The Importance of “Building Local” to Keep the Economic Footprint of Post-Secondary Education Strong

The economic footprint of post-secondary education has taken a dramatic hit through frozen government funding. Access to education is essential in the economic prosperity of Alberta and its future access to human capital and intellectual development. Postsecondary education serves as a catalyst for innovation, entrepreneurship, and strategic organization for both the management and advancement of social and economic progress.

The economic impact that post-secondary institutions have on the effect of our provincial economy is largely underappreciated. The University of Alberta contributes $19.4 billion per year to the Alberta economy, while The University of Lethbridge has an annual $2 billion contribution. Despite these contributions, provincial operating grants have been frozen for three consecutive budget years.

With rates of inflation trending above Bank of Canada preferred levels, peaking for 2024 in Alberta at 4.2 per cent in during the month of February3 and trending above the national average the majority of the past two years, these funding freezes have the same actual effect as funding cuts. Post-secondary operating grants have seen reductions or freezes for much of the last decade. In addition, schools are limited to increasing tuition for domestic students to 2 per cent.

Finally, caps placed by the Government of Canada on international student permits are limiting the number of students which post-secondaries are able to attract who pay higher tuitions. This has left many institutions in a difficult financial position. This has put our province's human skill development sector in a position that is creating tensions on all 26 post-secondary institutes in the province who bring value to our province by contributing to Alberta's economic and social prosperity.