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Advanced Education Minister Demetrios Nicolaides meets with student leaders, including RDC Students Association President Brittany Lausen (far left), prior to announcing a new post-secondary funding announcement. (Government of Alberta/Ministry of Advanced Education)
outcomes-based approach

United Conservatives to transform Alberta post-secondary funding

Jan 20, 2020 | 12:10 PM

The Alberta government has announced plans for a total transformation of its funding model for post-secondary institutions in the province.

A new outcomes-based approach will begin on Apr. 1, 2020 aiming to increase transparency and accountability while building a modern and diverse workforce for the future, according to the Ministry of Advanced Education.

Under the new model, a portion of government funding to 26 colleges, universities and polytechnics will be based on achieving key performance measures.

Performance measures are hoped to encourage institutions to improve services, increase efficiencies and create opportunities for Albertans through strong labour market outcomes and innovative programs and research.

“Our new approach will help ensure students are set up for success by encouraging institutions to produce job-ready graduates,” says Minister Demetrios Nicolaides, in a release. “Students make a significant investment in their post-secondary education, and it is essential we do everything possible to give them a rewarding career at the end of their studies. By shifting the focus to performance, we will ensure taxpayer dollars are being used in the most responsible way possible.”

While performance measures are yet to be finalized, they may include graduate employment rate, median graduate income, graduate skills and competencies, work-integrated learning opportunities, administrative expense ratio, sponsored research revenue, and enrolment (including potential targets for domestic students, international students and under-represented learners).

Institutions that meet all targets will receive 100 per cent of their allocated funding. However, if an institution does not meet its targets, the institution will receive funding that is proportionate to its level of achievement.

In addition to tying public investment to results, government is also transforming its relationship with post-secondary institutions by negotiating three-year funding agreements. Three-year terms are anticipated to help institutions plan for the future and build on their record of excellence.

The amount of funding tied to performance outcomes will begin at 15 per cent of operational funding for 2020-21 and gradually increase to a maximum of 40 per cent by 2022-23.

A small number of performance measures will be introduced for the 2020-21 academic year, and more measures will be gradually introduced over the next three years to a total of about 15.

Brittany Lausen, Students’ Association president at Red Deer College (RDC), says transparency in institutional funding is something they’ve been seeking for a long time.

“I think the three-year investment management agreements will definitely help institutions be able to see what targets they’re trying to hit and what funding they’re going to be getting,” says Lausen. “The question mark will be surrounding enrolment and what tuition will look like, but at least they’ll know what government is going to be giving.”

The impact on tuition will be moderate, she hopes.

“I’m optimistic that this government will respect the tuition cap that’s been put in place so that students have that predictability and affordability.”

Lausen adds that it would be nice to have student input into potential performance measures for the soon-to-be Red Deer University.

While government provides many different kinds of grants to post-secondary institutions, only operational funding through the Campus Alberta Grant will be tied to performance.

With the government’s formal launch of Red Tape Reduction Awareness Week on Monday, MLA Sarah Hoffman, deputy leader of the Official Opposition, says Minister Nicolaides should be focusing on undoing the devastating cuts the UCP has already imposed, instead of binding Alberta’s institutions and students with greater amounts of red tape.

“The UCP’s record when it comes to Advanced Education is tuition hikes, the elimination of education and tuition tax credits, increasing the interest on student loans, and cutting grants for universities and colleges, all to pay for this government’s $4.7-billion no-jobs corporate handout,” says Hoffman, in a release. “They have pushed life-changing education out of reach for many Albertans.”

The ministry says outcomes-based funding is a global trend in higher education, with about 35 U.S. states currently using a form of performance-based funding.

RDC President and CEO Dr. Peter Nunoda was not immediately available for comment on Monday.