Minister of Advanced Education Demetrios Nicolaides. (Supplied by Government of Alberta)

By David Opinko

Province announces “outcomes-based” funding model for post-secondary education

Jan 20, 2020 | 11:15 AM

CALGARY, AB – The way that Alberta’s colleges, universities, and other post-secondary institutions are funded is about to change.

Minister of Advanced Education Demetrios Nicolaides declared Monday that “the current model of investing in post-secondary education is not working in the best possible way.”

This, he believes, is due to the funding system not being tied to any kind of measurable targets, progress towards goals, or to changing economic demands.

The minister recently wrote to 21 post-secondary institutions, saying that funding has risen by 106% over the last decade, while enrollment has only grown by 21%.

The new funding model will be based on achieving key performance measures, which Demetrios says will encourage schools to improve services, increase efficiencies, and create opportunities for Albertans through strong labour market outcomes and innovative programs and research.

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“Our new approach will help ensure students are set up for success by encouraging institutions to produce job-ready graduates. Students make a significant investment in their post-secondary education, and it is essential we do everything possible to give them a rewarding career at the end of their studies.”

The exact performance measures still have to be finalized, but some examples include:

• Graduate employment rate
• Median graduate income
• Graduate skills and competencies
• Work-integrated learning opportunities
• Administrative expense ratio
• Sponsored research revenue
• Enrollment (including potential targets for domestic students, international students, and under-represented learners)

“By shifting the focus to performance, we will ensure taxpayer dollars are being used in the most responsible way possible,” says Nicolaides.

For the 2020-2021 fiscal year, 15% of each school’s operational funding will be tied to performance outcomes. This is set to rise to a maximum of 40% by 2022-2023.

The Minister adds that performance measures will be weighted differently depending on the institution, as some measures will be more important to different types of schools.

“Institutions that meet all of their targets will receive 100 per cent of their allocated funding,” reads a media release from the province.

Those who do not meet their targets will “receive funding that is appropriate to its level of achievement.” For example, one that reaches 90% of its target will get 90% of its funding for that target.

The Government of Alberta also looks to re-negotiate its three-year funding agreements with post-secondary schools.