According to reports that were published two months ago, the postsecondary sector in Ontario is approaching its breaking point. The leaders have been consistently calling on the provincial government to find a solution and put their suggestions into action without delay.
The Blue Ribbon Panel released a detailed recommendation in November 2023 as part of a comprehensive financial sustainability plan. However, recently, Steve Orsini, president and CEO of the Council of Ontario Universities, presented a report that shared that Ontario’s universities have now reached a ‘breaking point’.
The funding cap on domestic enrolment creates a growing barrier for Ontario students to attend an Ontario university. As per the reports laid out by Orsini, currently there are about 20,000 domestic students that are not funded by provinces. According to him, there is a resulting loss of CAD 175 million in revenue per year.
Additionally, he pointed out that Ontario has the lowest per-student funding in the country. Moreover, provincial operating grants represent around 30% of the total operating revenues. The panel recommended that boosting operating grants by 10% this year and indexing future increases could be a solution.
Currently, 10 Ontario universities are projecting an operating budget deficit for 2023–24, totaling over CAD 175 million. A further highlight emerged, emphasising that the wellbeing of the sector relies on a three-fold partnership among stakeholders, students, and the government.
In 2021–22, universities in Ontario invested more than $1.4 billion in student services, representing an increase of 22% over the last five years. University applications have increased by 11% over the last two years, indicating an expected rise in demand across the province. Not only this, the Ontario Ministry of Finance is predicting an increase in the population of 18 to 24 years.
However, few are of the view that the situation is out of hand due to inflating rental rates, but Orsini opposed, saying that institutions have been’very responsible’ in their international recruitment.
