FACT SHEET

March 2013

INTERNATIONAL COVENANT ON ECONOMIC, SOCIAL & CULTURAL RIGHTS:

ARTICLE 13. 1. The States Parties to the present Covenant recognize the right of everyone to education They further agree that education shall enable all persons to participate effectively in a free society, promote understanding, tolerance and friendship among all nations and all racial, ethnic or religious groups, and further the activities of the United Nations for the maintenance of peace. 2. The States Parties to the present Covenant recognize that, with a view to achieving the full realization of this right(c) higher education shall be made equally accessible to all, on the basis of capacity, by every appropriate means, and in particular by the progressive introduction of free education.

FREE POST-SECONDARY EDUCATION IN ONTARIO: THE CASE FOR ELIMINATING TUITION FEES
EDUCATION IS A RIGHT
In 1976, Canada ratified the International Covenant on Economic, Social and Cultural Rights, which committed signatories to recognize the right of everyone to education at all levels. By signing the Covenant, Canada acknowledged the right of everyone to free primary and secondary education, along with the progressive introduction of free post-secondary education. At the time, undergraduate students paid an average of $551 for tuition fees in Canada and $610 in Ontario.1 It is obvious that successive governments have not lived up to this commitment, as average tuition fees for undergraduate students have increased 10-fold in Canada and 12-fold in Ontario over the last 35 years.2 Canadas commitment under the Covenant recognizes that investing in education is not only about economic prosperity, but also a key component of creating a more just and equitable society. In the 20th century, Canada invested in primary and secondary education to ensure it was free to all, with the understanding that mass public education would enrich society and reduce social and economic inequity. Postsecondary education plays a crucial role in addressing inequity and should be free for all who choose to attend.

A MATTER OF PRIORITIES
There are significant benefits of a more educated population in all areas of society including health, community development, civic engagement and the economy. In order for these benefits to be realized, a more educated population must be a priority for government. A discussion about user (tuition) fees for education or any social program is actually a discussion about government priorities. By bringing fairness back to the provincial tax system and generating more revenue, the cost of post-secondary education can easily be eliminated for all students in Ontario, with billions of dollars left over for other muchneeded social programs. Instead of recognizing this reality, governments and college and university administrators claim that institutions must charge students tuition fees because there is not enough public funding to adequately fund institutions. Implementing free post-secondary education only requires political will and a government that prioritizes education and social services. Through proper compliance and a number of progressive changes to the tax system, the province could generate an additional $9.5 billion annually.3 If we take into account the federal governments role in providing funding for social services, free post-secondary education for all students in Ontario and the rest of Canada becomes even more easily viable. The federal government has a much larger spending and revenue generating capacity, and should play a much larger role in

CANADIAN FEDERATION OF STUDENTSONTARIO

CFSONTARIO.CA

ensuring that everyone has access to a college or university education. According to the Canadian Centre for Policy Alternatives, fair and progressive tax reforms could generate up to $40 billion annually.4 The federal and provincial governments also pour money each year into back-end programs that reward wealthier families instead of reducing the upfront cost of post-secondary education. Currently, Ontarios postsecondary education system relies heavily on burdening students with debt and providing families with tax benefits that are more valuable for higher income families. Education tax credits and savings programs are regressive programs since they are more beneficial for wealthier families. Tax credits are more valuable to families

with higher taxable incomes, while education savings programs advantage wealthier families since these families have a greater capacity to put money aside for savings. In 2010-11, all of the money dedicated to education tax credits, education savings schemes and student loan relief could have converted almost all government loans to grants or reduced tuition fees by 40 per cent for all Ontario students.5 Reducing tuition fees and converting loans to grants are progressive programs because they assist students from lower income families the most.

for the fee. For example, a family whose combined annual income is $50,000 would be paying a much larger percentage of their income towards one childs tuition fees compared to a family whose combined annual income is $120,000. If each family were paying $7,180 to send one child to university, this would represent 14 per cent of the lower-income familys annual income compared to 6 per cent of the wealthier familys income. In Ontario, average college tuition fees are $2,526, while undergraduate and graduate students pay an average of $7,180 and $8,041, respectively.6 The high cost of tuition fees is the largest barrier to accessing a post-secondary education and disproportionately affects those who cannot afford this user fee upfront. Students from lower

THE REGRESSIVE NATURE OF TUITION FEES

Like other user fees for public services, tuition fees are regressive, since lower income families pay a higher portion of their incomes

STUDENT LOANS COULD BE CONVERTED TO GRANTS AT ALMOST NO EXTRA COST BY SHIFTING REGRESSIVE AND INEFFECTIVE MEASURES

TOTAL AMOUNT LOANED TO STUDENTS IN ONTARIO (2010-11)

$1.68 BILLION

TOTAL FEDERAL AND PROVINCIAL GOVERNMENT SPENDING ON EDUCATION TAX CREDITS, SAVINGS SCHEMES AND LOAN ASSISTANCE PROGRAMS FOR ONTARIO STUDENTS (2010-11)

$1.56 BILLION
(Source: Department of Finance Canada, Human Resources and Skills Development Canada, Ontario Ministry of Finance, Ontario Ministry of Training, Colleges and Universities.)

income families are more likely to rely on student loans. Students who rely on student loans pay more than those students who can afford to pay high fees up front because students accessing loans must pay the principle they borrowed and accumulated interest. Eliminating tuition fees and funding post-secondary education through general government revenue levels the playing field by transferring income from higherincome families to lower-income students. The existing progressive income tax system means that the more income a family has, the higher portion of their income goes to pay for public services. The trend of increased tuition fees and reduced public funding results in a decline of that net transfer from higher-income to lower-income families.

FREE POST-SECONDARY EDUCATION IN CANADA

In the spring of 1965, Newfoundland and Labrador introduced a policy where students at Memorial University would not pay tuition fees and would be provided a living allowance from the provincial government.7 Within a few years, students would have to pass a means test to be eligible for free tuition and by 1972, tuition fees had creeped back up to the national average.8 The legacy of accessible postsecondary education continues in Newfoundland and Labrador. Undergraduate and graduate students in the province pay the lowest tuition fees $2,659 and $2,456 annually on average, respectively in Canada, while college students also pay amongst the lowest fees in the country.9 On the Canadian Federation of Students National Day of

Action in 2012, the Premier of Newfoundland and Labrador proclaimed that she supports the elimination of tuition fees in the province. Since the 1960s, students in Quebec have paid no tuition fees to attend a Collge denseignement gnral et professionnel (CGEP) commonly referred to as general and vocational colleges in English. By making CGEP education free, governments in Qubec over time have acknowledged the importance of reducing the financial barriers for those who choose to pursue a pre-university or technical program in the province. This goal has also extended to university education, as undergraduate and graduate students in Qubec have paid the lowest tuition fees in Canada over the last few decades, with only Newfoundland and Labrador students now paying slightly less.

STUDENTS RECOMMENDATIONS FOR ONTARIOS TUITION FEE FRAMEWORK

In Spring 2013, the Canadian Federation of Students-Ontario recommended the following for a new tuition fee framework in CHANGING PRIORITIES: MOVING TOWARDS AFFORDABLE POST-SECONDARY EDUCATION:

REDUCE TUITION FEES FOR ALL STUDENTS BY 30 PER CENT OVER THREE YEARS. PART OF THE FUNDING WOULD COME FROM RE-ALLOCATING FUNDS DEDICATED TO THE ONTARIO TUITION GRANT AND PROVINCIAL EDUCATION TAX CREDITS. OUTLINE A LONG-TERM PLAN THAT CONTINUES TO REDUCE TUITION FEES AFTER THE INITIAL THREE YEARS OF THE FRAMEWORK AND WORKS TOWARD THE ELIMINATION OF TUITION FEES.

FREE POST-SECONDARY EDUCATION AROUND THE WORLD

Many countries around the world have recognized the importance of providing access to post-secondary education for its citizens by removing financial barriers for students. Students pay no tuition fees at public post-secondary institutions in Argentina, Barbados, Brazil, Cuba, Czech Republic, Denmark, Finland, Germany, Ghana, Greece, Hungary, Iceland, Iran, Ireland, Kuwait, Libya, Malta, Mexico, Morocco, Norway, Poland, Scotland, Slovenia, Sweden and Trinidad & Tobago.10 Other countries that charge nominal fees at public postsecondary institutions include Austria, Belgium, France, Kenya, Luxembourg, Spain and Switzerland.11 These nations vary greatly in their demographics, economy and geography, yet they have all prioritized access to and the development of their public post-secondary education systems.
+++ 1 Statistics Canada, 2012. 2 Ibid. 3 Canadian Union of Public Employees, 2012. 4 Canadian Centre for Policy Alternatives, 2012. 5 Government of Canada, 2011; Government of Ontario, 2011. 6 Colleges Ontario, 2012; Statistics Canada, 2012. 7 CBC archives. Canadian Broadcasting Corporation, 2013. 8 Statistics Canada, 2012. 9 Statistics Canada, 2012; Manitoba Council on Post-Secondary Education, 2012. 10 Chronicle of Higher Education, 2013; European Commission, 2012; International Comparative Higher Education and Finance Project, 2013; OECD, 2012; various ministries of higher education. 11 Ibid.

TOTAL TUITION FEES PAID BY STUDENTS (2012-13 ESTIMATE)

$4.2 BILLION
THROUGH FAIR TAXATION AND PROGRESSIVE REVENUE GENERATING MEASURES, POST-SECONDARY EDUCATION COULD BE FREE FOR EVERYONE IN ONTARIO AND MORE. TOTAL: $9.5 BILLION FAIR TAXATION AND PROGRESSIVE REVENUE $2B GENERATING OPTIONS
Restore the corporate income tax rate back to 2009 levels (from 11.5% to 14%)

$0.7B $1B $1B $1.3B $1.5B $2B

Restore the capital tax for financial services (which was phased out and eliminated in 2010) Introduce a financial transactions tax at 0.1% Apply a uniform rate for Business Education Taxes (BET) and index education taxes Raise income tax rate on incomes over $250,000 by 2% Eliminate the differential rates for stock options and capital gains Stricter tax audit collection and compliance measures

(Source: Colleges Ontario, Council of Ontario Universities, Canadian Union of Public Employees Ontario.)