Ontario reviews post-secondary funding as colleges face deep strain

Ontario’s public colleges are facing serious financial pressure as revenue from international students continues to shrink. The Ford government says it is now closely reviewing how the province funds post-secondary education.

Colleges and universities have dealt with two years of budget cuts and staff reductions after the federal government introduced — and later tightened — a cap on international student permits. That change sharply reduced the number of students many schools relied on.

The situation was already difficult. Soon after the Progressive Conservatives formed government in 2018, they cut tuition by 10% and then froze it, forcing colleges to depend more heavily on international student fees. Before the cap, about 30% of college revenue in Ontario came from these students.

Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security, recently confirmed that the tuition freeze will remain in place until at least the end of the 2026–27 school year. When questioned at a committee meeting, he refused to say whether tuition could rise after that point.

Peggy Sattler, the NDP’s critic for the post-secondary sector, said the lack of clarity is worrying. She noted that Ontario already has the lowest per-student funding in the country.

“Instead of taking responsibility, the government seems ready to shift more costs onto students,” she said.

Quinn, however, emphasized that the province is not treating the situation lightly. He said a major review of the funding formula is underway, including an examination of “weighted grant units” — the portions of funding tied to specific programs. He suggested that changes to this area could be significant.

“It’s been more than ten years since we last looked at the full funding formula,” Quinn said. “Costs have changed, and we’re reviewing every part of it.”

Sector leaders say change is urgently needed. Colleges Ontario reported that colleges have already cut $1.8 billion, suspended 600 programs and eliminated 8,000 jobs. It warned that the system is becoming increasingly unstable.

Ontario’s universities are also under strain. The Council of Ontario’s Universities said its members expect a combined deficit of $265 million this year. The group is calling for increased operating funding to help protect the long-term health of the post-secondary system.

“Stable and sustainable funding is essential,” the council said. “Ontario needs strong universities to remain competitive and to lead in the industries that will shape the province’s future.”