Board of Governors Environmental Scan February 2004

1
Board of GovernorsEnvironmental ScanFebruary
2004
2
National picture
National picture

• Key dates
• Throne Speech Feb. 2/ PMs comments Feb. 3
• Budget late Feb. - early March
• Probable Election Call Spring
• Possible Cabinet and DM shuffle

3
Early Martin themes
Early Martin themes

• Strengthening social foundations specifically
  health and lifelong learning
• Building a 21st Century economy to foster growth
  high quality jobs
• Ensuring Canadas independent role in the world
  as one of pride and influence
• Dr. Arthur Carty appointed chief science advisor

4
Throne Speech
Throne Speech

• Student Aid changes
• new grant for low-income students in first year
• increased loan limits in CSLP
• raise family income thresholds
• improve loans for part-time students
• broaden list of eligible costs
• new incentives for education-savings for
  lower-income families
• co-ordinate with provincial loan plans

5
AUCC Priorities
AUCC priorities

• Consolidating and maintaining support for
  existing initiatives, especially concerning
  university research
• Additional support for direct indirect costs of
  research
• Support for operating costs of large
  infrastructure projects
• Increased support for access, capacity, and
  quality through a new Federal-Provincial transfer
• Study abroad programs

6
AUCC- EKOS Poll
AUCC-EKOS Poll

• 1550 Canadians surveyed
• 75 - degree has positive impact on life
  personal growth
• 82 - degree greatly improves lifetime earnings
  career
• 66 - conclude insufficient university capacity
• 80 - support additional government funding to
  increase capacity
• 85 - agree knowledge of other culture and world
  important qualities for our labour market
• 74 - agree students need international
  educational experience

7
Ontario - current situation
Ontario current situation

• No decision on scope of tuition freeze and
  compensation package
• MCTU hopes to have information by early March
• Budget will be later this year at least April
• Fiscal year commences May 1
• Pre-budget consultations starting now with Town
  Hall meetings and focus groups
• Universities Research an orphan in trade-off
• COU Task Force headed by Peter George to lead
  discussions

8
Budget details
No provision for inflation
9
(No Transcript)
10
Ontario Performs Well Internationally
11
Productivity Still Drives Ontarios Prosperity Gap
12
Ontarios Investment in Education Lags at All
Levels
13
Ontarians Are Less Likely to Have University
Degree
14
Government Spending Shifted Toward Consumption
15
Immigration Improves Canadas Educational
Achievement
16
Ontarians Place a Lower Value on University
Education
17
Great Britains tuition issue
Great Britains university tuition and student
aid

• In 2006 English universities will have to decide
  what to charge (max. 3,000 as compared to the
  current 1,000)
• Fees will be allowed to vary by individual course
• Indications are that all universities will opt to
  charge the maximum

18
Impact
Impact

• Lower-income students will benefit thanks to
  recent concessions
• 2,700 from government
• 300 from the university
• Government providing additional aid to poorest
  students lessens burden on universities
• In addition, universities may set aside some fee
  income for bursaries and scholarships estimated
  15 will go to bursaries

19
Impact
Impact

• Until 2006 they are expected to take out loans to
  pay fees up front
• After 2006, fees are not payable until after
  graduating and earning 15,000/ year
• Until they reach this income level, fees are
  treated as a low-interest loan
• In addition, maximum loan amount has been
  increased to help students better meet living
  expenses

20
UW INCOME FOR YEAR ENDED APRIL 30, 2003 427
MILLION
Research grants and contracts 18
Sales, service and other income 20
Donations 3 Investment income 2
Government operating grants 30
Academic fees 27