University agreements with N.S. government outline funding, accountability rules

Nova Scotia's 10 universities have each signed a new agreement with the province that outlines funding, accountability requirements and stipulations the schools must abide by to access some of the money.

The two-year agreements do not allow universities to increase tuition for Nova Scotia residents in undergraduate programs, but there are no restrictions on tuition increases for students coming to Nova Scotia universities from other provinces, international students or graduate students.

"We want to make sure that our kids graduating from universities here in Nova Scotia have, you know, the best possible education [and] at the same time aren't financially burdened," said Advanced Education Minister Brendan Maguire.

He said universities will make their own decisions about whether they raise tuition for students from other parts of Canada or abroad.

"We have some very smart people that run these universities and this is about them being attractive … so I don't expect them to price themselves out."

The agreements provide a two per cent increase in operating funds. That increase, however, will not keep pace with inflation or offset the loss of revenue due to the federal government's cut in the number of international students allowed.

"The province doesn't have endless pockets," Maguire said. "We can only give what we give." 

According to a news release, the 10 universities will see a boost of $7.7 million in 2025-26, and $7.8 million the following year.

Funding holdbacks

However, some of that operating grant will be held back if certain universities don't meet certain targets.

Those targets include filling at least 97 per cent of health program seats, ensuring housing is available for 15 per cent of students and that on-campus housing has a maximum vacancy rate of five per cent.

The agreements also continue the Nova Scotia University Student Bursary program, which reduces tuition by $1,283 for Nova Scotian students with a full-time course load. Nova Scotian students will also be given preferred admission in undergraduate health and bachelor of education programs beginning Jan. 1, 2026.

Universities will be required to increase work-integrated learning opportunities to ensure students have job-ready skills, the release said.

University reaction

Saint Mary's University, Mount Saint Vincent University and the University of King's College declined to comment on the agreements.

Dalhousie University spokesperson Janet Bryson sent a statement saying the school welcomes the two per cent funding increase and the commitment to affordability for Nova Scotian students, but acknowledged "there is significant work ahead — both in meeting the terms of the agreement and in finalizing our budget."

Peter Halpin of the Council of Nova Scotia University Presidents said the two per cent increase is welcome, but it is below the annual rate of inflation and will not offset the significant decline of revenues from international students in 2024 — a decline that is expected this year, too. 

Halpin added that universities have a significant accumulated deferred maintenance issue, and are required to comply with accessibility legislation by 2030, which will involve significant capital costs.

"Suffice to say it's a very challenging environment," he said.

Program reviews

Universities have previously expressed concern about Bill 12, legislation that would increase government oversight of schools, forcing them to align academic programs with the government's social and economic priorities, and allowing the minister of advanced education to appoint up to half of members on the board of governors.

Some of those priorities are reflected in the agreements.

The news release says the agreements include a stipulation that universities must undergo a program review to ensure they "meet current educational standards, respond to labour market demands and are economically viable."

An internal memo from Acadia University president Jeffrey Hennessy that was obtained by CBC News this week called program rationalization — which he said involves reducing or discontinuing programs with low labour market need, low utilization and high program costs — "perhaps the most sweeping and impactful section of the agreement."

'A real step backwards'

Cathy Conrad, the president of the Saint Mary's University Faculty Union, said the SMU agreement comes with some very tight timelines, including a detailed report on strategic alignment that must be completed by June 15.

"The reporting requirements are extraordinary," she said. "It is worrisome that then, you know, we become more about chasing the performative measures, chasing the requirements so that we get the money … and we're not actually thinking about the quality of what it is that we're supposed to be doing."

Conrad is also concerned about how the program review will impact academic offerings.

"Whether the Department of Advanced Education intended to or not, the university management is now weaponizing this to use as a rationalization exercise," she said. 

SMU is already planning to cut 50 arts and humanities courses for the upcoming year.

The president-elect of the Dalhousie Faculty Association, David Westwood, echoed the concern about cutting programs.

He said Dalhousie does program reviews every seven years, but to review all the university's programs in one year would be a huge undertaking.

"I suspect the province doesn't understand exactly what's involved. If you want to talk about being efficient with resources, that's not an efficient use of university resources to do that volume of work."

Westwood said the agreements undermine university autonomy.

"Universities are not a department of government. We are meant to be independent. Provincial government is meant to be there to support and fund our needs, not to interfere and micromanage what universities do. And this is a very troubling intrusion in academic freedom and institutional autonomy. It's a real step backwards for our sector."

He added that it's possible the issue will play out in the courts.

"There may be some legal challenges that are mounted on the basis of the constitutionality of government tying strings to funding to post-secondary and violating institutional autonomy."

Students applaud tuition freeze

The executive director of Students Nova Scotia, G Saleski, says the tuition freeze for Nova Scotian undergraduate students is "a really big win for students," as tuition in the province is "staggeringly" above the Canadian average.

According to Statistics Canada, the average undergraduate tuition for domestic students at Nova Scotia universities was $9,762 in the 2024-25 academic year. The Canadian average was $7,362.

Saleski also lauded the housing accountability measures and the increase in work-integrated learning opportunities mandated in the agreements.

They said the tuition freeze will be challenging for universities to navigate.

"I don't think that it's impossible by any means," Saleski said. "This has happened in the past and it's just going to require, I think, a bit of innovation."