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UCP govt to cut postsecondary spending by $1.5 billion

That number increases to more than $3.5 billion if you factor in inflation and population growth.

I was recently browsing through Alberta’s 2021–2022 provincial budget, when I encountered the projected operating expenses for postsecondary education in the province.

In 2019–2020, the Alberta government spent $5.477 billion on postsecondary education. According to the August 2021 fiscal update, they spent $5.132 billion in the most recent budget year (2020–2021), a decrease of $345 million.

Where it gets even more interesting is over the next 3 years: the current budget year and the 2 subsequent budgets. Here, take a look for yourself.

Budget yearDifference from
2019–2020
2019–2020
2020–2021$345 million
2021–2022$408 million
2022–2023$392 million
2023–2024$359 million
2020–2021 and 2021–2022 numbers are based on the August 2021 fiscal update. The final two years are based on the February 2021 budget.

What we see is that over the next 3 years, the UCP government plans to—assuming they’re reelected in 2023—cut spending on postsecondary education by a combined $1.159 billion.

If we add in the $345 million from last year, that’s a total cut in operational spending of $1.504 billion.

And that’s not even including inflation or population growth.

For example, between 2019 and 2020, inflation increased 1.9% within Alberta. Here’s what that same table would look like if Alberta saw 1.9% inflation every year and the UCP increased spending to match it.

Budget year1.9% increase
2019–2020$5.477 billion
2020–2021$5.581 billion
2021–2022$5.687 billion
2022–2023$5.795 billion
2023–2024$5.905 billion

In other words, over the four years following 2019–2020, the UCP government would’ve spent a combined $1.06 billion more on postsecondary education to cover inflation.

That means the $1.504 billion shortfall I mentioned earlier actually becomes a $2.602 billion shortfall.

And that’s just for inflation.

Between 1 April 2019 (the start of the 2019–2020 budget year) and 1 April 2020, the population of Alberta went up by 71,246, a 1.6% increase.

Here’s what the above table would look like if the UCP increased spending to match 1.6% population growth in addition to the 1.9% inflation growth, assuming population grows at 1.6% every year for the following 3 years.

Budget year1.9% +1.6%
increase
2019–2020$5.477 billion
2020–2021$5.668 billion
2021–2022$5.867 billion
2022–2023$6.072 billion
2023–2024$6.285 billion

Had the UCP increased spending by 3.5% to match inflation and population growth, they would’ve spent an additional $2.004 billion over the 4 years following the 2019–2020 budget year.

That means they’re actually cutting operational spending on postsecondary education by not $1.504 billion, but $3.573 billion.

Where are those cuts coming from? Well, mostly the operation of our universities, colleges, and technical schools.

2019–2020
actual
2020–2021
forecast
2021–2022
estimate
2022–2023
target
2023–2024
target
Ministry support services98777
Program delivery support7774727275
Support for adult learning6778757471
Student aid188184189193195
Foundational learning supports8978929293
Postsecondary operations5,0464,6984,6084,6454,677
5,4775,1195,0445,0855,118
in millions $

The vast majority of operational spending by this ministry is in the operation of the institutions themselves.

We do see increases in foundational learning supports (as much as $4 million from 2019–2020 levels), student aid (up to $7 million), and support for adult learning (up to $4 million).

But we also see cuts elsewhere (as much as $2 million from support services, $2 million from programme delivery support, and of course hundreds of millions of dollars cut from postsecondary operations.

But again, remember, these are absolute dollars and don’t reflect inflationary or population pressure, let alone past budgets that have underfunded postsecondary education.

So, why is there such drastic budget slashing. Well, the UCP government claims we’re overspending in this area.

The MacKinnon Panel reported that Alberta spent $36,500 per student on post-secondary education, which was significantly more than the three comparator provinces: British Columbia spent $31,300, Ontario spent $21,500 and Quebec spent $25,800 per student.

“Expense”, Fiscal Plan 2021–23, p. 104

Here’s the problem with this though.

We’re spending more per student in Alberta because it costs more to deliver services in Alberta.

Alberta has the highest median income in Canada, the highest average income in Canada, and the highest proportion of the population making above $100,000. People in Alberta simply have higher paycheques, compared to their peers in other provinces.

That means it’s going to cost more to pay someone to transport supplies, to clean your floors, to repair your equipment, to design your website. And so on.

And if truckers, and custodians, and mechanics, and web designers are making more than their peers in other provinces, why shouldn’t professors, or teaching assistants, or planners, or advancement officers?

It’s unfair to demand that public sector workers make as much as their peers in other provinces when private sector workers make more than their peers.

These cuts are fundamentally creating a two-tiered workforce.

Note: An earlier version of this story indicated that the difference between post-secondary spending in 2020-2021 from 2019–2020 was $385 million. That was a transposed number; it is actually $358 million. That has been updated, as have calculations based on that. I also updated the 2020–2021 and 2021–22 numbers to match those within the August fiscal update. That update did not have numbers for future years.

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By Kim Siever

Kim Siever is an independent journalist based in Lethbridge, Alberta. He writes daily news stories, focusing on municipal, provincial, and federal politics, specializing in investigative journalism and critical analysis from a leftist political lens. He also writes regular editorials on general politics and social issues.

3 replies on “UCP govt to cut postsecondary spending by $1.5 billion”

Your math is slightly off. The difference between $5.477 billion spent in 2019/2020 and $5.119 billion estimated for 2020/2021 in the February 25th budget is $358 million, not $385 million. Furthermore, the August 31 update shows an 2020/2021 budget of $5.132 billion for Advanced Education, a shortfall of $345 million from the previous year. That being said, the cuts to post-secondary education over the last couple of years have been significant.

[…] Many of my Canadian readers will likely have read a piece that has been circulating on the internet from Kim Siever, a self-described leftist internet journalist from Lethbridge.  The headline says it all: UCP Government to Cut Post-Secondary Spending by $1.5 Billion; That Number Rises to $3.5 Billion if you ….  […]

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