Provincial post-secondary institutions are facing a near perfect storm caused by a tuition freeze, reduced provincial funding (as a proportion of revenues) and deep cuts to international student visas.
The crisis is prompting some to consider a tuition increase to ease the crisis.
According to Statistics Canada, Ontario universities received about 22 per cent of revenue from provincial sources in 2023-24 (down from about 34 per cent in 2009-10). The Canadian average is about 33 per cent. In Ontario, the proportion of revenue coming from tuition and other fees has jumped from about 26 per cent in 2009-10 to 40 per cent in 2023-24. This despite the tuition freeze, suggesting the tuition is taking up a larger share of a shrinking pie.
In 2019, the Ford government froze tuition for domestic students in Ontario. Since then, the freeze has been extended with Minister of Colleges and Universities Jill Dunlop announcing a continuation to at least the 2026-27 academic year. And those deficits will continue unless something changes.
The Council of Ontario Universities says they “have already made nearly $550 million in budget cuts over the last few years – reducing programs, services and staffing – yet they still face a projected $265 million annual deficit in 2025-26, with deficits continuing to rise,” despite $1.2 billion in new post secondary spending from the province.
That’s a problem for Carleton University film studies and journalism student Farrah Philpot who says she has seen the number of available classes drop.
That has her saying a tuition increase would be a better option if it meant the quality of education would improve.
“When I think about future students coming into film studies, I hope they can figure out some solution to getting a more … broad film education where you can specialize and take classes in something you’re actually interested in,” she said. “I think if they can do that by increasing tuition I wouldn’t mind it. It seems worth it.”
A federal cap on visas for international students has exacerbated the situation. International students pay roughly five times the tuition of domestic students and the loss of this revenue has increased this pressure, as noted by the Ontario Confederation of University Faculty Associations.
Arts programs are among the hardest hit as universities adjust to the changing circumstances. For example, Queen’s University has reallocated 1,200 undergraduate enrollment spots from Bachelor of Arts and Bachelor of Arts Honours programs to professional and STEM programs.
Matthew Evans, provost and vice president (academic) told the Queen’s Gazette that STEM programs have been prioritized because of their higher tuition and demand. He said he hopes that this, among other changes, will improve the financial situation at the university.
York University has announced in 2026 they would suspend new enrolment in 18 programs, mostly in the arts and humanities.
Ontario universities aren’t alone in their financial struggles. McGill University has announced they will cut 25 athletic and extra curricular teams for financial reasons.
