SUPPORTING UNIVERSITIES FOR A STRONGER ECONOMY IN BC (2024)
Issue
Universities are large economic engines located throughout British Columbia. Some of the greatest impacts on the economy include direct and indirect spending, employment, research initiatives, and a knowledgeable workforce. For example, Thompson Rivers University in Kamloops is the fourth largest employer in the city. It contributes an estimated $355 million to the regional economy, adding intellectual and knowledge-based factors to the community.
Background
The present allocation formula for block grant funding of BC’s post-secondary institutions is approximately 15 years old, and the allocation structure has been generally static for 12 years. Despite a drastic increase in student enrollment across the province and many other changes at universities throughout the years, there has been little to no change in funding allocation.
Increased student enrollment is only part of the issue cited with the present funding formula. The present formula is based on targeted enrollment and does not reallocate total funds once actual enrollment figures are realized. Therefore, when a university targets below actual student enrollment, the university does not see an increase in funding. As such, the contrary is also true; if a university targets above actual realized student enrollment, the university retains the initial funding amount.
Over a 15-year time span, a variety of changes have occurred within British Columbian universities, compromising outdated funding formulas. Highlighting a few for the purposes of this document:
- Mandates have changed, recognized through changes in the University Act. BC’s funding allocations do not take into account the diverse mandates of its many universities;
- The need for individual student support services has become much more intensive, especially for those universities designated as open access, which are directed to accept students without a cap on acceptance numbers;
- Pedagogy has changed over the past 15 years to where blended classroom learning and experiential learning are the accepted best practice; and
- Enterprise management has become increasingly intensive with IT demands, safety concerns, environmental issues, government-imposed union bargaining mandates, intellectual property laws, and a constant increase in Provincial Government reporting requirements.
The province of BC launched a public post-secondary funding review in 2022 and engaged with many stakeholders, including the First Nations Leadership Council, Public post-secondary institutions, Sector Student Associations, Faculty Associations and Industry and Employer organizations. “The engagement, led by Don Wright, will provide a final report of key findings to government for consideration by summer 2023,”[1] this report has not been released to stakeholders.
In February 2024, the BC Federation of Students penned a letter to the Provincial Government “to recognize the critical need to act urgently and intentionally address the root cause of what’s led to the exploitation of international students and the precarity of the post-secondary system’s current funding model.”[2] One of their five recommendations includes, “3. Complete the Post-Secondary Funding Formula Review and determine gaps in government funding, in particular for regional colleges and universities, [which asks the government to] finalize and release the results of the first phase of the Post-Secondary Funding Formula Review. In 2022, stakeholders, including nearly all of BC’s public institutions, students’ unions, faculty and staff unions and the Federation, participated in the sector-wide funding review to assist the government in developing “an updated, modern funding model for BC’s public post-secondary system.” This review is vital to developing a sustainable pathway forward.” [3]
THE CHAMBER RECOMMENDS
That the Provincial Government:
- Finalise and release the results of the first phase of the Post-Secondary Funding Formula Review within 90 days.