The Government heard us, at least a little bit.....and for now. Well done! The budget followed our lead in speaking of post-secondary education as a priority for supporting diversification and bringing value to
Alberta.
Nevertheless, we have work, quality research and engagement ahead of us. It is apparent that our provincial leaders believe that public goods should represent a smaller portion of our society as we go forward. This has significant implications for us in the post-secondary sector.
The budget also speaks to a system that should become "more self-sufficient and less reliant on government funding", that will find "efficiencies and enhance institutional revenue generation, through tuition and other resources".
Furthermore Campus Alberta is to be renewed through "improvements in governance, program specialization, reduced program duplication and stronger alignment to the labour market". There will be initiatives to differentiate and specialize through strategic consolidation.
This all suggests significant change and we need to be engaged to imagine alternatives.
Budget allocations to our institutions are set to decline 1.4% for 2015/16 and 2.7% the following year.
These cuts will affect our operations by constraining our opportunities in the immediate future.
Additional funding will be available to support institutional transformation to "excellence, financial sustainability and accessibility.
All post-secondary revenues are now captured under a comprehensive provincial budget. This means that tuition, instructional fees, parking revenues and other revenue sources will come under the detailed scrutiny of the government. Yet operating revenue provided by the government is only $2.2 billion out of total post-secondary operations of $5.2 billion.
To further decrease this commitment to post-secondary education as a public good the government also plans a review of tuition fees in their belief that students should bear a greater proportion of their educational costs. The aim is to reduce the "system's reliance on government funding". This will raise the question of how much influence the government should have in our post-secondary institution decision-making as it decreases is proportion of funding.
Additionally we should be concerned that the government will focus on "high demand, high value programs ...and shed low-value programs that do not represent a good return on investment" (ROI). Is this the most important criteria? We will have questions of what will determine value, whether or not a long-term perspective will be incorporated and whether or not all factors and externalities will be considered in a ROI analysis.
Much of the analysis in the budget documents is somewhat superficial and we hope to address the reliability of the data as we go forward. For example the statement "salaries at Alberta universities were
8% above the average of the ten provinces". Most unpleasant! When private sector salaries are 26% above the Canadian average these salaries would seem quite reasonable.
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Post secondary salaries are at $3.2 billion out of a total Innovation and Advanced Education budget of
$5.8 billion which provokes the question of "where is the other money going". Will the sector’s large administrative burden be addressed?
I am not convinced that the Government should take a less significant role in post-secondary education.
Post secondary education has significant benefits for society and all members of society beyond immediate labour market needs. This suggests a significant role for government! Efficiencies can be achieved but they should be focused on the administrative side of the house and not the instructional and learning space - our classrooms.
There are doubts about the reliability of the data that the government uses to justify its decisions. Why should we work towards averages, especially those based on what happens in Ontario? Is Ontario a model to emulate? Why not Germany where tuition is provided free? Perhaps we should be world leaders and develop our own standards and not strive to move towards the lowest common denominator. Alberta should set the standard! We have the capacity to be the best.
ACIFA is prepared to contribute to solutions and efficiencies if they are accompanied by fairness and encouragement. We need a strong societal commitment to post-secondary education. I am not sure that I see it in the government’s way forward. Please convince me!
Doug Short
President - ACIFA
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