DOCUMENT RESUME ED 451 803 HE 033 933 TITLE Report of the MLA Post-Secondary Funding Review Committee. INSTITUTION Alberta Learning, Edmonton. ISBN ISBN-0-7785-1280-0 PUB DATE 2000-10-05 NOTE 41p.; Produced by Alberta Learning, Adult Learning Division. AVAILABLE FROM Adult Learning Division, Alberta Learning, 11th Floor, Commerce Place, 10155-102 Street, Edmonton, Alberta T5J 4L5. Tel: 780-427-5603; Fax: 780-422-3688. For full text: www.learning.gov.ab.ca. PUB TYPE Reports Evaluative (142) EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS Access to Education; Accountability; *Educational Finance; *Equal Education; Foreign Countries; *Postsecondary Education; *Public Colleges; *Resource Allocation IDENTIFIERS *Alberta ABSTRACT This report brings to an end a series of consultations that began in March 2000 when Alberta's Minister of Learning established a committee to review the approach to allocating resources to publicly funded postsecondary institutions in Alberta, Canada. The Minister asked the committee, mostly composed of Members of the Legislative Assembly (MLAs), to ensure that the funding mechanism maximized accessibility to high quality, responsive, and affordable learning opportunities while maintaining institutional accountability. The five-member committee consulted with postsecondary institutions, faculty, and student associations, government departments, and other stakeholders in order to make recommendations on a funding framework for Alberta's postsecondary institutions. The committee developed 10 recommendations:(1) base operations should be adjusted to achieve greater equity across the system;(2) a process should be established to provide for the periodic review of base operations grants; (3) general cost pressures should be considered in annual adjustments to the base operations grant;(4) a working group should be established to examine and make recommendations on improving the ability of Alberta's postsecondary institutions to attract and retain faculty;(5) the Access Fund should be modified to fund general as well as targeted enrollment increases; (6) allocations from the "Performance Envelope" should be based strictly on the achievement of excellence and improvements in performance;(7) the indirect costs of research should be funded;(8) funding processes among government departments should be coordinated and simplified when possible;(9) the tuition fee policy should be revised to ensure that it continues to support the goals of the postsecondary system; and (10) concerns with the approach toward funding apprenticeship and industry training should be further investigated. Six appendixes contain materials used by the Committee, including the consultation questions and tables of grants awarded postsecondary institutions.(SLD) Reproductions supplied by EDRS are the best that can be made from the original document. Report of the MLA Post-secondary Funding Review Committee PERMISSION TO REPRODUCEAND DISSEMINATE THIS MATERIALHAS BEEN GRANTED BY C Ainairett) TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) 1 U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC) 13141115 document has been reproduced as received from the person or organization originating it. Minor changes have been made to improve reproduction quality. Points of view or opinions statedin this document do not necessarily represent official OERI position or policy. BEST COPY AVAILABLE For additional copiescontact: Adult Learning Division Alberta Learning 11th floor, Commerce Place 10155102 Street Edmonton, Alberta T5J 4L5 Telephone: (780) 427-5603 Fax: (780) 422-3688 To be connected toll-free call310-0000. This report is availableon the Internet at www.learning.gov.ab.ca under Publications and Statistics. ISBN 0-7785-1280-0 Legislature Office: Constituency Office: 130 Legislature Building Medicine Hat Constituency 1080097 Avenue 6203rd Street, S.E. Edmonton, Alberta T5K 2B6 LEGISLATIVE ASSEMBLY Medicine Hat, Alberta T1A OH5 Telephone: (780) 422-5381 ALBERTA Telephone: (403) 527-5622 Fax: (780) 422-5385 Fax: (403) 527-5112 Rob Renner, M.L.A. Medicine Hat Constituency October 5, 2000 Honourable Dr. Lyle Oberg Minister of Learning 227 Legislature Building Edmonton, Alberta T5K 2B6 Dear Dr. Oberg: On behalf of the MLA Post-secondary Funding Review Committee, I am pleased to submit to you our report and recommendations on issues related to the funding of post-secondary education in Alberta. This report completes the Committee's work in reviewing the province's approach to allocating resources to publicly-funded post-secondary institutions. Based on extensive consultation with stakeholders, the Committee concluded that, on the whole, the current framework of base operations grants combined with targeted funding envelopes works well to balance the needs of post-secondary institutions with the goals of the system, however, certain aspects need to be improved. Through our review, we identified a number of issues, including equity, differentiation, predictability, adaptability, and complexity, as well as the importance of improving the competitive position of Alberta's post-secondary system. Taken together, our recommendations provide a comprehensive response to those issues. Our proposals would result in greater sensitivity to the diversity of the post-secondary system and the dynamics of the post-secondary environment and, at the same time, would continue to support system-wide goals and the guiding principles. Our proposals also would provide an opportunity for the province to increase its competitive advantage and ensure a leading role in post-secondary education policy in Canada. By providing Albertans with the ideas, skills, and knowledge that they need to succeed, the post-secondary system plays a vital role in the prosperity of our province and the well-being of Albertans. Ultimately, our proposals are aimed at ensuring that post-secondary learning opportunities continue to be accessible, responsive and affordable, and provide Albertans with the globally recognized skills needed to keep our province strong. On behalf of the Committee, I would like to thank you for the opportunity to renew Alberta's post-secondary education funding framework. Sincerely, Rob Renner, MLA Medicine Hat Chair, Post-secondary Funding Review Committee Contents Executive Summary 1 4110 Overview of the MLA Post-secondary Funding Review 4 The Committee 4 The Process 4 IIII Current Approach to Funding 5 Overview 5 Base Operations Grants 6 Funding Envelopes 6 Tuition Fee Policy 7 Community Consortia 8 Apprenticeship and Industry Training 8 Private University Colleges 9 Other Private Providers 9 What We Heard 10 Key Themes 10 Additional Issues 13 Committee Recommendations 14 Guiding Principles 14 A Renewed Funding Framework 15 Recommendation 1 Equity Adjustments to Base Grants 15 Recommendation 2 Regular Review of Base Grants 18 Recommendation 3 Cost Adjustments to Base Grants 18 Recommendation 4 Faculty Attraction and Retention 19 Recommendation 5 Access Fund 20 Recommendation 6 Performance Envelope 21 Recommendation 7 Research Funding 22 Recommendation 8 Government Processes 23 Recommendation 9 Tuition Fee Policy 23 Recommendation 10 Apprenticeship and Industry Training 24 Concluding Comments 25 Appendix 1: Letter Inviting Stakeholder Input 26 Appendix 2: Consultation Questions 29 Appendix 3: Current Funding Framework Principles 30 liAppendix4: Comparison of Institution Program Costs and Grant Funding 31 Appendix 5: Full-Load Equivalent (FLE) Enrolment by Institution 1994-1995 to 1998-1999 34 Appendix 6: Ongoing Grants to Post-secondary Institutions 1994-1995 to 1998-1999 35 5 Executive Summary This report culminates a series of consultations that began in March 2000, when the Minister of Learning established a committee to review the approach to allocating resources to publicly funded post-secondary institutions. The Minister asked the committee to ensure that the funding mechanism maximized accessibility to high quality, responsive and affordable learning opportunities while maintaining institutional accountability. The committee's work was to focus on potential methods of distributing existing resources rather than adequacy of funding to the system. Any proposed changes in the method of funding were to be accommodated within the government's existing post-secondary budget. No institutions were to lose existing resources, however, new funding to the system could be allocated differently. Recommendations were to be made by the fall of 2000. The committee members were Medicine Hat MLA Rob Renner, Chair; Wetaskiwin- Camrose MLA LeRoy Johnson; Calgary-Glenmore MLA Ron Stevens; former Students Finance Board Chair Fred Clarke; and Kjersti Powell, former board chair of Keyano College. The committee consulted with post-secondary institutions, faculty and student associations, government departments, and other stakeholders in order to make recommendations on a funding framework for Alberta's post-secondary institutions. 11111 The knowledge and advice received throughout the consultation process guided the committee in developing a set of core principles and recommendations for a renewed funding framework. The committee recommends that: Recommendation I Equity Adjustments to Base Grants Base operations grants should be adjusted to achieve greater equity across the system. First priority on new funding to the system should be to address variations in per student grants and expenditures between similar institutions