2002/03 Annual Service Plan Report Ministry of Advanced Education

Ministry Role and Services

Introduction

The Ministry of Advanced Education provides overall funding and policy direction for British Columbia's public post-secondary education system. The Ministry administers provincial statutes governing public and private post-secondary institutions and some professions.

Management of the public post-secondary education and training system is a responsibility shared between the Ministry and the post-secondary institutions. The Ministry provides leadership and direction, establishes policy and accountability, and provides funding through operating grants to public post-secondary institutions and contributions towards capital projects. The post-secondary education institutions develop and deliver programs and courses, provide education and training to students, and undertake research.

In British Columbia, post-secondary education and training is delivered through public and private institutions. In the public system, students have the choice of traditional and specialized universities, university colleges, community colleges, provincial institutes and the Open Learning Agency. Overall, the system provides a comprehensive range of post-secondary education and training programs, including adult basic education, industry training, career technical, academic, vocational and continuing education programs. Successful program completion provides students with a certificate, diploma, baccalaureate or graduate degree.

British Columbia also has a diverse private post-secondary sector. Several new initiatives are underway to ensure more opportunities for students and a level playing field for private institutions. In 2002/03, over 1,100 private post-secondary institutions were registered to operate in the province. Of these, 14 are offering degree programs in British Columbia from other jurisdictions and approximately 250 are accredited. Accreditation will continue to be necessary for institutions that wish to be designated under the British Columbia Student Assistance Program so their students are eligible for student financial assistance.

The Ministry is also responsible for student financial assistance programs that provide loans and grants to eligible students to cover education and living costs while they are enrolled in post-secondary studies.

Ministry Vision, Mission and Values

Vision

The Ministry of Advanced Education envisions a province where all British Columbians have affordable access to the best possible, technologically advanced, integrated and accountable post-secondary education system.

Mission

The Ministry of Advanced Education provides leadership and support for a top-notch advanced education and training system that provides all British Columbians with opportunities to develop the skills and knowledge they need to participate fully in the economic, social and cultural life of the province.

Values

The following values guide the Ministry in its work:

• A student-centred post-secondary education system
• Excellence, innovation and continuous improvement
• Relevance and responsiveness of the post-secondary education system
• Recognition of the key role post-secondary education, skills training, research and development play in a successful economy
• Life-long learning opportunities for all British Columbians
• A positive and supportive working environment
• Effective working partnerships
• Greater equity and equality for British Columbians
• Results-based accountability
• Fiscal responsibility

Ministry Operating Context

There has been no significant change in the long-term trends, challenges and opportunities identified in the Ministry Service Plan 2002/03 – 2004/05. This section of the Report reviews these major trends and resulting challenges that influence the post-secondary education system and industry training sectors.

Demographics

Growing population and demand for post secondary education

Unlike many Canadian jurisdictions, British Columbia is experiencing a net increase (4.8 per cent) in the traditional post-secondary age group (18–29 year-olds). Furthermore, over the next 20 years a major demographic change will occur in the labour market with the baby boom generation reaching retirement age.

Challenges and Opportunities

These demographic changes will result in increasing demand for post-secondary education and an increase in the number and type of post-secondary training providers operating in British Columbia. Programs and services must be developed to meet changing demographics, labour market needs, and provide more choice for students.

The Changing Economy, Learning and Labour Market Environments

Increased educational requirements for employment

Increasingly, post-secondary education or industry training beyond a high school level is a prerequisite for employment. Total enrolments in non-vocational public post-secondary programs in British Columbia as a proportion of the 18–29 year-old population was 25.2 per cent in 1999/00, third among all provinces, but slightly below the Canadian average of 26.7 per cent.

In apprenticeship training, British Columbia had 0.7 registered apprentices per 1,000 population in 2000, less than half the ratio of 1.5 in Alberta. Some occupations in the health care, high-tech and trades sectors will experience a shortage of skilled workers.

Challenges and Opportunities

The post-secondary education system must continue to adapt to the needs of an evolving labour market and enhance ties with community, regional and provincial stakeholders to ensure it reflects the needs of local communities and economies as well as provincial priorities.

To respond to increased demand, post-secondary providers will be challenged to use technological advances, develop greater flexibility and provide relevant programs.

Accountability and the Fiscal Environment

Need for Fiscal Responsibility

The overall funding for the post-secondary sector will remain constant in 2002/03 through 2004/05, as the government is on track to balance the provincial budget beginning in 2004/05.

Challenges and Opportunities

There is a need to align the costs of a post-secondary education with the benefits received, and to determine who should carry what proportion of the costs. Consistent with institutional autonomy, the authority to set tuition fees rests with the Board of Governors at each institution. The average undergraduate arts tuition fee at British Columbia's universities was $3,165 in academic year 2002/03, lower than the Canadian average of $3,738.

The Ministry has developed an accountability framework for the post-secondary system to ensure that greater institutional autonomy is balanced by accountability to both students and taxpayers.

Strategic Shifts and Significant Changes in Policy Direction

Core Services Review

In the context of these values and the Ministry's strategic direction, the government challenged the post-secondary education system to focus on core areas. In response to new directions, the Ministry of Advanced Education undertook a review of programs and services. Some of these initiatives are summarized below.

• Created BCcampus to coordinate online and distance education programs offered by British Columbia's public post-secondary institutions. BCcampus will be phased-in over two years and will significantly expand online and distance learning opportunities.
• Worked with the British Columbia Council on Admissions and Transfers to ensure a more efficient and effective system of credit transfer and to expand transferability of credits earned between post-secondary institutions in a way that is easier for students.
• Facilitated the expansion of degree opportunities in both public and private institutions. The Degree Authorization Act, which was passed in May 2002, establishes a process for private and out-of-province institutions to obtain authority to grant degrees in British Columbia, and expands the degree-granting authority of public colleges, university colleges and institutes.
• Took steps to protect the interests of taxpayers by reducing loan default rates. The Ministry took over the direct financing of student loans, and the Province is now aggressively managing the student loan portfolio to reduce the risk of bad debts. The Ministry also enhanced debt management programs and repayment options to ensure students who are having difficulty repaying their debt get the help they need.
• Deregulated tuition to give institutions greater flexibility to address issues that have impacted the quality of education over previous years such as reduced course offerings.
• Reviewed and revised the funding formula for colleges, university colleges, and institutes to allow them greater autonomy and flexibility while being held accountable for results. Within the block funding, institutions are required to meet certain targets such as New Era commitments for physicians, nurses and other health workers, social workers, and computer science and electrical engineering graduates.
• Initiated a review of the mandates, roles and responsibilities of public post-secondary institutions to create a more cohesive, integrated system.
• Took steps to replace the Private Post-Secondary Education Commission with a new self-regulating industry board.
• Took steps to strengthen the links between academia and government through PolicyTalks, an initiative designed to bring together academics and government officials to talk about complex and challenging public policy issues in an open, informal, yet confidential manner.
• Underwent internal restructuring to focus on the new strategic directions. Both the Ministry's operating budget and number of staff were reduced, while maintaining, or even increasing funding to post-secondary institutions. Other Ministry changes included an elimination of funding for a number of agencies, and the phasing out of the Industry Training and Apprenticeship Commission and transition to the new Industry Training Authority.
• Several activities, programs, and agencies were eliminated or reduced, resulting in roughly $40 million in savings. These savings were reinvested in the post-secondary education sector, primarily in the areas of operating grants and student financial assistance.

A New Model for Industry Training

Following the Core Services Review in the fall of 2001, it was determined that significant changes were needed to the industry training system in British Columbia. Despite annual funding of $70 million for trades and technical training, the system administered by the Industry Training and Apprenticeship Commission (ITAC) was not able to respond quickly enough to the growing needs of British Columbia's changing economy.

For example, the number of apprentices in traditional trades has not increased significantly over the past five years, (approximately 16,000) and the non-completion rate continued at around 50 per cent. This trend threatened growth in critical trades areas and failed to address projected skills shortages.

A new model for industry training is being developed to meet the needs of apprentices, employers and communities, and to provide British Columbia with a skilled, mobile work force able to meet market demands. Government has committed industry training funding of no less than $71 million annually over the next three years.

Primary steps in the development of a new model were the establishment of an Industry Training Transition Advisory Committee (TAC) and the phasing out of ITAC. The 16 regional offices of ITAC were closed in two stages. Ten offices were closed in the spring of 2002 and all the remaining offices were closed in the spring of 2003. During this time there was no interruption in the services provided to trainees already in the system or opportunity to enter the system. Full transition to the new model will happen gradually and in the interim an Industry Training Centre has been set up in Metrotown, Burnaby to provide province-wide services to trainees and employers.

The TAC, made up of business, labour and education representatives, had significant input into the proposed framework for the new model set out in the discussion paper A New Model for Industry Training in British Columbia which was the basis for broad stakeholder consultation across the province.

The new model will not eliminate traditional apprenticeship training but will build more flexible pathways to training and certification to better meet the needs of apprentices, employers, communities and the market place. The inter-provincial (Red Seal) certification will remain in place to ensure a work force with skills that adhere to national standards.

Update on New Era Commitments

On June 25, 2001, the Premier wrote to all Cabinet Ministers and identified the specific New Era commitments for which they would be directly responsible. These New Era commitments focused the development of multi-year goals and objectives. To date, the Ministry of Advanced Education has fully satisfied a number of its commitments, and has made progress on those that remain outstanding. The following table identifies and updates the progress made in 2002/03 on each of the Ministry's outstanding New Era commitments.

Ministry Structure

In 2001/02, the Ministry refocused and reorganized into two divisions and three central service branches. Each of these divisions and branches reports to the Deputy Minister who provides coordination and administrative direction to the Ministry. The smaller Ministry is positioned to achieve the New Era commitments and promotes a results-based management approach. In June of 2002, the provincial government restructured communications resulting in the Communications Branch becoming a field office of the Public Affairs Bureau and reporting to the Premier's Office rather than the Ministry. The Communications Director is a member of the Ministry's executive and works closely with the Deputy Minister.

The following figure provides a brief overview of the current structure of the Ministry:

Ministry Organization as of March 31, 2003

Core Business Areas

Table 1 — Ministry Core Business

Ministry Goals and Objectives

The Ministry's goals, objectives and performance measures form the basis for the reporting section of this report. During the development of the 2002/03 – 2004/05 Service Plan, three goals and nine strategic objectives were established for the Ministry. These goals and objectives are outlined below.

Goal 1 — A Top-Notch Post-Secondary Education System

To provide students with an accessible, affordable, high quality and relevant post-secondary education.

Strategic Objectives

1. Promote a more efficient and integrated post-secondary education system
2. Enhance student choice
3. Improve quality of education
4. Balance the costs and benefits of post-secondary education

Goal 2 — Economic and Social Development

To provide students with the skills and knowledge for the workforce and the economy, and to respond to critical shortages in the labour market.

Strategic Objectives

5. Reduce shortages in strategic skills areas
6. Expand training and skills development
7. Expand research capabilities in the province

Goal 3 — Responsive and Effective Management

To provide students with financial assistance services, and provide leadership to the post-secondary education system.

Strategic Objectives

8. Improve ministry business practices
9. Develop a post-secondary education accountability framework

The goals listed above link directly with the Ministry core businesses (see Table 1) as identified by the core services review and with the overall government priorities as illustrated in the following table.

Table 2 — Links to Government Priorities

Based on the Ministry goals and objectives, 22 measures were selected to measure the performance of the Ministry and the post-secondary education system. A comprehensive analysis of these measures follows.