Ontario’s universities and colleges are pushing for substantial funding increases in the upcoming provincial budget, citing the need to bolster domestic capabilities and shield the province from tariff repercussions. The post-secondary institutions are facing financial strain due to minimal government funding, a prolonged freeze on tuition fees, and reduced revenue from international students.
Both universities and colleges are forecasting significant budget shortfalls in the coming years, with universities projecting a deficit of $1.3 billion by 2028-29 and colleges anticipating a sector-wide shortfall of up to $1.5 billion by 2027-28. To address this crisis, the Council of Ontario Universities is urging for an additional $1.2 billion in operating funding for the next year, with a gradual increase to $1.6 billion by 2028-29.
According to Steve Orsini, the council’s president and CEO, this investment is crucial for equipping Ontario with the necessary resources to compete in the global economy and nurture the next generation of skilled professionals. The surge in high school students applying to Ontario universities further highlights the urgent need for additional funding to accommodate the growing demand for quality education and training.
On the college front, a $1.5 billion funding request has been tailored to align with the government’s focus on safeguarding Ontario’s interests. Colleges are emphasizing the importance of training individuals in key sectors like skilled trades and technology, which are vital for the economy but come with high delivery costs. Without targeted investment, colleges warn of potential program suspensions or closures, jeopardizing their ability to meet the labor market demands.
The reliance on international students to offset financial gaps has proven unsustainable, especially with the decline in foreign student visas, resulting in a projected revenue loss of up to $4.2 billion by 2027-28 for colleges. Despite cost-cutting measures and program suspensions, colleges are urging the government to address the funding disparities and provide essential support to sustain critical educational programs.
While the government has increased operating funding in recent years, adjustments to the funding formula are underway to better align with student success outcomes and labor market needs. This move aims to ensure graduates are well-prepared for the workforce and can contribute effectively to Ontario’s economic growth.