'Serious blow': N.S. universities push back after province's funding announcement

Universities in Nova Scotia are crying foul after the province announced new caps on tuition and funding levels that are below last year's rate of inflation, and which come with strings attached.

The Council of Nova Scotia UniversityPresidentsdeclined an interview request, but said in a media release the province's announcement is the second "serious blow" to the sector in two weeks.

In the release, the council said the one-year plan creates unnecessary financial hardship for many universities.

"The Minister decided on an approach that undermines any sense of partnership, collaboration or vision for the future of one of the province's most strategically important sectors," said David Dingwall, the chair of the council and president ofCape Breton University. "There is much in today's announcement that requires greater clarity."

Smallto medium-sized universities will see a two per cent operating grantincrease in 2024/25, but Dalhousie University's grantis expected to remainthe same as this year until it presents a plan on how it will contribute to provincial priorities. Inflation in Nova Scotia last year was four per cent.

Costs rising

Kim Brooks, the president of Dalhousie University, said the institution's costs have been rising faster than the provincial grant.

"We were already planning for a tighter budget year based on our economic climate and enrolment scenario," Brooks said in a statement. "Now, we know that some of our imminent budget decisions have become a little more difficult."

Brooks said the university is prepared to engage with the province about how they can align priorities.

"We know the province is experiencing unprecedented growth, which has created a set of well-known pressures and opportunities," she added.

Tuition cap

The Department of Advanced Education said it will cap tuition increases for Nova Scotia students at two per cent, down from three per cent.

Most universities will also be expected to increase international student tuition rates by at least nine per cent with the exception of Dalhousie University and University of King's College, which raised their rates last year.

Minister of Advanced Education Brian Wong said the province is moving forward with negotiations with each of the 10 universities in Nova Scotia.

"We are very confident our university sector is going to come to the table with us," said Wong at a news conference on Friday.

Strings attached

If the universities want to receive the entirety of funding, they will have to fill more than 97 per cent of health-care seats. A failure to meet that benchmark would result in a 10 per cent loss of funding for Dalhousie, and three per cent for others.

The province said universities will have to work toward campus housing for at least 15 per cent of their full-time students. Currently Dalhousie, Cape Breton University and NSCAD fall short of that mark.

If progress is not made,the province could impose studentenrolment caps.

Some universities could have 10 per cent of the funding withheld until they can show plans to add additional student housing.Dalhousie will have to provide plans to house an additional 200 students and CBU 300.

Wong said the units for CBU students as part of a development atthe old Tartan Downs racetrack could go towardthat.

The government is also requesting universities submit plans in the summer about how they will contribute to the provincial prioritiesfrom 2025 to 2028.

Wong said the plans are expected to include how they will tailor programs to meet labour market needs, improve education efficiency and conduct research in areas focused on provincial priorities.

Second blow

The federal governmentrecently announced it willcap the number of international student permits over the next two years. Ottawa says the measure is tostabilize the number of international students, who often arrive without "the proper supports they need to succeed."

Nova Scotia is also asking universitiesto developa long-term international student sustainability plan. The province is asking universities tooutlinehow students will be recruited, housed, supported and connected to the labour market.

"By increasing international student tuitionby a minimumof nine per centsimply aligns tuition for international studentswith what the real costs of tuition are," said Wong.

The provincial government says it provided $461.1 million to the universities in 2023-24 and the additional operating funding for the one-year agreementsis estimated to be $3.6 million.

Student reaction to N.S. university funding announcement

8 months ago

Duration 6:51

The province announced new caps on tuition and funding levels that are below last year's rate of inflation and several strings attached. Aideen Reynolds with the Canadian Federation of Students - Nova Scotia says her biggest concern is mandatory tuition increases for international students.