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1996-2016

April 2007

Ontario, Saskatchewan Budgets Diverge on Fees & Funding

Ontario’s Liberal government and the ruling New Democrats in Saskatchewan have made their plans clear in pre-election budgets tabled last month.

Ontario Students Get Zip
The big message in the Ontario government’s budget on March 22 was on anti-poverty measures and small business tax cuts. Despite the rhetoric of attacking child poverty, the hike in the minimum wage and the new Ontario Child Benefit will be phased in over several years and the McGuinty Liberals have yet to honour a promise to end the claw back of the National Child Tax Benefit.

And despite massive tuition fee hikes announced last spring, there was no help in the provincial budget for students looking for assistance. However, there was a modest increase in operating funding for the provinces’ colleges and universities to assist with burgeoning enrolment and infrastructure challenges. Enrolment pressures across Ontario’s post-secondary system means there are several thousand students who are not funded under the current formula.

“We’ve been very concerned about the risk to educational quality that this gap poses,” said Michael Doucet, president of the Ontario Confederation of University Faculty Associations. “This new investment will help address this concern, but only temporarily.”

He also noted the recently announced increase in federal transfers will mean $1 billion in new funding for Ontario over the next three years — starting in 2008–2009. Doucet contends this funding must be used to hire additional full-time faculty and to increase the quality of higher education in the province.

Saskatchewan Students Enjoy Tuition Freeze
Meanwhile, the government of Saskatchewan unveiled a so-called “centennial” budget that continues the freeze on post-secondary tuition fees for a third year and sets aside $21.6 million for increased operating funding.

In addition, the budget introduced a new $10,000, five-year Graduate Tax Exemption program. When combined with existing tax exemption amounts, the plan means new graduates who stay in Saskatchewan will not have to pay provincial taxes on their first $20,000 of income for five years. There is a carry forward provision of up to five years for those whose income is insufficient to initially take advantage of the tax break.

“We are pleased the provincial government has frozen tuition at 2004 levels,” said Dorothy Lane, chair of the University of Regina Faculty Association. “And, the increased graduate tax exemption will encourage students to enroll in post-secondary programs and to remain in Saskatchewan after graduation.”

Although encouraged by these elements inclusion in the budget, Lane cautioned that the new funding was not sufficient to ease faculty workload or recruit new full-time faculty to replace retiring faculty.

She also said, at $5,063, arts and science undergraduate tuition fees still remain beyond reach for too many Saskatchewan families.