CAUT is calling on Ottawa to provide short term stimulus to the economy and to make long term investments in social programs in the upcoming federal budget.

In appearing before the federal Finance Committee in October, CAUT executive director Jim Turk said the fallout of Sept. 11 requires Ottawa to take measures to improve security, but that the government will still be able to meet other priorities.

"We believe it is more important than ever for government to take measures to ease the economic slowdown and to prepare for the future well-being of Canadians by investing in our social security as well," Turk said.

David Robinson, CAUT's associate executive director, told the committee the federal government will likely post a surplus in excess of $7 billion in the current fiscal year, following a $17 billion surplus recorded last year.

Robinson insisted the big surpluses posted in recent years means the federal government can afford to make new investments in social programs and public services, even if that means posting a small deficit this year.

He urged the committee to make education a major focus of the budget. "We believe post-secondary education needs to be a national priority. If the federal government agrees that education is key to promoting social development and economic growth, then it is time to ensure that Canada's colleges and universities are accessible, affordable and of the highest quality."

In its written brief to the Finance Committee, CAUT argues the way Ottawa funds post-secondary education needs to be reformed. Under the current Canada Health and Social Transfer, the federal government transfers money to the provinces in one envelope to help finance the costs of health care, post-secondary education and social services. Because the CHST is a block fund, there is no accountability or transparency over how funds are spent, or even if they are spent as intended.

"We believe there is an urgent need for the government to reconsider not just the level of funding required, but also the mechanism and rules by which the federal and provincial governments provide support for public colleges and universities," Turk said.

CAUT is recommending the CHST be repealed and replaced by separate dedicated funds, including a post-secondary education fund that would be governed by a post-secondary education act modelled on the Canada Health Act.

"The key message we've conveyed to this committee for several years now is that the problems our institutions face — whether it's rising fees, fewer faculty, larger classes, fewer library holdings, or deteriorating physical infrastructure — stem from the cuts in core operating grants from governments," Turk said. "Programs and initiatives that don't address this fundamental problem are simply tinkering around the edges."

CAUT is also urging the government to set up a national task force to investigate ways to eliminate the financial and non-financial barriers to post-secondary education.

"Our failure to remove the barriers that prevent any person from attaining an education is the equivalent of burying a financial fortune. We simply cannot afford to leave this treasure in the ground to decay — more so today than ever before," Robinson told the committee.