Text of the letter from education minister Dave Cooke,
dated December 5, telling university presidents how much
money to expect next year:
     
     The Honourable Floyd Laughren, Treasurer of Ontario,
announced government transfer payments for 1995-96 in the
House today. I am pleased to attach copies of his
statement, for your review.
     Over the past four years, the government of Ontario
has striven to maintain a responsible balance between
supporting and maintaining public sector services, and at
the same time reducing the provincial deficit. In keeping
with this commitment, the government has again maintained
transfer payments at last year's levels for 1995-96,
without any further reductions beyond those previously
announced under the Expenditure Control Plan and Social
Contract initiatives.
     For 1996-97, it is our intention to continue to
maintain transfer payments at these levels, to help our
transfer partners adjust and introduce permanent savings
once the Social Contract ends. However, we cannot provide
guarantees for 1996-97 at this time, as the federal govern
ment has announced intentions to implement spending
reductions which may impact federal transfer payments to
the provinces.
     For 1995-96, the government had already announced a
$19.5 million base reduction to university transfer
payments, under the 1993 Expenditure Control Plan. This
reduction will proceed as previously indicated. The
transfer payment allocation for universities in 1995-96
will be $1,821 million. This allocation does not include
pay equity funding. In keeping with established practice,
pay equity allocations will be calculated and added towards
the end of the fiscal year, based on reported actual
expenditures.
     From the total university allocation, funds will be
reserved for the Special Purpose grants envelope and for
the management of expenditure deferrals introduced under
the 1993-94 Expenditure Control Plan initiatives. Details
regarding these amounts are still being finalized. I will
be asking the Ontario Council on University Affairs to
provide advice on the distribution of the remaining
allocation according to established procedures. I expect to
be in a position to formally ask for OCUA's advice within
the next several weeks.
     As you know, the Social Contract reductions introduced
in 1993-94 are permanent reductions across all transfer
partners. The Social Contract is providing a three year
window for institutions to restructure, and find permanent
savings, before the Social Contract ends at the beginning
of 1996-97.
     The Minister of Finance also announced the creation of
a new public sector labour adjustment and training program.
This new program will allow public sector access to funding
for restructuring beyond that resulting from the Social
Contract. The government will be in touch with you shortly
regarding decisions on the implementation of this program.
     The government announced tuition fees for 1995-96 last
year, and I am re-confirming that decision today. Tuition
fees will increase by ten percent in 1995-96 over 1994-95
levels. For 1995-96, tuition fees for undergraduate arts
and science students will be $2,451. The Ontario Student
Assistance Program will recognize, for the purposes of
calculating student need, the full cost of increased
tuition fees, and of any additional compulsory ancillary
fees negotiated according to the new ancillary fee policy
developed last year.
     1995-96 will be a year of considerable challenges and
opportunities for the university sector. We will be
approaching the transition out of Social Contract, at which
time permanent expenditure reductions must be in place. The
government will be receiving and reviewing the advice of
the Ontario Council on University Affairs on resource
allocation in the sector. We will be working together to
address issues raised by the federal government's social
security review. Today's funding announcement, together
with the previously announced increases in tuition fees,
provides a stable revenue platform from which to address
these challenges in the year ahead.