Chapter B: Financing education systems

View the most recent version.

B1 Total expenditure on education
B2 Public and private expenditure on education
B3 Student debt

B1 Total expenditure on education

Tables B.1.1 through B.1.5

Indicator B1 examines total combined public and private expenditure on education in Canada and its provinces and territories. These combined expenditures are presented with total amounts (Table B.1.1), indices of change (Table B.1.2), and percentage distributions (Table B.1.3), by level of education, between 1997/1998 and 2002/2003. Per capita expenditure on education and its index of change are also shown for Canada and its jurisdictions (Table B.1.4), as well as the total expenditure relative to GDP (Table B.1.5).

Concepts and definitions

• Total expenditure on education refers to the total combined public and private expenditures on education for Canada, or for a province/territory, in a given fiscal year.
  
  
• Public expenditure refers to spending on education by all levels of government, including:
  
  Direct purchases by governments of educational resources (e.g., direct payments of teachers’ salaries by a central or regional education ministry/department, direct payments by a municipality to building contractors for construction of school buildings, procurement of textbooks by a jurisdiction or regional authority for subsequent distribution to local authorities or schools)
  
  Direct payments by government agencies to educational institutions that have the responsibility of purchasing educational resources themselves (e.g., government block grants to universities, which they use to compensate personnel, a government subsidy to a private school, and government payments under contract to a private firm undertaking educational research).
  
  Direct expenditure designated for capital projects (e.g., building expansions or construction, laboratory equipment in support of research and development).
  
  Public-to-private transfers (e.g., net transfers between different levels of government, financial aid in the form of government scholarships and grants, special public subsidies [for transport, medical expenses, studies abroad], family allowances or child allowances that are contingent on student status, student loans).
  
  Private expenditures refer to the expenditures by households or other private entities (commercial and not-for-profit), and they include:
  
  Fees paid to educational institutions (e.g., for tuition, registration, laboratory, lodging, meals and for other services provided to students by the institution). Statistics Canada’s finance surveys are administrative surveys only and therefore do not include data on private educational expenditures paid to other entities for student lodging, course material, etc.
  
  Financial aid to students or households from private sources (e.g., scholarships from business firms and religious and other non-profit organizations).
  
  Direct payments by private entities to educational institutions (e.g., contributions or subsidies to vocational-technical schools, contracts let to universities for research or other services, grants to educational institutions from non-profit organizations, and charitable donations [other than from households]).
  
  
• The index shows the annual cumulative percentage changes in a variable from a given base year, expressed as an index with the base year equal to 100. The index value of 107 at the Canada level (Table B.1.4), for example, five years after the base year, indicates a 7% increase in per capita combined expenditure on education between 1997/1998 and 2002/2003.
  
  
• Gross domestic product (GDP) represents the total market value of a country’s (or province’s, or territory’s) goods and services produced over the year.

Methodology

•  The following six surveys have provided sources of data for Tables B.1.1 through B.1.5.
  
  
  1. The Survey of Uniform Financial System of School Boards (SUFSB) is an annual survey conducted to determine how much is spent in relative detail by school boards by provincial/territorial total.  The SUFSB also determines where the school boards receive funding. The survey is a census with a cross-sectional design, and covers all school boards in Canada. All figures are actual, except those for Nunavut, which have been estimated.
     
     
  2. The Survey of Financial Statistics of Private Elementary and Secondary Schools (FinPESS) is an annual survey conducted to collect financial information on private schools, which is input for total elementary and secondary revenues and expenditures. The survey is a census with a cross-sectional design, and covers all private educational institutions in all provinces. The private component at the elementary and secondary levels has been estimated using the 2002/2003 private school enrolments and the Education Price Index and the 2000/2001 actual data.
     
     
  3. The Survey of Federal Government Expenditures in Support of Education (FEDEX) is an annual survey conducted to determine, in detail, direct federal government financial support for education at all levels by department and by province/territory. The survey covers federal government programs having expenditures in support of education. This survey is a census with a cross-sectional design. All figures in this survey are actual and not estimated.
     
     
  4. The Survey of Financial Information of Universities and Colleges (FIUC) is conducted annually to collect data on the revenues and expenditures of universities and degree-granting institutions in Canada. It covers all degree-granting universities and university-colleges in Canada. All figures in this survey are actual and not estimated.
     
     
  5. The Financial Statistics of Community Colleges and Vocational Schools (FINCOL) is an annual survey conducted to collect detailed revenue and expenditure data from community colleges and public trade-vocational schools. The survey covers all community colleges and public vocational institutions in the provinces and territories that offer educational programs at the postsecondary level and/or trade-vocational level. All figures in this survey are actual and not estimated.
     
     
  6. The Provincial Expenditures on Education in Reform and Correctional Institutions is an annual survey that is used to supplement data from the Provincial Public Accounts on provincial/territorial expenditures on education. The survey covers reform and correctional institutions in the provinces and territories. All figures in this survey are actual and not estimated.
     
     
• At the elementary-secondary level, public institutions have a small portion of funding from private sources, which is derived from year-to-year extrapolation.
  
  
• All amounts in these tables are given in 2001 constant dollars. Constant dollars are derived by applying a price deflator to convert expenditures displayed in a time series to a price level that existed at a certain point in time (the base year). Constant dollars eliminate the changes in the purchasing power of the dollar over time, resulting in a series that would exist if the dollar had a purchasing power equal to the purchasing power in the base year.
  
  
• Per capita expenditure in Table B.1.4 divides the spending on education in Canada, or in a province or territory, by the total population, to show how much is spent on education per person.
  
  
•  Data shown at the Canada level include Canada’s spending on education in foreign countries (e.g., Department of National Defence schools), and undistributed expenditures. The decline in expenditure in Newfoundland and Labrador was in fact a return to “normal” expenditure level after a significant but short-term funding increase in the mid-1990s, notably for the Atlantic Groundfish Strategy. Expenditures at the elementary-secondary level in Quebec include trade-vocational expenditures administered through the elementary-secondary system.
  
  
• Although the decrease in public and private expenditures on education in New Brunswick in 2000/2001, 2001/2002, and 2002/2003 reflects a change in employer contributions to teachers’ pension plans, the actual data for 2000/2001, 2001/2002 and 2002/2003 for New Brunswick show an increase in expenditures for school district operations at the elementary/secondary level in all three years.
  
  
•  Although there are no universities in the territories, there are expenditures at the university level including student aid as well as administrative expenditures. These expenditures are also included in the provincial data.
  
  
•  Nunavut was created on April 1, 1999. Prior to that date, data for Nunavut were included with data for the Northwest Territories. This creates a break in series for the Northwest Territories in 1999/2000.

Limitations

• The measurements reported should be interpreted in the context of various inter-related supply-and-demand factors, including the demographic structure of the population, enrolment rates at different levels of education, and changes in the overall value of goods and services produced in the economy (GDP). The results cannot be used to compare provincial or territorial governments’ funding commitment to education.
  
  
• Large year-over-year variations in public and private funding to school boards are caused by accounting adjustments to prior-year surpluses and/or deficits. This means that trends should be observed over a period of years rather than from one year to the next (Tables B.1.1 and B.1.2).
  
  
• For Nunavut in 1999/2000, the combined expenditures on education for trade-vocational schools (Table B.1.1) were slightly underestimated as tuition fees (part of private expenditures) for the trade-vocational portion were not reported for the only college in Nunavut in 1999/2000.
  
  
• There is no standard fiscal-year definition applied across the Canadian education system. At the elementary-secondary level, most local school boards use their respective school year-ends, but are converted to a calendar year (as of the end of December) by Statistics Canada. On the other hand, universities and colleges have different financial year-ends. Please note that all provincial public accounts use the same fiscal year, as of March 31.
  
  
• Although amounts are presented in constant dollars to provide a consistent picture over time, the impact of spending on education in any jurisdiction will be affected by several factors, including changes to the cost of living within jurisdictions.
  
  
• The following data are not included:  private daycare programs since they are not considered in the educational system, and expenditures relating to private business colleges.
  
  

Data sources

For Table B.1.1:

Survey of Uniform Financial System of School Boards, Statistics Canada.

Survey of Financial Statistics of Private Elementary and Secondary Schools, Statistics Canada.

Survey of Federal Government Expenditures in Support of Education, Statistics Canada.

Survey of Financial Information of Universities and Colleges, Statistics Canada.

Financial Statistics of Community Colleges and Vocational Schools, Statistics Canada.

Provincial Expenditures on Education in Reform and Correctional Institutions, Statistics Canada.

Provincial public accounts, Statistics Canada.

B2 Public and private expenditure on education

Public expenditures on education, health, social services, and non-social programs

Table B.2.1

Indicator B2 considers total education expenditure in Canada, from both public and private sources. The first subset of this indicator examines public expenditures on education relative to the spending on other government programs; specifically, health, social services, and non-social programs (Table B.2.1). Expenditures are presented as dollar amounts (2001 constant dollars) and using percentage distributions, by program. The information spans the period from 1989/1990 to 2005/2006.

Concepts and definitions

• For this indicator, which is based on data from Public Institutions Division, public expenditures refer to expenditures by the federal, provincial/territorial and local levels of government. These expenditures are presented for elementary-secondary education, postsecondary education, other education, and total public expenditures for education, as compared with the public expenditures on health, social services, and non-social programs (Table B.2.1).
  
  Public expenditures on other education include spending on special retraining, which includes outlays made for the purpose of upgrading the skills of individuals, the purchase of on-the-job training for Employment Insurance recipients, subsidies to workers and persons available for work undergoing training, as well as spending on language training for newcomers and government employees, and spending that cannot otherwise be categorized.
  
  Health expenditures include hospital care, medical care, preventive care, and other health services.
  
  Public expenditures on social services refer to social assistance, Workers’ Compensation benefits, employee pension plan benefits and changes in equity, veterans’ benefits, motor vehicle accident compensation, and other social services.
  
  Non-social programs is a residual categorythat includes general government services; protection of persons and property; transportation and communication; resource conservation and industrial development; environment, recreation and culture; labour, employment and immigration; housing; foreign affairs and international assistance; regional planning and development; research establishments; general purpose transfers to other government subsectors; debt charges; and other expenditures.

Methodology

• Table B.2.1 is based on public accounts data from Statistics Canada’s Public Institutions Division (PID). PID’s statistical program was designed to measure and analyze the economic dimensions of Canada’s public sector. The economic dimensions consist of revenues and expenditures, assets and liabilities, debt and employment-related statistics of public sector entities. The data from PID are in current dollars. Constant dollar conversion is performed by Culture, Tourism and the Centre for Education Statistics Division.
  
  
• Public expenditures on education (elementary-secondary, postsecondary, and other education) and other programs (health, social services, and non-social programs) (Table B.2.1) are presented in 2001 constant dollars and as percentage distributions, by program, from 1989/1990 to 2005/2006.
  
  
• Provincial governments support college- and university-related activities in a variety of ways. They provide direct operating, capital, and other special purpose grants to institutions, financial aid to students, and research funding to faculty members. In addition to these direct expenditures, jurisdictions maintain ministries/departments and agencies to administer their college- and university-related programs and to develop public policy. The cost of all these programs and activities represents the total provincial and territorial government expenditures on college- and university-related activity. The federal government also supports college- and university-related activities.

Limitations

•  PID standardizes individual government accounts to provide consistent and comparable statistics; therefore, these statistics may differ from the figures published in individual government financial statements, and differ slightly from other data for public expenditures.
  
  
• The comparisons across government programs (Table B.2.1) are not directly comparable with the data on public expenditures in education presented in other tables (Tables B.1.1 through B.1.5, Table B.2.2 and Table B.2.3).

Data source

• Public Institutions Division, Statistics Canada.

Public expenditures on education

Tables B.2.2 and B.2.3

Indicator B2 considers total education expenditure in Canada, from both public and private sources. This second subset of the indicator focuses on public expenditures on education, by level of education and jurisdiction, over time. The information is presented in 2001 constant dollars (Table B.2.2) and using indices of change (Table B.2.3).

Concepts and definitions

• Public expenditures refer to spending on education by all levels of government, including:
  
  Direct purchases of educational resources by governments (e.g., direct payments of teachers’ salaries by a central or regional education ministry/department, direct payments by a municipality to building contractors for construction of school buildings, procurement of textbooks by a jurisdiction or regional authority for subsequent distribution to local authorities or schools).
  
  Direct payments by government agencies to educational institutions that have the responsibility of purchasing educational resources themselves (e.g., government block grants to universities, which they use to compensate personnel, a government subsidy to a private school, and government payments under contract to a private firm undertaking educational research).
  
   Direct expenditures designated for capital projects (e.g., building expansions or construction, laboratory equipment in support of research and development).
  
  Public-to-private transfers (e.g., net transfers between different levels of government, financial aid in the form of government scholarships and grants, special public subsidies [for transport, medical expenses, studies abroad], family allowances or child allowances that are contingent on student status, student loans).
  
  
• The following levels of education are used: pre-elementary, elementary-secondary; trade-vocational; college; university; all postsecondary; and all levels combined (Tables B.2.2 and B.2.3).
  
  Pre-elementary programs refer to pre-Grade 1 programs offered by public, private, and federal schools, as well as schools for the visually and hearing impaired, generally targeting children 4 or 5 years of age. Junior and senior kindergarten programs in the formal education system are included, but early childhood programs outside the formal education system are not included.
  
  Elementary-secondary education consists of 12 years of study (from Grade 1 to Grade 12); the only exception is Quebec where there are 6 years of elementary school and 5 years of secondary school.
  
  Trade-vocational education refers to apprenticeship or other programs geared towards preparation for employment in an occupation or trade. More and more programs in the trade-vocational education are now requiring high school graduation. Programs vary in length from 2 to 5 years, depending on the trade.
  
  College education refers to the education programs offered by a community college, CEGEP, school of nursing
  
  University level education typically offers 4-year undergraduate programs leading to bachelor’s degrees. Advanced degrees include master’s degrees, generally requiring 2 years of study after a first degree, and doctoral degrees, requiring 3 to 5 years of postgraduate study and research as well as a dissertation.
  
  
• Constant dollars are derived by applying a price deflator to convert expenditures displayed in a time series to a price level that existed at a certain point in time (the base year). Constant dollars eliminate the changes in the purchasing power of the dollar over time. The result is a series as it would exist if the dollar had a purchasing power equal to the purchasing power in the base year.
  
  
• Indices of change (Table B.2.3) represent annual cumulative percentage changes for public expenditures on education in the base year of 1997/1998, expressed as an index with the base year equal to 100.

Methodology

• This second subset of indicator B2 is based on data from the six surveys outlined in Indicator B1, and data from provincial public accounts.
  
  
• The data shown at the Canada level include Canada’s spending on education in foreign countries (e.g., Department of National Defence schools), and undistributed expenditures.
  
  
• Expenditures at the elementary-secondary level in Quebec include trade-vocational expenditures administered through the elementary-secondary system.
  
  
• Although there are no universities in the territories, there are expenditures at the university level, including student aid as well as administrative expenditures. These expenditures are also included in the provincial data.

Limitations

•  Nunavut was created on April 1, 1999. Prior to that date, data for Nunavut were included with data for the Northwest Territories. This creates a break in series for the Northwest Territories in 1999/2000.

Data sources

Survey of Uniform Financial System of School Boards, Statistics Canada.

 Survey of Financial Statistics of Private Elementary and Secondary Schools, Statistics Canada.

Survey of Federal Government Expenditures in Support of Education, Statistics Canada.

Survey of Financial Information of Universities and Colleges, Statistics Canada.

 Financial Statistics of Community Colleges and Vocational Schools, Statistics Canada.

 Provincial Expenditures on Education in Reform and Correctional Institutions, Statistics Canada.

 Provincial public accounts.

Private expenditures on education

Tables B.2.4 through B.2.6

This third subset of Indicator B2 (total education expenditure in Canada) presents information on private spending in Canada and jurisdictions, by level of education and as a percentage of total expenditures on education (Tables B.2.4 through B.2.6). The expenditure amounts are shown in 2001 constant dollars.

Concepts and definitions

•  Private expenditures refer to spending by households or other private entities (commercial and not-for-profit), and include:
  
  Fees paid to educational institutions (e.g., for tuition, registration, laboratory, lodging, meals and for other services provided to students by the institution). Statistics Canada surveys only institutions and there is a lack of data on private educational expenditures paid to other entities for student lodging, course material, etc.
  
  Financial aid to students or households (e.g., scholarships from business firms and religious and other non-profit organizations);
  
  Direct payments by private entities to educational institutions (e.g., contributions or subsidies to vocational-technical schools, contracts let to universities for research or other services, grants to educational institutions from non-profit organizations, and charitable donations [other than from households]).

Methodology

• Total private expenditures on education (Table B.2.4) and indices of change in the expenditures (Table B.2.5), by level of education and jurisdiction, over time are presented. Private expenditures on education are also shown as percentage of total expenditures by level of education and jurisdiction between 1997/1998 and 2002/2003.
  
  
• Data are not included for private education programs for pre-junior kindergarten children for which there is no provincial regulation.
  
  
•  The figures for trade-vocational and college education (Tables B.2.4, B.2.5 and B.2.6) are not included for expenditures relating to private business colleges.
  
  
• The only college in Nunavut started reporting tuition fees (part of private expenditures) for the trade-vocational portion in 2000/2001.
  
  
• Since the series for Nunavut starts in 1999/2000, the calculation for the Northwest Territories and Nunavut is for the period 1999/2000 to 2002/2003 only (1999/2000 = 100). In the case of Nunavut at the trade-vocational level, as the only college started reporting tuition fees (part of private expenditures) for the trade-vocational portion in 2000/2001, the index calculation is for the period 2000/2001 to 2002/2003 only (2000/2001 = 100).
  
  
• Large year-over-year variations in public and private funding to school boards are caused by accounting adjustments to prior-year surpluses and/or deficits. This means that trends should be observed over a period of years rather than from one year to the next.

Limitations

• Nunavut was created on April 1, 1999. Prior to that date, data for Nunavut were included with data for the Northwest Territories. This creates a break in series for the Northwest Territories in 1999/2000.

Data sources

Survey of Uniform Financial System of School Boards, Statistics Canada.

Survey of Financial Statistics of Private Elementary and Secondary Schools, Statistics Canada.

Survey of Financial Information of Universities and Colleges, Statistics Canada.

Financial Statistics of Community Colleges and Vocational Schools, Statistics Canada.

Average expenditures per household

Table B.2.7

This fourth subset of Indicator B2 (total education expenditure in Canada) presents information on average expenditures on education per household and percentage of households incurring educational expenditures (Table B.2.7). Data are from the Survey of Household Spending.

Concepts and definitions

• Household refers to a person or a group of persons (other than foreign residents) who occupy a private dwelling and do not have a usual place of residence elsewhere in Canada.
  
  
• Percentage of households incurring educational expenses was calculated by dividing the number of households that incurred educational expenses by the total number of private households, then multiplying by 100. In 2004, 43% of households incurred expenditures on education (Table B.2.7).
  
  
• Average education expenditure per household was calculated by dividing the total amounts of household educational expenditure by the total number of private households that incurred such spending in a given calendar year.  In other words, this measure reflects average spending on education only for the households that actually incurred such costs.  For example, average educational expenditure per household was $2,484 in 2004 among the 43% of households that incurred such costs.

Methodology

•  The Survey of Household Spending (SHS) is carried out annually across Canada in private households in the 10 provinces. Data for the territories are available for 1998, 1999 and every second year thereafter. The main purpose of the survey is to obtain detailed information about household spending during the reference year (previous calendar year). Table B.2.7 presents data for the provinces and at the Canada level (excluding the territories).
  
  The following groups are excluded from the SHS: (1) those living on Indian reserves and crown lands; (2) official representatives of foreign countries living in Canada and their families; (3) members of religious and other communal colonies; (4) members of the Canadian Forces living in military camps; (5) people living in residences for senior citizens; and (6) people living full-time in institutions; e.g., inmates of penal institutions and chronic care patients living in hospitals and nursing homes.
  
  For tuition fees, books, and supplies, the SHS asks about spending on kindergarten, nursery school, elementary and secondary education, and postsecondary education (e.g., university, trade, professional courses). The survey also asks households to provide the spending on other courses and lessons (e.g., music, dancing, sports, crafts), and other educational services (e.g., tutoring, rental of school books, equipment); driving lessons are excluded. The data include special and private schools, but exclude day care and lodging expenses.
  
  The survey covers about 98% of the population in the 10 provinces.  The SHS is a stratified, multi-stage sample selected from the Labour Force Survey (LFS) sampling frame.  Sample selection comprises two main steps: the selection of clusters (small geographic areas) from the LFS frame and the selection of dwellings within these selected clusters.  The sample size of the SHS is equal to over 21,000 households.
  
  
• Household educational expenditures (Table B.2.7) include the following four categories: supplies (all levels), textbooks (all levels), tuition (pre-elementary and elementary-secondary), and tuition (postsecondary).  The first panel of the table shows the percentage of household that incurred expenditures on education, overall and in each of the four categories, while the second panel of the table includes average education expenditure per household for households incurring costs in a given category in the first panel.

Limitations

• The SHS data from part-year households are excluded from estimates of average household spending. Part-year households are composed entirely of persons who were members of other households for part of the reference year.
  
  
• In 1998, 1999, and every second year thereafter starting with 2001, SHS data for Canada include the territories. For the other years, Canada-level statistics include the 10 provinces only. On the other hand, data for territories are available for 1997 (coverage insufficient for inclusion in Canada-level statistics), 1998, 1999 and every second year thereafter starting with 2001.

Data source

• Survey of Household Spending, 2004, Statistics Canada.

Average university tuition fees

Tables B.2.8 through B.2.11

This fifth subset of Indicator B2 includes data on average undergraduate university tuition fees in 2001 constant dollars (Table B.2.8), as well as in current dollars (Table B.2.9), at the Canada level, by province, and over time. Average university tuition fees are presented by faculty, both in 2001 constant dollars (Table B.2.10) and in current dollars (Table B.2.11). All tables in this subset are based on the data from the Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions (TLAC).

Concepts and definitions

• Undergraduate university tuition fees refer to the undergraduate tuition fees charged to full-time Canadian students over the academic year; that is, September to April. The undergraduate faculties used in the calculations are Agriculture, Architecture, Arts, Commerce, Dentistry, Education, Engineering, Household Sciences, Law, Medicine, Music, and Science, as well as the faculties of Dentistry, Medicine, and Law, where students graduate with “first professional degrees.” Tables B.2.10 and B.2.11 also present average tuition fees for graduate studies (Master’s and doctorates). Excluded in all tuition tables are additional compulsory fees such as athletics, health services, student association, etc.
  
  
• Constant dollars are derived by applying a price deflator to convert expenditures displayed in a time series to a price level that existed at a certain point in time (the base year).  Constant dollars eliminate the changes in the purchasing power of the dollar over time. The result is a series as it would exist if the dollar had a purchasing power equal to the purchasing power in the base year.

Methodology

•  TLAC is an annual survey that was developed to collect student financial information (tuition fees and living accommodation costs) on all universities and degree-granting colleges in Canada.


•  The target population of TLAC is all degree-granting institutions (universities and colleges) in Canada. The survey is a census with a cross-sectional design. Data are collected for all units of the target population, therefore no sampling is done.
  
  
• All surveys are subject to errors. Only non-sampling errors apply to this survey given that there was no sampling process used to produce the final results.  Each year, data comparability is done for each university and college, and any major discrepancies are investigated with the respondent. Data are released publicly at the institutional level.
  
  
• Tuition fees were converted using 2001 constant dollars; specifically, 2001 calendar year constant dollars were applied to the other years (September to August academic year) in Tables B.2.8 and B.2.10.  For Canada as a whole, the national CPI was used; for the provinces, provincial CPIs were used.  It should be noted that in previous PCEIP reports, information was presented for the fiscal year (April to March), and the national CPI was only used to deflate the annual tuition fees.

Limitations

• Both in- and out-of-province students are included in the weighted average calculations; foreign students are not included.
  
  
• Compulsory fees are available for both undergraduate and graduate full-time Canadian students; foreign students are excluded.
  
  
• Data on lower and upper fees are available for single students with room only plan, meal only plan, room and meal package plan, married students with room for each university. However, it is not possible to derive a weighted average for the provincial level (or university level) since we do not know how many students are single or married and taking which meal and room plans.
  
  
• There is no information on accommodation costs for students living outside of residences.

Data source

• Survey of Tuition and Living Accommodation Costs for Full-time Students, Statistics Canada.

University and university-college revenues

Table B.2.12

This sixth subset of Indicator B2 presents the percentage distribution of university and university-college revenues, by source, at the Canada and provincial levels, for 1999/2000 and 2004/2005 (Table B.2.12).

Concepts and definitions

• Private revenues at universities refer to the revenue obtained from any source other than government, categorized as:
  
  Student fees: Payments obtained from students directly in the form of tuition and other fees.
  
  Non-government grants and contracts, donations and bequests: Financial support received by colleges and universities from donors, wills from grants and contracts from sources other than government, the latter provided with specific stipulations.
  
  Sales: Revenue from sales of services and products by the institution.
  
  Investment: Revenue from dividends, bonds, mortgages, short-term notes and bank interest.
  
  Miscellaneous revenue of colleges and universities: Commissions, royalties and fees from the use of institution-owned rights or properties, fees for services rendered, library and other similar fines, rentals, net gain or loss on the sale of fixed assets and any type of revenue not identified under other forms of revenue.
  
  
• Government revenues at universities refer to grants and contracts from government departments and agencies at federal, provincial and municipal level.
  
  The federal portion of income is mainly from the six major federal government agencies; that is, Social Sciences and Humanities Research Council, Health Canada, Natural Sciences and Engineering Research Council, Canadian Institutes of Health Research, Canadian Foundation for Innovation (CFI), and Canadian Research Chairs.  Also included are the grants and contacts from all other federal government departments and agencies.
  
  Grants and contracts at the provincial level include (1) income from provincial government departments and agencies, including provincial CFI matching grants, and  (2) provincial CFI matching income from the ministry responsible for the institution.
  
  Income from other provinces includes grants from, and contracts with, provinces other than the province with jurisdiction.
  
  Examples of income from municipal government include grants from urban transit, communication and parking authorities.
  
  The last category is the income from foreign nations, which includes grants from the National Endowment for Humanities, National Institute of Health, and the National Science Foundation.

Methodology

• The data in Table B.2.12 are based on the Financial Information of Universities and Colleges Survey (FIUC), which was developed to provide financial information (income and expenditures) on all universities and degree-granting colleges in Canada.  The survey is a census with a cross-sectional design, and the target population is all degree-granting institutions (universities and colleges) in Canada.  Data are collected for all units of the target population, therefore no sampling is done.
  
  
• The collection process of the FIUC is made up of two separate questionnaires:
  
  
  1. Survey done in conjunction with the Canadian Association of University Business Officers (CAUBO): This questionnaire was designed and implemented by the
  CAUBO Finance Committee which is made up of financial administrators from six universities. They meet twice a year and any proposed changes to the questionnaire and guidelines are discussed and implemented by the Committee.
  
  
• Non-CAUBO questionnaire: This questionnaire is a carbon copy of the CAUBO questionnaire. Any change / modification to the CAUBO questionnaire and guidelines is applied to the non-CAUBO questionnaire.
  
  
• Ontario CAUBO universities report to its own collection authorities (Council of Finance Officers — Universities of Ontario (COFO)). This information is sent to Statistics Canada (STC) as a one large flat file. A mapping and integration process is then done to convert the COFO data into the CAUBO format database.
  
  
• The year 1999/2000 was selected in Table B.2.12 for comparison. The reason is that in 1999/2000, there was a break in the series as major changes were made to the CAUBO questionnaire and guidelines, thus affecting the historical comparability of the data. The years 1999/2000 and 2004/2005 are comparable as they are both on the same guideline definitions.
  
  
• University-colleges (Table B.2.12) are part of the universe coming from the “Financial information of Universities and Colleges” survey made by CAUBO and as such are considered universities.
  
  
• Each university and college returns its questionnaire with accompanying audited financial statements, thus ensuring data accuracy. Nevertheless, each year a data comparability review is done (percentage increases for major cells) for each university and college and any major discrepancies are investigated with the respondent resulting in changes, if any.

Limitations

• Non-CAUBO data are amalgamated with the CAUBO data at the provincial level.  Data for non-CAUBO institutions are not released publicly at the institution level. They can only be released at the provincial level.

Data source

Financial Information of Universities and Colleges Survey, Statistics Canada.

University expenditures

Tables B.2.13 and B.2.14

This seventh and final indicator subset in Indicator B2 includes university expenditures by source category for Canada and the provinces from 1999/2000 to 2004/2005.  The indicator is presented with amounts in 2001 constant dollars (Table B.2.13) and percentage distributions (Table B.2.14).

Concepts and definitions

• Capital expenditure refers to the expenditure used to purchase assets intended to last longer than one year. It is also provides a measure of the value of capital acquired during the year in question, including debt servicing. These expenditures include spending for the construction, renovation or major repair of buildings and to replace or purchase new equipment.
  
  
• Operating expenditure refers to the expenditures that an institution purchases and consumes within a year and that the institution purchases on an ongoing basis. Examples of operating expenditures include costs directly attributable to instruction such as salaries, instructional aids, administrative support, teacher development, and costs for other educators such as counsellors.  In this report, operating expenditures are categorized further into:
  
  Compensation of staff (educators and other staff) includes gross salaries (before deduction of taxes, contributions for retirement or health care plans, and other contributions or premiums for social insurance or other purposes), plus expenditure on retirement (actual or imputed expenditure by employers or third parties to finance retirement benefits for current educational personnel) and other non-salary compensation (fringe benefits).
  
  Statistics on compensation of university staff are categorized as follows: academic salaries paid to full- and part-time staff members engaged in instruction and research activities; other salaries and wages paid to other full- and part-time staff; and benefits such as pensions, group life insurance, medical and dental plans and other employee benefit plans.
  
  Other operating expenditures: Covers all non-salary related items such as spending on tuition fees and books, spending attributable to research and development, utilities, school services under contract, building operations and maintenance staff and so on. Other non-salary costs include those related to the maintenance of buildings as well as supplementary costs such as lunch programs and transportation.

Methodology

• Operating expenditure in Tables B.2.13 and B.2.14 includes the following funds: general operating; special purpose and trust; sponsored research; and ancillary enterprises.
  
  
• Other salaries and wages (Tables B.2.13 and B.2.14) include payments to all full- and part-time non-instructional (support) staff including among others, technicians, teaching and research laboratory technicians, clerical and secretarial, professional and managerial, janitorial, trades and maintenance. Includes payments to individuals who may hold an academic rank, or equivalent thereto, but are engaged in activities other than instruction and research.
  
  
• Benefits (Tables B.2.13 and B.2.14) refers to the costs of institutions’ contributions (with respect to salaries) for pensions (including payments for actuarial deficiencies and past service liability), group life insurance, salary continuance insurance, dental plans, Workers’ Compensation, health taxes, tuition remission, Employment Insurance, and other costs of employee benefit programs.

Limitations

• While considerable effort is made to ensure that universities and colleges are preparing information in accordance with the prescribed Guidelines to ensure comparability of the information at the aggregate level and ensure consistency and comparability over time in institutional reporting, major differences in operations and/or funding/accounting policies and/or differences in institutional interpretation/implementation of the Guidelines affect the comparability of the information over time and with other institutions.

Data source

• Survey of Financial Information of Universities and Colleges, Statistics Canada.

B3 Student debt

Tables B.3.1 and B.3.2

Indicator B3 provides data on student debt from government-run student loan programs, for the classes of 1995 and 2000. Using data from the National Graduates Survey (NGS) and the Follow-up of Graduates Survey (FOG), the tables look at the percentage of students who borrowed and their average debt at graduation (Table B.3.1), as well as the incidence and repayment of government student loans among 2000 graduates who did not pursue further postsecondary education (Table B.3.2) in Canada and the provinces.

Concepts and definitions

• In the National Graduates Survey (NGS), graduates include those who graduated from: university programs leading to bachelors, masters or doctorate degrees or specialized certificates or diplomas; other postsecondary programs such as programs of a one-year duration or longer that normally require secondary school completion or its equivalent for admission in colleges of applied arts and technology, CEGEPs, community colleges, technical schools and similar institutions; and skilled trades programs, which are usually three months or more in duration. This indicator, however, covers only those from university with a bachelor’s, master’s, or doctorate degree or those from college.
  
  The NGS is conducted two years after graduation, while the Follow-up of Graduates Survey (FOG) is conducted five years after.
  
  
• Government student loan programs include all federal and provincial student lending resources; that is, programs under which provincial and federal governments provide loans to Canadians enrolled in full- or part-time postsecondary education, based on eligibility and need.
  
  The data in Table B.3.2 include only 2000 graduates who did not pursue any further postsecondary education program; i.e., a program leading to a diploma, certificate or degree above the high school level that would take three or more months to complete when attending full-time.

Methodology

• Survey information collected from graduates on student loans includes the amounts owed to both federal and provincial student loan programs as well as the amount owed to other sources. Results presented refer to borrowing from government student loan programs only. Borrowing from private sources is not included.
  
  In Table B.3.1, the comparisons of average debt at graduation for both 1995 and 2000 graduates are expressed in 2000 dollars; this means that the amount of debt at graduation for 1995 graduates is converted to 2000 dollars using the Consumer Price Index.
  
  
• For PCEIP 2007, the data in Table B.3.1 capture all 1995 and 2000 graduates who borrowed from government student loan programs and who reported data two years after graduation. In PCEIP 2005, however, only those who did not pursue any further education after graduation were included because repayment data appeared in the same table. Graduates who had returned to school would not be required to make payments on their loans while studying.
  
  In PCEIP 2007 Table B.3.1, the calculation of the average debt at graduation for those who borrowed from government student loan programs includes graduates who had paid off government student loans completely at graduation, for both 1995 and 2000 graduates. In PCEIP 2005, graduates from the class of 1995 who had paid off their loans were included, but graduates from the class of 2000 who had paid off their loans were excluded.
  
  
• In PCEIP 2007 Table B.3.2, the incidence and repayment of government student loans among 2000 graduates are reported for those who incurred government student loans and who reported data at both collection points (two and five years after graduation).
  
  Only graduates who still owed at graduation, two years after, and five years after graduation, are reflected in the average debt numbers. Hence, Table B.3.2 excludes those who have already paid off their debts by calculating the average debt of only the population still owing at each time period.

Limitations

• The following are not included among the 2000 graduates in the NGS (two years after graduation):  graduates from other postsecondary programs such as programs of a one-year duration or longer that normally require secondary school completion or its equivalent for admission in colleges of applied arts and technology, CEGEPs, community colleges, technical schools and similar institutions; and skilled trades programs, which normally are three months or more in duration.
  
  
•  For the 2000 graduates in FOG (five years after graduation), it was determined that due to conceptual and sample requirement issues, it would be beneficial for the aims of the project as a whole to not follow-up with the trade/vocational graduates who responded to the NGS. Therefore, the FOG 2000 sample comprises all NGS 2000 respondents whose reported variable indicated that they earned a college diploma or certificate, a bachelor’s degree, a master’s degree or a doctorate in 2000.

Data sources

• National Graduates Survey, Follow-up of Graduates Survey, 1995 and 2000 graduates, Statistics Canada.