The Canadian Journal of Higher Education, Vol. XVI-2, 1986 La revue canadienne d'enseignement supérieur, Vol. XVI-2, 1986 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? ANNE MARIE DECORE and RAJ S. PANNU* ABSTRACT This study examines changes in educational financing since 1970- 71, looking at provincial differences in funding in relation to GDP, total government expenditures, enrolments and funding for elementary-secondary and tertiary schooling, as well as in relation to the funds contributed by each level of government. Since the late 1970's reductions have occurred in constant dollar per student expenditures at both elementary—secondary and university levels. In contrast to the early to late 1970's when provinces contributed ever larger proportions of the necessary funds, since that time both federal and municipal governments have been forced to increase their share of educational funding. These changes are examined not just in terms of intergovernmental relations but more importantly in terms of the fiscal crisis of the state. RÉSUMÉ Cette étude examine les changements dans le financement d'éducation depuis 1970-71, en examinant les différences provinciales dans la répartition des fonds par rapport au R.N.B. ; la somme des dépenses gouvernementales, les inscriptions et la répartition des fonds pour l'éducation élémentaire, secondaire et tertiare; ainsi que la relation entre la somme des fonds versée, par chaque niveau gouvernemental. Les dépenses par étudiant en dollar constant ont diminué dès la fin des années soixante-dix aux niveau élémentaire-secondaire et universitaire. Au début des années 70, les provinces ont versé la majeure partie des fonds nécessaires. Par contraste, depuis cette époque le gouvernement fédéral et les gouvernements provinciaux ont étés forcés d'augmenter leurs parts desfonds pour l'éducation. Ces changements sont examinés non seulement sur le plan des relations intergouvernementales, mais plus important, sur le plan de la crise fiscale de l'état. * Department of Educational Foundations, University of Alberta 28 Anne Marie Decore and Raj S. Pannu For some years now, societies around the globe have been plagued by an endemic economic and social crisis. In advanced western capitalist societies the last decade, in particular, has been marked by stagnating economic growth, increasing unemployment, increasing inflation, and an associated social malaise. Of these, only inflation has recently slowed down. These problems, in turn, have led to contraction of state revenues, a fact that has created fiscal difficulties unknown to post-second world war governments. All of the advanced capitalist democracies including Canada have faced a serious fiscal crisis and most have responded with government policies of severe fiscal restraint. Attempts have been made either to cut back on the provision of public goods or services which have been a recognized part of the domain of government or to transfer part of the cost of such public goods to users. Examples of these public goods or services, which O'Connor (1973) labels "social capital", include outlays for education, health, culture, and the provision and maintenance of the economic infrastructure. 1 The current spate of funding restraints for public goods or services in Canada should be understood in this broader context of change, and not simply in relation to the vagaries of shifting federal-provincial relations. One of the major public expenditure outlays in Canada over the last twenty to thirty years has been for human capital development. For example in 1970 and for several years following, 8.5 to 9 percent of Canada's GNP was spent on education and training. In comparison, by 1983-84, 7.8 percent of GNP was spent on education and institutional training programs. As it has become clear that the economic and fiscal crisis will not simply go away, Canadian governments have sought ways of reducing their budgetary outlays for social welfare and for social consumption - in education, health, and culture. The current debate on educational financing that is raging in various quarters must be approached against this backdrop of the fiscal crisis of the state. Two recent examples of the concern about educational funding appear in Chapter 18, volume 2 of the Macdonald Commission Report on the Canadian economy (1985), and the Johnson Report on financing postsecondary education (1985). Between 1970-71 and 1984-85, educational expenditures in Canada grew from about 7.6 billion dollars to 31.7 billion dollars (Statistics Canada, 1983, p. 12; 1985, p. 37). This represents an increase from 7.8 to 10.9 billion in constant (1971) dollars, a less impressive but still considerable growth in spending. During the same period, the number of full-time students in Canadian schools and postsecondary institutions declined from 5,961,300 to 5,757,500 (Statistics Canada, 1983, p. 178; 1985, p. 28). Rising costs in the face of apparently declining enrolments have prompted governments at all levels to attempt to control expenditures on education. Governmental concern about educational spending has been heightened by the rising incidence of unemployment and underemployment among well qualified Canadians, and by the economic recession of the 1980's. Attempts to restrain educational expenditure have been accompanied by disputes 29 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? between the Federal and Provincial governments about cost sharing for postsecondary education. Indeed, agreement on a formula for postsecondary cost sharing to replace that embodied in the 1977 Federal-Provincial Fiscal Arrangements and Established Programs Financing Act was not reached for some time after it expired in 1982. At the elementary-secondary level there has also been contention about finance. In this case, Provincial governments have tried to constrain educational spending by limiting grants to local school boards and, in some cases, by placing limits on the ability of school boards to increase the amount of educational funds they derive from property taxation. In opposition to the restraints imposed on educational spending, educators, students, and parents are voicing concern about the quality and accessibility of education. In short, considerable debate has ensued from changes in the structure of enrolments and the accompanying changes in the financing of education as well as the shifts in the importance of different levels and programs that constitute the educational system. While the global figures cited above give a general perspective on educational spending, they obscure important differences in expenditures and enrolments between provinces and between educational levels. For example, global data obscure the fact that expenditures per student vary considerably from province to province, or the fact that declining enrolments are the product of decreases at the elementary-secondary level while postsecondary enrolments have increased. Because education is an area of provincial jurisdiction, a focus on provincial comparisons is particularly important. In order to understand the current debate about educational spending, a number of specific questions must be addressed: 1. Has educational spending kept pace with general economic changes? More specifically, how do levels of educational expenditure in the provinces relate to their gross domestic product? 2. Have changes in educational expenditure increased or decreased proportionately to overall government expenditures? 3. How have enrolments changed within the various levels of education and what are the ramifications of these changes for explaining increases in educational expenditures? 4. Have the increases in educational expenditures occurred at a more or less uniform rate across different levels of Canadian educational systems? While it may be the case that educational expenditures have increased in all provinces, is it the case that those changes have similarly affected each level of education? 5. Do the figures on educational spending indicate that the unit costs of educating Canadians have dramatically increased? 6. Further, have there been changes during this period with respect to the distribution of educational spending between Federal, Provincial and Municipal governments? Answers to these questions are not readily available, yet without them the debate about educational spending remains inconclusive and polemical. 30 Anne Marie Decore and Raj S. Pannu TABLE 1 : T O T A L EXPENDITURES ON E D U C A T I O N RELATED TO GROSS D O M E S T I C PRODUCT BY P R O V I N C E , 1 9 7 0 - 7 1 TO British New YEAR / Columbia Quebec / Brunswick 1970-71 7 1 8.7 9.4 8.6 3 4 9 3 1 1 .4 12 1 12 2 11.4 1971-72 6 9 8 6 8.5 87 8.1 9 7 11 3 11 3 14 0 12.2 1972-73 6 3 7 9 8 5 8 4 7 5 9 0 9 9 10.1 14 1 13.4 66 7.3 7 7 6.9 9 3 9 n 9 6 13.1 12.5 9.2 10.2 13 8 12 4 1973-74 5.7 / Alberta /Saskatchewan/ Manitoba / Ontario / 1983-84 Prince / Nova S c o t i a / E d w a r d Island/Newfoundland 1974-75 6 0 5 6 6.4 76 6 6 9 1 1975-76 6 8 5.8 67 7.7 6 8 9 5 9.9 10.5 12.6 13.7 1976-77 6 4 5.5 6 9 7.5 7 0 9 3 9 9 10.5 12.8 12.8 1977-78 6.4 60 7 2 8 1 7.4 10 5 10.4 10 3 12.5 12.3 1978-79 6.3 5 2 7.1 7 5 7.3 10 1 9.4 10 0 118 11.7 3.7 1979-80 5.9 5 0 6.5 7 4 7.0 9 9 100 11.8 11.3 1980-81 6 0 4.6 65 7.4 66 9 8 10 2 10.9 12.1 12.4 1981-82 6.2 4 9 6 3 7 4 6.4 9 5 10.3 11.3 11.4 12 5 1982-83 6 8 5.5 7.2 80 6.9 9 5 11 0 110 115 12 8 1983-84 67 5 6 7.5 8 0 6 8 9.4 10 6 10.4 10.0 13 3 jr fjwjtw fiwK* - 1970-71 StjtrstKi vftjtxifkw - 198483, Table 1 4 , p p . 3 6 - 3 7 , 1 9 8 5 . Data f o r 1 9 8 3 - 8 4 c a l c u l a t e d using e x p e n d i t u r e s given in S t a t i s t i c s C a n a d a : A>Jv StjtfitKi or'fjucjtwi - 1984-85, Table 1 5 , pp 3 8 - 3 9 , 1 9 8 5 and C r o s s D o m e s t i c P r o d u c t given in SOURCE: Data f o r 1 9 7 0 - 7 1 t o 1 9 7 9 - 8 0 f r o m S t a t i s t i c s Canada: Table 1 , p p . 1 4 - 3 5 , 1 9 8 5 . to 1979-80, Data f o r 1 9 8 0 - 8 1 to 1 9 8 2 - 8 3 f r o m S t a t i s t i c s C a n a d a : S t a t i s t i c s C a n a d a : fat a m i I ftVA* ^ Acvwn Table 1 , p p . 2 - 2 3 , 1985 1. Spending in Relation to GDP In order to understand changes in educational spending over time and differences between provinces in levels of expenditure one must look beyond dollar amounts. Since provinces differ in their economic resources and hence in their ability to finance education, an examination of educational spending in relation to the gross domestic product and to total government expenditures in a province gives a better indication of the relative importance attached to education in a province than does an examination of actual expenditures. An examination of provincial expenditures on education in relation to provincial gross domestic product, given in Table 1, reveals a number of interesting points. In every province, except Quebec and Newfoundland, educational spending in relation to GDP was lower in 1983-84 than it was in 1970-71. In fact, 1970-71 was the peak year for educational spending in relation to GDP in most provinces. Highest levels of spending relative to GDP occurred in 1971-72 for Manitoba, in 1973-74 for Prince Edward Island, in 1975-76 for Newfoundland, and in 1977-78 for Quebec. For all provinces then, recent spending is less than it was in the peak year. In 1970-71, British Columbia spent less on education relative to GDP than any other province. At that time educational expenditures relative to GDP were highest in Nova Scotia. By 1983-84, Alberta became the lowest spender at 5.5% of GDP Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, W h o Pays the Piper? 31 TABLE 2 : E D U C A T I O N E X P E N D I T U R E S * YEAR RELATED TO NET GOVERNMENT EXPENDITURES / Columbia / A l b e r t a / S a s k a t c h e w a n / Manitoba t Ontario i' Quebec t Brunsvick BY P R O V I N C E , 1 9 7 0 - 7 1 TO 1980-81 /Nova Scotia/Edward Island/Nevfoundland 1970-71 27 8 30.8 28 1 26.6 33.8 29.3 26 8 28 6 22 5 23.1 1971-72 25.3 29.8 26 7 28.2 31.9 29 3 28.9 28.2 23.4 20.1 1972-73 24.5 29.6 26.0 27.5 30.2 25.9 27 2 23.2 19.5 23.3 27.7 1973-74 22.7 27 0 25 6 26.5 28.7 29 8 24 3 23.2 23.7 1974-73 22.4 23.6 23.0 24.7 26.4 27.8 23.9 26.2 24 3 22.3 1975-76 22.9 23.6 23.0 23.3 25.4 27.2 23 3 24.6 21.4 22.5 1976-77 23.2 20.6 22.6 22.5 26.9 28 4 23.6 26 6 24.6 22.6 1977-78 22.7 24.1 21.7 23.2 28.3 27.9 26.0 25.1 21.1 24 2 18 8 1978-79 23.1 20.2 22.2 23.0 27.9 26 6 24.4 24.6 20.4 1979-80 21.8 19.2 20.5 22.3 27.1 26 8 24.4 25.2 21.9 21.4 1980-81 20.5 18.2 20 8 21 5 26.1 26 0 247 23.9 21.9 22.1 • G o v e r n m e n t e x p e n d i t u r e s only. SOURCE: Data f o r 1 9 7 0 - 7 1 to 1 9 7 8 - 7 9 f r o m S t a t i s t i c s C a n a d a : Table 2 , pp. 4 0 - 6 2 , 1 9 8 3 to IfT^SO, CWMt DrfoU-jriua f~i%ji*v - t97»-7t Data f o r 1 9 7 9 - 8 0 f r o m S t a t i s t i c s C a n a d a : f j u f u i i / S t j t K t v y a r ' f J u c j t K X i - I X S O - G i , Table 4 , pp.34-33,1983. Data f o r 1 9 8 0 - 8 1 f r o m S t a t i s t i c s Canada pp 3 4 - 3 5 , 1 9 8 4 . f t r w c i t / S t j f o t K s M ' t J w j t v n - / . ^ / - ¿ V Table 4 , and Newfoundland the highest spender at 12.8% of GDP. Alberta is also the province in which the greatest decrease has occurred. Shifts such as these must, of course, be viewed with some caution. While they may be the product of changes in the degree of importance attached to education, they are also a reflection of changes in GDP per capita over time. Generally, the least affluent provinces those with the lowest GDP per capita, Quebec and the Atlantic provinces, have spent more on education relative to GDP than the more affluent. 2 2. Education Expenditures Relative to Total Government Expenditures Perhaps, a better indication of the priority given to education is the level of educational spending relative to total government expenditures because though not all provinces may be equally well off they may be similar in the relative resources they are willing to commit to it. Here too, one sees a pattern of decline. All provinces allocated a smaller proportion of their expenditures to education in 1980-81, the most recent year for which we obtained figures, than they did in 1970-71 (Table 2). Beyond this basic similarity, however, are interesting differences between the provinces. Some provinces have been relatively consistent in the proportion of their expenditures allocated to education. Prince Edward Island and Newfoundland have spent an average of about 22% of total government expenditures on education with small fluctuations over the time period. Ontario and to a lesser extent Quebec demonstrate a consistency of a different sort, in that they devote a larger share of provincial resources to education than the remaining provinces. 32 Anne Marie Decore and Raj S. Pannu TABLE 3 ELEMENTARY - SECONDARY ENROLMENTS BY P R O V I N C E , 1 9 7 0 - 7 1 TO Nev British YEAR / Columbia / Alberta /Saskatchewan/Manitoba /' Ontario / Quebec / B r u n s w i c k /Novi 1984-85 Prince S c o t i a / E d w a r d Island.''Newfoundland 1970-71 516,457 424,954 245,517 239,120 1,943,168 1 ,534,344 173,912 214,897 30,622 1971-72 514,377 426,718 241 . , 2 2 5 236,678 1,956,786 1,505,933 175,977 214,780 30,570 156,374 1972-73 524,950 423,792 231,983 231,409 1,949,154 1,466,796 173,851 211,262 29,340 155,414 1973-74 532,450 423,887 221,116 226,906 1,927.576 1 ,417,507 170,179 207,651 29,340 153,,686 1974-75 523,840 424,965 218,441 221,560 1,909,268 1,372,930 166,550 204,280 28,149 151 , 7 5 8 1973-76 524,147 430,700 214,393 219,620 1,906,577 1,328,149 164,999 202,606 28,203 151,607 1976-77 518,705 432,184 212,194 217,234 1,887,766 1,275,263 163,486 201,279 27,879 151,322 1977-78 510,621 430,818 209,646 213,154 1,867,109 1 ,217,796 162,202 198,097 27,610 149,978 1978-79 501,026 427,889 204,432 207,456 1,826,683 1,170,193 159.436 194,038 27,769 147,267 1979-80 494,522 424,523 200,736 200,653 1,783,317 1,128.712 156.280 189,225 27,258 144,653 1980-81 492,054 425,002 197,450 194,477 1,752,106 1 ,082,936 132,183 185,568 26,834 142,922 1981-82 485,604 428,858 194,378 191 , 1 4 2 1,720.978 1,052,615 148,782 181 , 7 5 8 26,116 139,854 1982-83 * 482,273 435,457 193,372 192,606 1,706,360 1 .027,011 147,878 179,554 25,723 137.224 1,688,801 1,020,100 146,045 177,240 25,480 142,692 1,676,650 1,019,150 144,160 174,210 25,100 138,965 -180« -18.9SS -18058 -10 2 « 1983-84» 479,158 436,537 193,151 191,817 1984-85*p 476,750 435,130 193,655 190,965 -7.6« 2.49! -21.US % change - 2 0 1% -13 8% - 33.695 154,760 * A d j u s t e d f o r k i n d e r g a r t e n e n r o l m e n t in a c c o r d a n c e w i t h d a f a f o r p r e c e e d i n g y e a r s P Preliminary data. SOURCE: Data f o r 1 9 7 0 - 7 1 to 1 9 7 9 - 8 0 f r o m S t a t i s t i c : Canada: Table 5 , pp 1 2 6 - 1 5 1 , 1 9 8 3 . hi f979-S0, r9er-S2,TMt 10, pp. 4 8 - 5 1 , CWj<t? nfCUKJlnn fmjtK? • tf70-7t Data f o r 1 9 8 0 - 8 1 and 1 9 8 1 - 8 2 f r o m S t a t i s t i c s Canada: F i r u t K u l S t j t t e t i c s i > r ~ £ J i x j t h n 1984. Data f o r 1 9 8 2 - 8 3 f r o m S t a t i s t i c s C a n a d a : f t t a j f i v j n C j n j J i - / . W , 1984. Data f o r 1 9 8 3 - 8 4 and 1 9 8 4 - 8 5 f r o m p 2 6 , and Table 6 , p . 2 8 , 1 9 8 5 . Table 1 9 , p p . 9 8 - 9 9 , My jtwi* StjtxtKii>r'Cite-jtit?n - Table 4 . Although as indicated above all provinces decreased the proportion of funds expended on education, Alberta has done so most dramatically with a decrease from 30.8% to 18.2%. Like Alberta, the other three western provinces fell into the category of low spenders. By 1980-81, British Columbia, Alberta, Saskatchewan and Manitoba were the four lowest spenders while only Manitoba was among the bottom four in 1970-71. 3 3. Changes in Enrolment One possible explanation for government reluctance to maintain high levels of educational spending is, of course, the shrinking size of the school age population most likely to participate in educational programs. As was noted at the outset, there are now about 200,000 fewer students in Canadian educational institutions than there were in 1970. We turn, therefore, to an examination of enrolments at various educational levels and their possible effects on educational expenditures. Over the 1970-85 period, the absolute number of elementary and secondary students has steadily declined while the number of postsecondary students, both non-university and university, has noticeably increased. In other words, the 33 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? TABLE 4 : U N I V E R S I T Y F U L L - T I M E E Q U I V A L E N T * E N R O L M E N T S , BV P R O V I N C E , 1 9 7 0 - 7 1 TO British YEAR / Columbia 1970-71 31,673 1971-72 1972-73 /Alberta / S a s k a t c h e w a n / Manitoba / Ontario / Quebec / Print» Brunswick / Nova S c o t i a / E d w a r d I s l a n d / N e w f o u n d l a n d / 16,448 2,060 12,286 17,245 2,113 8,136 11,610 17,113 1,844 8,302 82,508 11,941 17,609 1,711 7,509 85,659 11,977 18,788 1,575 6,999 93,808 12,722 19,544 1,716 7,120 184,909 96,204 12,334 19,959 1,722 7,556 181,795 103,724 12,379 20,156 1,771 7,709 20,178 177,292 107,174 12,091 19,827 1,623 7,077 16,582 19,448 178,747 113,180 12,111 19,570 1,539 7,602 16,899 19,835 185,307 118,122 12,355 20,015 1,528 7,870 193,926 120,743 13,361 21,425 1,613 8,756 203,580 125,340 14,472 22,988 1,785 10,154 211,045 132,877 15,441 25,119 1,882 9,212 219,143 137,271 16,303 25,150 1,960 10,117 -4.9* 40 6 * 31,577 15,868 80,924 11,933 29,896 30,926 28,896 30,099 150,834 80,338 152,636 81,447 1973-74 30,321 31,283 15,112 1974-75 32,877 32,373 15,447 19,783 160,393 20,516 169,787 1975-76 34,791 34,696 16,329 21,751 180,869 1976-77 34,579 35,021 1977-78 33,984 34,729 17,074 21,683 17,192 21,228 1978-79 33,966 33,888 16,669 1979-80 34,776 33,478 1980-81 35,762 34,850 1981-82 37,195 37,276 18,225 21,354 1982-83 39,040 41,194 20,193 23,750 1983-84 40,300 44,583 21,721 25,317 1984-851" 43,020 47,614 22,997 26,554 61.5* 696* % change 36.3* I984-8S New 50 8 * 19,090 135,722 15,852 19,796 14,668 19,447 44.9!? 39.1* 36 6 * 65.3* 7,196 * F u l l - t i m e e q u i v a l e n t s calculated on the b a s i s of 3 5 p a r t - t i m e s t u d e n t s e q u i v a l e n t to one f u l l - t i m e s t u d e n t . p PreIiminary data SOURCE: Data (or 1 9 7 0 - 7 1 to 1 9 7 9 - 8 0 f r o m S t a t i s t i c s Canada: / W j A ll> 1979-SO, Table 3 , MfjU-jtiw Fnji>t* - if 70- 71 pp.212-233, 1983 Data f o r 1 9 8 0 - 8 1 to 1 9 8 2 - 8 3 f r o m S t a t i s t i c s C a n a d a : { ¿ x j t w n n C j n x i i - / . ^ Table 2 2 , pp.106-107,1984. Data f o r 1 9 9 3 - 8 4 and 1 9 8 4 - 8 5 f r o m AJiwe SfjtKfv* vr'f,Avjfufl - .'XtM-125. Table 8 . p.30. 1985. proportion of the total student population in each level of schooling in Canada has undergone considerable change. As Table 3 shows, all provinces, except Alberta, have experienced a decline in elementary-secondary enrolments since 1970-71. The most dramatic decrease has occurred in Quebec where the number of students declined by 33.6%, a total decline of 515,394 students. 4 Decreases in the remaining provinces range between 7.6% in British Columbia and 21.1% in Saskatchewan. The picture given in Table 4 with regard to both full and part-time university enrolments is a dramatic contrast to that above. Over the period 1970-71 to 1984-85, full-time equivalent (FTE) enrolments in Canadian universities have increased by nearly 200,000 students to a total of 552,320 students. In most provinces, there have been small year-to-year fluctuations, both up and down, in university FTE enrolments but the overall pattern is one of increase. Only Prince Edward Island has experienced a decrease of 4.9% but all other provinces have showed increases of over 35%. Most remarkable are the increases in Quebec at 69.6% (56,347 students), Nova Scotia at 65.3% (10,739 students), and Ontario at 61.5% (83,421 students). Although in absolute terms, there are 222,520 more university students than non-university postsecondary students in Canada and the numerical growth over 34 Anne Marie Decore and Raj S. Pannu TABLE S : F U L L - T I M E N O N - U N I V E R S I T Y P O S T - S E C O N D A R Y ENROLMENTS BY P R O V I N C E , 1 9 7 0 - 7 1 TO British YEAR / Columbia / Alberta /Saskatchewan/ Manitoba / Ontario / Quebec / Brunswick 1984-85 Prince New /Nova Scotia/Edward Island/Newfoundland/ 1970-71 13,010 11,443 2,151 3,377 54,399 2,694 2,855 350 1,420 1971-72 12,823 12,672 2,436 3,808 50,345 84,209 2,506 2,893 584 1 .348 1972-73 12,618 13,330 2,461 3,370 52,321 100,227 1,969 2.477 490 1,491 1973-74 13,298 13,390 2,323 2,789 55,399 107,609 1,236 2,509 860 1 ,638 1974-73 16,571 14,091 2,347 2,792 56,642 112,182 1,187 2,690 842 1 ,861 1975-76 16,579 15,263 2,397 3,177 39,640 117,663 1 ,309 2,894 708 1 ,964 1976-77 16,638 16,451 2,387 3,434 58,919 121,095 1,454 3,007 752 2,024 1977-78 17,086 16,962 2,415 3,154 60,994 133,803 1 ,564 2,877 760 2,030 1978-79 17,444 17,411 2,397 3,110 64,499 137,753 1,656 2,768 770 1,960 1979-80 17,108 17,872 2,375 3.057 70,164 134,185 1,791 2,793 782 ,2,019 1980-81 17,953 17,900 2,412 3,459 75,846 135,405 1,888 2,919 820 2,225 1981-82 18,477 18,795 2,555 3.536 80,605 141,456 1,963 2,713 894 2,384 1982-83 20,610 20,790 2,472 3,609 89,326 150,234 2,162 2,834 905 2,376 2,270 2,920 940 2,520 74,376 1983-84 22,720 21,720 2,830 3,730 97,550 157,300 1984-85P 23,800 22,800 3,000 3,870 103,600 163,600 2,360 3,020 1,010 2,630 82.9« 99.295 3 9 555 14 6 « 90.495 1 2 0 056 -12.4® 5.856 1 8 8 656 85.256 56 change ^Preliminary data. £>ecj<& tfOiKjfnn .''/¡wc? - 1970-71 Education in C-mnit I9&3, Table 2 2 , pp. 1 0 6 - 1 0 7 , SOURCE: Data f o r 1 9 7 0 - 7 1 to 1 9 7 9 - 8 0 f r o m S t a t i s t i c s C a n a d a : h 1979-80, Table 7 , pp. 1 9 0 - 2 1 1 , 1 9 8 5 Data f o r 1 9 8 0 - 8 1 t o 1 9 8 2 - 8 3 f r o m S t a t i s t i c s C a n a d a : 1984 Data f o r 1 9 8 3 - 8 4 and 1 9 8 4 - 8 5 f r o m M v - j / k ? S t j t r r t i L w r ' f i t e j t w n - Table 7 , p . 2 9 , 1 9 8 5 , the 1970-71 to 1984-85 period has been greater in the university sector, there has been an impressive growth in the non-university enrolments. It should be noted here that part-time non-university enrolments are not available so the data used here underestimate the growth that has occurred over the fifteen-year period examined. Unlike the enrolments in university, the growth of non-university enrolments is very uneven from province to province (Table 5). Only four provinces experienced substantial numerical and percentage growth in enrolments. In British Columbia and Alberta, the numerical growth exceeds 10,000 students. As might be expected, the growth in Ontario is very large at over 49,000 students, and the growth in Quebec is even more dramatic at over 89,000 students. 5 As this brief overview demonstrates, while elementary-secondary school enrolments have fallen over the past fifteen years, the postsecondary level presents a contrasting picture of growth amounting to an explosion of enrolment in both forms of postsecondary education, particularly in the provinces of British Columbia, Alberta, Ontario and Quebec. Given that the costs of university and non-university postsecondary education are higher than those for other levels of education, it is not at all surprising that educational expenditures have soared all across Canada. What is surprising is that educational expenditures relative to 35 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? GDP and total government expenditures have fallen. Based on the observed increases in postsecondary university and non-university programs, along with declining enrolments at the elementary-secondary level, it is reasonable to expect that there would be some reallocation of expenditures from the primary and secondary sector to the tertiary sector over the fifteen-year period examined here. 6 4. The Distribution of Funds Between Educational Levels In Table 6 we present the proportion of funds spent on each level of education including expenditures by Federal, Provincial, and Municipal governments - to discern whether the allocation of resources has shifted in accordance with changes in enrolments in elementary-secondary, university, non-university, and vocational occupational sectors. It should be noted at the outset of this discussion that in talking about expenditures, we are looking at the proportional distribution of funds between levels of education and that in talking about enrolments we are looking at changes in enrolment within each level. 7 In spite of this, it is reasonable to expect that as enrolments decline or increase within any particular sector, that change would eventually be reflected in the allocation of resources between sectors. As indicated in the preceding section, enrolments at the elementary-secondary level were lower in 1984-85 than in 1970-71 in every province but Alberta. Despite this fact, Table 6 shows that the proportion of total educational expenditures that went to this level increased in every province but Quebec. In the case of Nova Scotia, 48.9% of all educational expenditures went to elementarysecondary education in 1970-71, however, by 1984-85 this had increased to 63.5% despite the fact the number of students at this level had declined by 18.9%. Although this is the most extreme case, the pattern is the same in other provinces ranging from Newfoundland where elementary-secondary expenditures increased by 8.6 percentage points over the time period, to British Columbia where the increase was only 0.9 percentage points. Having established that the share of expenditures for elementary-secondary education increased over the fifteen years examined and that, therefore, the share for tertiary education decreased; the question of how the relative spending between university, non-university, and vocational-occupational programs is distributed remains. No single pattern of distribution is evident. The proportion of funds expended on both postsecondary and vocationaloccupational education decreased between 1970-71 and 1984-85 in the provinces of Nova Scotia, Prince Edward Island and Newfoundland. 8 Quebec, in contrast, shows increased spending for non-university education, with 6.8% of total educational expenditures in 1970-71 and 13.5% in 1984-85 going to this level. The share of expenditures going to universities also increased, but by a smaller amount, from 17.1% of the total to 18.7%. A still different pattern obtains in the remaining six provinces with increases in the proportion of funds for non-university postsecondary education and decreases in the proportion of funds for university and vocational-occupational education. u > a\ > 9 TABLE 6 : YEAR / DISTRIBUTION OF E X P E N D I T U R E S 1 British Columbia univ -sec univ *ococc post -sec 1971-72 64.2 63.2 4 6 6.2 univ 23 0 9.1 7.6 59.5 voc- elern occ post 59.2 4 5 7.4 -sec univ 66.2 6.5 21,0 6.3 61.1 1973-74 66.5 6.7 20.3 6.5 64.9 1974-75 66.0 7 3 20.0 6.7 63.3 1975-76 65.0 7.S 19.6 70 61.7 7 1 PROVINCE, occ post elem -sec 26.9 6.7 24 6 6.7 Ontario univ voc- elem occ post -sec 65.3 2.2 24.8 66.6 2.6 24.0 61.3 22 2 5.t !.4 25.5 6.8 64.8 6.5 23.4 5.3 6.7 65.0 6.2 24,; 4.6 22.0 6 9 67.2 2.7 21.6 8.5 66.0 1.9 25.4 7.3 21.1 8 3 68.2 2.7 21.0 7.8 65.2 1.9 26.6 6.3 65.1 6.3 24,0 4.6 7.1 21.9 9.3 67 5 7 1 65.0 5.0 25 4 6.6 65.1 6.4 23.8 4.7 3.2 21.5 56 67.1 2.6 23.0 7.3 66.2 6.0 22.0 5.8 67.4 2.8 22.7 7.1 68.4 5.7 20 9 5.0 70.0 2.4 21.1 6.5 68.5 6.6 20.6 4.3 2.7 21.2 6.4 68.9 6.9 20.0 4.2 67 5 7.0 21.0 4.5 67.5 6.9 20.8 4.8 66.9 7.1 21.1 4.8 7.0 21.1 4.8 18.4 6.8 64.1 7.2 22.1 6 6 1977-78 68.1 18.7 6.1 67.5 7.5 19.0 6.0 69.3 3.8 21.4 5 5 1978-79 67.4 '.9 18.4 6.3 62.5 8.8 20.9 7.8 68.5 3 9 22.0 5 6 20.5 8 4 69 0 3.7 21.4 5.9 69,7 1979-80 66.4 1.5 18.7 6.4 62.4 8.7 1980-81 65.4 8.5 19.5 6.6 61.4 9.3 21.1 8.1 69.0 3.7 21,4 5.9 71,0 1981-82 65.9 8.8 19.6 6.3 61.9 9.1 20.8 8.2 67.0 3.8 20.7 8.4 69.9 !.8 8.1 17.8 6.4 25.0 65.3 U 77 26.1 6.7 8.5 66.5 \8 67.8 6.2 63.2 23.3 67 0 1982-83? voc- ooc 6 8 21.3 2.3 univ post 7.7 9 0 65.4 univ -sec 10.9 1.6 69.7 1976-77 univ 1984-85 non- -sec 8.3 66.2 TO Manitoba voc- -sec 27.7 1970-71 nonuniv 2.4 1972-73 BY nonuniv -sec 22.1 LEVELS Saskatchewan Alberta elem -sec 1970-71 EDUCATIONAL non- nonelerri BETVEEN 21.1 6.2 6.6 61.3 9.2 21.7 7.6 68.5 4.0 19.4 69.T 2.1 19.6 6.4 8.8 20.8 7.9 69.2 4.2 19.3 68.8 2 7 21.4 7.1 8.9 20.1 8.2 69.0 4.1 19.2 69.3 ;,7 21.3 6.8 1983-84* 65.3 8.9 18.2 7.5 62.4 1984-85* 65.1 9.1 18.5 7.3 62.5 C L Q u e b e c New Brunswick nonelem univ -sec post univ voc- O C G -sec 70 4 1970-71 68 ' Nova Scotia nonelem univ -sec post voc- elern univ oct univ -sec urpiv voc- hern univ occ -sec 48 9 3.5 Newfoundland non- post -sec 5.7 i nort- post -sec 17.1 P r i n c e E d w a r d Island non- univ voc- elem univ occ -sec post -sec 33.6 univ vococc -sec O fi EL 14.0 1972-73 67.7 J Q7T_-?4 67.3 1974-75 66.5 1975-76 65.9 7.6 O s o 14 0 56 7 2.9 21.0 19.4 58.0 10.8 20 4 5.1 21.9 15.0 58.3 3.6 23 5 14.6 57.3 3.1 24.6 14.9 3.4 23.1 13.1 ^ tra 3.6 20.3 12.3 Z, 62 4 70.3 22.2 4.0 638 1971-72 3.0 59.6 60 4 64.0 3.4 21.1 13.1 54 0 3.4 30.5 12.1 11.4 59.4 3.2 25.4 12.0 59.4 4,6 22 3 13.7 22.6 10.6 60 1 3.4 24,4 12.1 61.8 4.3 20.1 13 8 23.4 8.7 57.6 3.0 28.3 11.1 66.2 5.2 16.2 12.4 15.6 6.3 66.2 3.1 20.6 10.1 16.4 6.7 63.6 3.2 21.8 10.5 15 8 6.4 64.3 10.9 17.0 11.3 5.6 17.4 1 976-77 68 5 10 8 15.8 1977-78 66.1 11.5 17.1 1 978-79 65.2 12.6 1979-80 66.0 5.4 64.2 2.0 1.8 23.4 56 5 10.6 3.4 27.5 12.6 62.1 5.4 16.5 16.0 66.9 21.3 9.5 61.7 3.6 23.3 11.4 67.4 4.8 13.0 14.8 5.3 69.2 18.9 9.6 62.1 4.3 23.6 10.0 65.5 5.8 12.: 16.2 17.6 4.6 67.9 20.2 9.3 62.2 3.1 24.9 9.4 64.3 6.5 13.6 15.6 11.6 17.8 4.6 66.9 3.2 21.2 9.7 62.3 3.0 25.4 9.3 65.4 6.5 14.9 13.2 11.8 17 4 4.4 66.9 3.5 21.4 8.2 61.7 3.8 25.5 9.0 66.4 6.0 14.2 13.4 66.8 1981-82 12.8 16 7 4.3 68.2 3.4 20.7 7.7 62.4 2.8 26.4 8.4 67.0 5.4 15.0 126 6 68.5 3.7 20.3 7.5 64.3 27.3 7.9 66.2 6 4 1 1982-33P 3 4 21/ 64 7 3.5 20 4 11 4 63.7 2.7 22.0 65.8 2.6 20.8 10.8 67.1 2.9 198 10.2 66.0 2.8 20.6 10.6 67 6 2.3 19.2 10.9 12.1 67.2 13.2 17.9 4.4 67.7 4.5 19.4 8.4 64.4 27.8 7.8 65 0 12.5 70 9 62.6 1984-85* 13.5 18.7 5.2 67.2 4.4 20.2 8.2 63.5 28.4 8.1 61.3 10.8 65.3 ^preliminary data data SOURCE : D a t a f o r 1 9 7 0 - 7 1 t o 1 9 7 9 - 8 0 f r o m S t a t i s t i c s C a n a d a : A w j a « - to 1979-30, T a b l e CanadaSducjtrwi in ¿ j ì t a X * 190,1983. D a t a f o r 1 9 8 1 - 8 2 to 1 9 8 4 - 8 5 f r o m S t a t i s t i c s Canada : 85, ¿fiàtcjfian 1, p p . 1 4 - 3 5 , 1 9 8 3 . Data for 1 9 8 0 - 8 1 f r o m Statistics Table 1 4 , p p . 3 6 - 3 7 , 1985. - - tS>7&- 71 1982-&J, T a b l e 4 3 , ° û: 0 > Q. r-* W 3" 11.6 64.5 I983-84e Estimated 1 8 "V Vi 66.4 1980-81 4.9 65.9 pp.189- Stitèrtiìf ot'CéKjtkm - 1984- 22.6 10.2 19.5 9.6 21.7 13.0 I 38 Anne Marie Decore and Raj S. Pannu TABLE 7 : ELEMENTARY-SECONDARY EXPENDITURES PER STUDENT IN CONSTANT* DOLLARS YEAR British / Columbia / Alberta 771 8 5 3 803 733 1971-72 821 908 753 883 1972-73 834 674 947 992 791 629 896 1973-74 8 7 5 986 9 6 5 1088 834 987 1234 890 1112 978 1222 980 1357 1040 1440 1062 1471 1090 1623 990 121$ 1098 !52! 940 799 777 / 1037 1296 1067 1478 1975-76 712 Ontario 1970-71 1974-75 749' /Saskatchewan/ Manitoba / 944 918 920 1037 / BY PROVINCE, 1 9 7 0 - 7 1 TO 1 9 8 2 - 8 3 Prinoe /Nova Scotia/Edward Island/Newfoundland/ 894 869 666 647 6 0 3 5S8 5 6 3 347 1001 1002 939 Quebec New Brunswick 727 654 661 572 1019 1068 952 998 1017 1146 106! ,'/.*" 496 482 673 705 702 736 766 60S 608 6S7 691 779 742 836 8 7 8 969 659 743 1124 1405 789 966 962 1202 760 1219 1666 848 1174 812 1124 8 5 7 1187 840 1164 788 965 SK7 1976-77 1195 1780 \\2bf676 1099 1637 1199 //Ns" 1522 2266 934 1391 962 1433 1064 1584 895 1332 1977-78 1247 2005 1380 2219 1124 1380 1 1 9 2 / , " / / 1347 2166 1638 2635 1038 1669 975 1566 1014 163V 8 9 6 1441 1978-79 1277 2237 II89J5&.V 1163 ¿ W 1206 2113 1350 2365 1631 ¿TS57 9 7 3 1704 1018 1784 1001 1754 891 1561 1979-80 1287 2460 1260 2410 1184-,'JK/ 1256 2401 138 ¡ 2640 1705 3260 987 18S8 1050 2007 1062 3 1 * 7 8 9 2 1679 1980-81 1572 SStO 1480 3117 1358 2860 1567 2879 1450 « » l92WiW 1084 2282 1186 2496 1089 229* 1066 2246 1981-82 1478 3502 1393 33W 1298 3075 1302 JOtH 1365 3233 1839 4357 1050 ^ « . V 1127^'7/ 1 0 » 2440 1028 1982-83* 1345 3531 1272 3338 1283 3367 1310 3440 1230 3230 1745 4»/ 10» ¿ » 7 1107,2»» 1004 2635 24JJ 996 261J • 1971 is the base y e a r , adjustments are made in accordance with the consumer price index 1 Italicized figures are in current dollars. *Per pupil costs were calculated using total school board expenditures on public elementary-secondary education and enrolment adjusted for part-time kindergarten attendance where applicable SOURCE: Data for 1970-71 to 1979-80 from Statistics Canada: offJbvjUvt /rumv - 1970-71 hi 1979-80, Table 5 . pp 126-151, 1983 Data for 1980-81 and 1981-82 from Statistics Canada f n w n l S f i t r > - t n - i • i . ' t d u . - j r w - .'96182, Table 10, pp. 4 8 - 5 1 , 1984 Data for 1982-83 from Statistics Canada- fjucitnin In CinjJj - 1983, Table 19, pp 9 8 - 9 9 1984 , and Statistics Canada. A 4 1 W ? M f j A - j t i v i - 19&4-Z5. T >ble 13 . pp 3 4 - 3 5 1965 The largest increase in the postsecondary non-university share occurred in British Columbia (up from 4.6% to 9.1% of the total) and Alberta (up from 4.5% to 8.9% of the total). Outside of Quebec, these two provinces and Ontario spend a larger proportion of educational funds on this level than other provinces, a reflection of enrolment factors noted above and perhaps of provincial government policy priorities. It is the shifts in the relative funding of university education that stand out in terms of consistency and, in some cases, in terms of size. Only in Quebec has the proportional allocation of funds reflected the enrolment shifts that have occurred between 1970-71 and 1984-85; in all other provinces the share of funds going to elementary-secondary education has increased despite enrolment declines. 9 In other words, as enrolments in non-university programs, most notably in British Columbia, Alberta and Ontario, have risen so has the share of funds going to such programs. This has not been the case with regard to university programs where the share of educational funds allocated has generally decreased despite rising enrolment. Most dramatic is the case of Alberta which allocated 27.7% of its educational expenditures to universities in 1970-71 but only allocated 20.1% in 1984-85. 39 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? 5. Funding per Student It might, of course, be argued that the great university building boom of the 1960's and early 1970's has meant lower capital expenditures in the late 1970's and 1980's. The declining share of educational expenditures for the university sector may, therefore, be the product of smaller capital expenditures and not of decreases in operating funds. By examining operating expenditures per student, the following anaylsis looks at the impact on elementary-secondary and university education of changes in both the proportional distribution of funds between educational levels/programs and the changes in enrolment. To examine the impact of the redistribution of funds between educational levels discussed above, complete data on enrolments by level are needed. Such data are available for two levels only - elementary-secondary and university. For this reason, this analysis is confined to an examination of changes in operating costs (in constant dollars) per pupil for schools and per FTE (full-time equivalent) for universities for the period of 1970-71 to 1982-83. A rapid growth in per pupil expenditures at the elementary-secondary level took place between 1970-71 and 1980-81 (Table 7). In fact, in 1980-81 per pupil costs were the highest of any year for the period under discussion for all provinces except Prince Edward Island. The above ten year period was also one of unbroken growth for every province except New Brunswick and Newfoundland. Moreover, by 1980-81 British Columbia, Quebec and Newfoundland had each more than doubled its per pupil cost over the decade. The turning point was 1980-81. Without exception, every province registered a reduction in these expenditures. Further reductions were made the following year, and again in 1982-83, the most recent year for which complete data are available. The sole exception is New Brunswick. Thus a clear trend signalling cross-Canada cutbacks in per pupil expenditures at the elementary-secondary level seems to have emerged in recent years. It needs to be noted, even though it should be obvious, that this reduction in per pupil expenditures is independent of any fluctuation in enrolments. It would appear to have been the result of a more general policy shift, the latter related perhaps to fiscal concerns of Canadian governments and to a shift in perception of the benefits of investments in education. The provincial picture in terms of university operating expenditures per FTE is somewhat similar to that for elementary-secondary expenditures (Table 8). Although there is less similarity across provinces as to when the more or less continuous pattern of cuts in expenditures for a particular province began, a clear trend indicating a systematic expenditure rollback is discernible. In 1970-71, Ontario started ahead of every other province with a per FTE expenditure of $3,495, followed closely by British Columbia and Alberta respectively. The remaining provinces, with perhaps the exception of Nova Scotia, roughly cluster together a fair distance behind. It is noteworthy that, for Ontario, 1970-71 was the peak year. In the subsequent twelve years, it has cut back fairly consistently reaching the third lowest position in TABLE 9 : UNIVERSITY OPERATING EXPENDITURES PER FTC IN CONSTANT* DOLLARS BY PROVINCE 1 9 7 0 - 7 1 TO 1 9 8 2 - 8 3 VE AR / British Columbia New / Alberta 5176 3267 1970-71 5256 J 3 3 y * 1971-72 3707 3503 1972-73 3 8 6 5 4050 3 5 0 2 3670 1973-74 3 7 1 9 419! 1974-75 1975-76 /Saskatchewan/ 2677 3 5 » ? Manitoba 2689 2614 Ontario 5 4 9 5 3398 / Quebec 2795 2717 2598 3534 2982 3248 3404 2690 2619 5572 3534 3080 322S 3 3 6 8 3793 3272 3688 3021 3405 5262 3676 3205 3612 3674 4593 3 3 5 0 4IS7 3309 4136 5070 3637 3164 J S 5 5 3476 4345 3 8 9 5 5392 3 3 9 5 4702 3557 4650 2994 4147 3064 4243 3503 4S51 1976-77 4 0 4 8 6028 5501 3357 4999 3 2 0 5 4772 3140 4175 3643 5435 1977-78 4161 6691 5746 6023 3377 5431 3326 5348 3199 5144 3705 J K W 1978-79 4159 7251 5860 6762 5659 6375 3044 5 3 3 ? 3134 5491 3701 6485 5440 6577 3103 JSSJ" 3051 57S6 3567 6820 3 8 7 9 SITO 4142 S723 5 0 5 5 6433 2915 6140 3549 7474 3 7 4 7 8877 3856 9134 2827 6696 2792 6626 3416 8093 3 5 9 3 9432 3599 S923 2922 7669 2751 7222 3224 9464 1979-80 4116 7870 5 8 8 5 7426 1980-81 4174 6790 1981-82 4024 9532 1 9 8 2 - 8 5 * 3 9 2 3 10298 2866 • 1971 is the base year,adjustments are made in accordance with the consumer price index 'Italicized figures are in current dollars. *Per student costs were calculated using operating expenditures excluding sponsored research and fulltime equivalent enrolment (see Table 4) fFiqures reported for 10 months only, SOURCE: Data for 1970-71 to 1979-80 from Statistics Canada: A > 1979-80, Table 8 , pp.212-255, 1983. Data for 1980-81 to 1981-82 from Statistics Canada: Table 23, pp 8 2 - 8 3 , 1984, / Brunswick 2339 ¿'JSC 2559 2 9 1 3 3053 / Nova Scotia 3150 3101 3250 3053 J f c V 2 9 6 6 370i' l?)4 3 2 2 3 4799 3 0 6 8 4933 2852 4996 3642 3150 4363 2709 4033 2904 4670 3141 5503 331 I 633V 3238 6191 3 4 0 9 7180 3313 697$ 2 9 7 8 7056 2734 7178 CkxjJf jlidU-jlw nunc? 1970-71 fiiM-ul Sljtrffrf ¿'¿ji-jtw: - 1981-82. 3212 7609 3029 7951 2277 2214 2371 2305 2190 2976 ¿".¿7* 2997 3378 3142 4352 Prince / Edward Island /Newfoundland/ 2718 2534 2656 2863 3000 2 6 3 8 2973 3314 3735 2690 3363 3 5 8 5 4481 2947 4081 4231 5860 2 7 6 6 4118 4 1 8 8 6236 2 1 2 3 3417f 4647 8142 2736 4828 4 6 4 7 8142 2882 5510 4 3 1 7 8254 2862 6027 4129 8695 2770 6562 3794 8989 2344 6679 3389 8897 m c CL TABLE 9 : PERCENTAGE SHARES OF D I R E C T * GOVERNMENT YEAR / British Columbi« t Fed. rrov. Mun, red. Albert* rrov. / Mun. Saekatetwwan red. 55.2 34,6 4.8 55.1 36.3 1971-72 4.6 53.4 33.6 4.5 55.5 35.8 9.3 45.5 42.2 1972-73 4.4 56.7 32 6 4.2 55.5 36.3 6.5 49 1 41.1 1973-74 4,2 58.1 31.6 48 56.0 35.8 9.5 50.0 37.7 66.4 25.1 10.8 52.2 34.0 68.7 24 1 8.9 56.5 32.1 3.5 57.0 34 4 1975-76 3.1 56.2 37.1 4.3 41.2 Manitoba Mun, 5.0 1974-75 11.7 rrov. 1970-71 4.8 EXPENDITURES 44.9 1976-77 3.4 39.0 36.0 4.6 67.3 24.8 8.8 37.0 31.4 1977-78 3.3 57.5 33.9 4.0 71.0 23.1 9.2 56.6 1973-79 3.1 56 0 37,1 4 6 63.7 28.8 9.7 1979-80 3,5 56.6 36 1 3.9 62.1 304 8.3 1980-81 3.5 558 35.9 4.1 60.9 32.4 1981-82 red rrov. 13.3 44.9 / Mm, 373 11.3 31.3 337 8.2 51.3 36.6 9.2 54.1 33.8 9.0 49.8 36.8 8.1 47.3 412 Fed. Ontario Prov. Mun. 1.9 52.6 42.0 1.3 38.3 36.6 1.2 60.3 34.9 1.3 60.9 33.7 1.3 60.8 34.3 1.5 60.4 34.3 1.6 36.1 38.3 1.2 59.3 36.0 42.1 1.1 37.6 37.3 42.7 1.0 37.2 37.7 43.0 43.4 1.2 36.0 38.4 8.2 45.6 43.6 329 7.5 48.4 41.3 56.4 32 6 9.0 43.1 36.2 33.0 7.6 44.7 9.4 35.1 33.4 9.3 3.3 51.7 41.0 3.7 59.2 33.5 9.6 53.3 34.3 9.2 49.5 37 2 1.3 53.1 40.7 1 9 8 2 - 8 3 P 3.7 84.7 8.2 3.7 57.8 34.4 10.1 52.9 35.3 8.4 49.9 37.2 1.4 31.1 42.4 1983-84' 3.2 84.3 8.3 37 58.1 33.9 10.0 51.8 35.6 8.1 50.2 36.4 1.3 30.0 43.7 1984-85® 3.3 83.6 8.8 3.5 57,0 34.7 9.8 52.1 35.5 8.2 49.6 36.1 1.3 49.0 44.3 *Direct s h a r e s a r e those directly expended by a p a r t i c u l a r government. The Federal share includes expenditures for native education, and defense schools but excludes minority language programs. Includes operating and capital e x p e n d i t u r e s . ^Preliminary data. 'Estimated data. n ON ELEMENTARY-SECONDARY EDUCATION, BY PROVINCE, 1 9 7 0 - 7 1 TO 1 9 8 4 - 8 S / Quebec / Fed. Prov. Mun. 6.6 37.6 30.3 3.3 63.4 27.4 1.1 63.9 28.8 1.2 68.2 23.6 1.1 69,6 23.9 1.0 72.8 21.3 1.0 77.3 1 7.5 1.4 76.2 1 6.9 1.2 77.0 1 7.2 1.4 79.7 14.3 1.7 87.1 7.3 1.2 91.7 3.4 1.3 90.1 3.5 1.3 90.6 3.0 1.3 87.7 4.5 New Brunswick Fed. P r o v . Mun. i Fed. Nova Scotia P r o v . Mun. I Prince Edward Island i red. r r o v . rtun. Newfoundland red. 88.2 7.4 33.6 36.3 13.7 63.6 94.7 4.1 37.6 36.0 7.3 69.2 96.1 3.1 38.8 36.0 10.0 78.8 10.3 84.3 S 21 3 -1 0.8 22.7 2.0 nun. 22.1 4.5 rrov. 3.2 10.1 3.2 2.9 93.5 2.4 60.0 336 6.3 92.9 2.4 96,3 2.4 62.0 34.0 8.7 90.3 2.2 96.8 2.1 706 26.4 2.8 96.2 2.3 96.6 2.6 74,6 21.1 9.1 89.4 2.3 96.4 2.3 79.7 17.1 7.6 91.0 2.9 93.7 1.9 78.8 18 4 8.4 91.0 2.0 96.7 1.8 79.4 17 0 6.4 92.7 2.1 96.6 2.1 77.1 18.3 4.7 94.2 1.9 96.3 1.8 79.3 17.7 4.7 93.9 2.0 97.0 1.9 79.3 17.3 2.5 96,3 1.9 97.0 2.0 78.8 18.0 1.8 97.2 1.9 78.4 18.4 1.8 97,3 SOURCE : Data f o r 1 9 7 0 - 7 1 to 1 9 7 9 - 8 0 from S t a t i s t i c s Canada : Atta4> ut'fjbcjfm Table 4 , pp. 1 0 0 - 1 2 1 , » 8 3 . Data f o r 1 9 8 0 - 8 1 and 1 9 8 1 - 8 2 f r o m S t a t i s t i c i p p . 3 6 - 3 7 , 1 9 8 3 and 1984, Data f o r 1 9 8 2 - 8 3 to 1984-85 f r o m S t a t i s t i c s Canada: £Juijtùfì SUtritics Syfhtfih, Vol.6, No.8, Table 1 , p p . 3 - 8 , 1 9 8 3 . ifra-n tu r979-00, Cxvii TwuœùlSfjfitti:,- M' StAUtm- mso-et Mt IZSI-S2,littoS, 87.1 0.7 3.7 87.9 0.9 4.1 83.3 1.6 4.4 86,4 1.5 1.6 89.5 1.5 tu 0.3 89.7 91.6 n S •S' P 1.8 0.3 os a v: » vi O- 2.0 0.6 90.3 1.9 0.4 89 9 2.1 0.3 90.7 2.3 0.4 91.0 2.3 0.3 90.3 3.9 0.4 92.3 3.1 0.3 90.6 3.9 I 00 42 Anne Marie Decore and Raj S. Pannu the country in 1982-83. Interestingly, this early lead in cutbacks was not heeded by other provinces till well after the mid-1970's. By 1980-81, however, cutbacks became universal and continued on into the subsequent years. Of particular note is the fact that, despite the generalized provincial cutbacks just mentioned above, Ontario is the only province which achieved a substantial reduction (21.2%) in its 1982-83 per FTE expenditures ($2,751) over its 1970-71 expenditures ($3,495). It is evident that cutbacks in university expenditures had become a fact of life throughout Canada by the late 1970's and continued into the 1980's. Whether expenditures will level off before reaching a level lower than that which prevailed in each province in 1970-71, or follow the lead of Ontario remains to be seen. In the absence of part-time enrolment data for non-university postsecondary level one can only conjecture how per FTE expenditures have changed over the period after 1970-71. 1 0 Given that those provinces with rising full-time enrolments in non-university programs have not reduced the proportion of their total educational expenditures to the non-university sector, the likelihood is that the impact of government restraint has not been as great as in the university sector. The analysis of spending undertaken here reveals a general pattern of progressive cutbacks in educational expenditures at both educational levels examined. During the period since 1982-83, educational institutions have felt the impact of continued attempts by provincial governments to control educational spending. The per student expenditures for elementary-secondary and university levels give convincing evidence that the indications of decrease derived from both the per cent of GDP data and the per cent of expenditures data are not simply a reflection of declining enrolment, rapidly rising GDP or rapidly rising total government expenditures. They represent net decreases in operating expenditures. 6. Total Educational Expenditures - Federal, Provincial and Municipal Shares Changes in educational expenditures in Canada during the period since 1970 have been manifold. As demonstrated below, this includes a steady though gradual shift in the relative shares of different levels of government - federal, provincial and municipal. Since the 1960's, a major proportion of educational expenditures in Canada has typically been met from provincial government revenues. Provincial government revenues for education, however, come from two sources: provincial taxation and other provincially based sources of revenue and indirect federal transfers for postsecondary education and minority language programs. At the elementary-secondary level, educational expenditures are shared principally by the provincial and municipal governments, although some direct funding even for this level comes from the federal level (Table 9). With respect to the relative provincial and municipal shares, the provinces tend to group into two neat clusters. With the exception of Nova Scotia, the Atlantic provinces as well as Quebec from 1970-71 onwards have borne a very high share of these expenditures from provincial revenues. In Newfoundland and New Brunswick over all of the 43 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? last 15 years the provincial share has been over 85% of elementary-secondary expenditures. Other members of this cluster have all experienced rapid growth in this respect. In other words, either the provincial share was already high in 1970-71 or it has progressively grown into the 8 0 % + range in 1984-85. Because of these high provincial shares, the municipal contributions are correspondingly low. In the provinces of Ontario, Manitoba, Saskatchewan, Alberta and British Columbia, members of the second cluster, the municipal share of direct educational expenditures for the elementary-secondary level has been noticeably higher. For instance in 1970-71, it ranged from a low of 36.3% for Alberta to a high of 44.9% for Manitoba. Over the period, 1970 to 1985, the earlier years are marked by a general tendency for the municipal share to drop in relation to the provincial share and then, from roughly 1976 on, to increase. Especially since 1980-81, there is a discernible trend for the provincial share to become smaller in Alberta, Ontario and, to a lesser extent, Saskatchewan. In the case of Manitoba, to the contrary, the provincial share jumped by about 6.6 percentage points while at the same time municipal share is reduced by a similar proportion. From these shifts in the relative provincial and municipal shares of direct expenditures on elementary-secondary education, it appears that in the second cluster of provinces an increasing burden of funding is being shifted to the municipal governments and, thus, to property owners rather than to income earners generally. This would seem to hold particularly in the cases of Ontario, Saskatchewan and Alberta. British Columbia was certainly in this league as well, but only until 1981-82. A much slower and smaller change has been witnessed in the Federal share in these provinces. It has generally tended to shrink but shrinkage has been the least in the case of Ontario and Saskatchewan. Even the largest decrease, in Manitoba, has not exceeded 4%. The foregoing analysis yields several interesting observations on the pattern of changes in educational expenditures over the last decade and half. Major variations across provinces in their respective share notwithstanding, the percentage share of each province showed a consistent tendency to increase throughout the decade of 1970-71 to 1980-81. Past this point in time, this uniformity in trend or direction of change disappears. On the one hand, the Atlantic provinces and the province of Quebec show a continuing movement towards a modest growth in provincial share. On the other hand, Ontario and the Western provinces, with the exception of British Columbia, are on a downward course and if that trend were to continue their respective shares would certainly slide below the 1970-71 levels in the next couple of years. While only some provinces show an increase in the proportion of elementarysecondary expenditures borne by municipal authorities, a much clearer shift in which level of government bears the cost is evident in the case of postsecondary education (Table 10). In every province, except Quebec, the provincial share of postsecondary costs has declined while the federal share has increased. Although TABLE 1 0 : A D J U S T E D * FEDERAL & PROVINCIAL EXPENDITURE SHARES FOR P O S T - S E C O N D A R Y EDUCATION BY PROVINCE, % 1970-71 TO 1 9 8 2 - 8 3 YEAR / British Columbia Fed. Prov / Alberta /Safkatchewan/ Fed Prov. Fed Prov Manitoba Fed. P r o v / Ontirio / Quebec Fed Prov Fed Prov. » 3. ni New Prince / B r u n s w i c k / Nova Scotia / E d w a r d I s l a n d / N e w f o u n d l a n d / Fed. Prov. Fed. Prov. Fed. P r o v . Fed. Prov. 1970-71 50.2 318 44 7 39.0 58.4 26.8 53.1 27 0 39.3 40.3 57 9 15.1 48 4 27.4 39 9 25.4 50.4 44.9 55.6 29.4 1971-72 502 28.7 44.7 410 54.9 23.9 54 0 29.0 44 0 35.2 64 3 156 56.0 21.1 47.8 22.3 47.1 35 8 49.7 36.2 1972-73 59.4 25 3 48 6 37.5 58.9 20 8 54 0 316 47 9 316 65 4 16.7 57.3 23.3 60 6 17 8 43.0 31.2 61.4 26 1 1973-74 58 5 22.7 55.6 310 618 21.9 56 2 28.0 43.3 315 64 9 13.2 60 7 21.3 60 0 18 4 46.3 216 49 7 38.3 1974-75 52.3 27.3 52.7 32.2 58.4 24.3 52.7 31.8 49.1 31 1 60 1 22.4 56 7 25.8 51 4 25 2 53.5 33 4 52.9 35.3 1975-76 46.8 29 6 48.2 42.0 51.6 33.7 52.9 35.6 49 8 319 58.2 26.9 53 0 20.0 55 1 20.4 54.8 33 3 50.1 42 0 1976-77 519 26.6 49.8 36 6 55.4 32.6 613 25.8 50 4 318 60 5 277 61.2 18.0 57 0 18 9 64.9 27.9 54 9 36 8 1977-78 63.7 17.9 52.7 33 7 65.5 176 66.4 22.4 56 0 25.9 48.7 38.6 S2.I 3.3 65.8 158 89.6 100 68.2 16 8 1978-79 65.2 19 3 53.0 34.4 64.9 17.3 77.9 7 4 57.7 24.5 48 5 38.4 86.8 0.4 66.3 14.2 85.4 2 9 81.9 8.5 1979-80 657 19 5 53 4 32.5 70.3 12.9 78.3 5.4 60.0 20 3 48 9 37:1 83.8 -0.7 68.3 7 5 83.0 -3.5 84.2 6.5 1980-81 64.6 14.8 57 5 29.5 65 0 130 812 21 61.9 17 2 55 6 39.5 78 5 2.1 715 6.1 87 1 -3 0 83.7 73 1981-82 62.6 15.9 57 3 29.5 68.0 147 77.8 5.0 637 15.2 48 3 39.6 78.3 4.9 68.9 7.4 90.7 -6.6 81.7 5.7 ^ tí § 3 ?! C/5 "0 & 3 * A d j u s t e d s h a r e s r e f l e c t i n d i r e c t Federal c o n t r i b u t i o n s f o r minority language p r o g r a m s through t r a n s f e r s and t a x - p o i n t s f o r p o s t - s e c o n d a r y education which a r e added to the F e d e r a l s h a r e and s u b t r a c t e d f r o m the p r o v i n c i a l s h a r e . Includes o p e r a t i n g and c a p i t a l e x p e n d i t u r e s . SOURCE: Data f o r 1 9 7 0 - 7 1 t o 1 9 7 9 - 8 0 f r o m S t a t i s t i c s Canada: A v . * * or'fájvjtÁX! 71 to 1979-SO, Table 6 , pp. 1 6 8 - 1 8 9 , 1 9 8 3 . Data f o r 1 9 8 0 - 8 1 to 1 9 8 2 - 8 3 f r o m S t a t i s t i c s Canada: FhioculStjtrstios >9SO-StxA 198Í-S2, Tables 1 3 a n d 1 3 A , pp. 6 4 - 6 7 , 1 9 8 3 and 1 9 8 4 . /'mjnoo - I97Vof C>1tKjtm- g Educational Financing in Canada 1970-71 to 1984-85: 45 Who Calls the Tune, Who Pays the Piper? there is considerable variation in the actual proportions from province to province, there is a consistent decrease in provincial share everywhere but Quebec. Quebec, in 1970-71, contributed a smaller proportion (15%) than any other province. At the other extreme, Prince Edward Island assumed 44.9% of postsecondary costs at the beginning of the 70's. By 1981-82 a complete reversal had occurred, with Quebec assuming the largest provincial share and Prince Edward Island the smallest. In the West, the decreases range between 9.5 percentage points in Alberta and 22 percentage points in Manitoba. In Ontario and the Atlantic provinces the decreases are larger and range between 18 percentage points in Nova Scotia and 51.5 percentage points in Prince Edward Island. An examination of the federal contributions, of course, shows parallel increases in the share of postsecondary expenditures assumed by the national government. While the federal share ranged between 39.9% in Ontario and 58.4% in Saskatchewan in 1970-71, the spread increased with a federal share of 48.3% in Quebec and 90.7% in Prince Edward Island by 1981-82. It is clear that through successive federal-provincial funding agreements, not only did federal funding increase in dollar amounts but also in relative terms. Indeed, Johnson's data on federal transfers to the provinces for postsecondary education between 1977-78 and 1984-85 clearly reinforces the point that the indirect federal contribution to grants to universities and colleges has grown while the purely provincial share has correspondingly declined. By 1984-85, the dollar value of fiscal transfers received by the provinces of Newfoundland, New Brunswick, Prince Edward Island, Manitoba and British Columbia was greater than the total expenditures for postsecondary education in those provinces. (Johnson, 1985, p. 30). Except in Quebec, improvements in federal funding for postsecondary education have been, partially if not wholly, offset by lower dollar levels of funding from provincial governments." The consequences of these changes have been predictable. Real expenditures per FTE have been dropping since 1978 or 1979. University tuition fees, expressed in constant dollars, have been rising in every province except Quebec since 1981-82. Vital services like research equipment, computer and library services are falling behind, and universities have begun to resort to enrolment limitations and staff redundancy in the name of preserving financial solvency and quality programming. Findings and Policy Implications During the period since 1970-71, educational spending relative to GDP has declined in every province but Newfoundland. Similarly, educational expenditures relative to net government expenditures have decreased in all ten provinces. Particularly in the case of the latter measure, the decreases have been largest in Ontario and the Western Provinces. Except in Alberta, 1984-85 elementary-secondary enrolments are lower than in 1970-71 with the largest decline of 33.6% in Quebec. Despite these decreases, 46 Anne Marie Decore and Raj S. Pannu the distribution of funds between educational levels shows that in 1984-85, for all provinces but Quebec, a larger share of total educational funds went to elementary-secondary education than was the case in 1970-71. There has, however, been either a stabilization or a small shrinkage in the elementarysecondary share in the eighties. Consistent with this, constant dollar per student expenditures which rose quite evenly through the 1970's have, since 1980-81, shrunk in all provinces. In contrast, university enrolments, except in Prince Edward Island, have increased between 36.2% (B.C.) and 69.6% (Que.). Non-university postsecondary enrolments also increased in all provinces save New Brunswick. Particularly large percentage and numerical increases in both university and non-university students are evident in British Columbia, Alberta, Ontario and Quebec. The corollary of the increased share of educational funds going to elementary education has been a decline in the postsecondary share of funds, again with the exception of Quebec. Within the postsecondary sector, those provinces that experienced increased non-university enrolments also demonstrate increases in the proportion of educational expenditures for that form of education. Most of the overall decrease in the share of expenditures for postsecondary education has then occurred at the expense of university education. While it was not possible to calculate per student FTE expenditures for non-university programs, the figures for university education show a clear pattern of decrease in every province since at least 1980-81 and as early as 1971-72 in Ontario. Recently declining per student expenditures for both elementary-secondary and university education give some indication of attempts to constrain educational spending in the face of the fiscal crisis faced by governments. An examination of the financial contributions of various levels of government casts this problem in a particularly interesting light, as it reveals the provincial governments' fiscal footwork. In the case of elementary-secondary education, the provincial share in Quebec and the Atlantic provinces was at, or has increased to, the 80% level and beyond. In the remaining provinces, the provincial share gradually increased until the late 1970's but not to the high proportions of Quebec and the Atlantic Region. Since then, the provinces of Alberta, Ontario and to a lesser extent Saskatchewan have shifted some of the financial burden to municipalities. The sudden increase in 1982-83 in provincial contribution of British Columbia for elementary-secondary education appears to be an exception to this trend. It may however represent a different approach to controlling expenditures by having the provincial government assume a larger share of the costs in order to exert greater overall control on spending and eventually reduce it by limiting the degree of financial latitude of locally elected school boards. This intention became clear in 1985 when some school boards tried to maintain higher per pupil expenditures and were dismissed by the Minister of Education. A shift in who pays the piper has occurred in much clearer terms for postsecondary education. This study, like Johnson's (1985), shows that from 1970-71 and especially after 1977, a larger and larger share of the burden of 47 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? financing postsecondary education has fallen to the Federal government. Only Quebec comes near maintaining a constant share after 1977. Several strategies are evident here for dealing with government fiscal problems: real decreases in the level of per student funding for educational services; some increases in the users' contributions; and a reduction, at least for Provincial governments, in the costs of providing education by shifting an increasing share of funding to other levels of governments. In a nutshell * these measures taken in concert are apparently designed to reduce or stabilize per pupil operating costs to governments. However, operating costs, or that portion of them most susceptible to manipulation by state policies, are largely composed of employee remuneration. Since the majority of educational operating funds are expended for salaries, decreases in the constant dollar per student expenditures are a clear reflection of a two-pronged attempt to reduce the size of the labour force so employed and their salary levels. An associated but politically less attractive option is to shift at least a portion of the cost of these services to the user. For example, extra charges to parents for books, equipment, sports programs are being implemented in some jurisdictions. In a recent case, in Alberta, a local school board sued a parent for unpaid fees for school books - and lost. Concluding Observations Sustained cutbacks in social consumption and social investment expenditures have emerged as typical responses to the budgetary problems spawned by stagnating economic growth, increasing unemployment, and shrinking state revenues concomitant with rising expenditures and growing deficits. Solving these problems means rearranging the social and economic priorities of the state and its institutional components. Social expenditures in such areas as education and health are seen by most Canadians as social entitlements and by their governments as important for the social stability requisite to capital accumulation and growth in productivity and production. 12 Because of this, the fiscal crisis cannot be solved simply by dismantling those programs that provide minimal social welfare services, health care, protection against unemployment, and relatively open accessibility to education. If withdrawal of these services is not politically feasible, what options are open for the state to solve its fiscal problems? The most attractive option would seem to be to reduce the costs of the services provided by the state without significantly reducing their level of provision. If costs are to be reduced, then the institutional complex that provides social services must be "reformed" and made more "efficient". It is the complementarity of public perceptions and of structural imperatives for economic growth that has been employed by the state and governing political parties as a basis for a "new consensus" in order to attack the problems of the fiscal crisis. The changes in educational financing we have discussed above and the politics of educational reform are directly linked to and can best be understood in terms of the 48 Anne Marie Decore and Raj S. Pannu simultaneous requirements for social stability and redeployment of fiscal resources. In light of the logic of this argument and the findings of our analysis, increased pressure on expenditures for both elementary-secondary and university education can be expected in the coming years. Together, all the above changes have global ramifications for the key issues of accessibility, private costs of going to school for students and their families; the structure of educational revenues of different public educational jurisdictions or enterprises; and the taxation regimes of the three levels of government with responsibility for financing of education. NOTES 1. O'Connor discusses "social capital" expenditures both conceptually and substantively in Chapters 4 and 5 of his book. Armstrong accurately summarizes this view as follows: O'Connor starts his book with two premises concerning the advanced capitalist state: first, the state 'must try to fulfill two basic and often mutually contradictory functions - accumulation and legitimation'; second, ... state spending has a twofold character corresponding to these functions, with social capital expenditures and social expenses fulfilling the accumulation and legitimation functions respectively. The social capital expenditures are further subdivided into social investment expenditures on physical and 'human capital' and social consumption expenditures, notably for urban-suburban development and for social insurance. O'Connor then puts forward two theses: first, 'the growth of the state is both a cause and an effect of the expansion of monopoly capital' and, second, that the growth of state expenditures and state expenses results in a fiscal crisis, or structural gap, between state spending and state revenues, a crisis exacerbated by the successful yet wasteful and even contradictory claims made on the state by a host of special interests, including organized labour and the poor. (1977, p. 292.) 2. In the case of Alberta, the period of 1970-71 to the early 1980's was a period of boom in the oil industry and hence of rapid growth in the gross domestic product. Over the period from 1970-83, Alberta's GDP, which was second only to Ontario's in 1970, at $4,490 per capita grew to $24,020. The magnitude of this growth becomes evident when contrasted with that of Newfoundland which grew from $2,311 per capita to $9,448 over the same period. (Calculated from Statistics Canada: Provincial Economic Accounts, Table 1, pp. 4 - 2 3 , 1985 and Statistics Canada: Post-Censal Annual Estimates of Population, Table 1, p. 29, 1985.) 3. It might be argued, of course, that Alberta's overall budget could and did grow more rapidly than was the case elsewhere, however, looking at the growth of overal provincial government expenditures over the time period the rate of expenditure growth in Alberta is not out of line with that of other provinces although it is the highest. Alberta's expenditures grew by 570% between 1970 and 1983, but expenditures in the provinces of British Columbia, Newfoundland and Prince Edward Island also increased by over 500% and expenditures increased by more than 400% in all other provinces except Ontario. (Expenditure growth calculated from Statistics Canada: Provincial Economic Accounts, Table 2, pp. 4 - 2 3 , 1985.) 4. Part of this decrease reflects the fact that the equivalent of the twelfth grade is offered in the Collèges d'enseignement général et professionnel which are classified as non-university postsecondary institutions. 5. This growth in Quebec reflects the significant reorganization of education initiated in the 1960's, and particularly the development of the CEGEPS. 6. A complete examination of changes in educational enrolments would, ideally, include a look at vocational- occupational programs; unfortunately, such information is not available after the mid-1970's. While anecdotal evidence indicates that vocational-occupational enrolments have increased, the scope of that increase cannot be specified. 49 Educational Financing in Canada 1970-71 to 1984-85: Who Calls the Tune, Who Pays the Piper? 7. Two factors dictate this approach: the differences in the costs of various levels of education mean that the proportion of funds will not necessarily correspond to the proportion of all students that are enrolled at particular level, and comparable enrolment data are not available for all types of education. 8. For Nova Scotia, Prince Edward Island, and Newfoundland postsecondary university and non-university expenditures are aggregated for the three most recent years perhaps because the non-university component is not a large part of the postsecondary total. For Nova Scotia, the shift in distribution between the elementary-secondary level and the tertiary level is not surprising because of the low proportion of funds going to elementary- secondary education in 1970-71, 48.9% of the total, and the high proportion going to university education, 33.6%. 9. As the Economic Council of Canada notes in its Fifteenth Annual Report, "Part of the increase can be explained by the drop in the student-teacher ratio ... in secondary schools - a phenomenon largely related to the widened variety of courses being offered and to the assignment of counselling and other non-teaching tasks to teachers." (1978, p. 107.) Generally, reapportionment of educational funds for postsecondary non-university education has better reflected enrolment in such programs than has been the case for university programs. 10. Part-time non-university enrolments are not available from either Statistics Canada sources or for most provinces from their published educational statistics. 11. Johnson, pp 2 - 3 . 12. See the Council of Ministers of Education, Changing Economic Circumstances: The Challenge for Postsecondary Education and Manpower Training, and Government of Alberta, White Paper: Proposals for an Industrial and Science Strategy for Alberta - 1985 to 1990. REFERENCES Armstrong, H. "The Labour Force and State Workers," in L. Panitch (ed.), The Canadian State. Political Economy and Political Power. Toronto: University of Toronto Press, 1977. Council of Ministers of Education. Changing Economic Circumstances: Postsecondary Education and Manpower Training. October, 1985. The Challenge for Deaton, R. "The Fiscal Crisis of the State in Canada," in D. Roussopoulos (ed.), The Political Economy of the State. Montreal: Black Rose Books, 1973, pp. 18-58. Economic Council of Canada. A Time for Reason. Ottawa: Supply and Services, Fifteenth Annual Review, 1978. Government of Alberta. White Paper: Proposals for an Industrial Alberta-1985 to 1990. Edmonton: July, 1984. and Science Strategy Johnson, A.W. Giving Greater Point and Purpose to the Federal Financing of Education and Research in Canada. Ottawa: Secretary of State, 1985. for Postsecondary O'Connor, J. The Fiscal Crisis of the State. New York: St. Martin's Press, Inc., 1973. Royal Commission on the Canadian Economy. Economic Canada. Ottawa: Supply and Services, 1985. Union and Development Prospects for Statistics Canada. Advance Statistics of Education - 1985. Ottawa: Supply and Services, 1985. Statistics Canada. Decade of Educational Services, 1983. Statistics Canada. Post-Censal Finance - 1970-71 to 1980-81. Ottawa: Supply and Annual Estimates of Population. Ottawa: Supply and Services, 1985. Statistics Canada. Provincial Economic Accounts. Ottawa: Supply and Services, 1985.