AUCC calls on Ottawa for $2.5-billion boost to university research and education

Canada will be ill-prepared to emerge from the recession as a globally competitive knowledge economy unless it substantially increases funding of key elements in the university system. In its pre-Budget submission to the Finance department, the Association of Universities and Colleges of Canada (AUCC) is calling for more than $2.5 billion in new spending over five years, including more than $1 billion for the three granting councils to support the direct and indirect costs of research and launch an ambitious post-doctoral fellows program.

The recommendations also include the launch of an ambitious international recruitment strategy to increase the number of foreign students undertaking undergraduate and graduate studies in Canada, particularly from China and India. Aboriginal university education is also targeted for new funding to boost the participation rates and performance of the fastest growing demographic group in Canada.

The size and scope of the AUCC's recommendation reflect growing concern over the slowing pace of increases for university-based research in recent years. While FY07-08 saw a healthy 9.4% hike in federal support for higher education, the previous two years were virtually flat (R$, September 22/09). Over the same period, competing nations have increased support for university research at a greater rate and have accelerated those increases more recently as part of comprehensive stimulus packages.

If implemented, the infusion of new cash would boost the collective base budgets of the granting councils from slightly more than $1.5 billion in FY09-10 to nearly $2.6 billion by FY14-15, with almost half coming in the first two years. The AUCC also asked the government to consider addressing the growing gap between the councils, specifically through asymmetrical increases that would provide a greater percentage increase to the Social Sciences and Humanities Research Council.

"Many of today's problems require both scientific and social responses. New models of innovation have people at centre stage placing a stronger emphasis on the contributions of the social sciences and humanities," states to AUCC submission.

The largest single increase ($648 million) would go to support the current programs of the three granting councils. A new post-doctoral fellows program would inject $450 million over five years into fellows support, providing $65,000 annually to 750 post-doctoral fellows in the first year and 1,500 every year thereafter.

"In light of the global demand for their skills, it is important to provide additional support to keep the growing numbers of talented young graduate students and post-doctoral fellows from a broad range of disciplines here in Canada," states the submission.

Indirect costs would also be significantly boosted to raise support from its current level of 23% of direct costs to 35%. That would require the budget of the Indirect Costs Program (ICP) to be increased from its current level of $325 million annually to $738 million.

While such an increase would not achieve the AUCC's long-standing support for at least 40%, a 35% target is seen as an interim measure and an acknowledgement of the government's difficult fiscal position.

"(Indirect costs) are a difficult case to make. We're trying to make it more clearly and emphasize what is at stake here, and illustrate how it is funded differently in other countries," says Herb O'Heron, AUCC's director of policy analysis and research. "Indirect costs are also not seen or understand by researchers ... Most of the indirect costs are unfunded direct costs. They are the costs of research and people can't seem to get their heads around that."

Attracting a larger share of international students is behind the request for $100 million over five years to launch a recruitment marketing strategy, leveraging the existing Edu-Canada initiatives led by the Department of Foreign Affairs and International Trade. The AUCC submission notes that far more Chinese and Indian students are studying in Australia and the UK than Canada. The new funding would be allocated to provide resources for institutions to undertake market research and pilot missions as well as more student permit processing capacity and support for not-for-profit, stakeholder-driven initiatives.

Support for Aboriginal students is a key component of the AUCC submission, with the bulk of new funding directed towards student assistance. An existing program delivered by Indian and Northern Affairs Canada is inadequate, it contends, and AUCC is recommending $35 million annually be added to this initiative and redesigned to focus on institutions. In addition, university efforts through the Indian Studies Support Program should be doubled to $40 million immediately and and reach $150 million a year within five years.

A pilot program of $10 million is also being recommended to boost K-12 completion rates. This could involve using upper-year students as ambassadors, training more Aboriginal teachers and awareness raising in Aboriginal communities. The Aboriginal youth population is growing at three times the national rate while degree attainment is one-third the national average.

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