The Ontario government announced a suite of measures to support the province’s colleges and universities, including nearly $1.3 billion in new funding and a three-year extension of the tuition fee freeze for domestic students.
New funding to stabilize post-secondary institutions
The province said it is investing nearly $1.3 billion over three years to help post-secondary institutions cope with the financial challenges caused by the COVID-19 pandemic and the previous tuition fee cut and freeze. The new funding includes:
- $903 million over three years through the new Postsecondary Education Sustainability Fund, which will provide top-ups for institutions with greater financial need.
- $167.4 million over three years in additional funding for capital repairs and equipment.
- $10 million in one-time funding through the Small, Northern and Rural Grant for colleges and the Northern Ontario Grant for Universities in 2024-25.
- $15 million over three years through the Efficiency and Accountability Fund to support third-party reviews that will identify cost-saving measures and positive outcomes for students and communities.
The new funding is conditional on audits and the government will be looking for financial efficiencies, according to a source with knowledge of the province’s plans. The source also said the funding will be allocated based on the needs of individual institutions who apply for it.
Tuition fee freeze to continue for three more years
The province also said it is extending the tuition fee freeze for publicly assisted colleges and universities for at least three more years, until 2026-27. Institutions will be able to increase tuition by up to five per cent for out-of-province domestic students.
The tuition fee freeze was first introduced in 2019, along with a 10 per cent reduction in fees for domestic students. The province said the freeze has saved students and parents an average of $1,600 per year for university and $350 per year for college, compared to what they would have paid under the previous policy that allowed three per cent increases each year.
However, the freeze also reduced the revenue of post-secondary institutions, which were already facing low provincial funding and increased reliance on international students, who were not subject to the freeze. An expert panel established by the government reported in November that the fiscal sustainability of the sector is “currently at serious risk” and recommended an immediate 10 per cent boost in government funding and a five per cent tuition hike for this fall.
Other measures to support student mental health and safe campuses
The province also introduced legislation that would, if passed, support student mental health, safe and inclusive campuses and allow for increased transparency of fees. The proposed legislation would:
- Require colleges and universities to adopt and publicly post a student mental health and wellness policy that meets provincial standards and is reviewed every three years.
- Require colleges and universities to establish a sexual violence prevention and response centre that provides confidential services to students who have experienced or witnessed sexual violence.
- Require colleges and universities to report annually on their sexual violence prevention and response activities and outcomes to the minister and the public.
- Allow the minister to set standards for ancillary fees, which are fees charged to students for services and activities that are not related to academic programs, such as student clubs, athletics and health services.
- Allow the minister to withhold funding from institutions that do not comply with the standards for ancillary fees or the requirements for student mental health and sexual violence prevention and response.
The province said these measures are intended to enhance the well-being and safety of students and ensure they have a clear understanding of how their fees are used.
Connecting students to rewarding careers
The province also announced initiatives that will help connect students to rewarding careers and help build Ontario’s skilled workforce. These initiatives include:
- Expanding the Career Ready Fund, which provides students with work-integrated learning opportunities, such as co-ops, internships and apprenticeships, in high-demand sectors such as technology, health care and advanced manufacturing.
- Launching the Ontario Online initiative, which will provide students with access to high-quality online courses and programs from colleges and universities across the province, as well as micro-credentials and short-duration programs that are aligned with labour market needs.
- Developing a new performance-based funding model for colleges and universities, which will link a portion of their funding to outcomes such as graduate employment, skills development and economic impact.
The province said these initiatives will help students gain the skills and experience they need to succeed in the rapidly changing economy and support the province’s recovery from the pandemic.
