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Press Release: Federal Budget Provides Little New Funding for Universities
Today, Finance Minister Jim Flaherty announced the government’s intention to insulate post-secondary spending from budget cuts in other departments, while contributing modest spending announcements in research and youth employment-related initiatives. Yet the budget did not contain new money for university operating budgets, student financial assistance, or replacement funds for expiring programs in the post-secondary sector. In a time of continued university budget reductions, and tuition increases more than doubling inflation rates nationwide (and 5% increases in Ontario), this budget contains no significant measures to relieve the current pressures on universities, or assist our institutions with the additional educational needs of recently unemployed individuals.
“The government has not signaled any cuts to universities and colleges as a way to balance the federal budget long-term, however we are concerned about the lack of new direct initiatives for students and universities as we experience high-demand for those individuals who have been unable to find jobs during the recession,” stated Lianne Bradley, President of the Brock University Students’ Union. “Small investments in general research, youth employment and early outreach provide signs of life for the sector, but are not directed to maximize the impact of limited budget resources.”
Among today’s announcements include $32 million for Canada’s three research granting councils, plus an additional $8 million for indirect costs of research. $20 million is targeted for the Pathways to Education program, an initiative assisting at-risk youth in high school completion and post-secondary options, and $60 million for youth employment strategies including $30 million for incentives to hire recent graduates.
BUSU, along with our federal partner the Canadian Alliance of Student Associations, had been looking for a strengthened commitment towards indirect costs of research, and increased support for Aboriginal students through the Post-Secondary Student Support Program.
“Direct research funding is vital for universities, but costs to implement research such as lab and equipment upgrades often cost up to 40 cents more for every dollar invested from the granting agencies,” explained Rob Lanteigne, Vice President University Affairs for BUSU. “Without additional funding for indirect research costs, universities actually reduce existing operating budgets to divert money to these indirect costs. This budget allocates only 25% for the indirect costs of new research spending, actually placing further burden on students.”
Lanteigne continues to explain, “This budget contains $30 million for investment in Aboriginal elementary and secondary education, but undescribed future commitments to post-secondary options. Year-over-year funding for the Aboriginal PSSSP program increases by 2% annually, but with Aboriginal populations growing at over 3 times the rate of non-Aboriginal groups, the PSSSP resources are being stretched thinner and thinner each year. Some commitment to increasing this program funding has been long overdue, yet still not forthcoming from the government.”
Lanteigne, BUSU’s Vice President University Affairs, will be available for media comment and budget reaction by e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by phone at 905-688-5550 x 4198. ---------------------------------------- BUSU is a not-for-profit organization representing and working to improve the post-secondary education experience of students at Brock University. For more information, please contact BUSU Vice President University Affairs, Rob Lanteigne, at 905-688-5550 x 4198, or by e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . |