[uw.campus-news] News that won't be in February 6 Gazette

gazette@watserv1.waterloo.edu (Chris Redmond) (02/01/91)

It looks as though a provincial government announcement about
university funding for 1991-92 won't be made this week.  Earlier
predictions had been that Queen's Park would deliver the news
by the end of January.

(The senate finance committee has a meeting scheduled for
February 19, to talk about the 1991-92 budget for UW, which
largely depends on what the government says about grants and
tuition fees. Stay tuned.)

So next week's Gazette won't have a budget or funding announcement.
It does, however, have this background story (subject to
change between now and deadline).

OTTAWA CRITICIZED FOR FUNDING CUTS

The federal government's plan to cap its payments to the
provinces for health and post-secondary education has
come under fire.

"Bill C-69 is not in the interests of higher education
in Canada," Claude Lajeunesse, president of the
Association of Universities and Colleges of Canada,
recently told a parliamentary committee
studying legislation that's aimed at curbing such cash transfers.

And Ontario's treasurer, Floyd Laughren, expressed his fears
at last week's meeting of federal-provincial finance
ministers. Ottawa could cut its transfers in the next
federal budget, he said.

"We are very fearful if the (Persian gulf) war was to end
tomorrow, we are going to be faced with sharing a smaller
pie in terms of transfer payments," Laughren told
reporters.

He was speaking just days before the expected announcement of
university funding in this province for 1991-92.
Queen's Park has not set a date for the announcement, but
mid-February is one current guess.

It's up to each
provincial government how much it spends on universities, but
a share of the money comes from Ottawa through transfer payments.

When the transfers, known as "established programs financing", were
introduced, Ottawa was paying 50 per cent of the total government
subsidy for higher education, but that number has risen. In some
parts of the country, provincial governments have effectively cut
their own contributions to near zero.

Now Ottawa wants to limit its transfer to an annual 5 per cent increase
(less than the current rate of growth)
for Ontario, British Columbia and Alberta, considered the
well-off provinces. Elsewhere, the increases would not be capped.

The AUUC and other university groups are worried that the
cap will eventually eliminate cash transfers to the provinces.
This would further reduce the federal role
in higher education, which has already shrunk in recent years.

"Canada's future resides in its human rather than its
natural resources," Lajeunesse said.

"What we need now is a national strategy
leading to a| level of investment that ensures the
global competitiveness of Canadian higher education and
research."

The federal cap would be in effect for two years, if the
bill clears the House of Commons and Senate.