Funding boost for youth jobs and Indigenous students detailed in budget

The federal Liberal government will boost funding for youth jobs, and add grants for part-time, adult and Indigenous students. But it fell short of meeting several promises from the 2015 federal election.

Unlike last year, when the federal government raised the maximum Canada Student Grant for low-income students to $3,000, there was no additional spending pledges or actions regarding low- or middle-income students.

The Liberals also left the threshold that any graduate will not have to repay the federal portion of their student loans until they are earning an annual income of at least $25,000 untouched.

The budget for the 2017-18 year was announced by Finance Minister Bill Morneau on March 22.

Part-time students eligible for more grants

The federal government is expanding eligibility for Canada Student Grants for part-time students by replacing the current income eligibility threshold – which varies by province – with a single, higher threshold unified between all provinces. This will come into effect in 2018-19.

The threshold for eligibility for Canada Student Loans will also be changed to allow for more students to qualify. Currently, the amount of grant money a part-time student receives is based on family income. The higher the family income, the less amount of money a part-time student can receive.

The budget estimates an additional 10,000 students will be eligible for federal grants and loans. The federal government is spending an additional $59.8 million in the next four years, starting in 2018-19, and $17 million for the following year.

The maximum amount of grants part-time students can receive will remain at $1,800, which was raised from $1,200 in the last budget. The Liberal Party promised to raise the maximum amount for part-time students in the 2015 federal election.

Adult students eligible for more grants

The federal government will also expand eligibility for adult students with dependent children. The budget stated it would change eligibility thresholds for Canada Student Grant funding, estimating it would provide an additional 13,000 students with dependent children access to more student grants annually. The Liberals are committing an additional $107.4 million over four years, starting in 2018-19, and $29.8 million after.

The budget also announced a three-year pilot project to test new approaches to make it easier for part-time adult students to qualify for Canada Student Loans and Grants, at a cost of $287.2 million over three years, starting in 2018-19. The budget stated that the pilot project will especially benefit women, who represent two-thirds of federal grant and loan recipients.

Money for co-op spending increases

The budget also outlined extra funding for co-op placements, spending $221 million over five years, starting in 2017-18. In its previous budget, the federal government said it would spend $73 million over four years on job-creating partnerships between employers and post-secondary schools.

The federal government has set a goal of creating 10,000 placements and said the funding boost in the budget would help achieve the goal.

Liberals spend on Indigenous education but fall short of 2015 promise

The federal government is also committing $90 million – $45 million annually – over the next two years for the Post-Secondary Student Support Program, which supports Indigenous students attending post-secondary education.

In 2015, the Liberals promised to invest $50 million annually into the program. In last year’s budget, the federal government did not spend any money on the program. The budget estimates that the funding will assist 4,600 students over the two-year period.

Also, the federal government is giving $5 million each year for five years to Indispire, an Indigenous-led charitable organization which helps Indigenous students attend university or college and help find jobs. The spending is on condition that the charity matches the funding by raising $3 million annually through the private sector.

Youth employment spending increased

The federal government is boosting spending on the Youth Employment Strategy (YES), which includes the Canada Summer Jobs program, spending $150 million annually for the next two years and $96 million the year after. The program provides short-term job opportunities for students between 15 and 30-years old.

In the last budget, the federal government announced $165.4 million to be spent on YES in 2016-17, which it estimated would double the number of jobs provided through the summer jobs program from 34,000 to 70,000.

During the 2015 federal election, Liberal Party leader Justin Trudeau promised to spend $300 million on YES every year for the next three years.

Currently, the youth employment rate in Canada sits at 12.4 per cent, according to the most recent Statistics Canada data.

Tuition tax credit eligibility

The budget outlines extending eligibility for the tuition tax credit for students taking post-secondary classes for providing the individual with skills in an occupation. The tax credit is a 15 per cent non-refundable tax credit for students taking occupational skills courses. Students taking courses for university credits do not qualify for the rebate.

You’ll have to pay taxes on Uber fares

The cost of taking an Uber is set to go up, as the federal government wants ride-sharing businesses to be subject to the same GST/HST taxes as taxis. This will go into effect on Canada Day.

Unpaid Internships

The budget also outlines ending unpaid internships in the federal government sectors where the internships are not part of a formal educational program.

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The federal government projects a deficit of $28.5 billion for the 2017-18 year. In the last budget, the Liberals projected it would be $29 billion.

– File photo