The Government of Alberta’s has released its final report, proposing a comprehensive reform of post-secondary funding. The Â鶹ÊÓƵ welcomes this work and the Panel’s recognition of the essential role Alberta’s universities, colleges, and polytechnics play in building a skilled workforce, driving innovation, and sustaining economic growth.
New funding model
The Panel found that Alberta’s current funding model — based primarily on historical allocations adjusted annually — does not reflect enrollment, performance, or the actual cost of programs. As a result, funding has not kept pace with Alberta’s rapid population growth, rising student demand, or the evolving needs of the provincial economy.
In response, the Panel recommends a new, transparent funding framework designed to enable institutions to excel, innovate, and grow. It proposes three core components:
- Enrolment-based funding to ensure every qualified Alberta student has access to post-secondary education, aligned with workforce demand and program costs.
- Performance-based funding that rewards excellence in teaching and student experience, research, and community impact.
- Base funding to sustain essential operations, facilities, technology, and student supports.
The Panel acknowledges that implementing the new funding model will require additional funding from the provincial government and other sources to respond to enrollment growth and cost pressures and to ensure a smooth transition to the new model.
The Panel proposes a differential “clustering” funding model, which recognizes that programs have different cost structures depending on the requirements of the discipline. Programs that include clinical placements, laboratory instruction, or technical training — such as those in medicine, engineering, and the sciences — require significant investment in specialized facilities, equipment, and safety oversight. Other programs depend primarily on classroom, seminar, studio, or field-based learning, with costs driven more by instructional design and teaching approaches than by specialized facilities or equipment. These various programs have different cost structures, and the clustering model is intended to reflect these differential costs.
This approach would ensure that funding reflects the real costs associated with the diverse ways programs are delivered, supporting high-quality teaching and learning across the full range of disciplines at the Â鶹ÊÓƵ.
Enrolment growth
The Panel highlights the importance of funding enrolment growth, noting that Alberta’s post-secondary system must prepare for a 21 per cent increase in student demand by 2033/34 — equivalent to an additional 43,000 full-load equivalent (FLE) students across the province. About 80 per cent of this increase is expected to come from domestic students, driven by population growth and higher participation rates. The largest growth will occur in Edmonton and Calgary, with Edmonton institutions projected to enrol approximately 18,000 more students by 2033/34.
This projected growth aligns closely with Shape: A Strategic Plan of Impact 2023–2033, which anticipates the Â鶹ÊÓƵ growing from 44,000 students to more than 60,000 by 2030 — an increase of approximately 35 per cent. While the Panel’s projection of 21 per cent system-wide growth reflects provincial demand primarily from domestic students, the Â鶹ÊÓƵ’s target also includes a strategic increase in international enrolment — from less than 20 per cent of students today to 25 per cent by 2030 — as well as continued growth in graduate and professional programs.
Unfortunately, our projected growth in international numbers has stalled due to the 2024 federal caps and ongoing visa processing delays. We continue to advocate with the federal government for policies that support international students. We also welcome the report’s recognition of the vital role international students play in advancing Alberta’s competitiveness. It recommends that the province continue to work with the federal government to ensure qualified international students can study and work in Alberta. These measures are critical to rebuilding international enrolment and sustaining the research partnerships and global reputation that benefit all students.
Together, these projections reinforce Alberta’s strong demographic momentum and the Â鶹ÊÓƵ’s readiness to expand access, talent, and innovation to meet the province’s long-term needs.
Beyond the funding formula, the Panel recommends targeted, time-limited funds to attract top research talent, foster innovation and technology development, and encourage collaboration among institutions. It recommends that major IT replacements and new systems — long-term infrastructure investments that are critical to modern operations — be funded separately from annual base operating budgets, and that deferred maintenance funding be allocated on a three-year basis to support better planning and cost-effective project delivery.
Government regulation
The report recognizes that Alberta’s post-secondary system is among the most heavily regulated in Canada. The Panel recommends that the government review the range of institutional controls currently in place to provide significantly greater flexibility and autonomy, particularly in areas such as raising other sources of revenue and reducing costs. It calls for a substantial reduction in reporting requirements, limiting them to those necessary for accountability and performance measurement, and for coordination across ministries to reduce duplication. The Panel also recommends that the government streamline and accelerate the process for approving new programs, especially in areas of high market demand.
Tuition
A key area for discussion will be the report’s proposal to replace the current two per cent annual cap on domestic tuition increases with a more flexible approach. Under the proposed model, tuition for each entering class would be guaranteed for the duration of their program — providing predictability for students while allowing institutions limited flexibility to adjust tuition for new cohorts in line with program costs and demand.
We recognize that this proposal raises important questions for students. Affordability and access remain at the heart of the Â鶹ÊÓƵ’s mission. The Panel also recommends that the provincial government provide more assistance to students in the form of non-repayable grants rather than additional loans. We welcome this recommendation, which would help ensure that affordability is protected even as the system evolves. As the government considers these recommendations, we will engage closely with student leaders and the Ministry of Advanced Education to ensure that any future changes are fair, transparent, and grounded in our shared commitment to opportunity and excellence.
Current financial pressures
The Panel recommends that its proposed funding model be phased in over five years. While this is a promising step toward long-term sustainability, it will not address the university’s immediate fiscal challenges, which remain acute. Between 2019 and 2023, the provincial operating grant was reduced by $222 million — a one-third decline. Since 2023, it has remained frozen at $436.6 million, during which time cumulative inflation of 13.6 per cent has eroded its real value. Had the grant kept pace with inflation, it would be $61.9 million higher today. In total, this represents an effective reduction of nearly $284 million, or about 42 per cent of the original grant before the cuts. With tuition capped and labour costs rising, the university has had to make challenging choices to manage within available resources — reducing costs and streamlining operations while striving to preserve excellence in teaching, research, and student support.
The Â鶹ÊÓƵ will continue to advocate for some relief in the current provincial budget discussions. Another year of a flat operating grant will mean further cuts across the university, undermining our ability to sustain quality and meet growing student demand. Continued partnership with the Government of Alberta will be essential to ensure universities can maintain quality and meet the needs of a growing province during this transition period.
Conclusion
The Â鶹ÊÓƵ welcomes the Panel’s call for a funding framework that links investment to enrolment growth, performance, and research impact. These reforms align closely with our recommendations to the Panel and with our long-term vision to expand access, strengthen Alberta’s innovation economy, and ensure that Alberta competes successfully with the best in the world.
In the months ahead, we will work with the government, our sector partners, and the university community to help shape the implementation of the new framework — building a post-secondary system that delivers world-class education, research, and opportunity for all Albertans.
Bill Flanagan
President and vice-chancellor