University revenue from government grants and contracts declined again in 1996/97. Revenue from government sources fell 6.9% from a year earlier and 14.1% over the previous five years. These declines were partially offset by both increased revenue from student fees and bequests, donations and non-government grants. Overall, however, university revenue fell by 1.4% in 1996/97.

Reduced revenue has meant reduced expenditure. Salary and benefits expenditures fell 3.4% in one year and 5.2% over five years. In 1992/93, salary costs represented 66.1% of expenditures. In 1996/ 97, this proportion was 64.2%.

At a time when students are facing tuition fee increases, they have benefitted from increased expenditure on scholarships and bursaries. Although this is a relatively small expenditure category, scholarship and bursary expenditures increased 7.1% in one year and 30.4% over five years, reaching $262.6 million dollars in 1996/97.

Source: The Daily, July 7, 1998, Statistics Canada. (www.statcan.ca).