The federal government attempted to right a wrong on Wednesday, announcing they would put over $26 million into Ryerson, York and U of T for “indirect costs” associated with their federal research grants. The move should allow universities to provide tuition relief, some say.
The University of Toronto received a one-time payment of $22,276,173, amounting to 20 cents on every dollar that the federal government provided in research money. Universities across Canada have been expressing frustration over federal funding initiatives because they have had to take money out of their operating budgets in order to pay for libraries, computers, insurance and maintenance, all “indirect costs” associated with research.
U of T is pushing for 40 cents per dollar on a regular basis, but sees the recent announcement as a step in the right direction.
This funding is part of an innovation strategy aimed at achieving excellence in Canada and expanding the country’s global reputation, according to Maurizio Bevilacqua, Secretary of State in Science, Research and Development and Innovations representative, who appeared at a press conference at Robarts.
Since university operating budgets are comprised of tuition fees, students have to pay for the indirect costs of federally funded research initiatives.
“I think [the recent funding announcement] is good news for students,” said Peter Munsche, assistant vice president in research and international relations at U of T. “This university and others have been raising tuition because they’ve been facing a fiscal crunch…the federal government is now providing at least a portion of indirect costs.”
The Canadian Association of University Teachers (CAUT) thinks students should experience some tuition relief, since they’ve shouldered the burden of indirect costs.
“What’s been happening is that universities have been dipping into their operating budgets to pay for that, so in a way, students have been subsidizing a lot of this research, and arguably getting very little back in return, except higher tuition fees,” said CAUT education reviewer David Robinson.
“The proof is going to be in the pudding here,” said Robinson when CAUT appeared before the federal finance committee and said they understood why universities, along with the federal government, would wish to fund indirect costs of research.
However, “before you do that, get a guarantee from universities that the money is going to go back into their operating budget so that we’re going to see some tuition release.”
Munsche says no one knows where the money from the government will end up. The decision goes to Governing Council’s Planning and Budget Committee. “It’s a kind of new world for us—we haven’t had this kind of payment to the universities before and it’s something that we’re still feeling our way through.”
Robinson doesn’t think U of T will announce a reduction in tuition. “In fact, I think we’re going to go the other way and see big tuition increases,” he said.
Ian Boyko, national chair of Canadian Federation of Students (CFS), said the Liberal government is taking a “patchwork approach to fixing the crisis they’ve created themselves.”
“When the Chrétien Liberals were elected back in 1993, they began a series of very deep cuts to the Canada health and social transfer that left university budgets incredibly thin,” said Boyko.
CAUT and CFS sympathize with the federal government to the extent that transfer payments don’t always go to education. Boyko suggested a system that ensures money from the federal government goes to post-secondary education, somewhat like the Canada Health Act. The CFS also calls for a national system of needs-based grants.
Robinson challenged the federal government’s agenda for promoting innovation in Canada.
“If we’re really interested in making Canada the most innovative economy in the whole world…it would seem to me that a central pillar of that would be making sure that every capable and qualified student who is willing and interested to go on to post-secondary education has that opportunity.”
Photograph by Simon Turnbull
