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Canadas Self-Imposed Crisis in Post-Secondary Education Keynote Address to Alberta Union of Provincial Employees Education Sector Conference Radisson Hotel.

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Presentation on theme: "Canadas Self-Imposed Crisis in Post-Secondary Education Keynote Address to Alberta Union of Provincial Employees Education Sector Conference Radisson Hotel."— Presentation transcript:

1 Canadas Self-Imposed Crisis in Post-Secondary Education Keynote Address to Alberta Union of Provincial Employees Education Sector Conference Radisson Hotel & Conference Centre Canmore, Alberta June 7, 2012 By: Nick Falvo PhD Candidate (Public Policy) Carleton University

2 Overview of Presentation Macroeconomic Context Macroeconomic Context PSE Indicators PSE Indicators Shouldnt Students Pay Their Fair Share? Shouldnt Students Pay Their Fair Share? Household Debt Household Debt Quebec Quebec

3 Overview of Presentation (contd) Newfoundland and Labrador Newfoundland and Labrador The Munk Effect The Munk Effect The Quest for Research Dollars The Quest for Research Dollars Concluding Thoughts Concluding Thoughts

4

5 But Were Not Spending As Much…

6 Tax Cuts Federal government takes in $48 billion less in tax revenue today than in $12 billion of this represents the two -percentage-point cut to the GST brought in by Harper govt $12 billion of this represents the two -percentage-point cut to the GST brought in by Harper govt

7 How Big is $48 Billion? $3.5 B A universal, accessible child-care system for children aged 3-5. $10 BA complete national child care program, including early childhood education

8 How Big is $48 Billion? (contd) $4.4 BRemove tuition costs for all students currently enrolled in Canadian universities

9 Rising Inequality in Canada

10

11 Government Funding for Post- Secondary Education 1979Govt grants covered 80% of a university or colleges operating budget 1979Govt grants covered 80% of a university or colleges operating budget 2012Govt grants cover roughly 50% of a university or colleges operating budget 2012Govt grants cover roughly 50% of a university or colleges operating budget

12 Average Tuition Fees for Full-Time Undergraduate University Students

13 Average Undergraduate Tuition for Full-Time Students NL$2,649 PEI$5,258 NS$5,731 NB$5,853 QC$2,519 ON$6,640 MB$3,645 SK$5,601 AB$5,662 BC$4,852 Canada$5,366

14 Average Graduate Tuition for Full-Time Students NL$2,456 PEI$3,992 NS$7,326 NB$5,258 QC$2,731 ON$7,578 MB$4,173 SK$3,504 AB$4,676 BC$7,303 Canada$5,599

15 But if Students are Going to Earn More, Should They Really Be Complaining?

16 Contd

17 Likewise, if theyre going to rarely find themselves unemployed…

18 Contd

19 But Remember: Theres Another Side to That Coin… Higher-income earners with steady employment also pay more taxes.

20 Key Findings from CCPA-BC Research Over their working lives, women with an undergraduate degree contribute, on average, $106,000 more to the public treasury than women with only a high school diploma;Over their working lives, women with an undergraduate degree contribute, on average, $106,000 more to the public treasury than women with only a high school diploma;

21 Key Findings from CCPA-BC Research (contd) Similarly, university-education men contribute $159,000 more to the public treasury than men with only a high school diploma;Similarly, university-education men contribute $159,000 more to the public treasury than men with only a high school diploma;

22 Key Findings from CCPA-BC Research (contd) In contrast, a four-year undergraduate degree [in BC] costs $50,630, of which tuition fees make up 40 per cent.In contrast, a four-year undergraduate degree [in BC] costs $50,630, of which tuition fees make up 40 per cent.

23 Class Sizes Getting Bigger B/w 1990 and 2006, ratio of PSE students to full-time faculty members d by 40%. B/w 1990 and 2006, ratio of PSE students to full-time faculty members d by 40%.

24 % of Canadian University Students Who Work During the Academic Year % % % % 75% of students believe this paid work has had a negative effect on their academic performance. 75% of students believe this paid work has had a negative effect on their academic performance.

25 Rising Household Debt

26 Rising Household Debt (contd)

27 Incidence of Debt in By Age

28 And Then There Was Quebec… Among the lowest tuition fees in Canada Among the lowest tuition fees in Canada PSE participation in Quebec is 9% higher than in the rest of Canada PSE participation in Quebec is 9% higher than in the rest of Canada

29 Comparing Student Debt Average of debt for students enrolled in their final year of a bachelors degree program who took out student loans is: Quebec: $15,000 Quebec: $15,000 Ontario: $26,000 Ontario: $26,000

30 Canadas Best-Kept PSE Secret: Newfoundland and Labrador Since 2003, N&L govt has d funding for PSE by 82%. Since 2003, N&L govt has d funding for PSE by 82%. Average tuition fees for domestic students in N&L are now $2,600/yr, which is half the Canadian average. Average tuition fees for domestic students in N&L are now $2,600/yr, which is half the Canadian average.

31 Newfoundland and Labrador (contd) Enrolment in N&Ls only university and only community college by students from the other three Atlantic provinces d more than tenfold between 2001 and Enrolment in N&Ls only university and only community college by students from the other three Atlantic provinces d more than tenfold between 2001 and Since the late 1990s, # of people in N&L with student debt has d from 20,000 to roughly 8,000. Since the late 1990s, # of people in N&L with student debt has d from 20,000 to roughly 8,000.

32 The Munk Effect Apr. 10 Announcement Apr. 10 Announcement $35 million from Peter Munk for new school of global studies at U of T.$35 million from Peter Munk for new school of global studies at U of T. The Munk School of Global AffairsThe Munk School of Global Affairs

33 The Munk Effect (contd) Located on Bloor Street West Located on Bloor Street West Pixel board flashing the latest world news headlines Pixel board flashing the latest world news headlines

34 Munk Effect: Public Recognition Front page news at Globe and Mail Front page news at Globe and Mail A vision of a global plaza reconfiguring Torontos downtown Bloor Street West and becoming the hub of Canadas conversation with the world.

35 Munk Effect: Public Recognition (contd) Whatever controversies may follow Munk abroad his company has come under attach from environmental and indigenous groups, whove held annual demonstrations in Chile, Argentina, Peru, the Philippines, and Tanzania…Munk is associated with loftier things. His name is indelibly linked with good works… McQuaig and Brooks, 2011Whatever controversies may follow Munk abroad his company has come under attach from environmental and indigenous groups, whove held annual demonstrations in Chile, Argentina, Peru, the Philippines, and Tanzania…Munk is associated with loftier things. His name is indelibly linked with good works… McQuaig and Brooks, 2011

36 Munk: Who Pays What? Though Mr. Munk appears to pay $35 million, he in fact receives a tax reduction amounting to at least $16 million. Though Mr. Munk appears to pay $35 million, he in fact receives a tax reduction amounting to at least $16 million. Ergo: his net contribution is a max. of $19 million. Ergo: his net contribution is a max. of $19 million.

37 Munk: Who Pays What? (contd) Federal government and Ontario government have contributed an additional $25 million each. Federal government and Ontario government have contributed an additional $25 million each.

38 Munk: Who Pays What? (contd) In Summary: In Summary: Munk: $19 million Munk: $19 million Canadian taxpayers: $66 million Canadian taxpayers: $66 million Ergo: Peter Munk pays 22% of announced contributions (not including ongoing operating costs)

39 Munk: Who Pays What (contd) But theres more… But theres more… $15 million of Munks so-called $35 million contribution is held back until after 2017…

40 Munk: Who Pays What? (contd) Agreement stipulates that Schools director must report annually to a board appointed by Munk to discuss the programs, activities, and initiatives of the school in greater detail. Agreement stipulates that Schools director must report annually to a board appointed by Munk to discuss the programs, activities, and initiatives of the school in greater detail.

41 Does This Impact Academic Freedom? Is it likely, given Munks power to withhold funds, that this School of Global Affairs will encourage academic inquire into, say, the activities of multinational companies in developing countries, where Munks Barrick Gold Corporation has come under heavy criticism?Is it likely, given Munks power to withhold funds, that this School of Global Affairs will encourage academic inquire into, say, the activities of multinational companies in developing countries, where Munks Barrick Gold Corporation has come under heavy criticism? McQuaig and Brooks, 2011 McQuaig and Brooks, 2011

42 Munk: In Sum Munk provided a relatively small amount of money, and, in return, received a personal marketing boost. Munk provided a relatively small amount of money, and, in return, received a personal marketing boost. U of T got a relatively small amount of money, and, in return, may have compromised academic freedom for its 80 faculty members. U of T got a relatively small amount of money, and, in return, may have compromised academic freedom for its 80 faculty members.

43 Federal Funding Canada Social Transfer Transfers funds to provinces Transfers funds to provinces Few strings attached Few strings attached

44 CFS Recommendations A Post-Secondary Education Act modeled after the Canada Health Act. A Post-Secondary Education Act modeled after the Canada Health Act. Five principles: 1) public administration; 2) comprehensiveness; 3) universality; 4) portability; and 5) accessibility. Five principles: 1) public administration; 2) comprehensiveness; 3) universality; 4) portability; and 5) accessibility.

45 Why Do Universities Want More Research Funding? Prestige Prestige Dollars beget dollars Dollars beget dollars Dollars attract faculty Dollars attract faculty All of the above attract students All of the above attract students

46 The $100 Million Club 1. U. of Toronto 2. UBC 3. U. de Montréal 4. U. of Alberta 5. McGill 6. McMaster 7. U. Laval 8. Calgary 9. U. of Ottawa 10. Western 11. Queens 12. Saskatchewan 13. U. of Manitoba 14. Guelph 15. Waterloo 16. Dalhousie

47 Research Funding 1. U. of Toronto 2. UBC 3. U de Montréal 4. U of Alberta 5. McGill 6. McMaster 7. Laval 8. U of Calgary 9. Ottawa 10. Western 35. Lethbridge

48 Research Intensity (i.e. research funding per full-time faculty) 1. INRS 2. U of Toronto 3. McMaster 4. U of Alberta 5. McGill 6. U de Montréal 7. Queens 8. UBC 9. Laval 10. Ottawa 12. Calgary 41. Lethbridge

49 Following the Money [I]t is a virtuous cycle whereby increased research funding leads to higher rankings leads to better students (higher GPAs) leads to more ambitious research faculty (less teaching), more research funding and so on...The problem is that for every virtuous cycle there are vicious cycles created for those universities less able to bring in research funding and [such universities] can quickly become stigmatized (2nd tier or even last chance U)…[These] cycles speed up the polarization until the top universities want to institutionalize their status (the big 5)...[I]t is a virtuous cycle whereby increased research funding leads to higher rankings leads to better students (higher GPAs) leads to more ambitious research faculty (less teaching), more research funding and so on...The problem is that for every virtuous cycle there are vicious cycles created for those universities less able to bring in research funding and [such universities] can quickly become stigmatized (2nd tier or even last chance U)…[These] cycles speed up the polarization until the top universities want to institutionalize their status (the big 5)... Dr. Christopher Stoney, Carleton University Dr. Christopher Stoney, Carleton University

50 The Big 5 Proposal Play first 2:15 of this video clip: Play first 2:15 of this video clip:http://www.youtube.com/watch?v=QrACKpypyzo&feature=fvsr

51 Concluding Thoughts The federal government spends less (in general) today than a decade ago, but not because it cant. The federal government spends less (in general) today than a decade ago, but not because it cant. This reduction in federal spending has implications for both PSE and inequality. This reduction in federal spending has implications for both PSE and inequality.

52 Concluding Thoughts (contd) Many of the costs of PSE have been shifted from the federal government onto students. Many of the costs of PSE have been shifted from the federal government onto students. There are indications that the quality of PSE is also deteriorating (i.e. ratio of full- time faculty to students, hours worked by students). There are indications that the quality of PSE is also deteriorating (i.e. ratio of full- time faculty to students, hours worked by students).

53 Concluding Thoughts (contd) Students should pay their fair share for PSE, but why not through taxation rather than user fees? Students should pay their fair share for PSE, but why not through taxation rather than user fees? High tuition fees run the risk of exacerbating Canadas challenges with respect to household debt. High tuition fees run the risk of exacerbating Canadas challenges with respect to household debt.

54 Concluding Thoughts (contd) Newfoundland and Labradors experience with PSE affordability provides important lessons for the rest of Canada. Another way is possible. Newfoundland and Labradors experience with PSE affordability provides important lessons for the rest of Canada. Another way is possible. Remember: philanthropists dont always give away money for free. Check the fine print. Remember: philanthropists dont always give away money for free. Check the fine print.

55 Concluding Thoughts (contd) One emerging trend in PSE across Canada is the stratification of students based on income (which is exacerbated by high tuition). One emerging trend in PSE across Canada is the stratification of students based on income (which is exacerbated by high tuition). Another is the stratification of universities with a quest for research dollars. Another is the stratification of universities with a quest for research dollars. When one meets the other, youve got a double- whammy effect. When one meets the other, youve got a double- whammy effect.

56 Thank You

57 Acknowledgements Frances Abele Fletcher Baragar George Fallis Tom Fuller Katherine Graham Iglika Ivanova Gil Laflamme Linda McQuaig Bill Moore-Kilgannon Tony Myatt John Nicholls Diana Petramala Vincent St. Martin Chris Stoney Jordan Thompson Michael Veall Mike Yam

58 Contact Info Nick Falvo PhD Candidate (Public Policy) Carleton University


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