Ontario boosts college and university funding by more than $1.2B, extends freeze on tuition fees

Ontario will provide a major funding boost to colleges and universities to "stabilize" their finances, but won't allow them to increase tuition fees for in-province students for at least three more years, Minister of Colleges and Universities Jill Dunlop said Monday.

The more than $1.2 billion financial aid package was announced just months after a government-commissioned report found low provincial funding combined with a tuition cut and freeze implemented in 2019 pose a "significant threat" to the financial sustainability of the sector. 

The expert panel had recommended a one-time,10 per cent increase in per-student funding to colleges and universities followed by inflationary increases in subsequent years, as well as a five per cent increase in tuition along with an "equally generous" increase to student aid.

Instead, Dunlop said the freeze on tuition fees will be extended for Ontario student until at least 2026-2027, the year of the next provincial election, although institutions will be allowed to increase tuition by up to five per cent for domestic, out-of-province students.

Dunlop also introduced a new bill that would require colleges and universities to have policies in place to address mental health and wellness, to combat racism and discrimination on campuses, and to increase transparency around fees.

"This is a broad range of measures that will offer much-needed stability to the post-secondary sector, and help keep costs down for students and their families," Dunlop said at a press conference.

"Our goal is to put students and their needs first, while continuing to produce the world-class graduates Ontario is known for."

The funding boost includes roughly $900 million for a three-year, post-secondary education sustainability fund, $200 million of which will be reserved for institutions with the greatest needs, according to a news release. Another $167.4 million will go to capital repairs and equipment, $100 million will go to STEM programs, $65 million for research and innovation, $23 million for mental-health supports, and $15 million for audits to identify "long-term cost savings."

Other measures Dunlop announced include allowing colleges to offer applied masters degrees "in areas of study that will help students graduate with in-demand skills, expertise and credentials" such as in advanced manufacturing, artificial intelligence and animation.

The new legislation would require colleges and universities to give students information about ancillary fees and other costs such as textbooks. 

The funding top-up comes after the government-commissioned report said that funding for publicly assisted colleges for full-time domestic students is at a lower level than every other province, while the Council of Ontario Universities has said at least 10 universities are facing operating deficits.

A report last year by Higher Education Strategy Associates said Ontario's post-secondary funding is "abysmal" and raising spending to the average of the other nine provinces would require $7.1 billion per year in additional funding — much higher than the current level of operating funding at around $5 billion.

The Opposition NDP criticized the provincial announcement, saying it's not enough to solve the problem.

"It's clear that this Conservative government does not in any way understand the severity of the crisis," said London-West MPP Peggy Sattler, who is the party's post-secondary critic.