Why Education is Often the First to Face Budget Cuts
By Sylvie Edwards | Education often faces early budget cuts due to political ease, complex funding, and delayed impact—Ontario colleges strained from funding cuts and fewer international students
By Sylvie Edwards for Sankarsingh-Gonsalves Productions
Let me start this article by stating that I can only speak on this from my perspective and that of the opinions expressed in the media. I can also only speak to the issues from an Ontario perspective, teaching in an Ontario-based College. Please note that the data or statistics used in this article have been sourced from CBC and other media outlets reporting on this issue over the past years, but more so in the past months.
When governments face budget constraints, education is often one of the first sectors to experience cuts. This trend is evident in many regions, including Ontario, where colleges are currently grappling with significant financial challenges. To understand why education budgets are frequently targeted requires us to examine several key factors that I have outlined below.
Perceived Immediate Impact vs. Long-Term Benefits
One of the primary reasons education budgets are cut is the perception that the immediate impact of such cuts is less severe compared to other sectors. Education, particularly higher education, is often seen as a long-term investment. The benefits of education, such as a more skilled workforce and higher earning potential, are realized over many years. In contrast, sectors like healthcare and public safety provide immediate and visible services. When governments need to make quick budget adjustments, they may prioritize sectors with immediate, tangible impacts over those with long-term benefits. At issue is that the long-term benefits get impacted later, having a major impact that is harder to fix or to adjust from.
Political Considerations
Education cuts can be politically easier to implement than cuts in other areas. Reducing funding for healthcare or social services can lead to immediate and highly visible consequences, such as hospital closures or increased homelessness, which can provoke public outcry and political backlash. In contrast, the effects of education cuts, such as larger class sizes or reduced program offerings, may not be as immediately apparent to the public. This makes education a more politically palatable target for budget reductions. What do they say: Out of sight, out of mind. This latest round of cuts and changes to the education sector is very much within sight, being discussed openly and felt profoundly by a lot of individuals.
Complex Funding Structures
The funding structure of education systems can also make them more vulnerable to cuts. Education funding often comes from multiple sources, including federal or provincial, and local governments, as well as tuition fees. This complexity can create opportunities for governments to shift financial responsibilities and reduce their contributions without immediately crippling the system. In Ontario, for example, the reliance on international student tuition has been a significant factor in the financial stability and growth of colleges. Recent federal policy changes limiting international student permits have exacerbated financial pressures, leading to program and job cuts. This creates a severe unbalance that leads to deeper cuts and major shifts in programming at almost every institution within the system.
Economic Downturns and Revenue Shortfalls
Economic downturns and revenue shortfalls often lead to budget cuts across various sectors, and education is no exception. During economic recessions, governments face decreased tax revenues and increased demand for social services. To balance budgets, they may reduce funding for education, which is seen as a discretionary expense compared to mandatory spending on social services and healthcare. The Great Recession of 2008 and the COVID-19 pandemic are examples of periods when education budgets were significantly reduced due to economic pressures. Some of these levels of funding have not been re-established since the recent shifts have become even more palatable.
Efficiency Arguments
Another reason education budgets are targeted is the argument that educational institutions can operate more efficiently. Policymakers may believe that schools and colleges can absorb cuts by reducing administrative costs, consolidating programs, or finding alternative funding sources. While there is some truth to the need for efficiency, repeated budget cuts can erode the quality of education and limit access to essential resources. It can also lead to hasty decisions about what to cut and how.
The Current Situation in Ontario Colleges
Ontario colleges are currently facing a financial crisis that highlights many of these issues. Across the province, colleges are cutting programs and jobs in response to budget constraints. The Ontario Public Service Employees Union (OPSEU) has reported significant layoffs and program cuts at institutions like Mohawk College, Centennial College, and Seneca College. These cuts are partly due to a projected $50 million deficit at Mohawk College and similar financial challenges at other institutions. Durham College has not been spared, and a lot of work is underway to see where changes can be made to bring down the budget pressures.
One of the key factors contributing to this crisis is the decline in international student enrollment. The federal government's decision to issue fewer international student permits has significantly impacted Ontario colleges, which have relied heavily on international tuition fees to balance their budgets. This reliance on international students has been a double-edged sword, providing much-needed revenue but also creating vulnerability to policy changes and global events.
Additionally, public funding for post-secondary education in Ontario has been declining on a per-student basis since 2006. This long-term trend of underfunding has left colleges with limited financial flexibility, making them more susceptible to economic downturns and policy shifts. The result is a cycle of budget cuts, program reductions, and job losses that ultimately affect the quality of education and the opportunities available to students.
Education is often the first sector to face budget cuts due to a combination of perceived immediate impact, political considerations, complex funding structures, economic downturns, and arguments for efficiency. The current situation in Ontario colleges exemplifies these challenges, with institutions struggling to maintain programs and staffing levels amid declining public funding and reduced international student enrollment. Addressing these issues requires a commitment to sustainable funding for education and a recognition of its long-term value to society. It is hard to prepare the next generation of students for the workplace when there are no programs to support this need.
Sylvie Edwards is a Fellow of the Project Management Association of Canada with over 25 years of industry experience. She is a post secondary #educator and past President of the Project Management Institute- Durham Highlands Chapter.
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