By Emma Godmere
Despite focus on research and innovation, no new student aid initiatives announced in budget
OTTAWA (CUP) — Higher education in the context of research and innovation stole much of the spotlight in the Conservative government’s 2012 budget delivered March 29, but students and youth seeking greater financial aid were otherwise left in the dark.
Apart from a heavy focus on industry-related research and additional funding for one particular youth employment program, Canadian post-secondary students were largely missing from the 2012 budget.
“The plan’s measures focus on the drivers of growth: innovation, business investment, people’s education, and skills that will fuel the new wave of job creation,” Finance Minister Jim Flaherty told reporters in advance of the budget’s unveiling in the House of Commons.
The Conservatives placed a clear emphasis on partnerships between businesses and universities when it came to research funding: among their plans, they intend to dedicate $14 million over two years to double the Industrial Research and Development Internship Program, which currently supports 1,000 graduate students in conducting research at private-sector firms.
The Conservatives also plan to send $6.5 million over three years to McMaster University for a health care research project, and will dedicate $500 million over five years to support modernization of research infrastructure on campuses through the Canada Foundation for Innovation, starting in 2014 – 2015.
Reflecting similar numbers mentioned in the 2011 budget, federal funding to the tune of $37 million annually was earmarked for Canada’s three research granting councils, set to begin in 2012 – 2013. Despite this, the document noted that “granting councils will be pursuing operational efficiencies and reallocation of funding from lower-priority programs to generate savings,” and that the government would “fully reinvest 2012 – 2013 savings in priority areas of the granting councils, particularly in industry-academic partnerships.”
Living up to rumours that have swirled in the media over the past few days, the government cut funding to Katimavik, a popular youth program that supported young Canadians traveling the country to participate in volunteer projects. In the budget, the government announced its intentions to continue to invest in “affordable, effective programming” and that Canadian Heritage would pledge over $105 million in youth initiatives, though few details were provided.
In the area of job creation specifically for youth, the Conservatives announced they would add another $50 million over two years to the existing Youth Employment Strategy, which, according to the government, connected nearly 70,000 youth with work experience and skills training last year.
And while the government reaffirmed their plan to forgive student loans of up to $40,000 for new doctors and $20,000 for new nurses and nurse practitioners who plan to work in rural and aboriginal communities, starting in 2012 – 2013, this plan had already been announced in last year’s budget.
The 2012 budget is also considered the final report of the stimulus phase of the government’s economic action plan, launched in 2009. This signifies the end of the Knowledge Infrastructure Program, which provided nearly $2 billion over two years for construction projects at university and college campuses across the country. Budget 2012 reported that a total of 515 projects were completed under the program, and while five have yet to be completed, no further federal funding will be provided for those unfinished projects.
The Conservatives, as expected, will also reduce government employment by 4.8 per cent, or 19,200 jobs, though details surrounding which departments or programs will be affected — such as the federal public service student employment program — have yet to be shared.
The Conservatives also laid out additional departmental cuts to Human Resources and Social Development (HRSDC), noting that some changes will “transform the administration of grants and contributions to enhance online delivery and reduce red tape and the paper burden for applicants and recipients.” Cuts to HRSDC in the 2012 budget start at $6.3 million in 2012 – 2013 and jump to $183.2 million by 2014 – 2015. No details were given as to the potential effect these cuts could have on the Canada Student Loans Program.
Additionally, the government announced its plans to eliminate the penny. Pennies will no longer be produced and distributed to financial institutions starting in fall 2012, though the coins will still be allowed in cash transactions.
Cuts to the CBC were also laid out in the document, starting with $27.8 million in savings in 2012 – 2013 and rising to $115 million in 2014 – 2015.
Similar to the 2011 budget, the Conservatives are aiming to lower the deficit to $1.3 billion by 2014 – 2015 and achieve a $3.4 billion surplus by 2015 – 2016.
