COUNCIL OF ONTARIO UNIVERSITIES
COU statement on the One-Year Anniversary of the Blue-Ribbon Panel Report

"As we mark the one-year anniversary of the release of the Blue-Ribbon Panel's report, we wish to acknowledge the Ontario government's foresight in establishing an expert panel to help lay the foundation for the financial sustainability of the postsecondary sector. We also acknowledge the government's initial investment of nearly $1.3 billion over four years across 23 universities and 24 colleges, as a crucial first step toward stabilizing the sector.

However, this increase in time-limited funding fails to keep pace with inflation and represents less than one-third of what the Panel recommended in operating revenue increases. And with the new funding ending in 2026-27, it creates a financial cliff that will further threaten the financial sustainability of universities. Even after factoring in the government's initial funding increase for the first year, 10 Ontario's universities are reporting more than $300 million in deficits in 2023-24. After 15 years of no per student funding increases, the lowest per-student funding in Canada, and a 10% tuition cut and freeze since 2019, the Panel's call for immediate government investment needs attention now.

These funding pressures are further exacerbated by federal changes to international study permits which are estimated to reduce revenue by nearly $1-billion in the first two years alone.

Despite years of doing more with less, universities are at a tipping point. As the government's own experts concluded, Ontario universities are among the most efficient in the country. With a long history of finding cost savings, universities remain committed to finding even more innovative ways to drive greater efficiencies, as outlined in the sector's efficiency update. However, the funding gap is just too large to close with efficiency savings alone.

These financial impacts come at a time when Ontario's students are voting with their feet. Ontario universities are seeing a growing number of high school students applying for a university education. In fact, from 2020 to 2024, the number of these applicants has increased by 12% - that's 9,647 more domestic students. It is also projected that up to 18% more Ontario students will want to enroll in an Ontario university by 2030.

However, because of the current provincial funding cap on domestic students which has been frozen since 2016, up to 100,000 Ontario high school students are at risk of not getting into the university or program of their choice, despite their qualifications. 

Ontario's universities play a critical role in supporting the prosperity of the province. They are training the engineers, planners and innovators needed to build critical infrastructure, roads, highways and public transportation. They are graduating the doctors, nurses and medical researchers who will help address critical heath care shortages and find life-saving treatments.

The sector is at a critical juncture, and without additional support, Ontario risks not having the vital talent and research needed to foster economic growth and prosperity.

As we continue to work with the government on new five-year funding agreements for 2025-30, we are looking to the province to take additional steps to close the funding gap by: i) increasing per student operating grants and ii) lifting the funding cap on domestic students to help meet the growing demand by Ontario high school students to attend an Ontario university.

Together, we can meet student needs and generate the talent and innovation Ontario needs."

- Steve Orsini, President and CEO, Council of Ontario Universities