Report on the University System in Nova Scotia Prepared by Dr. Tim O’Neill for Premier Darrell Dexter Province of Nova Scotia September 2010 ISBN 978-1-55457-374-5 REPORT ON THE UNIVERSITY SYSTEM IN NOVA SCOTIA SEPTEMBER, 2010 Table of Contents EXECUTIVE SUMMARY .......................................................................................................... 1 LIST OF FIGURES ................................................................................................................... 8 ACRONYMS AND ABBREVIATIONS ...................................................................................... 11 1. Introduction 1.1 Context for the Report .....................................................................................................13 1.2 Reviews of the University System in Nova Scotia ...........................................................13 1.3 Terms of Reference ...........................................................................................................15 1.4 How the Work was Done .................................................................................................16 1.5 Structure of the Report .....................................................................................................16 1.6 Framing of Expectations ..................................................................................................16 2. Overview of the Nova Scotia University System 2.1 Introduction ......................................................................................................................19 2.2 Funding .............................................................................................................................20 2.3 Enrolments .......................................................................................................................27 2.4 Tuition ...............................................................................................................................31 2.5 Student Debt ....................................................................................................................33 2.6 Participation Rates ...........................................................................................................34 2.7 Research ...........................................................................................................................34 2.8 Infrastructure ....................................................................................................................35 2.9 Budgetary Considerations for 2011–12 ..........................................................................37 3. Outlook for Nova Scotia Universities 3.1 Enrolment Projections ......................................................................................................39 3.1.1 Introduction................................................................................................................................39 3.1.2 Population Projections ................................................................................................................40 3.1.3 Enrolment and Participation Rate Projections – Prime Age Cohort ............................................41 3.1.4 Enrolment Potential – International Students .............................................................................46 3.1.5 Enrolment Potential – Visible Minorities .....................................................................................47 3.1.6 Enrolment Potential – Mature Students .....................................................................................49 3.2 Revenue and Expenditure Projections ............................................................................51 3.2.1 Introduction................................................................................................................................51 3.2.2 Key Assumptions ........................................................................................................................52 3.2.3 System Projections – Impact of Assumptions .............................................................................54 3.2.4 System Projections – Scenarios ..................................................................................................55 __________________________________________________________________________________________________________________________ III REPORT ON THE UNIVERSITY SYSTEM IN NOVA SCOTIA SEPTEMBER 2010 3.3 Operating Expenditures ...................................................................................................68 3.3.1 Introduction................................................................................................................................68 3.3.2 University Operating Cost Structures and Patterns .....................................................................68 3.3.3 Compensation – Salaries and Benefits .......................................................................................74 3.3.4 Operating Cost Challenges ........................................................................................................75 3.4 Implications of the Outlook for Individual Institutions ...................................................76 4. Policy Options to Consider 4.1. Tuition Fees and Student Financial Assistance ................................................................79 4.1.1 Introduction................................................................................................................................79 4.1.2 Accessibility, Affordability, and Costs/Benefits of University Education .......................................79 4.1.3 Tuition Policy Options .................................................................................................................84 4.1.4 Student Financial Assistance ......................................................................................................87 4.2 Government Funding .......................................................................................................92 4.2.1 Some General Principles .............................................................................................................92 4.2.2 Government Funding of Nova Scotia’s Universities ....................................................................93 4.2.3 Where to From Here? .................................................................................................................97 4.3 System Restructuring .......................................................................................................99 4.3.1 Introduction................................................................................................................................99 4.3.2 Types of Restructuring Possibilities .......................................................................................... 101 4.3.3 The Status Quo ........................................................................................................................ 104 4.3.4 The University of Nova Scotia Option ...................................................................................... 105 4.3.5 The University of Halifax Option .............................................................................................. 106 4.3.6 Program Consolidation ........................................................................................................... 108 4.3.7 Bilateral Mergers ..................................................................................................................... 109 4.3.8 Internal Restructuring .............................................................................................................. 114 4.4 Administrative Integration and Cost Savings ................................................................116 4.4.1 Introduction............................................................................................................................. 116 4.4.2 Key Categories of Potential Cost Savings ................................................................................ 117 Appendix 1: Detailed Information on Key Cost Savings ........................................................... 121 Appendix 2: Collaborative Cost Saving Measures – Actual and Prospective ........................... 125 4.5 Key Performance Indicators (KPIs) for Quality Assessment and Accountability ...........126 4.5.1 Introduction............................................................................................................................. 126 4.5.2 Measuring Educational Quality ............................................................................................... 126 4.5.3 Education Quality – Performance Indicators ............................................................................ 128 4.5.4 Where to From Here? .............................................................................................................. 130 4.6 Infrastructure ..................................................................................................................133 5. Research, Technology Transfer, and Commercialization 5.1 Introduction ....................................................................................................................137 5.2 Research Funding for Nova Scotia Universities .............................................................137 5.2.1 Serendipity versus Government Direction in University Research