In 2025, Ontario universities will be penalized for not meeting post-grad success targets
A portion of funding for Ryerson University will now be determined by graduation rate, employment rate in a related field and graduate employment earnings, according to Ryerson’s new Strategic Mandate Agreement (SMA) with the provincial government.
By 2025, up to 60 per cent of base operating grants for schools in the province are going to be determined by 10 new metrics provided by the Ministry of Training, Colleges and Universities (MTCU).
Over the next five years, an increased portion of funding (starting with 25 per cent and roughly $57 million in 2020-21, to 60 per cent and roughly $140 million by 2024-25) will become tied to achieving these performance metrics, according to minutes from the Nov. 5 Ryerson senate meeting.
Under the new funding model, universities are also penalized for failing to meet their targets for each metric, and the penalty amounts will be redistributed to the institutions that met their targets.
These new funding standards come as a part of the provincial government’s focus on “outcome based funding,” as outlined in the SMA.
These funding changes are meant to incentivize “colleges and universities to redirect resources and invest in initiatives that result in positive economic outcomes,” according to the SMA.
The 10 metrics are divided into two categories.
Skills and Job Outcomes:
- Graduate Employment Rate in a related field
- Institutional Strength/Focus
- Graduation Rate
- Graduate Employment Earnings
- Experiential Learning
- Skills & Competencies
Community and Economic Impact:
- Community/Local Impact
- Institution-Specific Metric (Economic Impact)
- Research Funding & Capacity: Federal Tri-Agency Funding Secured
- Innovation: Research Revenue Attracted from Private Sector Sources
Negotiations between Ryerson and the MTCU surrounding the details of the funding instructions are currently underway, with most of the conversation happening between October and December, according to Glenn Craney, Ryerson’s deputy provost and vice-provost of university planning.
“We’re in the process of doing some community consultation around this,” Craney said. “We’re asking for feedback on what our negotiation strategy should be.”
Over the past week, several town hall meetings have taken place in order to receive feedback from the Ryerson community.
This feedback is especially important for the “institution-specific metric,” which Ryerson gets to choose, according to Craney.
Ryerson is also looking for feedback on the “institutional strength and focus” metric, as well as the way that the metrics should be weighted.
Ryerson officials will be meeting with the MTCU in November, but details aren’t likely to be available until the official negotiation period is over in March 2020.
SMAs are the agreements between Ontario and the colleges and universities that receive public funding from the province.