(This article first appeared on the Students’ Union page of The Meliorist, Nov. 12, 2009)
On November 2nd, Advanced Education and Technology Minister Doug Horner was challenged in the Alberta Legislature to defend Alberta’s current tuition cap. Right now, Alberta’s universities are not allowed to increase tuition faster than inflation, as measured by the Consumer Price Index.
Liberal Advanced Education Critic Harry Chase demanded to know whether Horner would maintain that cap, and prevent universities from finding a clever way around it. The question response was long, but thrust of it was as follows: “I think it’s fair to say that what I have suggested to the postsecondaries is that I’m open to any and all ideas that they can bring to us.”
Allow me to put this discussion in context: earlier this year, the Government of Alberta announced an unforseen deficit of seven billion dollars. In response, Advanced Ed and Tech announced to the universities that there would be a freeze in their operating grants, which cover approximately three quarters of their overall operating costs. Over the past few years, the universities have received steady six per cent increases in funding, and they had budgeted for the same, at least for the next two years.
The result is that each of Alberta’s universities is facing a budget crunch. The University of Lethbridge has to cut $11 million from its budget over the next two years to cover the shortfall, and the University of Calgary’s budget gap is greater still.
The University of Alberta, however, is in a whole other ball game. They have announced that they will have to find almost $60 million in revenue or savings by next year. Part of their response was to create a magical tuition-boosting instrument known as the market modifier.
“Applying market modifiers” is really just a fancy way of saying “charging higher tuition for degrees perceived to have a greater market value.” Under such a system, certain degrees – generally those with a professional application – would cost more because they presumably provide for greater return on investment.
The University of Alberta first proposed that they be allowed to use market modifiers within the current tuition regulation to account for the fact that the market values of various degrees were not taken into account when the cap was established. Advanced Ed and Tech have made clear that no such sneaky moves to dodge the tuition policy will be tolerated, but they are allowing the Universities to propose changes to the policy itself.
Back at the University of Lethbridge, our administration have stated publicly that they will not seek to charge differential tuition to professional schools, and that they are not actively lobbying to have the tuition fee policy changed.
Does that mean that the U of L is safe from tuition increases beyond CPI? Not really. All it takes is for one school to successfully lobby the government to change the policy and the effects could be felt across the province. Currently, it is quite likely that the province’s two most influential universities are lobbying to have the cap removed in one way or another.
Fortunately, both Advanced Ed and Tech and the Premier himself have made it quite explicit that any proposed change to the tuition cap will be subject to extensive consultation with student groups, which is quite encouraging.
Nevertheless, that discussion is almost certainly coming down the tubes. The lesson? Keep your ear to the ground on this issue and don’t assume that small, steady, predicatable tuition increases are sacred. The students of Alberta may have to fight for them.