryfor Canada to maintain its standard ofliving.

Current funding priorities, including ascal capacity that has been reduced bymulti-billion dollar ta cuts, undermine

the federal governments ability toadequately fund training for the countrysfuture workforce and retraining out-of-work Canadians.

60% of canadianSagree that inveSting inSocial programS andreducing poverty andunemployment arehigher prioritieS thantax cutS and deficitreduction.

CanadaS poST-SeCondaryeduCaTion SySTem


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$13.7ANNUALCOSTTOTHE

GOVERNMENTOFPLANNED

CORPORATETAXCUTSBY2013.

nvestments in social programs, suchas health care and post-secondaryeducation, regularly rank as toppriorities for Canadians. n a recentpoll conducted by arris-ecima, only8 percent of Canadians identied tacuts, and only 12 percent identieddecit reduction, as the most importantpriority for the federal government. ycomparison, over 60 per cent identiedinvestments in social programs, reducingunemployment, or reducing poverty astheir top priority. espite public opinion,the federal government has prioritisedta cuts and decit reduction overneeded investments in Canadas socialprograms.

Providing adequate funding for post-secondary education is well within thegovernments reach and will do far moreto guarantee Canadas future economicsuccess than ta cuts or credits.

iS canadaS higher education SyStemeconomically competitive?

8 12 15

figure 1.1 2012-13 World economic forum: global competitiveneSSindex, higher education rankingS (effectiveneSS of the highereducation Sector in developing an economically competitiveSociety)

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ccording to the World conomic Forums annual report on economiccompetitiveness, Canadas higher education system is failing to keep pace withother nations in equiping citizens with the skills needed to advance the domesticeconomy and remain globally competitive.

Canada was ranked:

th th th

2010 2011 2012

the data suggest a slight downward trend of [Canadas] performance in highereducation... driven by lower university enrollment rates and a decline in the

etent to which staff is being trained at the workplace.-World Economic Forum Report on Economic Competetiveness


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Since the federal funding cuts of the 1990s,an increasing proportion of the cost of post-secondary education has been passed on tostudents. lthough government grants usedto cover up to 80 percent of an institutionsoperating budget nearly 30 years ago, theynow cover roughly 50 percent, with tuition feesmaking up the difference (Figure 1.2).

n the last fteen years, tuition fees havebecome one of the largest expenses foruniversity and college students, increasing, on

average, over ve times the rate of ination(Figure 1.4). igh tuition fees limit accessto post-secondary education for studentsfrom low- and middle-income backgrounds.t their current rate of increase, tuition feesare estimated to exceed all other studentexpenses combined in ve years.

Statistics Canada has determined that studentsfrom low-income families are less than half aslikely as those from high-income households topursue a university education.

Statistics Canada has also found that themost frequently-reported reason high schoolstudents did not pursue post-secondaryeducation was nancial.

Tuition fees act as a at taxa cost appliedto all students at the same rate, regardless oftheir nancial resources. While some arguethat post-secondary education will signicantlyincrease a students long-term earningpotential by up to $1 million, thus justifyingtuition fee increases, the reality is very different.

The rganisation for conomic Co-operationand evelopment (C) reports that malegraduates earn only an additional $80,000 overtheir lifetime. The return is substantially lowerfor female graduates who, on average, earnonly an additional $46,000.

iven that at least 70 percent of new jobsrequire some form of post-secondaryeducation, higher education is increasinglybecoming a prerequisite for participating inthe labour market and for earning an average

income. t is not a guarantee of future wealth.The fairest method of nancing post-secondary education is through a progressiveincome tax system.

Such a system ensures that the wealthy andpoor are taxed in a fair manner by reectingtheir respective ability to contribute andthe subsequent personal economic benetobtained as a result of their education.

Canadians have made it clear that they arecomfortable with increased governmentspending to improve access to education.ccording to a recent arris/ecima publicopinion poll, Canadians rank tuition feereductions as the top priority for governmentinvestment in education.

The same poll also found that 67 percent ofCanadians want the federal government toexercise more control over transfers to theprovinces for post-secondary education.

FeeS are a barrier: leT TheinCome Tax SySTem work

figure 1.2 univerSity operatingrevenue divided betWeen private

funding and government funding

figure 1.3 tuition feeS increaSe faSterthan all other Student coStS

50%

40%

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20%

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The benets of investing in higher educationgo well beyond the individual. highlyeducated workforce increases the tax base andreduces the cost of a number of other publicly-funded social programs, including health care,public safety, and employment insurance.

recent report by the C found thatthe direct public benet of investing in post-secondary education was in excess of $100,000per individual, a 160 percent return on eachdollar invested.

Since the cuts to federal transfer paymentsin the 1990s, the quality of post-secondaryeducation has declined. Class sizes haveincreased substantially, while at the sametime institutions have pushed to casualise theacademic workforce by replacing full-timetenured faculty members with overworked andinadequately compensated contract academicstaff. n addition, between 1990 and 2006, theratio of students to full-time faculty membersincreased by almost 40 percent.

Cash transfer payments for post-secondaryeducation are roughly $1.3 billion short of1992 levels when accounting for ination andpopulation growth.

The 2009 federal budget allocated $2 billionto college and university infrastructure,focused entirely on new building projects.While new infrastructure is welcome, it onlyincreases the funds needed to maintain andrenovate infrastructure on campuses, a costthat is already over $1 billion per year, and

does little to address existing renovation andmaintenance needs.

niversity and college budgets are strainedto such an extent that deferred maintenanceposes serious health and safety risks at manyschools across the country. n 2009, theCanadian ssociation of niversity usinessfcers estimated that the total value ofdeferred maintenance on Canadian campuseswas more than $5 billion, half of which isconsidered urgent, a 35 percent increase in less

than a decade.espite the moderate reinvestment in post-secondary education in recent years, thefederal government has done little to ensurethat these investments will have their desiredimpact.

SuSTainable inveSTmenTneedS naTional leaderShip

64%of canadianSbelieve that the coStof a poSt-Secondaryeducation iS too high.

figure 1.4 tuition feeS groW

dramatically faSter than inflation

0

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tuitioN Fees

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aCCountability for federal

fundinG needed

lthough the federal government is oneof the single largest sources of fundingfor post-secondary education, there isno mechanism to ensure that the moniestransferred to provincial governmentsactually make it into the post-secondaryeducation system.

The lack of accountability to ensure thatfederal funds for social programs are usedas intended has resulted in provincialgovernments being free to misallocate

federal transfers intended for post-secondary education.

nder previous federal-provincial cost-sharing models, the provinces had to investtheir own funds in order to receive federalmonies. f a provincial government chose tocut funding, federal transfers were reducedby a proportionate amount. The currentblock-funding modelthe Canada SocialTransferhas no requirement that provincialgovernments maintain their funding in order

to receive federal money.ndeed, there have been numerousexamples of provincial governmentsreceiving additional federal funds and thenreducing their provincial contribution. Forexample, in 2008, the overnment of ritishColumbia cut funding to universities inthe same year that it received new post-secondary education funding from thefederal government. ecause of variationsin provincial funding and policies, tuition

fees differ greatly from province to province(Figure 1.5).

federal CasH transfers for

post-seCondary eduCation

To return to a level of federal fundingequivalent to the level before the cuts ofthe mid-nineties would mean a dedicatedpost-secondary education transfer to theprovinces of approximately $4.9 billion.

The federal government currently allocatesjust over $3.5 billion as part of the SocialTransfer; however, there is no requirementfor the provinces to spend this moneyon increasing access to post-secondaryeducation. Since the funding cuts in

the early 1990s, full-time enrolment hasincreased 24.85 percent, resulting in anincrease of $637 million in costs to thesystem that are yet to be addressed by thefederal government.

dditionally, similar to the health caresystem, university and college-related costsincrease at a much higher rate than thestandard Consumer Price ndex. ver theprevious eighteen years there has been,on average, an annual post-secondary

education-related ination of three percent,per year, or about $1.7 billion over thatperiod.

When compared to current federalfunding levels, there is a funding gap ofapproximately $2.3 billion.

a federal post-seCondary

eduCation aCt

The adoption of a federal post-secondaryeducation act would establish conditionson the provinces for receiving post-secondary education transfer payments.Such legislation would require provincesto uphold principles similar to thosefound in the Canada ealth ct: publicadministration, comprehensiveness,universality, portability, and accessibility.n return for upholding these principles,provincial governments would receive

adequate and predictable funding from thefederal government.

reCommendaTion 1Implement a federal Post-SecondaryEducation Act in cooperation withthe provinces, modeled after theCanada Health Act, accompanied bya dedicated cash transfer with funding

allocated to:- address shortfalls in funding since1992;

- reduce tuition fees to 1992 levels;and

- eliminate deferred maintenance atCanadas colleges and universities.

a poST-SeCondary eduCaTion aCT


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Figure 1.5 map oF TuiTion FeeS aCroSS Canada

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

BC AB SK M B ON QC NB PEI NS NL

$2,743

$6,743

$6,449

$6,741

$3,160

$9,231

$4,064

$6,815

$7,649

$5,637

$5,015

$5,883$6,017

$7,180

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$2,774

$5,917

$5,470

$5,934

$2,649$1,982

$1,551 $1,591 $1,671$2,105

$1,115

$2,016 $2,120$2,147

$1,422

Figure 1.6 TuiTion Fee levelS, 1992 To 2015, in CurrenT dollarS

20121992 2015

$5,015

bc

$5,883ab

$6,017Sk

$3,729mb

$7,180on

$2,774qc

$5,917nb

$5,470pei

$2,649

nl

$5,934nS

Average domestic undergraduate arts and science tuition fees

in 2012-13.

Nte: tuitin fees fr 205 based n rvincial vernment licy annuncements, and current leislatin.


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Canadians are making sacrices to prepare themselves for anevolving workforce. Past federal and provincial governmentdecisions are forcing students to take on more education-relateddebt than any previous generation, while middle class earningshave largely stagnated in the past twenty years.

Skyrocketing tuition fees and the prevalence of loan-based nancialassistance have pushed student debt to historic levels. This pastyear, almost 425,000 students were forced to borrow in order tonance their education. The aggregate of loans disbursed bythe Canada Student oans Program, less the aggregate of loanrepayments received, is increasing by nearly $1 million per day.

n September 2010, the total amount of student loans owed to thegovernment reached $15 billion, the legislated ceiling set by theCanada Student Financial ssistance ct. This gure only accountsfor a portion of total student debt; it does not include provincialand personal loans, lines of credit, and education-related creditcard debt. n response, the government altered the denition ofstudent loan to eclude over $1.5 billion in federal student loandebt. ven with this new denition, the federal student loan debtsurpassed the $15 billion limit. n response, the federal governmentagain amended the Canada Student Financial ssistance ct inorder to increase the limit to $19 billion while, at the same time,

dramatically reducing parliamentary oversight of the program.

a generaTionin debT

reCommendaTion 2Cut student loan debt in half by 2015. In orderto address rising student loan debt, the federalgovernment must, in consultation with the provinces,implement an accelerated debt reduction program thatsets benchmarks and includes both up-front and post-graduation measures to reduce student debt.

Student debt loadS have never beenhigher... people are graduating With$30,000 in Student loanS on top of $5,000in credit card debt... the reSult iS thatmany StudentS fall into a hole they canteaSily climb out of.

laurie campbell,e d, c c

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

1990 1995 2000 2005 2010

Figure 1.7 inCidenCe and average amounT oFgovernmenT STudenT loan debT upon graduaTion

(in

dollars

$)

i

number of canadianS unable

to make any paymentS ontheir canada Student loan

147,000


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any potential students are reluctantto take on the required debt andassociated risk required to pay for acollege or university degree. esearchhas found that debt aversion isstrong among those who chose notto pursue post-secondary education.f the 70 percent, of high schoolgraduates who cite nancial reasonsas the main factor for not pursuingpost-secondary education, one infour cited accumulation of debt

as the main deterrent. Those frommarginalised communities, low-incomebackgrounds, and single parents aremore likely to be strongly averse toaccumulating student debt.

Students are also nding it moredifcult to nd meaningful summeremployment to help cover the costsof rising tuition fees. ccordingto Statistics Canada, studentunemployment is almost twice as high

as the rate of unemployment for thegeneral population.

esearch nds that debt levels have adirect impact on success and retention.Students with higher debt levels are farless likely to complete their degree ordiploma.

fter graduation, student debt distortscareer choice, especially amongprofessionals, which in turn underminesaccess to health care and legal aid.Studies of medical and law studentsfound that debt levels prompt thesestudents to seek higher paying jobs inelds or regions that are not necessarilytheir rst choice or where demand isgreatest. Student debt appears to bedriving committed young doctors awayfrom family practice and young lawyers

away from public and communityservice work.

igh levels of debt also discourageindividuals from starting families,working in the public service,purchasing a home, and pursuing lowpaying or volunteer eperience in acareer-related eld of study that maybe necessary to get the eperienceneeded to get a middle-income job.

The impaCT oF debT onSTudenTS and SoCieTy

aCCording To The Canada STudenTloanS program :

average tuition feeS per year forthe 2013 kindergarten claSS Whenthey reach univerSity in 2026:

[high levelS of] Studentdebt are one of theprimary effectS of

the move toWardSpolicy that doWnloadSthe coStS of publiceducation onto StudentSand their familieS.

alternative federal budgetc c p as

2026-27: $13,1002027-28: $13,7002028-29: $14,4002029-30: $15,100uitin fee estimates based n rvincialvernment licy annuncements, and currentleislatin, indexed t 2.5% abve inatin.


18/30

While creating the Canada Student rantsProgram was an important rst step tomeaningfully reducing student debt, a largerinvestment in up-front grants is required.The ta credit and education savingsschemes currently operated by the federalgovernment allow for personal income tasavings on education-related costs and ahigher rate of return on education-relatedsavings, respectively. The indicationsare, however, that the total cost of theprograms will eceed $2.5 billion this year,making them by far the governments mostepensive direct spending measure.

espite their large price tag, the educationta credit and savings programs are verypoor instruments to improve access topost-secondary education and relievestudent debt. ll students qualify for tacredits, regardless of nancial need, whichultimately benets those with the lowestamount of debt and those from high-incomebackgrounds. Savings schemes have

largely benetted those from high-incomebackgrounds, as individuals from low-income families often do not have the fundsnecessary to invest in the rst place.

f this $2.5 billion was instead used forup-front grants, it would turn every dollarloaned by the Canada Student oansProgram (CSP) into a non-repayable grant.The CSP epects to lend approimately

$2.3 billion during the 2012-13 academicyear. f the amount of money the federalgovernment spent on savings schemes andeducation-related ta credits each year hadbeen simply shifted to the Canada Studentrants Program, student debt owed tothe federal government could be greatlyreduced.

reCommendaTion 3Increase the value and number of non-repayable grants available to studentsby redirecting funds allocated toeducation-related tax credits andsavings schemes to the CanadaStudent Grants Program, and allowgraduate students to qualify for grantsunder the Program.

eFFeCTive meaSureS:granTS noT loanS

approximate coSt ofeducation tax creditSand SavingS SchemeSfor 2011:

2.52$

amount that thecanada Student loanSprogram expectS tolend for the 2012-13year:

2.33$ [canada education

SavingS grantS] giveScarce public fundS to theWrong houSeholdS... theceSg program Should bediScontinued.

N LLgAN cnmist


19/30



Collectively, the federal and provincial governments spend billionsof dollars each year on post-secondary education, but adequatedata to fully analyse the effectiveness of that spending are notcollected. 2006 report by the C noted that Canada could notprovide data on 57 of the 96 post-secondary education indicatorsused to compare countries. lthough the Council of inisters ofducation has started to fund the collection of some of the missingdata, it is not a sustainable solution to the federal governmentsunderfunding of the education branch of Canadas nationalstatistical agency, nor does it make up for the entire shortfall.

For example, Canada does not currently collect information about

the age of students when they enter or leave the post-secondaryeducation system, nor are data collected on completion rates forhigher education or the average length that a student spends inthe post-secondary system. n a more general sense, Canada lacksmuch of the data regarding both the inputs and outcomes of thepost-secondary education system.

n ay 2010, the epartment of uman esources and Skillsevelopment Canada announced that it would cease funding the

outh in Transition Survey (TS) and the ational ongitudinalSurvey on Children and outh. These studies are primary sourcesof information on who pursues post-secondary education and

who does not. mong other things, they provide vital informationon students, their rst post-graduation interaction with the labourmarket, and the relationship between education and employment.The TS results are necessary for fullling Canadas internationalcommitment to provide the C with comparable data on post-secondary education.

Without the data supplied by these studies, it will be difcult forgovernments to make informed decisions about post-secondaryeducation policies and priorities. The absence of this informationwill also make it extremely difcult to conduct further researchregarding the post-secondary education system.

While the impact of discontinuing this research is signicant, theamount of funding necessary to properly conduct research onstudents and the post-secondary system is relatively small. nincrease of $10 million, less than 0.3 percent of what the federalgovernment spends on post-secondary education, would establishthe resources needed to undertake this research.

TraCking SuCCeSS:eduCaTion STaTiSTiCS

reCommendaTion 4Increase funding by $10 million to Statistics Canadasbranch for the collection and analysis of post-secondary education statistics in order to properlytrack the impact of a reduction in student debt onpost-secondary education completion rates and thefulllment of labour-market demands, as well as toprovide accountability for the funds allocated toreducing debt.


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3.5

3.0

2.5

2.0

.5

.0

0.5

0

FiNLAND

JApAN

wDN

wizLAND

Ni

DA

D

NmAk

AiA

g

mANy

AALiA

FAN

bLgim

iLAND

NiDkiNgDom

ANADA

NowAy

NhLAND

iALy

figure 2.2 buSineSS expenditureSon reSearch and development

(as a share of P)

iS canadaS drive to commercialiSeuniverSity reSearch paying off?

The Centres of cellence forCommercialization esearch

(CC)the network establishedby the federal government to bringtogether industry and acedemiahas reviewed 500 publicly fundedprojects over the last ten years. fthese, only 80 were identied forcommercial viability and, of those,only 40 moved forward.

This means that 460 commercially-driven research programs, fundedwith public funds, failed toproduce commercially viableresults.

ANADA

ohkoA

bLgim

JApAN

hNgAy

AiA

iLAND

FAN

NhLAND

pogAL

DNmAk

ky

NiDkiNgDom

NowAy

pAiN

zhpbLi

0.25

0.20

0.5

0.0

0.05

0.00

(ercentaefgDp)

figure 2.1 indirect government Supportfor reSearch and development

through buSineSS tax incentiveS

Nte: Finland, eden, iterland, Denmark, germany, and talyrvide n tax incentives fr researc and develment t businesses.

500

450

400

350

300

250

200

50

00


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rEsEarCh

aNDiNNoVatioN


n order for Canada to remain economically

competitive at a global level, it must secureits status as a centre for research andinnovation. nvestment in graduate studiesprovides the foundation for long-terminnovation and trains the highly skilledworkers and researchers needed to respondto the economic and social challenges thatCanada faces now and in the future.

nrolment in graduate studies increased by41.5 percent between 1998 and 2008 (Figure2.4). owever, there have been only modest

funding increases to the federal researchgranting councils and scholarships. Thestagnation in federal funding for researchand graduate education limits the number ofmasters and doctoral students that receivegrants, thus limiting the pool of highly skilledresearchers to those who are able to afford itpersonally or who are able to secure limitedinstitutional or industry funding.

espite the relatively high number ofuniversity graduates, Canada ranks lastamong peer countries for Ph graduationrates (Figure 2.5), notwithstanding a dramaticexpansion of graduate studies over the lastten years.

ecent federal budgets have directedresearch funding to meet the short-term priorities of the private sector, thusundermining primary research and long-terminnovation. The drive to commercialiseuniversity research has far-reaching

consequencesfrom limiting academic

freedom and public ownership of research, to

discouraging private market innovation.Commercialisation of university researchundermines the broader public interestresearch aims of the country. t discouragesprivate sector investment in its own researchand development facilities, which leadsto fewer employment opportunities forgraduates in an already difcult job market.The result of this restructuring is that manyhighly skilled workers are often unableto contribute their full potential, thus

undermining Canadas global economiccompetitiveness.

CoMMerCialisation of researCH

The drive to commercialise universityresearch has a number of negativeconsequences. s jobs in governmentresearch facilities are becoming increasinglyscarce, universities are replacing tenure-trackprofessors with contract academic staff

making it even more difcult for graduates tond employment in their eld.

eplacing the public interest with commercialinterests as the driving motivator foruniversity research undermines the broaderresearch aims of the country. Federal fundinggeared towards market-driven researchprograms has resulted in the private sectorincreasingly relying on public universitiesfor research and development. Thisdependence contributes directly to Canadalagging behind comparable countries in

private sector investment in research and

development (Figure 2.2) and the productsthose labs produce.

Canada has consistently ranked low onindices that measure innovation. The Worldconomic Forums annual competitivenessreport highlighted the need for Canada toincrease the sophistication and innovativenature of private sector research anddevelopment. This year, Canada slippedfrom ninth to eleventh place for the quality ofscientic research institutions.

Perhaps most concerning is that Canadaranked 24th and 25th on capacity forinnovation and company spending onresearch and development, respectively.verall, Canada ranked eleventh forinnovation in the report, behind the nitedStates, Japan, ermany, Sweden, andSwitzerland, among others.

s this trend continues, private sectorresearch and development infrastructure

is being replaced with a publicly-backeduniversity system that is forced to advanceprivate sector research, a collaboration thatdoes not have a consistent track-recordof successfully bringing innovations to themarketplace.

Since the late 1990s, a number of initiativeshave been undertaken to bend publicuniversity infrastructure to meet thegovernments commercialisation objectives,such as requiring publicly-funded research to

secure direct, private sector investment.

SupporTing reSearCh and innovaTion,and inveSTing in CanadianS


22/30

niversity research geared towardscommercialisation is focused on generatingproducts that may yield short-term results,with little consideration of long-termresearch and innovation goals. s researchfunding is increasingly directed in this way,basic research and academic pursuits are

undermined.ecent increases in funding for the federalresearch granting councils, especially thoseresources dedicated to graduate students,have disproportionately beneted appliedresearch programs that are designed topursue a commercialised research agendaover basic, curiosity-driven research.

The encroachment of the private sector intouniversities undermines the independence

of the academy, as money for research isincreasingly tied to entities outside theacademic system. These corporationsoften inuence decisions that are normallyleft to the research community, such asinvestment in maintenance, researchfacilities, and new infrastructure. The researchcommunity can also come under pressurefrom private funders of research whenoutcomes are not commercially favourablefor those funders. espite the threat to the

independence of university research resultingfrom an increased reliance upon industrysponsorship, there is currently no whistle-blower protection for graduate students whowish to report research misconduct.

barriers to aCCess

raduate students often face a variety ofchallenges in pursuing their studies, includinglimited funding options, an increasinglycommercialised and restrictive researchenvironment, rising tuition fees, little access

to need-based grants, and high levels ofstudent debt from previous degrees. astyear, average tuition fees for graduatestudents increased by 3.7 percent, to over$5,600 (Figure 2.3).

The nancial burden of high fees forgraduate students is exacerbated by theforegone earnings from not being employedfull-time, along with substantial debtsaccumulated from earlier degrees. espitetheir signicant investment of time andmoney, a recent study indicated that doctoralgraduates earn little moreand in someinstances lessthan those with only a mastersdegree.

Graduate student fundinG

lthough funding for the granting councilshas increased slightly in recent years, it hasnever fully recovered from the cuts of the1990s. While funding has not kept pace with

rising graduate student enrolment, the 2012federal budget failed to invest new moneyin the granting councils for curiosity-drivenresearch.

Funding for curiosity-driven grants in thesocial sciences and humanities lags farbehind the applied sciences. Withoutproper levels of funding and support forgraduate students, Canadas research andinnovation capacity will continue to fallbehind global competitors. n investment in

graduate students will help to produce thehighly skilled workers that Canada needs tocompete in the global economy.

Students often enter graduate programs withsubstantial debt from their previous degree.owever, there are currently no need-basedgrants available to graduate students fromthe federal government. Students from low-income families have a harder time affordinggraduate studies due to high tuition fees andthe lack of nancial assistance. n the absenceof a grants program, completion rates forgraduate degrees remain low.

Canada raduate Scholarships (CS)provide merit-based funding directly tograduate students. These scholarships areadministered through the granting councils

and are one of the main mechanisms forthe federal government to fund graduatestudies. The limited number of scholarshipsavailable has meant that many of the bestand brightest researchers are unable tomaximise their potential. ncreasing thenumber of CSs would help promotegraduate research and ensure that graduatestudents have the resources to focus on theirresearch, which will pay long-term dividendsto Canadas research capacity and innovation.

reCommendaTion 6Increase the number of CanadaGraduate Scholarships to beconsistent with average programgrowth and also to be distributedproportionally among the researchgranting councils according toenrolment gures.

reCommendaTion 5Remove targeted research fundingearmarks within the granting councilsand award research funding based on

academic merit determined through apeer review process.


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rEsEarCha

NDiNNoVatioN


800

700

600

500

400

300

200

1000

wDN

wzLAND

FNLAND

gAN

ND NgDo

AA

AALA

NowA

NhLAND

LAND

DNA

AL

ND A

Lg

FAN

JApAN

ANADA

figure 2.5 phd graduateS(umber of Ph graduates per 100,000 people,

aged 25-29)

50,000

40,000

30,000

20,000

0,000

00,000

0,000

0,000

0

1998

1999

2

21

22

23

24

25

26

27

28

29

21

figure 2.4 graduate Student enrolment in canada

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

1991

1993

1995

1997

1999

21

23

25

27

29

211

figure 2.3 graduate tuition feeScompared to inflation

ActuAL tuitioN Fees iNFLAtioN


24/30

s with most C members, Canadas futuredepends on its ability to replace its agingworkforce to meet its economic goals. owever,Canada has an advantage over many countrieswith its rapidly growing boriginal population.

nvestments in post-secondary education shouldprovide essential improvements to the wellbeing of boriginal peoples and communities.Canadas boriginal population is growing at sixtimes the rate of the non-boriginal population.ccording to the 2006 census, over one million

people, roughly four percent of Canadaspopulation, identied as boriginal.

f these, 48 percent were under the age of 24(Figure 3.1). t is estimated that over 300,000boriginal youth could enter the labour force inthe next 15 years alone. n ay 2009, the Centrefor the Study of iving Standards concludedthat closing the education gap would lead toan additional $179 billion in direct P growth,and over $400 billion in total growth over thenext 20 years.

The right to education for boriginal peoplescomes from a series of treaties signed over thecourse of several decades and recognised inCanadas Constitution.

owever, despite the clear economic and moralnecessity to ensure access to education forboriginal peoples, funding for their educationhas remained stagnant for over a decade. Theparticipation rates in post-secondary educationcan be attributed to the signicant and complex

barriers to access that boriginal students face.

esearch has found that boriginal learners aremuch more likely to be debt-averse and morereluctant to use loan-based programs if they arein nancial need. boriginal students are alsomore likely to enter post-secondary educationat a later age given the higher likelihood theywill have dependents. This leads to higher costssuch as childcare and relocation.

dditionally, approximately 20 percent ofthe First ations population is unemployed,including a staggering 41 percent of those in

the 15-24 year age group. nemployment limitsnancial resources for families to pay for therising costs of college or university.

Currently, the federal government providesnancial assistance to status First ations andnuit students through the Post-SecondaryStudent Support Program (PSSSP), which wascreated to facilitate access to post-secondaryeducation and also to alleviate the nancialbarriers faced by boriginal students bycovering the costs of tuition fees, books,

supplies, travel, and living expenses.

n 1968, boriginal ffairs and orthernevelopment Canada (C), formerly theepartment of ndian and orthern ffairsCanada, began providing direct funding for Firstations and nuit students to pursue post-secondary education. n 1977-78, only 3,600students received funding; by 1999-2000, over27,000 students were federal funding recipients.evertheless, educational attainment levels ofboriginal peoples remained signicantly lowerthan the overall population (Figure 3.1).

efore 1992, funding was determined by thenumber of eligible students and their expenses.etween 1992 and 1997, the model shifted fromper-student funding to block funding, to beadministered by local and Councils.

n 1996, increases in funding to the PSSSP werecapped at two percent annuallya thresholdthat has not been reached in several years. sa result of this limit on increases, funding hasbeen unable to keep pace with increasing livingcosts, ination, and tuition fees, which averaged

four percent this year.pproximately 27,000 boriginal studentsreceived nancial assistance prior to theimplementation of the funding cap. y 2006,the number had fallen to just over 22,000. Thelack of funding has meant that communitiesadministering the funds must make difcultdecisions about who receives funding eachyear. etween 2006 and 2011, over 18,500people were denied fundingroughly half ofthose who qualied. ecause of the shortfall in

funding, priority is often given to shorter collegeprogramsto the detriment of those interestedin pursuing more expensive professional orgraduate programs of study.

ccording to the ssembly of First ations, atotal of $569 million is required to ensure that noboriginal student is denied access to post-secondary education due to nancial barriers,and that those students who are funded receivean adequate level of support. s Ccurrently provides $306 million, an additional$263 million would be required. This funding

keeping The promiSe oF aboriginaleduCaTion and proSperiTy


25/30

DEmoGraPh

iCChaNGEs

21

would support a total of approximately 40,000 students acrossCanada.

The funding disbursed through the PSSSP has a proven trackrecord for those who can access it. ost boriginal studentswho are able to receive funding through the PSSSP succeedin completing their studies and go on to nd meaningfulwork. egardless of their place of residence, the majority ofboriginal graduates return to work in their communitiesand are employed in their eld of study, achieving economicself-reliance and helping to develop healthy and stablecommunities while improving the Canadian economy.

n addition to funding restrictions currently impactingboriginal learners, there is no federal funding supportprovided for non-status First ations and tis students.

reCommendaTion 7Remove the funding cap on increases to thePost-Secondary Student Support Program andensure that every eligible First Nations, Inuit, andMtis learner is provided with adequate funding to

attend post-secondary education.

21%15%

37%

10%

10%

16%

25%

figure 3.1 aborginal population groWthby province betWeen 2001 and 2006

9%

17%

29%5%

29%

42%

1981 1991 1996 1 6

25

20

5

0

5

0

(ercent%)

figure 3.2 proportion of thepopulation With a univerSity degree

NoN-AborigiNAL AborigiNAL

t gdp a cs

w s a s s

s . 400253

$

t s sa

s s

. $


26/30

The Federal government anticipates

signicant shortages in the labour marketover the next 15 years. Specically, t isestimated that there will be more thantwo million job openings over the nextdecade. This is largely a consequence ofthe retirement of aging baby boomersand fewer young Canadians enteringthe labour market because of decliningdomestic birth rates.

Canada could benet from a robustinternational student program fromwhich it could draw skilled workers. yincreasing the number of internationalstudents who make Canada theirpermanent home, the expected shortageof skilled workers could be signicantlyeased. greater number of internationalstudents making the transition to thedomestic workforce, particularly in keysectors and regions, will help meetcoming skills shortages and also ensuresthat the Canadian economy will continueto grow.

ducation stakeholders agree that thereis untapped potential for attractinginternational undergraduate students,but that the market is very competitive.nternational students comprise about6.5 percent of all students in Canadianpost-secondary educationlower thanthe C average.

The number of international students

worldwide currently tops 3.3 million.y 2025, that number is expected togrow to 7.2 million. There will be strongcompetition for these students, as otherleading jurisdictions are equally aware ofthe benets of international educationand are pursuing their own strategies toattract larger shares of students.

While all students in Canada have faceddramatic fee increases over the lastdecade, tuition fees for internationalstudents have become particularlyburdensome in recent years. y fall 2012,average tuition fees for internationalundergraduate students were $18,641more than three times the already highfees paid by Canadian citizens (Figure3.3). t some universities, internationalstudents pay over $20,000 a year intuition fees, and this gure rises to over$25,000 for some graduate programs,and a staggering $57,000 per year forsome professional programs such asdentistry and law.

igh differential fees are an unfairburden and a barrier to post-secondaryeducation for international students.ltimately, such fees could threatenCanadas ability to attract andretain foreign scholars from diversebackgrounds.

inTernaTional STudenTSin Canada

gdp contribution ofinternational StudentS

to the canadian economyin 2011.

8$

$ $ $ $ $ $$ $

annual contribution ofinternational StudentS

to gdp if naturaliSedto fill labour marketvacancieS.

40$

$ $ $$ $ $

$$

$ $ $

$ $ $

$

$$ $ $

$ $ $

$

$$ $ $$ $ $

$$

$ $ $$ $ $

$$


27/30

DEmoGraPh

iCChaNGEs


reCommendaTion 8Act to safeguard and strengthen Canadasreputation as a country of choice forinternational students by:

- regulating the fees charged to international

students;- prohibiting private institutions from hosting

international students; and

- combining the Off-Campus Work Permitand Post-Graduation Work Permit into theStudy Permit (Student Visa).

$20,000

$18,000

$16,000

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

02008 2009 2010 2011 2012

Figure 3.3 average undergraduaTe TuiTion FeeSFor domeSTiC and inTernaTional

Full-Time STudenTS in Canada

$17,571

$18,641

$16,768

$15,674

$14

,487

$4,724

$4,917

$5,146

$5,313

$5,581

ds S t fs

i S t fs

Charging differential tuition fees to international students

is drastically out of step with the long-term needs ofCanadian society. ccording to the federal governmentsown research, immigrants who have previously workedor studied in Canada have the easiest time integratinginto the Canadian workforce and prospering in Canadiansociety. ifferential tuition fees work directly against theCanadian governments professed goal of building aneducated, prosperous, and innovative society.

While international students already contribute over $8billion annually to the Canadian economy, their potentialcontribution as residents and citizens, if naturalised, wouldpresent a boon to the Canadian economy and lessenshortfalls in the aging labour market.

[While] domeStic SourceS contributethe largeSt portion of neW labourmarket entrantS [in 2011], immigrationiS proJected to account for all netlabour force groWth in canada Withinthe next decade and all populationgroWth Within the next tWo decadeS.

2011 annual report to parliament on immigrationcs i c


28/30

inveSting in poSt-Secondaryeducation iS not an option,but a neceSSity. it Will paySubStantial dividendS ineconomic groWth andenSure that everyone incanada can benefit fromhigher education WhileenSuring that canadaS

economy remainS globallycompetitive.


29/30

suPPortiNGiNFormatioN


With an annual investment of $2.28 billion, and the adoption of a post-secondary education act, the federal government could

ensure that the Canadian public post-secondary education system remains accessible and of high quality. n investment of$3.57 billion per year for three years would address outstanding deferred maintenance and safety issues at institutions, halvestudent loan debt in Canada, and ensure that previously denied boriginal learners receive requisite funding.

poST-SeCondary eduCaTion:a neceSSary inveStment

creation of neW poSt-Secondary education act

addreSSing tuition fee increaSeS

addreSSing coStS of enrolment increaSeS

Shift funding from tax creditS and Saving SchemeS to upfront grantS

increaSe funding to StatiSticS canada centre for education StatiSticS

increaSe the number of canada graduate ScholarShipS

increaSe funding for aboriginal education

act to Safegard canadaS reputation aS a country of choice for international StudentS

coSt of propoSalS

$ 2,278

$ 0

$ 1,340

$ 639

$ 0

$ 10

$ 25

$ 264

$ 0

note 1

(amounts in millions)

total annual inveStment

note 1 : F T C TT FS CSS C T 1992 S.

note 2 : F P F T S.

$ 3,578

$ 1,000

$ 2,500

$ 78

note 2total Short term inveStment

addreSSing deferred maintenance

cut Student loan debt in half by 2015

clear backlog of funding for aboriginal education


30/30

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lmanac of Post-Secondary ducation in Canada.Canadian ssociation of niversity Teachers (2012).

lternative Federal udget, Canadian Centre for Policylternatives (2012).

ert Waslander. Focusing ndian and orthern ffairsCanadas Post Secondary ducation Program: Targets andmpacts. ssembly of First ations, (2009).

2012 Student Survey. Financial roup (2012).

ritish Columbias nternational ducation Strategy.

overnment of ritish Columbia (2012).

usiness-ed etworks of Centres of cellence valuationeport 2012. Centres of cellence for Canadian esearch(2012).

Callender, Claire & Jon Jackson. Fear of ebt and igherducation Participation.: niversities K (2003).

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avies, P., Slack, K ., ughes, ., angan, J. and igurs, K.Knowing Where to Study? Fees, ursaries and Fair ccess.,Staffordshire niversity and Sutton Trust (2008).

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ducation at a lance. rganisation for conomic Co-peration and evelopment (2011).

The ffect of ncreasing boriginal ducational ttainmenton the abour Force, utput and the Fiscal alance.Center for the Study of iving Standards (2009).

valuation of the Post-Secondary ducation Program:egina. ndian and orthern ffairs Canada (2005).

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ankivsky, lena Cost stimates of ropping ut of ighSchool in Canada. Canadian Council on earning (2008).

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Kanniainen, Takalo, Tuomas and esa. o patents slowdown technological progress? eal options in re-search,patenting, and market introduction. nternational Journalof ndustrial rganization 18 (2000).

Kwong, Jeff. halla, rfan. Streiner, . addour, avid,.Waddell, alph. Johnson, an. ffects of rising tuition feeson medical school class composition and nancial outlook.CJ 166 (8) , niversity of Toronto, . (2002).

abour Force nformation. abour Force Survey Program,Statistics Canada (2010).

Peng, my. ang, ing. ividing Time etween Workand Study: re Tuition Fees a Factor? Canadian Journalof igher ducation evue canadienne denseignementsuprieur olume 40, o. 1, 13 - 29 (2010).

ackenzie, ugh. Funding Postsecondary ducationn ntario: eyond The Path f east esistance., Thentario Coalition for Postsecondary ducation (2004).

andelson, ichael. boriginal Peoples and Post-Secondary ducation in Canada. Caledon nstitute ofSocial Policy (2006).

oney, Jobs, and Fear: Tuition report from the

student division. ntario ar ssociation (2003).o igher Priority: boriginal Post-Secondary ducation nCanada. eport of the Standing Committee on boriginalffairs and orthern evelopment, 39th Parliament, 1stSession (2007).

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edening ow Success is easured in First ations, nuitand tis earning, eport on earning in Canada 2007,Canadian Council on earning (2007).

eport Card on Canada. Conference oard of Canada(2012).

Stressed university students say working part time affectsgrades. oyal ank of Canada (2010).

eport of the nternational eview Committee onthe iscovery rants Program. atural Sciences andngineering esearch Council (2008).

eport on Student ebt. Canadian College Student Surveyand Canadian ndergraduate Survey Consortium (2007).

School nrollment Trends in Canada: essons in earning.Canadian Council on earning (2006)

Statement egarding the 2011 Federal udget. Canadianssociation of niversity Teachers (2010).

State of earning in Canada Toward a earning Future.Canadian Council on earning (2008).

Tallying the Costs of Post-secondary ducation: TheChallenge of anaging Student ebt and oanepayment in Canada. Canadian Council on earning(2010).

Trends in igher ducation: olume 1 nrolment.ssociation of niversities and Colleges Canada (2011).

The Consumer Price nde. Statistics Canada (2012).

ndergraduate Student Survey 2011 - aster eport.Canadian niversity Survey Consortium (2011).

Documents

Canadian Federation of Students (CFS) - Public Education for the Public Good - A National Vision for Canada's Post-Secondary Education System - October 2012