Ontario universities facing huge funding shortfalls this year, amid tuition freezes

About half of Ontario universities are forecasting deficits this year. Out of the 23 publicly assisted universities, 10 of them are projecting a shortfall totalling $175 million, which they expect to keep growing.

Funding decreases for Ontario universities began in 2019 when the Ford government cut tuition rates for domestic students by 10 per cent and froze tuition.

The Council of Ontario Universities is asking the province to lift its tuition freeze and boost funding for post-secondary institutions.

“The government has cut and froze tuition for 5 years. The government’s own expert panel noted that that has reduced the value of tuition, when you factor in inflation by 25 per cent,” said Steve Orsini, President and CEO for the Council of Ontario Universities.

“Universities are facing severe, financial difficulty and at least 10 universities are forecasting deficits this year.”

Dealing with a decrease in funding, Ontario universities increased the number of international students being accepted.

International student tuition is still uncapped, even after Canada’s housing minister said the government would consider a cap on the number of international students who can enter the country back in August 2023.

Orsini said the Ford government suggested that until universities are operating efficiently no extra funding will be given.

“Further belt tightening is not going to solve the magnitude of the problems that universities face. I’ll also add that the government’s own experts said in their report, when you look at Ontario universities, were the most efficient in the country,” said Orsini.

An expert panel was put together by the provincial government last year to investigate university funding issues. Late last year, the panel came up with several recommendations such as a 10 per cent boost in operating grants, ending the freeze on tuition and investments towards special programs like Northern universities.

“The panel also flagged that we are the lowest funded in the country. In fact, when you look at funding for universities, were only getting 57 per cent of the national average,” said Orsini.

Orsini added that their own experts said more investments are needed.

“Their own experts gave them notice, they said if you fail to act your putting Ontario’s reputation at risk, your putting regional economies at risk,” said Orsini.

One of the biggest challenges Ontario universities are facing are cuts to student services for things like help with mental health and career coaching. Orsini is worried more cuts are coming if deficits continue to grow.