News Release Archive
COUNCIL ON HIGHER EDUCATION--CONSULTATION ON FUNDING CONTINUES ----------------------------------------------------------------- A discussion paper on a proposed new funding formula for universities was released today by the Nova Scotia Council on Higher Education. The paper outlines principles already determined in consultation with universities, and focuses discussion on details of how these principles can best be met through a new formula. In releasing the paper, council chair Stephen Wetmore explained the goal is to develop a fair funding formula that responds to changes in student enrolments, programs and universities, while providing incentives to encourage excellence and innovation in both university programming and research. "The current funding formula is outdated, based on decisions made almost 10 years ago," Mr. Wetmore said. "Since then, enrolments have changed, universities have changed, times have changed. The only thing that hasn't changed is the funding formula, and it's time to catch up." The proposed formula is built upon five key principles: equity; policy sensitivity; stability and predictability; public accountability; and transparency. The principles of public accountability and transparency mean universities, students and taxpayers can more easily and logically understand how university funding is allocated, and see for themselves that public tax dollars are being well-spent. Equity is linked to the number of students enrolled in a university and the cost of the programs they take. This would be reflected in the formula through a "weighted enrolment grant" (WEG). The paper proposes that a minimum-maximum enrolment range or "corridor" be set for each university at both the under-graduate and graduate levels. Universities could enrol additional students, but would only receive government funding for the number of students within this range. To calculate the WEG, the number of students would be multiplied by the cost of the programs they take. To determine program costs, programs are categorized into "bins" based on a number of factors including: special facilities from laboratories to music studios; equipment costs; the need for technical and specialized support staff; and average faculty salaries. Equity changes are proposed for international student fees. Currently, universities equally share additional fees paid by all international students. It is proposed that each university keep the fees paid by its international students to reward the increased effort being undertaken by universities in international marketing. Extra money would be available to promote equity for small universities; universities outside metro with less opportunity to share resources and services; universities responsible for resources used by other institutions or the community, e.g., special libraries; and Universite Ste.-Anne. Universities would receive grants to encourage a high-quality research capability in the province, attracting new economic opportunities to Nova Scotia. Government would also provide targeted funding as incentives to support university-initiated innovation and change, and public policy priorities. This supports the principle of policy sensitivity, which enables government to direct resources to its highest priorities. Restricted grants would continue to be available for alterations, renovations, and library and other equipment. The discussion paper includes examples of how different universities would be affected if the proposed formula was adopted, based on current funding levels. Mr. Wetmore said those numbers may change, based on consultation. "Nothing will happen overnight. We're still at the discussion stage, and council wants to hear from universities, from students and all partners before recommendations are made to government." Even when recommendations are made down the road, there will be a well-planned transition process, consistent with the principle of stability and predictability - meaning universities must be reasonably assured of resources to carry out their programs. The transition process will be in place so universities have the time they need to plan and adjust. -30- NOTE TO EDITORS: Copies of the discussion paper are available on the Department of Education and Culture home page at http://www.ednet.ns.ca or by calling the Nova Scotia Government Bookstore toll-free, 1-800-526-6575. Contact: Catherine MacIsaac 902-424-2795 trp Mar. 12, 1997 - 12:05 p.m.