Issue
The economic footprint of post-secondary education has taken a dramatic hit through frozen government funding. Access to education is essential in the economic prosperity of Alberta and its future access to human capital and intellectual development. Postsecondary education serves as a catalyst for innovation, entrepreneurship, and strategic organization for both the management and advancement of social and economic progress.
Background
The economic impact that post-secondary institutions have on the effect of our provincial economy is largely underappreciated. The University of Alberta contributes $19.4 billion per year to the Alberta economy, while The University of Lethbridge has an annual $2 billion contribution.
Despite these contributions, provincial operating grants have been frozen for three consecutive budget years. With rates of inflation trending above Bank of Canada preferred levels, peaking for 2024 in Alberta at 4.2 per cent in during the month of February and trending above the national average the majority of the past two years, these funding freezes have the same actual effect as funding cuts.
Recommendations
That the Government of Alberta:
- At a minimum index the Base Operating Grant for post-secondary institutions to support economic growth and prepare for the growing number of Alberta students; and,
- Continue to partner with industry and post-secondary to expand work integrated learning opportunities and apprentice programs.
- Amend the Provincial Priorities Act to explicitly exempt post-secondary institutions from requiring provincial approval for research funding from federal entities.
