Standing Committee on

Finance and Economic Affairs

PRE-BUDGET CONSULTATIONS 2018
THUNDER BAY: JANUARY 15, 2018
 Overview of Confederation College
 Serving the citizens of northwestern Ontario since 1967, meeting the educational
needs of students in a catchment area of some 550,000 square kilometres
 9 Campuses: main campus in Thunder Bay; plus 8 regional campuses across NW
Ontario: Dryden, Fort Frances, Kenora, Geraldton, Marathon, Red Lake, Sioux Lookout,
Wawa
 58 full-time programs in 11 areas of study
 3,050 full-time learners: 2,416 domestic; 634 international; 4,247 part-time, continuing
education and workforce training learners
 Significant Indigenous population with specialized services and programs geared
toward Indigenous students – 26% of students self-identify as Indigenous
 87% graduate satisfaction rate; 90% employer satisfaction rate; 85% of students found
employment within 6 months of graduation
 $411.2 million in direct economic benefit to NW Ontario (Econ. Impact Survey 2013)

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 Current Sustainability Challenges
 Significant demographic change in Ontario (declining number of youth overall)
particularly in northwestern Ontario.
 Ongoing domestic student enrolment declines; reduced tuition fees and provincial
operating grant revenue. Increased reliance on international students for revenue.
 Low secondary success rate in northwestern Ontario and generally poor
preparation for postsecondary learning (mathematics and literacy).
 Increasing investments required in learner support services.
 Current funding policies including: change in the college funding formula; Small
Northern Rural grant review; First Generation funding review.
 Increasing deferred maintenance costs associated with aging infrastructure
(currently $95M).

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 Current Instability Challenges
 At a time when there is an escalating demand for more college graduates, our
college system is becoming unsustainable and facing an unprecedented financial
crisis today that is putting our core mandate at risk.
 A report done last year by PricewaterhouseCoopers said colleges province-wide
face an annual operating deficit that will exceed $400 million a year by 2024-25. The
report said colleges collectively face a cumulative shortfall of more than $1.9 billion
by 2024-25.
 Changing student demographics, an aging infrastructure, the cost of new
technology, and increasing costs for mental health programs and services are
among the factors that are putting fiscal pressure on our colleges.
 Impact of the 5 week Faculty Strike on student enrolment and retention has added
to the instability
 However, these projections were done before the province passed Bill 148, the Fair
Workplaces, Better Jobs Act.

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 Bill 148, the Fair Workplaces, Better Jobs Act

 Total estimated increase for Confederation College is approximately $8M or

10% increase in annual operating costs ($80.2M operating budget).
 Magnitude of the financial impact of Bill 148 is overwhelming for a College
our size.
 Preliminary forecast of unfunded Bill 148 costs, inflationary increases and the
short timeline to develop a mitigation plan is a significant deficit for 2018-19
of approximately $9M to S11M.
 Mitigation plan dependent upon additional funding from MAESD.
 Significant implications on the ongoing sustainability of current programs,
services, campuses and staffing at the College.

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 2018 Provincial Budget 6

Suggested areas of focus:

 Improved college operating funding, including improvements to the core
operating grant to support the goals of the Fair Workplaces, Better Jobs Act.
 Investments into capital improvements, including our deferred maintenance
backlog, information technology and new instructional equipment.
Summary:
College system is in serious need of renewal and new funding is needed to address
the fiscal crisis in our colleges.
2018 Budget is an opportunity to send a direct message to employers and students
that Ontario is committed to investing in the province’s future workforce and
Ontario’s long-term prosperity.

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 Questions?

Ken Adams
Vice President, College Services & Treasurer to the Board
Confederation College
ken.adams@confederationcollege.ca
(807) 475-6173

Thank you!