The Advisory Panel on Future Directions for Post-secondary Education appointed by Ontario Education Minister John Snobelen has reported that there are serious inadequacies in the total financial resources available to post-secondary education in the province and that "the sector's competitive position in North America is dangerously at risk."

The panel noted that:

• government grants per capita for universities are the lowest of any province in Canada;
  
• government funding for major public universities in the United States has increased relative to Ontario;
  
• the share of provincial government expenditures for colleges and universities has declined since 1977-78 from 8.1 per cent to 4.9 per cent in 1996-97; and
  
• universities and colleges have experienced long-term declines in real expenditures per student while other transfer recipients such as hospitals, elementary and secondary schools have experienced real growth in expenditure per client served.
  

The panel says there should be no further cuts and that a medium-term goal should be for government support to approximate the average of other Canadian provinces and to close the gap with the United States. It further recommends the government increase the funds for research infrastructure from $23 to $100 million.

The panel recommends substantial increases to student fees. It suggests all fees be deregulated although any program that charged more than a limit set by the government should have to devote 30 per cent of the funds to student assistance. The government would only contribute student aid to a fixed limit of fees.

The panel argues that students could meet the additional charges by a joint federal/provincial income contingency repayment plan. If Ottawa refused to cooperate, Ontario should leave the Canada Student Loan Plan and create its own. The panel also suggests a system of needs-based grants.

The panel recommends the federal government make interest on money borrowed deductible from income in calculating tax. It also urges Ottawa to improve the conditions for Registered Education Savings Plans.

For Ontario's community colleges, the panel recommends the current binary structure be maintained. Rather than giving degree powers to colleges, it suggests an Ontario College Diploma be created. It says universities and colleges should work out linkages with government encouragement but not government direction.

The panel advocates creation of an advisory body on post-secondary education to replace the recently abolished Ontario Council of University Affairs.

The panel opposes abolition of tenure. It suggests the creation of a special matching fund for faculty development and renewal. It also recommends that boards of governors ensure teaching and research be carefully evaluated and that there be more emphasis on merit pay.

Finally, the panel opens the door for creation of private universities but hedges the recommendation with many conditions. It does not think any existing universities should become private institutions although it agrees that a few professional courses such as the MBA might become self-financing.

It opposes the extension of degree-granting powers which institutions such as bible colleges now have in theology to other secular areas. If such institutions want further powers, they should affiliate with an existing university.

Ontario should be willing to entertain requests to create privately financed secular universities provided they are not-for-profit and have strict conditions on mission, governance, academic freedom, and quality "as determined by nationally and internationally recognized peer review."

The minister appointed the panel in July. It heard briefs and organized round tables in various parts of the province during the fall. Both the Ontario Confederation of University Faculty Associations (OCUFA) and CAUT welcomed the panel and testified to it.

The report is available on the Ontario Ministry of Education and Training's web site http://www.edu.gov.on.ca