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Category: Budgets

How Universities Are Becoming More Labour-Intensive

Yesterday, I showed how universities in New Brunswick were – despite welcome new promises of stable funding from the provincial government – facing problems because salary increases were going to eat all the available new money.  Some of you possibly thought I was being alarmist.  But it’s easy enough to show how this can happen.  In Ontario, it already has. For data here, I pulled the financial statements for the last five years at the “Big 8” (Toronto, Waterloo, Western,

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January 7, 2014 5 Comments

Financing Canadian Universities: A Self-Inflicted Wound (Part 5)

We’ve covered a lot of ground in the last few days.  Back on Tuesday, we asked the question why faculty-student ratios could fall by 20% over two decades when per-student income had jumped by 40% over the same period.  The best way to sum up the answer is with the following graph: Changes in Total and Operating Income per Student, Academic Salary Mass, and Student-Teacher Ratios, Indexed to 1992               The top line is

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September 13, 2013 5 Comments

Financing Canadian Universities: Are Administrators to Blame? (Part 4)

In yesterday’s post, I dismissed the idea that administration was to blame for academic salary mass falling as a percentage of operating budgets, noting that the big areas of spending increase over the last two decades were scholarships, benefits, and utilities.  But it is still true that salary mass of non-academics rose more quickly than it did for academics.  Total academic salary mass went from $4 billion in 1992, to $5.5 billion in 2010, while “administrative” salaries went from $3 billion to $5

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September 12, 2013 7 Comments

Financing Canadian Universities: A Curious Story (Part 3)

Yesterday, we saw that Canadian student-faculty ratios rose by 24% between 1992 and 2010, even though operating grants per student went up by 20%.  The cause, it turned out, was a combination of individual academic salaries rising, while aggregate academic wages fell, as a proportion of operating grants.  What we didn’t do yesterday was ponder why academic salary mass didn’t keep up with operating grants, and where the money went as a result. Figure 1 – Operating Expenditures by Category,

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September 11, 2013 4 Comments

Cuts at the University of Alberta

If anybody wants to know what Ontario universities are going to look like over the next couple of years, they could do worse than check out what’s going on in Edmonton. To recap: In its spring budget, the Government of Alberta cut 7% from university operating grants.  Since then, Alberta universities have been working out how to deal with this cut.  At Athabasca, it’s meant significant layoffs.  At Mount Royal it’s meant program closures.  At the University of Alberta, so

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August 19, 2013 11 Comments

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One Thought to Start Your Day is our founder and CEO Alex Usher’s popular daily blog, brimming with up-to-the-minute insights and informed opinions on today’s higher education industry.

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