Fate of tuition increase cap unclear as universities consider new funding agreements

As universities in Nova Scotia contemplate new bilateral funding agreements from the provincial government, there is uncertainty surrounding the previous two per cent cap on tuition increases. Tracey Barbrick, the deputy minister of advanced education, declined to confirm whether this cap would remain in place, stating that more information would be available in the coming weeks.

Last week, all 10 universities received their bilateral agreements and have until the end of next week to sign them. Barbrick acknowledged the various challenges universities are facing, such as declining international student enrollment, rising maintenance costs, and the impact of inflation on their operations. She emphasized the need for universities to carefully assess their budgets, revenue sources, and endowments to ensure their long-term viability.

Concerns have been raised about the outdated funding model, particularly regarding tuition increases. In the previous school year, the government capped undergraduate tuition hikes at two per cent but required increases for international students. Barbrick noted that universities did not fill the province’s allocation of 20,000 international student spots last year, and it remains unclear how many spots have been filled this year.

NDP education critic Paul Wozney expressed concerns about the potential for larger tuition increases in the upcoming school year, urging the government to provide universities with adequate funding to prevent significant hikes. He critiqued the current funding formula, which he described as arbitrary and lacking transparency.

Interim Liberal Leader Derek Mombourquette echoed these concerns, emphasizing the importance of affordable tuition for students across the province. He emphasized the need for increased government funding to prevent tuition rates from becoming unmanageable.

The Progressive Conservative government recently passed legislation granting it more oversight over universities’ operations and finances. This legislation enables the government to intervene if an institution’s financial viability is in question. Universities will now be monitored based on six financial indicators, including net income loss ratio, primary reserve, and in-year surplus/deficit.

Cheryl To, executive director of programs and accountability for the Advanced Education Department, informed MLAs that universities will report these indicators quarterly to establish a monitoring baseline. Barbrick assured reporters that there are currently no immediate concerns about any of the universities’ financial stability.

Overall, the Nova Scotia government and universities are navigating a complex funding landscape, with stakeholders calling for more transparency, clarity, and support to ensure the long-term sustainability of higher education in the province.