Colleges and universities urge Ontario government for billions in new funding
College and university groups told pre-budget hearings they need billions more after tuition freezes and international student caps squeezed revenues, warning of growing deficits.
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By Torontoer Staff
Groups representing Ontario’s public colleges and universities told pre-budget consultations the province must commit billions in new operating funding to prevent growing deficits and program cuts. They said a combination of a long-standing tuition freeze and a recent federal cap on international students has left institutions with limited options.
Universities are seeking an additional $1.2 billion in operating funding next year, rising to $1.6 billion by 2028-29. Colleges asked for about $1.5 billion to shore up operations and program delivery.
The financial picture
Steve Orsini, president and CEO of the Council of Ontario Universities, told MPPs Ontario’s universities are funded far below the national average on a per-student basis. He said funding for the province’s universities sits at roughly 55 per cent of the Canadian average per student.
Right now, Ontario universities are the lowest funded in the country when you look at it per student. We are funded at 55 per cent of the rest of Canada on the per student basis.
Steve Orsini, Council of Ontario Universities
Orsini said the federal cap on international students introduced in 2024 has had an impact that far exceeds recent provincial funding increases. Even after widespread cost-cutting, he said the sector still faces a $265 million shortfall this year, and that gap could grow to $1.3 billion by 2028-29.
What colleges have done so far
Colleges Ontario reported that member institutions have already implemented $1.8 billion in cuts. Those measures included suspending some 600 programs and cutting about 8,000 positions across the sector.
Before the federal cap, international students contributed a substantial share of college revenue, in some cases around 30 per cent. That revenue stream helped offset the impact of a 10 per cent tuition cut for domestic students introduced after the 2018 provincial election and the subsequent tuition freeze.
Province signals review of funding formula
The provincial government has not committed to lifting the tuition freeze, and it has not announced immediate increases to base operating grants. Instead, Minister Nolan Quinn has repeatedly pointed to a review of the post-secondary funding formula as the next step.
We’ve been meeting all summer with our stakeholders — through the 47 publicly-assisted colleges and universities, understanding where the costs have changed. It’s been over a decade since we’ve really looked at our funding formula review, and we’re looking at all aspects of it and understanding the costs have changed.
Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security
Quinn said the review will examine 'weighted grant units,' which allocate funding based on program type and presumed costs. He suggested changes to that part of the formula could be significant, and indicated results of the review could point to new funding options toward the end of 2025.
Potential impacts for students and communities
Institutions warned that continued shortfalls risk deeper program cuts and further staff reductions. Colleges and universities also said scaled-back offerings would affect regional labour markets that depend on post-secondary training, and reduce research and community partnerships.
Advocates argue that underfunding could hinder the province’s ability to train workers in priority fields, adapt to demographic shifts and support economic growth. Universities and colleges framed their requests as investments in capacity, rather than one-time relief.
What comes next
Provincial budget decisions will determine whether colleges and universities receive the additional operating funds they seek, or whether the review of the funding formula results in different, targeted adjustments. For now, institutions say they will continue cost-saving measures while urging faster action to stabilise operations.
The government has not detailed specific funding amounts it might provide. Minister Quinn has said consultations with institutions will inform any changes to the formula, and that outcomes of the review could unlock new investments.
Colleges and universities have presented specific dollar figures as part of pre-budget submissions, placing pressure on the province to respond before budget decisions are finalised.
The coming months will show whether the province opts for immediate operating increases, formula revisions that redirect existing funding, or a mix of both. Stakeholders continue to press for clarity on timelines and amounts as institutions balance budgets and program commitments.
post-secondaryeducationOntario budgetcollegesuniversities
