The funding model for Ontario universities could change for the first time in nearly 50 years, as the province continues consultations with various schools and student groups on how it will update the way government distributes grants to universities.
The Ministry of Training, Colleges, and Universities (MTCU) released a report in December outlining the current Ontario university funding model and how it should change based on feedback from student and university groups.
The Ontario Undergraduate Student Alliance (OUSA) and Council of Ontario Universities (COU) were among some of the groups involved in giving feedback for a new funding system.
The report recommended the province switch to a new funding formula based on student outcomes, whether universities require grants for higher enrolment from low-income students, careful analysis of data and equity indicators, and the long-term needs of universities.
The current funding model gives universities operating grants based on how many students enrol at each school.
This operating grant totalled $3.5 billion across all Ontario universities between 2014 and 2015, according to MTCU communications advisor Belinda Bien.
Chris Fernlund, OUSA’s vice-president of finance, said he thinks university funding is too dependent on enrolment numbers.
He said the funding model is “basically forcing institutions to just get more numbers and turn out more people, which can reduce the quality of an institutional experience.”
OUSA suggested funding should depend less on student enrolment numbers and more on improving student experience. In other words, universities should receive funding based on quality, not quantity.
If the province changes its funding model, universities “aren’t going to be getting more funding just because they have more students,” Fernlund said. “That way we don’t reduce the quality of institutions.”
The report stated a new funding model should focus more on student success, such as improving the “quality of the learning experience” by putting more resources into teaching, especially for first- and second-year students.
Student organizations have said universities need to put more funding towards teaching, since students are coughing up more money for tuition annually.
Universities also need to invest more in student services, including mental health, counselling, and tutoring, according to the report.
Bien said the new funding model will be student-focused.
She explained the government of Ontario is currently reviewing the report with stakeholders, such as the OUSA, “to develop a new, comprehensive funding formula and implementation plan.”
This means the government still needs to consider the recommendations in the report before the university funding model is updated.
“This is the next step towards developing a new formula to fund universities in a more quality-driven, sustainable, and transparent manner,” she said.
A new funding system would guarantee universities create positive outcomes for students and help them “ensure long-term sustainability in the post-secondary sector,” according to Bien.
COU president David Lindsay said the organization—which represents all 20 publicly funded Ontario universities—was involved in the consultation process of the report.
Lindsay said university enrolment will likely decline in the next 10 years and the current funding model will not support this decline. It would be too difficult for universities to maintain a “high quality of education and services” if the current enrolment-based funding model stays in place, he explained.
“We want to maintain that quality for students, and a reformed funding model will help universities do that,” he said. “A top-quality education, including all of the wonderful life-shaping experiences that students have at university outside of the classroom, benefits students, and benefits everyone they interact with.”
