FAO reports ON PSE sector experienced 6.9% year-over-year decline in spending

The Financial Accountability Office of Ontario recently published its Q2 expenditure report for 2024-25, which summarizes the provincial government’s spending by sector. The report reveals that Ontario’s postsecondary education sector has experienced a significant year-over-year decline in spending. In the first half of 2024-25, the ON PSE sector’s spending was $425M (6.9%) lower than the equivalent period in 2023-24; PSE was also the only public sector to experience a decline during this time period. The FAO notes that this decline was influenced by the notable drop in operating spend at colleges(-$752M). Joe Friesen of the Globe and Mail discusses the broader context of this decline at colleges, such as the changing international enrolment landscape and ON’s rejection of a recommendation to allow domestic tuition rates to increase.