2016

PUBLIC for the

PUBLIC GOOD

The Canadian Federation of Students The Canadian Federation of Students is Canada’s largest student organization, uniting more than 650, 000 students across Canada. The Federation, and its predecessor organizations, has represented Canada’s full-time and part-time students at the college, undergraduate and graduate levels since 1927.

The Federation’s ultimate goal is to achieve a system of public post-secondary education that is accessible to all, of high quality, is nationally planned, which recognizes the legitimacy of student representation and the validity of student rights and whose role in society is recognized and appreciated.

BRITISH COLUMBIA

PRAIRIES

ONTARIO

ONTARIO (CONT’D)

ONTARIO (CONT’D)

MARITIMES

University of British Columbia Students’ Union Okanagan

Alberta College of Art and Design Students’ Association

Algoma University Students’ Union

University of Toronto Students’ Union

Cape Breton University Students’ Union

Camosun College Student Society

Brandon University Students’ Union

Association général des étudiantes et étudiants du Collège Boréal

Association des étudiantes et étudiants francophones de l’Université Laurentienne

University of Toronto Mississauga Students’ Union

Holland College Student Union

Douglas Students’ Union

Graduate Students’ Association of the University of Calgary

Brock University Graduate Students’ Association

First Nations University of Canada Students’ Association

Carleton University Students’ Association

Emily Carr Students’ Union Kwantlen Student Association College of New Caledonia Students’ Union North Island Students’ Union Northern British Columbia Graduate Students Society Northwest Community College Students’ Union Okanagan College Students’ Union College of the Rockies Students’ Union Selkirk College Students’ Union Students’ Union of Vancouver Community College Thompson Rivers University Students’ Union Vancouver Island University Students’ Union

University of Manitoba Students’ Union University of Manitoba Graduate Students’ Association University of Regina Students’ Union Association étudiante de l’Université de SaintBoniface University of Saskatchewan Students’ Union University of Saskatchewan Graduate Students’ Association University of Winnipeg Students’ Association

Carleton University Graduate Students’ Association Association étudiante de la Cité collégiale Student Association of George Brown College Glendon College Student Union University of Guelph Central Student Association University of Guelph Graduate Students’ Association Lakehead University Student Union Laurentian Association of Mature and PartTime Students Laurentian University Graduate Students’ Association Laurentian University Students’ General Association

Laurentian Students’ Union McMaster University Graduate Students’ Association Nipissing University Student Union Ontario College of Art and Design Student Union Student Federation of the University of Ottawa Graduate Students’ Association des étudiant(e)s diplômé(e)s de l’Université d’Ottawa Queen’s University Society of Graduate and Professional Students Ryerson Students’ Union Continuing Education Students’ Association of Ryerson Saint Paul University Students’ Association University of Toronto Scarborough Campus Students’ Union University of Toronto Graduate Students’ Union

Association of PartTime Undergraduate Students at the University of Toronto Trent Central Student Association Society of Graduate Students of the University of Western Ontario Wilfrid Laurier University Graduate Students’ Association University of Windsor Students’ Alliance University of Windsor Graduate Students’ Society University of Windsor Organization of Parttime University Students York Federation of Students York University Graduate Students’ Association

NEWFOUNDLAND AND LABRADOR Grenfell Campus Student Union

King’s Students’ Union

Marine Institute Students’ Union

Mount Saint Vincent University Students’ Union

Memorial University of Newfoundland Students’ Union

University of New Brunswick Graduate Students’ Association

Graduate Students’ Union of the Memorial University of Newfoundland

Student Union of NSCAD University of Prince Edward Island Student Union University of Prince Edward Island Graduate Student Association Association générale des étudiants de l’Université Sainte-Anne

College of the North Atlantic Students’ Union

Table of Contents The Context

4

The Results

10

Our Recommendations

13

Public Support for Public Education

18

Costing References

19 - 21 22

el of Postsecondary Education , by Aboriginal Identity, 2011 The Context Federal Underfunding

Canada’s public post-secondary education system has become increasingly privatized over the past three decades as costs are downloaded onto students through user (tuition) fees. Beginning in the 1980s, the federal government limited the increases in funding transfers to the provinces for the administration of post-secondary education, effectively decreasing perstudent funding. In 1995, the federal government slashed provincial transfers for social programs by $7 billion, one of the deepest funding cuts in Canadian history. Federal government cash transfers for post-secondary education, as a proportion ofUniversity the GDP, declined ge/CEGEP by 50 percent between 1992-1993 and 2013-2014. Accounting for both inflation and enrolment growth, the Federation estimates that current federal funding for post-secondary education is $2.4 billion less than 1992-93 levels.

4

By shifting away from a federal-provincial cost-sharing model that required the provinces to invest provincial funds in exchange for federal monies and moving to a block-funding model under the Canada Social Transfer, the federal First government Nationshas minimized its responsibility to ensure that federal funds for social programs are used as intended. Metis In the absence of accountability measures, provincial governments have been able Inuit to misallocate federal cash transfers intended for post-secondary education. Non-Aboriginal For example, in 2008 the Government of British Columbia cut funding to universities by $50 million, the same year that it received over $110 million in new post-secondary education funding from the federal government. As a share of operating revenues, government funding for post-secondary education has fallen from over 77 percent in 1997 to less than 55 percent in 2012. This is well below the Organization for Economic Co-operation and Development (OECD) average of 70 percent.

University Operati Funding 100% 80% 60% 40% 20% 0% 1982 1992 2002 2012 Fig. 1.1 University Operating Revenue: Government Funding vs. Tuition Fees = Tuition = Government

$1,001 $1,500

$1,501 $2,000

$2,001 $2,500

> $2,500 0 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

secondary Education ginal Identity, 2011

University

University Operating Revenue: Government

vs.all Tuition Fees in Canada have Funding In every province, with the exception While students 100% of Quebec and Newfoundland and faced dramatic fee increases over 80% the last decade, tuition fees for Labrador, this funding cutback has been 60% in the form international students have passed directly onto students Tuitionbecome First Nations 40% particularly burdensome.Government By fall 2014, of massiveMetis tuition fee increases. Over the 20% average tuition fees for international past 20 years, tuition fees have increased Inuit Non-Aboriginal per year from an average of0%$1,706 in undergraduate students were $21,932 1982 1992 2002 2012 per year, more than three times the 1991-1992 to $6,191 in 2015-2016, a real amount paid by Canadian citizens. increase of 137 percent. In the absence For some professional programs, such of any national oversight, divergent as medicine and law, fees rise to a paths have emerged for access to staggering $75,000 per year. These high post-secondary education between the provincial systems, as reflected differential fees are an unfair burden and in differing average tuition fees. For a barrier to post-secondary education for international students. example, undergraduate tuition rates range from $7,868 per year in Ontario to $2,660 per year in Newfoundland and Labrador.

Tuition fees have increased faster than all othe student costs 70 60 50

Food

40

Rent

Publi

30

Tuitio

20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fig. 1.2 Tuition fees have increased faster than all other student costs = Food = Rent = Public Transit = Tuition Fees

5

Repayment Assistance Program Usage Incr Increase in RAP Use vs Increase in Total CSLP 250000 students who are required to take out Borrowers Insurmountable Student Debt loans end up paying more for their 50 200000 education than students who can afford 40 the prevalence Rising tuition fees and to pay the full cost up-front. Students 30 of loan-based financial assistance have RAP Usage who have to take on debt to pay for their 20 to historic levels. In pushed student debt 150000 Total CSLP Borrowers education must pay both tuition fees and 2013, over 497,000 students were forced 10 Total Borr the accumulated interest on their to borrow from the Canada Student Loans 0 RAP Users 100000 student loans. Program (CSLP) in order2009-2010 to finance their 2010-2011 2011-2012 2012-2013 2013-2014 education. This figure does not account 50000 The amount owed to the CSLP is students who were forced to borrow $2,001 - for > $2,500 $2,500 increasing by nearly $1 million per from private sources. 0 day. In the spring of 2015, the federal government increased the limit on federal 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 In comparing data from the National student loan lending to $24 billion, further Graduates Surveys between 2000 Tuition = Total Borrowers on fees RAP have increased faster th increasing students’ debt burden rather ucationand 2010, average total student debt student costs than taking steps to alleviate the financial Operating Revenue: Government , 2011increased 40 percent. In theUniversity same time, =70RAP Users with $0 Payment they face after graduation. As of vs. Tuition Fees the number of students with average Funding hardship September 2014, over 200,000 Canadians 100% debts over $25,000 increased from 24 to 60 Repayment Assistance Program Fig. 2.1 were unable to make any payments on Increase i D spending, 2013 Levels of annual RESP contribution by number 40 percent and the debt owed to private Usage Increase 80% 50 their government student loans. % of R&D spending sources increased up60% to 114 percent. of eligible children 2013 Tuition First of Nations As 2012, total student loan debt was 50 40 4 40% Government Metis estimated at over $28 billion, with average 40 3.5 20% 30 Inuit debt for an undergraduate and college 30 3 Non-Aboriginal at the time of 0% graduation being graduate 20 1982 1992 2002 2012 2.5 20 $26,300 and $14,900 respectively. 2 10 10 Financing post-secondary education 1.5 0 through student loans is an inequitable 0 1 model that directly contravenes Canada’s 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122010-20 2013 2 2009-2010 0.5 commitment to the International Fig. 2.2 Levels of annual 0 Covenant on Economic, Social and RESP contribution by Did not $501 $1 - $500 0 $1,001 - $1,501 $2,001 - > $2,500 number of eligible have an Cultural Rights. Low and middle-income $1,500 $2,000 $2,500 $1,000

6

Number of RESP eligible children (millions)

CHL

GRC

POL

MEX

SVK

ZAF

NZL

TUR

EST

PRT

CAN

umber

RESP

Highest Level of Postsecondary Education Attainment, by Aboriginal Identity, 2011

children 2013

Universi

Highest Level of Postsecondary Educatio Attainment, by Aboriginal Identity, 201

the total population. The gap in postsecondary participation can be attributed to significant and complex barriers that Post-secondary education is a treaty right Indirect Government Support Through R&D Tax Incentives as a % of GDP, 2013 Aboriginal students face on the path to guaranteed by Canada to Aboriginal higher education. Research has found people. This was first asserted in the Royal that Aboriginal students are largely Proclamation of 1763 and re-affirmed debt-averse and are more reluctant to as a constitutional right in the Canadian access loan-based assistance programs Constitution Act of 1982. to finance the rising cost of tuition. They are often mature students who Rather than devoting sufficient resources are more likely to have dependents and to upholding this treaty and constitutional face higher costs such as childcare and right, successive federal governments relocation. Additionally, approximately 15 have upheld a restrictive two percent percent of the First Nations population is funding cap on the Post-Secondary unemployed, double the national average Student Support Program (PSSSP) for and a rate that increases to 24 percent in the past 20 years. As a result of this cap, the 15-24 age group. funding has been unable to keep pace with annual increases in tuition fees and However, research shows that Aboriginal the cost of living, resulting in over 18,500 people with post-secondary degrees people – roughly half of those who have overcome much of the income gap qualified – being denied funding between between Aboriginal and non-Aboriginal 2006 and 2011. people in Canada. This income gap between Aboriginal and non-Aborignal The failure of the Canadian federal people and who have earned a Bachelor’s government in its responsibility for degree was reduced from $3,382 in 1996 Aboriginal peoples’ access to education to just $648 by 2006. Sufficient support has left a startling gap in quality of for education is the most important life between Aboriginal and noninvestment that the federal government Aboriginal people. Only ten percent can make to improve economic of Aboriginal people hold a university opportunities for Aboriginal people. degree compared to 27 percent of

Access for Aboriginal Learners

China (2009)

Brazil (2010)

Estonia

25 20 15 10 5 0 Apprenticeship/Trades

College/CEGEP

University

Sweden

Finland

Germany

New Zealand

Luxembourg (2009)

Poland

Switzerland (2008)

Mexico

Italy

Slovak Republic

Russian Federation

South Africa (2009)

Turkey

Spain (2010)

Czech Republic

Norway

Denmark

Slovenia

Japan

United States

Hungary

United Kingdom

Austria

Portugal

Ireland (2010)

Australia (2010)

Netherlands

Korea

Belgium (2010)

Canada

% of GDP spend on R&D Tax Incentives

30

Fig. 3.1 Highest Level of Postsecondary Education Attainment, by Aboriginal Identity, 2011

Chile (2010)

= First Nations = Métis = Inuit = Non-Aboriginal

7

Graduate Research Graduate students face a variety of challenges in pursuing their studies, including rising tuition fees, limited funding options and an increasingly commercialized and restrictive research environment. Last year, average tuition fees for graduate students increased to $6,432. Tuition fees for graduate professional programs, such as a Master of Business Administration, can be as high as $60,000 per year. The financial burden of high tuition fees is exacerbated for graduate students by substantial debts accumulated from earlier degrees. At the time of graduation, master students owe an average of $26,600 in student loans while doctoral graduates owe an average of $41,000. On top of public debt, an increasing number of graduate students are relying heavily on private sources for loans. Between 2000 and 2010, the average amount of private debt for a doctoral graduate increased 114 percent from $18,744 to $40,100.

8

While enrolment in graduate studies increased by 56.5 percent between 2002 and 2012, there have only been modest funding increases to the Canada Graduate Scholarships, which provides merit-based funding directly to graduate students. Furthermore, recent federal budgets have directed this research funding, administered through the granting councils, to meet the shortterm priorities of the private sector. This undermines basic research and long-term innovation, evidenced by Canada slipping in ranking from 18th to 23rd in its capacity for innovation world wide. As a consequence of this corporate subsidization, Canada is lagging behind other OECD countries in private-sector investment in in-house research and development capacity. As this trend deepens, our publicly funded postsecondary institutions will become private sector research and development facilities, threatening the foundations of academic freedom and public, peerreviewed curiosity-driven research.

The Conference Board of Canada has found Canada to be second worst in terms of PhD completion rates when compared to 16 peer countries. This appears to be a result of poor research funding, high tuition fees and a lack of job prospects in both the public and private sector. In 2013, the Higher Education Quality of Ontario estimated that less than 25 percent of doctoral graduates would find a tenure-track position. Furthermore, Canada’s private sector does not provide enough of an incentive, even in science and technology, for students seeking non-academic jobs to strive for advanced degrees. In a survey of over 1,000 Canadian R&D-performing firms, the OECD found that only 18 percent had PhD holders working in research and development. Previous governments have allowed, and even incentivized, the private sector to rely on and control public research done in the post-secondary education sector. This strategy has failed both in the shortterm and in the long-term, as evident in Canada’s capacity for innovation

Indirect Government Support Through R&D Tax Incentives as a % of GDP, 2013

0.3

0.25

0.2

0.15

0.1

Estonia

Sweden

Finland

Germany

New Zealand

Luxembourg (2009)

Poland

Switzerland (2008)

Mexico

Italy

Slovak Republic

Russian Federation

South Africa (2009)

Turkey

Spain (2010)

Czech Republic

Norway

Denmark

Slovenia

United States

Japan

Hungary

Portugal

Austria

Australia (2010)

Ireland (2010)

Netherlands

Korea

Belgium (2010)

France

Canada

0

United Kingdom

0.05

Brazil Fig 4.1 Indirect Government Support Through Research and Development Tax Incentives as a Percentage China Chile (2010) (2009) (2010) of GDP, 2013

R&D Spending by performing sectors, as a % of GDP on total R&D spending, 2013 % of R&D spending 90 80 70 60 50 40 30 20

GRC

CHL

MEX

POL

ZAF

SVK

NZL

TUR

PRT

EST

CAN

ESP

NOR

ISL

ITA

CZE

AUS

NLD

RUS

LUX

EU28

FRA

GBR

DNK

DEU

OECD

FIN

AUT

SWE

BEL

CHE

HUN

USA

IRL

JPN

SVN

CHN

0

ISR

10 KOR

failing to keep pace with peer countries, academic freedom being threatened and job prospects for our highest skilled researchers and innovators disappearing. The evidence of Canadian businesses failing in their role in innovation is clear. As of 2013, Canada provided the second highest amount of indirect support to R&D through tax incentives as a share of GDP in the OECD. Despite these generous subsidies to corporate Canada, private sector spending as a share of total GDP spent on R&D ranks 27th. Private sector spending accounts for merely 51 percent of total R&D spending in Canada, well below the OECD average of 68 percent, and lower than Canadian businesses in 2003. 

% of GDP spend on R&D Tax Incentives

Fig 4.2 Research and Development Spending by performing sectors, as a Percentage of GDP on total Research and Development spending, 2013

Indirect Government Support Through R&D Tax Incentives as a % of GDP, 2013

9 % of GDP spend on R&D Tax Incentives

The Results Quality of Education Since the cuts to federal transfer payments in the 1990s and the resulting tuition fee increases, the quality of post-secondary education in Canada has declined. Class sizes have increased substantially, with the ratio of students to full-time faculty members increasing by almost 40 percent between 1990 and 2006. Today, 33 percent of university professors are on temporary or parttime contracts. A greater reliance on contract instructors affects the quality of education students receive. For example, many contract instructors are not provided offices, computers or phones on campuses, making it difficult to hold office hours and meet with students. Students are studying and conducting research in unsafe buildings. University and college budgets are strained to such an extent that deferred maintenance poses serious

10

health and safety risks at institutions across the country. The Canadian Association of University Business Officers estimates that in 2014, the total value of deferred maintenance on 51 university campuses is more than $8.4 billion, at least half of which is considered urgent. This represents a 68 percent increase since 2009. These decisions have resulted in Canada’s system of higher education failing to keep pace with our international counterparts. In 2008, Canada was considered to have one of the top ten higher education and training systems in the OECD (9th). In almost every year since then, Canada’s ranking has fallen. For 2015-16, Canada is ranked 19th in the OECD. This slide in international rankings, coupled with exceptionally high tuition fees for international students, could significantly impact international student recruitment over the long-term, which would have broad impacts on Canadian postsecondary education and Canadian society at large.

Youth Un(der)employment Over the last five years, high youth un/ underemployment has been a constant challenge in the Canadian labour market. If part-time employees seeking full-time jobs, unpaid interns and discouraged young Canadians are taken into account, the youth un/underemployment rate is 27.7 percent. Additionally, the Parliamentary Budget Officer estimates that as of 2014, roughly 40 percent of Canadians aged 25-34 with a university degree are overqualified for their current position. TD Economics has found that these high levels of youth unemployment have already led to $10.7 billion in lost wages to young Canadians since the recession and over the next 18 years this wage scarring will lead to an additional loss of $12.4 billion. As a result of high youth unemployment, young people are being forced into taking unpaid, and sometimes illegal, internships in order to gain relevant work experience. Although the federal government does not track the number of unpaid internships, it is estimated that there are upwards of 300,000 per year.

There is minimal infrastructure available to enforce the legal restrictions on unpaid internships and employers who break the law almost never face consequences. This reliance on unpaid work further reduces the availability of entry-level jobs and provides employers with a disincentive for investing in on-the-job training. Record high levels of student-debt have also been shown to affect career choices. Recent graduates who are unable to find gainful employment in their field often have to resort to underemployment to ensure debt payments are made on their student loans. For example, the largely unregulated fee increases on medical programs in Canada have resulted in many doctors-in-training abandoning the idea of entering family practice, instead opting for more lucrative specializations to pay back their debts. In 2012, 30 percent of medical students expected to graduate with over $100,000 in student debt and 13 percent expected to incur over $160,000 in student debt.

financial assistance from fully participating in the economy for upwards of ten years post-graduation. Beyond the individual hardship, there are also very real consequences for Canada’s economy as un/underemployment diminishes the potential level of the country’s well being. When people are in prolonged periods of underemployment, their skills and knowledge can erode or become outdated due to an evolving workplace. Networking also becomes more difficult the longer a person is outside of their field, making entry even more difficult. This potential loss of human potential can impact the economic and social growth of the country. The growing trend of underemployment has also been shown to hinder the ability of younger and lower-skilled individuals to obtain jobs, experience and financial security as they are forced to compete with overqualified workers for available positions.

These high upfront costs to obtaining a post-secondary education are creating a barrier that can prevent those in need of

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Economic Competitiveness There is a direct correlation to be drawn between Canada’s global economic competiveness and its investment in post-secondary education. According to the World Economic Forum’s annual report on economic competiveness, Canada’s higher education system is lagging behind other countries in equipping citizens with the necessary skills to advance the domestic economy and remain globally competitive. As a result of decreased public funding for post-secondary education, between 2010 and 2013 Canada has dropped from 8th to 19th in the World Economic Forum’s ranking. By shifting the motivation for university research towards commercial interests, the private sector can increasingly rely on these public institutions for research and development rather than investing in its own infrastructure. As a result, in the last five years, Canada has fallen from 22nd to 26th in the world for private sector spending on research according to the 2015 World Economic Forum annual competitiveness report. Replacing private sector research and development infrastructure with a publicly backed university system has also resulted in Canada slipping from 18th to 23rd in its capacity for innovation.

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Year

Rank

2008-2009

9

2009-2010

9

2010-2011

8

2011-2012

12

2012-2013

15

2013-2014

16

2014-2015

18

2015-2016

19

5.1 International Ranking World Economic Forum

Our Recommendations After years of neglect and chronic underfunding, Canada’s public postsecondary education system is in a state of crisis. Resolving this crisis requires federal leadership and an investment in students, as well as in colleges and universities. It is time for the Canadian government to take action on the internationally recognized right of all people to education. This upcoming federal budget will determine the direction of Canada’s public postsecondary education system for the foreseeable future, and has a direct impact on the success and prosperity of our younger generations. Below, the Federation outlines three strategic recommendations for the federal government to build and maintain a strong public post-secondary system that trains a workforce capable of competing in today’s economy.

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Recommendation #1 Alleviate education-related debt that burdens Canadians and encourage an economically competitive workforce by: 1. Protecting the investments made in Canada’s post-secondary education system by implementing a federal Post-Secondary Education Act, in cooperation with the provinces and territories, that is accompanied by a dedicated cash transfer. CAN

NL

PEI

Canada remains the only major industrialized country in the world without national oversight over post-secondary education. The adoption of this Act would require provinces and territories to uphold principles similar to those found in the Canada Health Act in order to receive adequate and predictable post-secondary education transfer payments: public administration, comprehensiveness, universality, portability and accessibility. In return for upholding these principles, NS



NB

QC

ON

MB

provincial governments would receive adequate and predictable funding from the federal government. A Post-Secondary Education Act, with an established 50/50 costsharing model between the federal government and the provinces, could outright eliminate all tuition and ancillary fees for undergraduate post-secondary education in Canada for the 2016-2017 academic year with a dedicated federal transfer of $3.3 billion. Inflation and enrolment escalators project that SK

AB

BC

Total

Tuition & Compulsory Fees (avg per cdn student) 2016-17

$2,919

$6,828

$7,544

$6,971

$3,193

$8,865

$4,669

$7,554

$6,935

$6,083

2017-18

$2,977

$6,965

$7,695

$7,110

$3,257

$9,04

$4,763

$7,705

$7,074

$6,205

2018-19

$3,037

$7,104

$7,849

$7,252

$3,322

$9,223

$4,858

$7,859

$7,215

$6,329

Decrease fees by:

100%

Federal Cost ($mil)

NL

NB

QC

ON

MB

PEI

NS

SK

AB

BC

Total

2016-17

48

12

116

59

610

1,580

131

104

361

266

$3,286

2017-18

47

12

116

58

628

1,612

134

107

372

271

$3,357

2018-19

47

12

116

58

647

1,644

136

110

383

277

$3,429

Assumes the feds will pay 1/2 of the maximum tuition (usually in Ontario) on a per student basis to all provinces. Some provinces will see a large winfall (Quebec & NFLD), others (Ontario) will only get half of tuition Fig. 6.1 Cost of Eliminating Tuition Fees

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this would increase to $3.4 billion by the 2018-2019 academic year.



Fully funded, accessible education can be achieved with only $1.8 billion in additional spending. By eliminating the Registered Education Savings Plans (RESPs) ($1.05 billion), and redirecting $450 million of the over $1.1 billion projected to be spent on tuition and education related tax credits, Canada can join a proud international cohort of countries that invest in their future while beginning to fulfill our commitment to free education as a signatory to the International Covenant on Economic, Social and Cultural Rights.

additional funding to help fund the $3.3 billion federal transfer to eliminate tuition fees. This recommendation would not require the elimination of carried-forward tax credits (valued at an estimated $740 million in 2014).

Furthermore, a lower overall debt burden decreases expenditures on the in-study interest subsidy as well as lowers the money spent on debt relief for borrowers. This would also help to reduce the number and value of loans that are issued, enter non-recoverable status and eventually require being written off. In the past three years, over $800 million in unrecoverable student loans has been written off by the federal government.

2. Immediately doubling the number of available up-front, needs based federal grants by shifting the majority of money currently being spent on education and tuition related tax credits to the Canada Student Grants Program (CSGP).

3. Removing the funding cap on increases to the Post-Secondary Student Support Program and ensuring that every eligible First Nations, Inuit and Métis learner is provided funding.





This increase would provide the $725 million necessary to double CSGP funding for in-school costs such as rent or transportation while leaving

to post-secondary education due to financial barriers. As Aboriginal Affairs and Northern Development Canada (AANDC) currently provides roughly $331 million, at least $475 million in additional funding would be required after accounting for inflation.

Canada’s economic future depends on its ability to meet the challenge of an aging workforce and relatively low domestic birth rates. Canada’s Aboriginal population is growing at six times the rate of the nonAboriginal population. It is estimated that over 300,000 Aboriginal youth could enter the labour force in the next 15 years alone. While the facts are clear, so is the recognition that education is a treaty right. The Truth and Reconciliation Commission recommended the federal government take steps to eliminate the backlog of students attempting to access postsecondary education. This increase is necessary to fully fund all Aboriginal learners.

According to the Assembly of First Nations, in 2008, a total of $724 million was required to ensure that no Aboriginal student was denied access

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Recommendation #2 Re-establish Canada’s identity as a worldleader in research by: 1. Increasing the Canada Graduate Scholarships by $25 million per year, which will fund an additional 1,250 students. These increases need to be distributed proportionally among the tri-council agencies, the Canadian Institutes of Health Research (CIHR), the Natural Sciences and Engineering Research Council of Canada (NSERC) and the Social Sciences and Humanities Research Council (SSHRC), in accordance with enrolment figures. Targeted funding earmarks within the granting councils must be removed to ensure that research funding is awarded based on academic merit rather than on the short-term priorities of the private sector.

To increase this funding, 0.8 percent of the tax incentives allocated through the Scientific Research and Experimental Development (SR&ED) Investment tax credits will be redirected to the Canada Graduate Scholarships.

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2. Expanding the eligibility of the Canada Student Grants Program to include graduate students. 3. Investing an additional $150 million in base funding for basic research through SSHRC, NSERC and CIHR every year for the next three years. This funding should not be earmarked for commercial interests and should be allocated based on a peer-review process.

This additional funding should be reallocated from the Scientific Research and Experimental Development (SR&ED) Investment tax credits, as recommended by the Jenkins Report and the Canadian Council of the Academies. This would be equivalent to approximately 4.8 percent of total funding spent on the SR&ED Investment tax credits.

Improved financial support for graduate students will help to offset the impacts of rising tuition fees and higher levels of student debt. By expanding the Canada Graduate Scholarships and access to need-based grants, students can focus on completing their research. In turn, Canadians will be more qualified and trained to fuel research and innovation in both the public and private sectors.

Recommendation #3 Address the long-term implications of high levels of un/underemployment among recent graduates by: 1. Creating a new Workplace Employee Survey through Statistics Canada to improve Canada’s labour market information system and help stakeholders make informed decisions

A one-time investment of $15 million

2. Establishing an expert panel to make recommendations for the design and implementation of a mandatory National Workplace Training Levy. Since 1993, employer investment in training has decreased by 40 percent, and we continue to fall behind our international competitors. A national training fund will increase employer investment in training, and/or increase public funding available to workers for education and skills training.

3. Re-establishing federal funding and support for paid federal student internships, and paid summer employment opportunities and doubling funding to the Youth Employment Strategy (YES) from $330 million to $660 million.

While Canadian youth make up less than 17 percent of the workforce, young workers held over 50 percent of jobs lost during the 2008 recession. To date, work for young Canadians has failed to recover, become more precarious and there is an increasing reliance on unpaid internships. Despite these challenges, the federal government has made significant cuts to the Youth Employment Strategy (YES), Canada Summer Jobs Programs and federally funded internship programs. Since the recession, summer student hiring has decreased by 36 percent, non-summer hiring has decreased 23 percent and $64 million has been cut from the YES.

In today’s innovation driven and rapidly changing economy, a truly affordable and accessible post-secondary education system must be a top priority. By implementing these recommendations, the federal government will increase the ability of young Canadians to obtain financial security and reach life milestones. Allowing more people of all ages to obtain additional training or re-training in emerging fields will allow Canadians to drive our economy forward. Public education is a public good and must be funded as such.

4. Immediately end the practice of hiring unpaid interns within the federal government to set an example for youth employers.

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Public Support for Public Education Students are not alone in supporting significant investments in affordable and accessible post-secondary education in Canada. A majority of Canadians agree that: • a university or college education is more important than ever to succeed in today’s society; • the federal government should attach conditions to dedicated transfer payments to the provinces; • the government should invest more in post-secondary education, even if that means they have to pay slightly more in taxes; and • education is a common good and should be paid for by the government.

70% of Canadians think the single most important thing the federal government can do about university and college education in Canada is lower tuition fees and student debt 85% of Canadians oppose continued increases in tuition fees. 59% of Canadians support a reduction. This is up from 77% and 40% just one year ago. 64% of Canadians believe the federal government should set conditions on transfer payments to ensure provinces use the money as intended. This is up from 61% last year. 65% of Canadians believe governments are not doing enough to ensure everyone who is qualified has a chance to get a university of college education. This is up from 62% last year. 82% of Canadians believe that today’s young people have to take on too much debt to get a university or college education. This is up from 72% last year.

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Canadian Federation of Students - 2016 Recommendations Costing Cost of Proposals (Amounts in Millions):

Recommendation 1 :

Cost:

Create a Publicly Funded, Affordable Post-Secondary Education System in Canada by: 1. Creation of a New Post-Secondary Education Act

$0

•

Establish a 50/50 cost-sharing model with the provinces and territories to elminate undergraduate tuition fees in Canada

$3,300

•

Eliminate costly and ineffective Registered Education Savings Plans (RESP)

-$1,050

•

Redirection of remaining funds from elimination of education and tuition related tax credits

-$450 $1800

2. Alleviate Education-Related Debt: •

Increase the overall funding for the Canada Student Grants Program to reduce student debt accumulation

•

Elminate costly and ineffective education and tuitiont related tax credits

$725 -$1,175 $0

3. Immediately Act to Ensure All Aboriginal Learners Have Access to Post-Secondary Education •

Remove the 2 percent per year funding cap for the Post-Secondary Student Support Program and address funding backlog

$475 $475

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Canadian Federation of Students - 2016 Recommendations Costing Cost of Proposals (Amounts in Millions):

Recommendation 2 :

Cost:

Re-Establish Canada’s Identity as a World-Leader in Research by: 1.  Increase Funding for Canada Graduate Scholarships (CSGs) to be Proportionately Distributed Among the Tri-Council Agencies

$25

•

Eliminate targetted funding earmarks within the granting councils and ensure funding is awarded based on academic merit and peer review

$0

•

Redirect 0.8 percent of funding allocated through the Scientific Research and Experimental Development tax credits to CSGs

-$25 $0

2. Expand the Eligibility of the CSGP to Include Graduate Students

$0 $0

3. Increase Overall Tri-Council Funding •

Redirect 4.8 percent of the funding allocated through the Scientific Research and Experimental Development tax credits

$150 -$150 $0

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Canadian Federation of Students - 2016 Recommendations Costing Cost of Proposals (Amounts in Millions):

Recommendation 3:

Cost:

Address the Long-Term Implications of High Levels of Un/Underemployment Among Recent Graduates by: 1.  The creation of a new Workplace Employee Survey through Statistics Canada to improve labour market information

$15 $15

2.  Establish an expert panel to make recommendations for the design and implementation of a mandatory National Workplace Training Levy

$0 $0

3.  Re-establish federal funding and support for paid federal student internship and paid summer employment opportunities •

Double funding to the Youth Employment Strategy

$330 $330

Total Net Cost:

$2,620

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References 2011 National Household Survey: Aboriginal Peoples in Canada: First Nations People, Métis and Inuit. The Daily. Statistics Canada. 2013 2014-2015 CAUT Almanac of Post-Secondary Education in Canada. Canadian Association of University Teachers (2014). Aboriginal Labour Market Performance in Canada: 2007-2011. Centre for the Study of Living Standards (2012). Actuarial Report on the Canada Student Loans Program. Office of the Chief Actuary. Office of the Superintendent of Financial Institutions. Government of Canada. 2012. Alternative Federal Budget 2016. Canadian Centre for Policy Alternatives (2016). Assessing the Long Term Cost of Youth Unemployment. TD Economics (2013). Buske, Lynda. Off to work I owe! Canadian Collaborative Centre for Physician Resources (2013). Canada Student Loans Program: Annual Report 2013-2014. Employment and Social Development Canada. 2015.

Census of Population. Statistics Canada (2001). Census of Population. Statistics Canada (2006). Census of Population. Statistics Canada (2011). Deferred Maintenance at Canadian Universities: An Update. Canadian Association of University Business Officers (2014). Education. Aboriginal Statistics at a Glance: 2nd Edition. Statistics Canada (2015). Education at a Glance. Organisation for Economic Co-Operation and Development (2015). Fact Sheet – 2011 National Household Survey Aboriginal Demographics, Educational Attainment and Labour Market Outcomes. Indigenous and Northern Affairs Canada. Government of Canada. 2013. Fekete, Jason. Federal government writes off additional $295M in student loans. Ottawa Citizen. February 19, 2015.

CANSIM table 477-0019. Statistics Canada (2015).

Field, Cynthia C., Jones, Glen A., Stephenson, Grace, Khoyetsyan, Artur. The “Other University Teachers: Non-Full-Time Instructors at Ontario Universities. Higher Education Quality Council of Ontario (2014).

CANSIM table 477-0023. Statistics Canada (2015).

Goar, Carol. “Why Canada’s job market hasn’t recovered.” Toronto Star. March 13, 2014

CANSIM table 326-0020. Statistics Canada (2015).

CANSIM table 477-0068. Statistics Canada (2015).

Hatt, Kayle. Help Not Wanted. Canadian Centre for Policy Alternatives (2014).

CANSIM table 477-0077. Statistics Canada (2015).

Innovation Canada: A Call to Action. Industry Canada. Government of Canada. 2011.

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Kwong, Jeff C. et al. Early Effects of Rising Tuition Fees on the Medical Student Population. Canadian Medical Association Journal Vol. 28, No. 1 (2002). Labour Market Assessment 2015. Office of the Parliamentary Budget Officer. Government of Canada. 2015. Maldonado, Vicky, Wiggers, Richard, Arnold, Christine. So You Want to Earn a PhD? The Attraction, Realities, and Outcomes of Pursuing a Doctorate. Higher Education Quality Council of Ontario (2013). MLA upset by post-secondary cuts. Prince Rupert Northern View. July 29, 2008. No Higher Priority: Aboriginal Post-Secondary Education in Canada. Report of the Standing Committee on Aboriginal Affairs and Northern Development, 39th Parliament, 1st session (2007). OECD Science, Technology and Industry Scoreboard 2015. Organisation for Economic Co-Operation and Development (2015). PhD Graduates. Conference Board of Canada (2014). Progress on Women’s Rights: Missing in Action. Canadian Centre for Policy Alternatives (2014). Supplementary Estimates (C), 2014-2015. Treasury Board of Canada Secretariat. Government of Canada. 2015. Supporting First Nations Learners Transitioning to Post-Secondary. Assembly of First Nations (2012). Tax Expenditures and Evaluations. Department of Finance Canada. Government of Canada. 2015

The Global Competitiveness Report 20082009. World Economic Forum (2008). The Global Competitiveness Report 20092010. World Economic Forum (2009). The Global Competitiveness Report 20102011. World Economic Forum (2010). The Global Competitiveness Report 20112012. World Economic Forum (2011) The Global Competitiveness Report 20122013. World Economic Forum (2012). The Global Competitiveness Report 20132014. World Economic Form (2013). The Global Competitiveness Report 20142015. World Economic Forum (2014). The Global Competitiveness Report 20152016. World Economic Forum (2015). Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree Granting Institutions. Statistics Canada (2012). Wilson, Daniel and MacDonald, David. The Income Gap Between Aboriginal Peoples and the Rest of Canada. Canadian Centre for Policy Alternatives (2010). Yalnizyan, Armine. Canada’s Commitment to Equality: A Gender Analysis of the Last Ten Federal Budgets (19952004). Canadian Feminist Alliance for International Action (2005). Youth Employment in Canada: Challenges and Potential Solutions. Parliament of Canada (2014).