The Honourable Charles Sousa, the Ontario Minister of Finance, delivered the 2016 Ontario Budget on February 25, 2016. Here are selected highlights of the budget that impact postsecondary education. The full budget is available at: fin.gov.on.ca/en/budget/ontariobudgets/2016/index.html
Overall, the government is projecting a deficit of $5.7 billion in 2015-16, $4.3 billion in 2016-17 and a balanced budget in 2017-18.
Budget Highlights for Colleges
Operating funding
Total operating funding for colleges is projected to be approximately:
- $1476.2 billion in 2016-17 (1.2% increase over 2015-16)
- $1479.8 billion in 2017-18 (0.2% increase over 2016-17)
- $1479.8 billion in 2018-19 (Zero increase over 2017-18)
Funding for enrolment growth will increase by $17.1 million in 2016-17 and a further $3.6 million in 2017-18. MTCU’s budget increase is planned at 1.2% for 2016-17.
Capital funding
Ontario will be working with the postsecondary sector on a capital strategy. In 2016, the province will issue a second targeted call for satellite campus proposals to serve the growing demand in Peel and Halton Regions. Currently, Ontario is funding new capital projects such as the York University and Seneca College partnership for a Markham campus announced in May 2015 as part of the Major Capacity Expansion Policy Framework. This and other projects are part of the Province’s plan to provide $3 billion in capital grants to postsecondary institutions over 10 years.
College Specific Applied Research
Supporting competitiveness and job creation in key industry sectors, the government is partnering with colleges to establish a $20-million fund to be invested over three years. This fund will better connect colleges and Ontario companies on applied research projects that result in breakthrough products and processes for sale at home and abroad.
Student Financial Aid
The budget announced major changes to student financial aid. The government will create a single major upfront grant — the Ontario Student Grant (OSG), starting in the 2017–18 school year. This will be done by redirecting 100 per cent of the funding from the 30% Off Ontario Tuition grant, Ontario Student Opportunity Grant, Ontario Access Grants and other grants offered by OSAP.
The transformation of student aid will make average tuition free for students with financial need from families with incomes of $50,000 or lower, and will make tuition more affordable for middle-class families.
Under the new Ontario Student Grant (OSG):
- More than 50 per cent of students from families with incomes of $83,000 or less will have non-repayable grants in excess of average tuition;
- No Ontario student will receive less than they are currently eligible for through the 30% Off Ontario Tuition grant; and
- Students from families with incomes of less than $50,000 will have no provincial student debt.
Indigenous Learners
The province is focused on improving access and success for Indigenous learners and is providing stable funding of $97 million over the next three years to help more First Nation, Métis and Inuit learners access postsecondary and training opportunities. Of this investment, $5 million is to ensure that postsecondary education and training remains accessible to Indigenous learners through the Province’s nine Aboriginal Institutes.
Humber mentioned in the budget
The Finch West LRT – 11 kilometres of new, dedicated light rail transit between Humber College and the new Finch West Subway Station on the Toronto–York Spadina Subway Extension – is now in procurement. Preliminary design and engineering work is underway. The start of major construction is expected in 2017.
