At least two Quebec universities say recent changes to infrastructure funding rules by the provincial government are jeopardizing coming renovation and construction projects.
McGill University and Laval University say they are both reviewing planned capital projects in light of what the former described as a new cap on infrastructure funding. Quebec universities were informed “a few days ago” by the province that it was imposing the limit, retroactive to May 1 of this year, according to a statement sent by McGill to students and staff Thursday.
While it does not offer specific numbers, the statement says the changes mean funding is “much lower than the amount we had planned to spend” for the current year. McGill said it will likely have to cut renovation and construction costs by half, resulting in cancelled projects, as the university derives most of its infrastructure funding from the government.
“As such, no new project is to begin and all calls for tender for construction are hereby suspended until further assessment,” says the statement, which was signed by Christopher Manfredi, provost and executive vice-president, academic, and Fabrice Labeau, vice-president, administration and finance.
In recent years, McGill has spent approximately $130-million annually on construction and renovation.
Laval spokesperson Andrée-Anne Stewart said in an e-mail that the Quebec City institution faces similar issues. Because of the changes, “we will conduct a review of the planning of investment projects,” and “some projects could be suspended or postponed,” she said in response to questions from The Globe and Mail.
Simon Savignac, a spokesperson for Higher Education Minister Pascale Déry, said in a text message Thursday that the funding change applies to all infrastructure projects, not just universities. He said the change doesn’t involve funding cuts and that the ministry would “remain flexible” and support all higher education institutions in the transition.
It is not clear whether the funding changes affect all Quebec universities in the same way. Two other institutions, Concordia University and the University of Montreal, did not immediately reply to requests for comment.
Esther Chouinard, a spokesperson for the Ministry of Higher Education, said in an e-mail that McGill was informed on Aug. 2 of the level of funding it would receive this year. She said ministry officials will “support universities in implementing these changes” in the coming weeks, as they have been doing since last spring.
The change to the funding mechanism followed a recommendation from Quebec’s auditor-general dating from 2013 regarding accounting standards, Ms. Chouinard said. The Coalition Avenir Québec government announced in 2021 that it would implement the change.
But Ms. Chouinard did not explain why the change could result in universities announcing drastic reductions in their planned infrastructure spending.
The statement from McGill said the university needs to take “immediate action” given that the funding cap is retroactive, though it remains in discussions with the government to minimize its impact. The university said it will undertake a review “of all projects not yet in construction” and anticipates “having to reexamine, and possibly cancel, many projects.”
Concerns over infrastructure funding add to existing disputes over university financing that have been at the core of a fraught relationship between Quebec institutions and the CAQ government.
Last year, the government announced that it would significantly increase tuition for out-of-province students at English-language universities. Initially, the government said tuition for those students would nearly double to about $17,000 a year, up from $9,000.
McGill, Concordia University and Bishop’s University reported substantial decreases in enrolment, and warned that the changes would mean drastic cuts to staff and could jeopardize entire programs. The province eventually exempted Bishop’s and scaled back the increase, bringing the new rate down to about $12,000, while also requiring that most out-of-province students become proficient in French by the time they graduate.
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The government has said the policy was motivated by a desire to protect the French language, which it believes is under threat in Montreal. The government also announced it will redistribute part of international students’ tuition fees to other universities.
In February, McGill and Concordia announced separate legal actions against the government to try and prevent the out-of-province students’ tuition hike.