University of Alberta president Indira Samarasekera is pictured at the U of A in Edmonton AB, December 17, 2010. Samarasekera is an advocate for boys education.Jason Franson/The Globe and Mail
Are students willing to pay more for a degree in economics than in English? The University of Alberta could soon bet on the answer, part of a move by universities in the province to pass more of the costs of postsecondary education to students.
The plan, currently making its way through the university's administration, would see fees rise by $150 an economics course for domestic students and $554 for international students. Professional programs at many Canadian universities charge higher fees already – the proposal extends differentiated tuition to an undergraduate major. Jobs for economics graduates in Alberta take months to fill and have starting salaries of over $90,000, said Lesley Cormack, the university's dean of arts. Demand for spots has exploded and the department can't keep up: economics professors command 35 to 40 per cent more than those in humanities and other social sciences.
"Economics is the most professional program we have [in the faculty of arts] – people become economists and earn very high salaries," said Dr. Cormack.
Once approved by the university, the proposal will head to the advanced education ministry. Alberta imposes an inflation cap on tuition, but this summer, after a year of talks around how fees are set, former innovation and advanced education minister Dave Hancock invited colleges and universities to submit "market modified" tuition fee applications. If approved, the proposals will allow schools to escape the cap in three programs. Law, business and pharmacy at the University of Alberta and law, business and engineering at the University of Calgary are looking for increases of more than 50 per cent in some cases.
With proposals due to the ministry mid-month and a decision expected later in the fall, the economics program won't see hikes in the near future. Should the ministry open another round of applications, however, the program would be first in line.
Political shuffling in the minister's chair has made the ministry's intentions opaque. Current minister Don Scott is two weeks into the job – the invitation to apply for modifiers came partly as a result of a season of budget whiplash and politicking that was before his time, although some say that the University of Alberta has been looking for openings to the tuition fee framework for a while. Universities first saw cuts in the spring budget of 2013, then, after they had made cuts, then-minister Thomas Lukaszuk put back $50-million several months later. (A previous round of market modifiers happened in 2010).
Mr. Scott has already said the money that was reduced in 2013 will be restored and that, like Premier Jim Prentice, he's looking to learn more about the impact of the scheme before making decisions.
How Alberta manages the process and how many disciplines press to escape the tuition fee straitjacket is going to be closely watched by other provinces and their institutions. Many have preferred to court voters with tuition rebates and increases to scholarships (hello, 30 per cent off Ontario) than repel them with sticker shock.
Rules around how much each province can raise fees vary by province. Ontario has imposed a 3 per cent cap on undergraduate fees and an average of 5 per cent on graduate and professional programs. Quebec has seen increases close to inflation after proposals for higher fees were axed by the Maple Spring. Those fees would have provided some relief from the now seemingly endless announcements of deeper deficits requiring deeper sacrifices.
Now, Quebec's schools need to sharpen their knives. Last week, Concordia opened a voluntary buyout package to administrative and support staff and is looking for about 150 people to take it up.
"If this is not successful, then there is going to be a plan B. Whatever it is, the plan B would touch upon the academic faculty," said Ted Stathopoulos, the president of the Concordia University Faculty Association.
The university's president is not disputing that. "We'll have to go back and look at across-the-board cuts, I'm not in favour of that because it implies you cut in almost a robotic fashion," Alan Shepard said.
Other departments, like purchasing and some building projects are also taking reductions. McGill offered a buyout last year and discussions are continuing at other schools.
What Quebec universities can't do is ask the government to relax tuition fee caps. Even in Alberta, the market modifier proposals require programs to consult with students extensively.
Still, others say what they need are stable and predictable costs. "If the funding is restored, we don't see the need for market modifiers," said Navneet Khinda, a vice-president of the Alberta Students Union.
Some Alberta observers argue that higher sticker prices are mistakenly associated, even by students, with higher prestige, much like designer clothes. If that's true, the rise in fees will drive demand even higher. In comparison, becoming a poet could start to look a lot more affordable.
Simona Chiose is The Globe's higher-education reporter.