Quebec Tuition – We Have A Choice

1. In 1988 the government paid 87% of university funding; nowadays, the government only pays for 65%. The rest falls on the backs of students and schools.

Martin, Eric and Simon Tremblay-Pepin. Trans. PGSS-McGill. Do We Really Need to Raise Tuition Fees? Eight misleading arguments for the hikes. Institut de recherche et d’informations socio-économiques, 2011. pp. 8.

2. Out of the new funding promised to universities in the last budget, the government intends to pay less than 50%.

The $850 million in new funding for universities is divided into two categories: $320 million to maintain the current level of funding in the face of rising costs (in other words, to keep university funding from falling in real terms) and actual additional resources, which will total $530 million.

Finances Québec. A Fair and Balanced University Funding Plan: To Give Québec the Means to Fulfill its Ambitions. Gouvernement du Québec, 2011. pp. 10.

Of the actual additional resources, the government is contributing $224 million out of the $530 million, or about 42%. Note that some of this is intended to be in the form of matching donations; for the full amount to be paid universities will need to succeed in increasing private donations. Of the $320 million to maintain current levels, the government will contribute $206 million.

Ibid., pp. 18.

3. If tuition reaches the Canadian average, university participation would fall by 11%. That’s 30 000 less students in school.

Martin, Eric and Simon Tremblay-Pepin. Trans. PGSS-McGill. Do We Really Need to Raise Tuition Fees? Eight misleading arguments for the hikes. Institut de recherche et d’informations socio-économiques, 2011. pp. 15-16.

11% figure based on 2011 student enrolment of 285 208, from CREPUQ (Conférence des recteurs et des principaux des universités du Québec).

A note on university enrolment and participation: some studies have found that university enrolment in some parts of the world has not been affected by tuition increases. The problem with this methodology is that enrolment is an end-result that can be affected by a variety of external factors, including tuition. Information on overall post-secondary participation among university-aged people is more accurate, although it leaves out mature students. Quebec also has a unique post-secondary educational system and social conditions that make comparisons to other provinces difficult. A second study commissioned by the Quebec ministère de l’Éducation, du Loisir et du Sport estimates that based on the demand elasticity of higher education in Quebec, tuition at the Canadian average would reduce demand by 21%, or about 50 000 students:

Vierstraete, Valérie. Les frais de scolarité, l’aide financière aux études et la fréquentation des établissements d’enseignement postsecondaire: comparaison à l’échelle internationale et étude de scénarios pour le Québec. Gouvernement du Québec, Ministère de l’Éducation, du Loisir et du Sport, 2007.

4. In 1978 it took 4 weeks of full-time work at minimum wage to cover the cost of tuition. With the planned increase, by 2015 it will take almost 9 weeks.

Martin, Eric and Simon Tremblay-Pepin. Trans. PGSS-McGill. Do We Really Need to Raise Tuition Fees? Eight misleading arguments for the hikes. Institut de recherche et d’informations socio-économiques, 2011. pp. 13.

5. The government has cut 10 billion from their own revenue between 2000-2008, mostly in the form of tax cuts.

Institut de recherche et d’informations socio-économiques. D’où vient la « crise » des finances publiques? March 2008.

6. At the end of 2011 the government scrapped a 0.98% tax on the capital of financial institutions. A tax that brought in $513 million per year. That’s one year’s tuition for 236 645 students.

Daoud, Marc and Philippe Hurteau. Gratuité scolaire et réinvestissement postsecondaire: Trois scénarios d’application. Institut de recherche et d’informations socio-économiques. October 2007. pp. 19.

Tuition for 236 645 students: based on $513 million divided by the 2011 Quebec tuition rate of $2167.80.

7. Between 2007-2011 the tax on business capital was abolished in Quebec, costing $890 million in lost revenue.

Martin, Eric and Simon Tremblay-Pepin. Trans. PGSS-McGill. Do We Really Need to Raise Tuition Fees? Eight misleading arguments for the hikes. Institut de recherche et d’informations socio-économiques, 2011. pp. 17.

Revenue Quebec: http://www.revenuquebec.ca/en/entreprise/impot/societes/declaration/taxes/

8. That’s enough money to completely abolish tuition fees in Quebec.

In 2007 IRIS estimated that university tuition fees generated in $551 million in revenue, and CEGEP tuition fees $49 million. Because of the tuition increases of $100 per year instituted in 2007 and slight increases in enrolment, this figure would now be somewhat larger, but well within $890 million.

Daoud, Marc and Philippe Hurteau. Gratuité scolaire et réinvestissement postsecondaire: Trois scénarios d’application. Institut de recherche et d’informations socio-économiques. October 2007. pp. 11-12.

9. Quebec actually has very low corporate tax rates compared to the rest of North America. Lower than places like:

• Newfoundland
• Prince Edward Island
• Nova Scotia
• Manitoba
• Saskatchewan
• California
• Georgia
• Texas

Investissement Québec: http://www.investquebec.com/en/index.aspx?page=1789

Canadian tax rates: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/rts-eng.html