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

CanadaCanada’’s Self-Imposed Crisis s Self-Imposed Crisis in Post-Secondary Educationin Post-Secondary Education

Keynote Address toKeynote Address to Alberta Union of Provincial EmployeesAlberta Union of Provincial Employees

Education Sector ConferenceEducation Sector Conference

Radisson Hotel & Conference Centre Radisson Hotel & Conference Centre Canmore, AlbertaCanmore, Alberta

June 7, 2012June 7, 2012

By: Nick FalvoBy: Nick FalvoPhD Candidate (Public Policy)PhD Candidate (Public Policy)

Carleton UniversityCarleton University

Overview of PresentationOverview of Presentation

Macroeconomic ContextMacroeconomic Context

PSE IndicatorsPSE Indicators

ShouldnShouldn’’t Students Pay Their Fair t Students Pay Their Fair Share?Share?

Household DebtHousehold Debt

QuebecQuebec

Overview of Presentation Overview of Presentation (cont(cont’’d)d)

Newfoundland and LabradorNewfoundland and Labrador

The Munk EffectThe Munk Effect

The Quest for Research DollarsThe Quest for Research Dollars

Concluding ThoughtsConcluding Thoughts

But WeBut We’’re Not Spending As re Not Spending As Much…Much…

Tax CutsTax Cuts

Federal government takes in $48 Federal government takes in $48 billion less in tax revenue today than billion less in tax revenue today than in 2000.in 2000.

→→$12 billion of this represents the $12 billion of this represents the two -percentage-point cut to two -percentage-point cut to

the the GST GST brought in by Harper brought in by Harper govgov’’tt

How Big is $48 Billion?How Big is $48 Billion?

$3.5 B $3.5 B A universal, accessible child-A universal, accessible child-care care system for children aged system for children aged 3-5.3-5.

$10 B$10 B A complete national child care A complete national child care program, including early program, including early

childhood childhood educationeducation

How Big is $48 Billion? (contHow Big is $48 Billion? (cont’’d)d)

$4.4 B$4.4 B Remove tuition costs for all Remove tuition costs for all students currently students currently

enrolled in enrolled in Canadian Canadian universitiesuniversities

Rising Inequality in CanadaRising Inequality in Canada

Government Funding for Post-Government Funding for Post-Secondary EducationSecondary Education

19791979 GovGov’’t grants covered 80% of t grants covered 80% of a a university or collegeuniversity or college’’s s operating operating budgetbudget

20122012 GovGov’’t grants cover roughly t grants cover roughly 50% 50% of a university or of a university or collegecollege’’s s operating operating budgetbudget

Average Tuition Fees for Full-Average Tuition Fees for Full-Time Undergraduate University Time Undergraduate University

StudentsStudents

Average Undergraduate Average Undergraduate Tuition for Full-Time Tuition for Full-Time

StudentsStudentsNLNL $2,649$2,649

PEIPEI $5,258$5,258

NSNS $5,731$5,731

NBNB $5,853$5,853

QCQC $2,519$2,519

ONON $6,640$6,640

MBMB $3,645$3,645

SKSK $5,601$5,601

ABAB $5,662$5,662

BCBC $4,852$4,852

CanadaCanada $5,366$5,366

Average Graduate Tuition Average Graduate Tuition for Full-Time Studentsfor Full-Time Students

NLNL $2,456$2,456

PEIPEI $3,992$3,992

NSNS $7,326$7,326

NBNB $5,258$5,258

QCQC $2,731$2,731

ONON $7,578$7,578

MBMB $4,173$4,173

SKSK $3,504$3,504

ABAB $4,676$4,676

BCBC $7,303$7,303

CanadaCanada $5,599$5,599

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

Complaining?Complaining?

Cont’dCont’d

Likewise, if they’re going to rarely Likewise, if they’re going to rarely find themselves unemployed…find themselves unemployed…

Cont’dCont’d

But Remember: But Remember: There’s Another Side to That There’s Another Side to That

Coin…Coin…

Higher-income earners with Higher-income earners with steady employment also steady employment also

pay more taxespay more taxes..

Key Findings from CCPA-BC Key Findings from CCPA-BC ResearchResearch

““Over their working lives, women with Over their working lives, women with an undergraduate degree contribute, an undergraduate degree contribute, on average, $106,000 more to the on average, $106,000 more to the public treasury than women with only public treasury than women with only a high school diploma;”a high school diploma;”

Key Findings from CCPA-BC Research Key Findings from CCPA-BC Research (cont’d)(cont’d)

““Similarly, university-education men Similarly, university-education men contribute $159,000 more to the public contribute $159,000 more to the public treasury than men with only a high treasury than men with only a high school diploma;”school diploma;”

Key Findings from CCPA-BC Research Key Findings from CCPA-BC Research (cont’d)(cont’d)

““In contrast, a four-year In contrast, a four-year undergraduate degree [in BC] costs undergraduate degree [in BC] costs $50,630, of which tuition fees make up $50,630, of which tuition fees make up 40 per cent.”40 per cent.”

Class Sizes Getting BiggerClass Sizes Getting Bigger

B/w 1990 and 2006, ratio of PSE B/w 1990 and 2006, ratio of PSE students to full-time faculty members students to full-time faculty members ↑d by 40%.↑d by 40%.

% of Canadian University Students % of Canadian University Students Who Work During the Academic YearWho Work During the Academic Year

19761976 25%25%

20082008 50%50%

→→75% of students believe this paid 75% of students believe this paid work has had a negative work has had a negative effect effect

on on their academic performance.their academic performance.

Rising Household DebtRising Household Debt

Rising Household Debt (contRising Household Debt (cont’’d)d)

Incidence of Debt in 2009 - By AgeIncidence of Debt in 2009 - By Age

And Then There Was And Then There Was Quebec…Quebec…

Among the lowest tuition fees in Among the lowest tuition fees in CanadaCanada

PSE participation in Quebec is 9% PSE participation in Quebec is 9% higher than in the rest of Canadahigher than in the rest of Canada

Comparing Student DebtComparing Student Debt

Average of debt for students enrolled in Average of debt for students enrolled in their final year of a bachelortheir final year of a bachelor’’s degree s degree program who took out student loans is:program who took out student loans is:

Quebec: $15,000Quebec: $15,000

Ontario: $26,000 Ontario: $26,000

CanadaCanada’’s Best-Kept PSE Secret: s Best-Kept PSE Secret: Newfoundland and Labrador Newfoundland and Labrador

Since 2003, N&L govSince 2003, N&L gov’’t has t has ↑↑d funding for d funding for PSE by 82%.PSE by 82%.

Average tuition fees for domestic students Average tuition fees for domestic students in N&L are now $2,600/yr, which is half the in N&L are now $2,600/yr, which is half the Canadian average.Canadian average.

Newfoundland and Labrador Newfoundland and Labrador (cont(cont’’d)d)

Enrolment in N&LEnrolment in N&L’’s only university and s only university and only community college by students from only community college by students from the other three Atlantic provinces the other three Atlantic provinces ↑↑d more d more than tenfold between 2001 and 2008. than tenfold between 2001 and 2008.

Since the late 1990s, # of people in N&L Since the late 1990s, # of people in N&L with student debt has with student debt has ↓↓d from 20,000 to d from 20,000 to roughly 8,000.roughly 8,000.

The Munk EffectThe Munk Effect

Apr. ‘10 AnnouncementApr. ‘10 Announcement

““$35 million from Peter Munk” for new $35 million from Peter Munk” for new school of global studies at U of T.school of global studies at U of T.

““The Munk School of Global Affairs”The Munk School of Global Affairs”

The Munk Effect (cont’d)The Munk Effect (cont’d)

Located on Bloor Street WestLocated on Bloor Street West

Pixel board “flashing the latest world Pixel board “flashing the latest world news headlines”news headlines”

Munk Effect: Public Munk Effect: Public RecognitionRecognition

Front page news at Front page news at Globe and MailGlobe and Mail

A “vision of a global plaza reconfiguring Toronto’s downtown Bloor Street West and becoming the hub of Canada’s conversation with the world.”

Munk Effect: Public Recognition Munk Effect: Public Recognition (cont’d)(cont’d)

““Whatever controversies may follow Munk Whatever controversies may follow Munk abroad — his company has come under abroad — his company has come under attach from environmental and indigenous attach from environmental and indigenous groups, who’ve held annual demonstrations in groups, who’ve held annual demonstrations in Chile, Argentina, Peru, the Philippines, and Chile, Argentina, Peru, the Philippines, and Tanzania…Munk is associated with loftier Tanzania…Munk is associated with loftier things. His name is indelibly linked with good things. His name is indelibly linked with good works…”works…”

— McQuaig and Brooks, 2011— McQuaig and Brooks, 2011

Munk: Who Pays What?Munk: Who Pays What?

Though Mr. Munk appears to pay $35 Though Mr. Munk appears to pay $35 million, he in fact receives a tax million, he in fact receives a tax reduction amounting to at least $16 reduction amounting to at least $16 million.million.

Ergo: his net contribution is a max. of Ergo: his net contribution is a max. of $19 million.$19 million.

Munk: Who Pays What? Munk: Who Pays What? (cont’d)(cont’d)

Federal government and Ontario Federal government and Ontario government have contributed an government have contributed an additional $25 million each.additional $25 million each.

Munk: Who Pays What? Munk: Who Pays What? (cont’d)(cont’d)

In Summary:In Summary:

Munk: $19 millionMunk: $19 million Canadian taxpayers: $66 millionCanadian taxpayers: $66 million

Ergo: Peter Munk pays 22% of announced Ergo: Peter Munk pays 22% of announced contributions (not including contributions (not including

ongoing ongoing operating costs)operating costs)

Munk: Who Pays What Munk: Who Pays What (cont’d)(cont’d)

But there’s more…But there’s more…

$15 million of Munk’s so-called “$35 $15 million of Munk’s so-called “$35 million contribution” is held back million contribution” is held back

until until after 2017…after 2017…

Munk: Who Pays What? Munk: Who Pays What? (cont’d)(cont’d)

Agreement stipulates that School’s Agreement stipulates that School’s director must report annually to a director must report annually to a board appointed by Munk to “discuss board appointed by Munk to “discuss the programs, activities, and the programs, activities, and initiatives of the school in greater initiatives of the school in greater detail.”detail.”

Does This Impact Academic Does This Impact Academic Freedom?Freedom?

““Is it likely, given Munk’s power to Is it likely, given Munk’s power to withhold funds, that this ‘School of withhold funds, that this ‘School of Global Affairs’ will encourage academic Global Affairs’ will encourage academic inquire into, say, the activities of inquire into, say, the activities of multinational companies in developing multinational companies in developing countries, where Munk’s Barrick Gold countries, where Munk’s Barrick Gold Corporation has come under heavy Corporation has come under heavy criticism?”criticism?”

— — McQuaig and Brooks, 2011McQuaig and Brooks, 2011

Munk: In SumMunk: In Sum

Munk provided a relatively small Munk provided a relatively small amount of money, and, in return, amount of money, and, in return, received a personal marketing boost.received a personal marketing boost.

U of T got a relatively small amount U of T got a relatively small amount of money, and, in return, may have of money, and, in return, may have compromised academic freedom for compromised academic freedom for its 80 faculty members.its 80 faculty members.

Federal FundingFederal Funding

Canada Social TransferCanada Social Transfer

Transfers funds to provincesTransfers funds to provinces

Few strings attachedFew strings attached

CFS RecommendationsCFS Recommendations

A Post-Secondary Education Act A Post-Secondary Education Act ““modeled after the Canada Health Act.modeled after the Canada Health Act.””

Five principles: 1) public administration; Five principles: 1) public administration; 2) comprehensiveness; 3) universality; 2) comprehensiveness; 3) universality; 4) portability; and 5) accessibility.4) portability; and 5) accessibility.

Why Do Universities Want Why Do Universities Want More Research Funding?More Research Funding?

PrestigePrestige

Dollars beget dollarsDollars beget dollars

Dollars attract facultyDollars attract faculty

All of the above attract studentsAll of the above attract students

The $100 Million ClubThe $100 Million Club

1. U. of Toronto1. U. of Toronto

2. UBC2. UBC3. U. de Montr3. U. de Montrééal al

4. U. of Alberta4. U. of Alberta

5. McGill5. McGill

6. McMaster6. McMaster

7. U. Laval7. U. Laval

8. Calgary8. Calgary

9. U. of Ottawa9. U. of Ottawa

10. Western10. Western

11. Queen11. Queen’’ss

12. Saskatchewan12. Saskatchewan

13. U. of Manitoba13. U. of Manitoba

14. Guelph14. Guelph

15. Waterloo15. Waterloo

16. Dalhousie16. Dalhousie

Research FundingResearch Funding

1. U. of Toronto1. U. of Toronto

2. UBC2. UBC

3. U de Montr3. U de Montrééalal

4. U of Alberta4. U of Alberta

5. McGill5. McGill

6. McMaster6. McMaster

7. Laval7. Laval

8. U of Calgary8. U of Calgary

9. Ottawa9. Ottawa

10. Western10. Western

35. Lethbridge35. Lethbridge

Research Intensity Research Intensity (i.e. research funding per full-time (i.e. research funding per full-time

faculty)faculty)

1. INRS1. INRS

2. U of Toronto2. U of Toronto

3. McMaster3. McMaster

4. U of Alberta4. U of Alberta

5. McGill5. McGill

6. U de Montr6. U de Montréaléal

7. Queen7. Queen’’ss

8. UBC8. UBC

9. Laval9. Laval

10. Ottawa10. Ottawa

12. Calgary12. Calgary

41. Lethbridge41. Lethbridge

Following the MoneyFollowing the Money ““[I]t is a virtuous cycle whereby increased research [I]t is a virtuous cycle whereby increased research

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

— — Dr. Christopher Stoney , Carleton UniversityDr. Christopher Stoney , Carleton University

The Big 5 ProposalThe Big 5 Proposal

Play first 2:15 of this video clip:Play first 2:15 of this video clip:

http://www.youtube.com/watch?http://www.youtube.com/watch?v=QrACKpypyzo&feature=fvsrv=QrACKpypyzo&feature=fvsr

Concluding ThoughtsConcluding Thoughts

The federal government spends less The federal government spends less (in general) today than a decade (in general) today than a decade ago, but not because it ago, but not because it ‘‘cancan’’t.t.’’

This reduction in federal spending This reduction in federal spending has implications for both PSE and has implications for both PSE and inequality.inequality.

Concluding Thoughts Concluding Thoughts (cont(cont’’d)d)

Many of the costs of PSE have been Many of the costs of PSE have been shifted from the federal government shifted from the federal government onto students.onto students.

There are indications that the quality There are indications that the quality of PSE is also deteriorating (i.e. ratio of PSE is also deteriorating (i.e. ratio of full-time faculty to students, hours of full-time faculty to students, hours worked by students).worked by students).

Concluding Thoughts Concluding Thoughts (cont(cont’’d)d)

Students should pay their fair share Students should pay their fair share for PSE, but why not through taxation for PSE, but why not through taxation rather than user fees?rather than user fees?

High tuition fees run the risk of High tuition fees run the risk of exacerbating Canadaexacerbating Canada’’s challenges s challenges with respect to household debt.with respect to household debt.

Concluding Thoughts Concluding Thoughts (cont(cont’’d)d)

Newfoundland and LabradorNewfoundland and Labrador’’s s experience with PSE affordability experience with PSE affordability provides important lessons for the rest provides important lessons for the rest of Canada. Another way of Canada. Another way isis possible. possible.

Remember: philanthropists donRemember: philanthropists don’’t t always give away money for free. always give away money for free. Check the fine print.Check the fine print.

Concluding Thoughts Concluding Thoughts (cont(cont’’d)d)

One emerging trend in PSE across Canada is One emerging trend in PSE across Canada is the stratification of students based on income the stratification of students based on income (which is exacerbated by high tuition).(which is exacerbated by high tuition).

Another is the stratification of universities with Another is the stratification of universities with a quest for research dollars.a quest for research dollars.

When one meets the other, youWhen one meets the other, you’’ve got a ve got a double-whammy effect.double-whammy effect.

Thank YouThank You

AcknowledgementsAcknowledgements

Frances AbeleFrances Abele

Fletcher BaragarFletcher Baragar

George FallisGeorge Fallis

Tom FullerTom Fuller

Katherine GrahamKatherine Graham

Iglika IvanovaIglika Ivanova

Gil LaflammeGil Laflamme

Linda McQuaigLinda McQuaig

Bill Moore-KilgannonBill Moore-Kilgannon

Tony MyattTony Myatt

John NichollsJohn Nicholls

Diana PetramalaDiana Petramala

Vincent St. MartinVincent St. Martin

Chris StoneyChris Stoney

Jordan ThompsonJordan Thompson

Michael VeallMichael Veall

Mike YamMike Yam

Contact InfoContact Info

Nick FalvoNick Falvo

PhD Candidate (Public Policy)PhD Candidate (Public Policy)

Carleton UniversityCarleton University

E-mail: [email protected]: [email protected]