OTTAWA—Ontario’s system of financing higher education is becoming less equitable and more regressive for families, says a study released today by the Canadian Centre for Policy Alternatives (CCPA).
According to the study, if a middle-income Ontario family dedicated every cent of their after-tax earnings towards the cost of their child’s university tuition fees starting on September 1, 2011, they would have to work until March 14, 2012 (195 days) before they paid for a four-year degree.
In 1990, it would have taken the same family only until November 27th, 1990 (87 days). For those students who gain entry into professional programs like medicine or law, it may take a middle-income family over a year of earnings to pay just tuition fees.
“Ontario families are being forced to play priority roulette,” says Erika Shaker, director of the CCPA Education Project. “The trifecta of stagnant incomes, household debt, and rising tuition fees means that families are having to make difficult choices around the kitchen table about what to prioritize: meeting basic expenses, saving for retirement, paying down their debt or sending their kids to university. This hits lower- and middle-income families especially hard.”
The study offers two alternatives to increased downloading onto families.
“The 2009 Ontario corporate tax cut, could have rolled back tuition fees to 1990 levels, representing a reduction in tuition fees from $6,500 to $2,500 a year,” says CCPA research associate David Macdonald.
“If we implemented the reduction through the personal tax system, it would cost an average of $100/year per family to reduce undergraduate tuition fees to 1990 levels. For an annual average of $170 a family, undergraduate university tuition fees could be eliminated altogether. This progressively-administered expenditure represents exceptional value and cost-effectiveness for families who otherwise face increased sacrifices and ever higher debt loads.”
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Under Pressure: The impact of rising tuition fees on Ontario families is available on the CCPA website: http://policyalternatives.ca
For more information contact Kerri-Anne Finn, CCPA Senior Communications Officer, at 613-563-1341 x306.
Community Led Organizations United Together (CLOUT) is a coalition of nine community-based organizations providing direct service to inner-city children and families. They include: Andrew Street Family Centre, Ma Mawi Wi Chi Itata Centre, Community Education Development Association (CEDA), Native Women's Transition Centre, North End Women's Centre, Ndinawemaaganag Endaawad (Ndiniwe) Rossbook House, Wolseley Family Place and Wahbung Abinoonjiiag.
Collectively, CLOUT organizations have been building capacity in the inner-city for many years. Their approach to capacity building is as grassroots as it gets. In the 2010 State of the inner City Report title "We're in it for the long haul" Carole O'brien tells the story of CLOUT.
Help change the conversation about poverty:
SHARE http://www.youtube.com/watch?v=Pd_nkCi-pVo
LEARN http://www.policyalternatives.ca/costofpovertybc
TAKE ACTION Look up your MLA using the MLA Finder at http://www.leg.bc.ca/mla/3-1-1.htm and call, email, or visit their office (report in hand) to tell them that the cost of poverty is too high. Contact them while they're in their home constituencies over the summer and let them know we want to see a poverty reduction plan in their party's platform ahead of the next election.
You can also view a subtitled version of the video here: http://www.universalsubtitles.org/en/videos/buNZTmgCNAvH/info/
The income gap between the rich and the rest of us has worsened over the past generation. In 2009, during the dark days of Canada's recession, the richest 20% of Canadians took home a whopping 44.2% of total after-tax income -- in stark contrast to the poorest 20% whose after-tax income share was only 4.9%.
What did the gap look like in your province? This You Oughta Know slideshow tells the story. If you can't view the slideshow below, click here to view the images on Flickr.
CCPA not only does first-rate research; it also connects with the real world by putting powerful information in the hands of advocacy groups and by presenting intelligent, progressive ideas in the media. It is a BC jewel and I urge everyone to support it.
— Kathleen Ruff, founder, RightOn Canada