2003/04 Annual Service Plan Report -- Ministry of Advanced Education

The Ministry of Advanced Education provides overall funding and policy direction for British Columbia's public post-secondary education (PSE) system. The Ministry also 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 public post-secondary institutions. The Ministry provides leadership and direction, establishes policy and accountability, and provides funding through operating grants to public post-secondary institutions, contributions towards capital projects, and financial assistance to students who require it to pursue their education. Public post-secondary institutions develop and deliver programs and courses, provide education and training to students, and undertake research. The structure of accountability mirrors the allocation of responsibilities between the Ministry and institutions.

However, for post-secondary institutions the accountability relationship to Government is only one aspect of accountability. Public post-secondary institutions in British Columbia, like their counterparts in other provinces, have a significant and appropriate degree of autonomy from Government in many areas. The fiduciary authority for each institution is its Board of Governors, which means the primary accountability relationship for the institution is to its Board. Post-secondary institutions are also more broadly accountable to their students, their communities, to various academic and professional bodies, and to taxpayers. This autonomy, often described as academic freedom, affords institutions the necessary independence to determine how to best meet the needs of their students, their communities, and the Province.

In short, the relationship between the Ministry and institutions is a balance between the principles of accountability and recognition of institutional autonomy. To ensure coordination between the Ministry and public institutions, and to achieve an appropriate balance between institutional autonomy and public accountability, the Ministry consulted with public institutions to develop and implement an Accountability Framework for Public Post-Secondary Education. The Accountability Framework is a set of planning and reporting processes that outlines the shared responsibilities of the Ministry and institutions for the ongoing management of the public post-secondary system. More information on the Accountability Framework is available on the Ministry's website: www.aved.gov.bc.ca/accountability/framework.htm.

In the public post-secondary system, students have the choice of research intensive universities, a special purpose university, university colleges, community colleges, and provincial institutes. Overall, the system provides a comprehensive range of post-secondary education and training programs including adult basic education, industry training, career technical, academic, professional, graduate, vocational and continuing education programs. Students who successfully complete programs may be entitled to certificates, diplomas, associate degrees, baccalaureate degrees, masters degrees or doctoral degrees.

British Columbia also has a diverse private post-secondary sector that offers a range of education and training. Several new initiatives are underway to ensure more access and choice for students and to improve the regulatory environment for private post-secondary institutions. A new Private Career Training Institutions Act was passed in the fall of 2003 and will come into force by regulation. This legislation will establish a new legislative framework for private career training in the province. In November 2003, the Degree Authorization Act, which establishes a process for private and out-of-province public institutions to obtain authority to grant degrees in BC, was brought into force.

The Industry Training Authority (ITA) develops policy and regulations to guide training institutions, both public and private, and works closely with employers to increase access to training in trades and technical sectors and address skills shortages around the province.

The Ministry is 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. The BC Student Assistance Program is a needs-based program created to help eligible students with the costs of post-secondary studies at colleges, universities, institutes and private training institutions. The Ministry also administers student loan and grant programs on behalf of the Federal Government and the Canada Millennium Scholarship Foundation.

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

Ministry Operating Context

This section of the Report reviews the major trends and resulting challenges and opportunities that influence the post-secondary education system and industry training sectors. The long-term trends, challenges and opportunities identified in the Ministry Service Plan 2003/04 – 2005/06 continue to be relevant.

Demographics

British Columbia is experiencing a net increase in the traditional post-secondary age group (18-29 year-olds). This group is projected to grow from 664,740 in 2002/03 to 689,231 in 2005/06, or 3.7 per cent over the three years.

A major demographic change has begun and will continue over the next 20 years with the baby boom generation reaching retirement age. International immigration has accounted for the bulk of the population gains over the past few years and is expected to continue to provide a large share of the total population growth.

The growth in the 18-29 year-old group as well as adult learners from a variety of backgrounds will continue to increase the demand for post-secondary education and training. It will also increase the pressure for more choice in the range of education and industry training options within the context of public fiscal constraint.

The Changing Economy, Learning and
Labour Market Environments

Increasingly, post-secondary education or industry training beyond a high school level is a prerequisite for employment. Enrolment in public career technical, university transfer and degree programs in British Columbia as a proportion of the 18-29 population was 25.2 per cent in 1999/00, up 0.4 percentage points from 1998/99, according to the most recent Statistics Canada data available. Among the provinces, BC has the third highest participation rate, but is slightly below the Canadian average of 26.7 per cent. In a global comparison, the Organization of Economic Cooperation and Development consistently lists Canada as having at or near the highest post-secondary participation rates worldwide.

In apprenticeship training, British Columbia had 0.7 registered apprentices per 1,000 population in 2001, slightly higher than the national average of 0.6, according to the most recent statistics available. Employers recruiting for some occupations in the health care, high-tech and trades continue to experience competition for skilled workers. This competition varies by specializations within occupations and by region.

The post-secondary education and industry training systems must continue to adapt to the needs of an evolving labour market. This requires strong ties with community, regional and provincial stakeholders to ensure the systems reflect the needs of local communities and economies as well as provincial priorities. The newly created Industry Training Authority (ITA) is implementing a new model for industry training to meet the needs of apprentices, employers and communities, and to provide British Columbia with a skilled, mobile work force that can address the need for skilled trades workers in the province.

To ensure all British Columbians share in the opportunities that will be created in the lead-up to the 2010 Olympic Games, the Province will undertake a new Human Resource Strategy for British Columbia to ensure skills training initiatives are well targeted to personal learning and training needs.

The increase in demand for post-secondary education and industry training, the increased diversity of students with more mature, immigrant and Aboriginal students, the continuing technological advancements and industry changes will all continue to challenge post-secondary providers. They will increasingly need to utilize technology, provide greater flexibility in education-related services and continue to develop relevant programs.

Accountability and the Fiscal Environment

Although the Ministry's overall budget in 2003/04 was unchanged from 2002/03, the Ministry was able to increase funding for public post-secondary institutions within its constant budget in 2003/04 despite the original plan to maintain constant funding. Further annual increases are planned through 2005/06 and beyond.

Consistent with institutional autonomy, the authority to set tuition fees rests with the Board of Governors at each institution. The average undergraduate tuition fee at British Columbia's universities was $4,140 in academic year 2003/04, slightly higher than the Canadian average of $4,025. However, when private universities are removed from Statistics Canada's figures, the average undergraduate university tuition fee in BC for 2003/04 drops to $3,870, compared to a national average of $3,993. Institutions have reported using the additional tuition fee revenue generated in 2002/03 to benefit students by improving access and quality, including student services, student financial assistance and increased course offerings.

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

Ministry Structure and Core Business Areas

1. Educational Institutions and Organizations

The Ministry provides base funding to four traditional universities and one specialized university, five university colleges, eleven community colleges, three provincial institutes, two Aboriginal institutes, and other organizations that support the public post-secondary system.

2. Industry Training and Apprenticeship

The Ministry provides funding to the Industry Training Authority, which oversees the management of the industry training system in British Columbia, works with industry and the public and private post-secondary education system to expand training opportunities in industry growth areas, particularly in high-tech and other knowledge industries, and encourages awareness of industry training and apprenticeship opportunities for youth.

3. Student Financial Assistance Programs

Student financial assistance is a program of financial aid available to students at the post-secondary level attending public and accredited private institutions. It combines repayable loans and debt reduction measures awarded on the basis of each student's financial need. Additional assistance is provided through special programs (e.g., loan forgiveness for doctors/nurses, nurses education bursary, and grants to students with disabilities). It also administers student aid programs on behalf of the Federal Government and the Canada Millennium Scholarship Foundation.

4. Debt Service Costs and Amortization of Prepaid Capital Advances

The Ministry provides funding to public post-secondary institutions to finance capital projects including upgrades, renovations, replacements, expansions, new facilities and equipment. It then services the debt associated with those projects and amortizes the resulting asset over its economic life.

5. Executive and Support Services

The Ministry provides leadership and direction, establishes policy, administers accountability and planning, and provides funding to British Columbia's public post-secondary system. The Ministry also administers a degree quality assessment process for public and private post-secondary degree-granting institutions. Support to the Ministry in the areas of human resources, information systems, records management, financial management and information privacy is provided by the Management Services Division, whose budget is reported by the Ministry of Education.

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 goals, objectives, performance measures and targets for ministries in 2001/02 and subsequent fiscal years. The following table updates the progress to date on the outstanding New Era commitments and key projects specific to the Ministry of Advanced Education.¹

Unless stated otherwise, the commitments will have been completed by the end of the Government's mandate in May 2005. Many of the original New Era commitments and promises are stated in general terms. Over time, a greater level of operational detail has evolved for effective planning and reporting. Many of these commitments have been adopted as performance measures in subsequent Service Plans.

*New Era* Commitment	Current Status
Double annual number of graduates in computer science and electrical and computer engineering, within five years. Note: This commitment was adopted as a Service Plan performance measure and developed into a precise number of student full-time equivalents (FTEs)¹.	To meet this commitment, the Ministry has targeted a total of 3,410 new student FTEs in public post-secondary institutions over a five-year period. For the next three years, the targets are 825 new FTEs in 2004/05, 825 new FTEs in 2005/06 and 100 new FTEs in 2006/07.
Increase investment in technology research and post-secondary skills training. In conjunction with the Ministry of Finance, increase research funding for colleges, universities and institutes.	The Ministry will meet this commitment through establishment of the Leading Edge Endowment Fund and through continuing to work with officials of the Intergovernmental Relations Secretariat to develop strategic approaches to increase access to federal research funding. In February 2003, the Ministry launched the $7.5 million BC Regional Innovation Chairs program to create new social and economic development opportunities at BC's colleges, university colleges and institutes. The Ministry also continues to administer the British Columbia Knowledge Development Fund (BCKDF), which was established to enhance the BC's research infrastructure through provision of capital funding for public post-secondary institutions, teaching hospitals and affiliated non-profit agencies. To date, a total of 322 projects have been approved through BCKDF, which has leveraged a total investment of over $669 million including contributions from the Canadian Foundation for Innovation and other non-government sources.
Establish a "Leading Edge Endowment Fund" based on cost-sharing partnerships with the private sector, to establish 20 permanent BC Leadership Chairs over the next four years across the province in the fields of medical, social, environmental and technological research.	The Ministry has established the Leading Edge Endowment Fund as an independent society, and has provided $45 million to the society to fully fund its share of the cost of creating 20 permanent BC Leadership Chairs. In April 2002, the Ministry announced the creation of the first BC Leadership Chair, the BC Leadership Chair for Spinal Cord Research. Ministry funding for the BC Leadership Chair for Spinal Cord Research was matched by funding from the Rick Hansen Man in Motion Foundation. The Leading Edge Endowment Fund continues to work towards the creation of other BC Leadership Chairs. Proposals are currently under review with decisions expected to be announced before the end of 2004.
Strengthen our network of colleges, institutes and online learning throughout the province. Note: This commitment was adopted as a Service Plan measure and developed into a precise number of student FTEs.	In October 2002, the Ministry announced the expansion of online learning with the creation of BCcampus, an initiative to co-ordinate distance and online education programs involving all BC's public post-secondary institutions. In 2003/04, institutions are expected to deliver a total of 620 student FTEs in online education programs.

*New Era* Commitment	Current Status
With the Ministry of Children and Family Development
Train more social workers to meet the critical skills shortages. Note: This commitment was included in Premier's letter to the Minister of Children and Family Development, although it was not specifically included in the Premier's letter to the Minister of Advanced Education.	Ministry staff, in consultation with officials from the Ministry of Children and Family Development, determined that there was a shortage of Aboriginal social workers and child protection workers. For 2003/04, a total of 1,015 student FTEs was allocated for programs in social work and child and youth care at public post-secondary institutions participating in the New Era expansion.
With the Ministry of Skills Development and Labour
In conjunction with the Ministry of Skills, Development and Labour, work with employers, post-secondary institutions and the Industry Training and Apprenticeship Commission to increase training and apprenticeships in trades and technical sectors. Note: This commitment was adopted as a Service Plan measure and developed into a precise number of student FTEs.	The Ministry has created a new Industry Training Authority (ITA) and a new industry training model to increase access to industry training and address the need for skilled trades and technical workers in province. The Ministry has tasked the ITA with increasing the number of trainees and apprentices in industry training programs by 30 per cent over three years. The ITA has included this New Era commitment as a performance measure in its 2004/05 – 2006/07 Service Plan. (see: www.itabc.ca).
Coordinate with the Ministry of Skills Development and Labour to direct funding to areas of critical skills shortages training. Note: Although not identified as a New Era commitment, this was identified as a key project in the Premier's letter to the Minister of Advanced Education.	In addition to the creation of the new Industry Training Authority and a new industry training model, Ministry staff continue to coordinate with staff from the Ministry of Skills Development and Labour to identify critical skill shortages and training needs.
Cooperate with the Ministry of Skills Development and Labour and Intergovernmental Relations Secretariat to ensure we maximize our share of federal research funds. Note: Although not identified as a New Era commitment, this was identified as a key project in the Premier's letter to the Minister of Advanced Education.	Ministry staff continue to work with staff of the Intergovernmental Relations Secretariat, Ministry of Small Business and Economic Development and BC's public universities to formulate and implement a life sciences strategy for the province. The federal government is being approached to support this initiative. The BC Knowledge Development Fund also leverages matching contributions from the Canadian Foundation for Innovation, which is a federal granting agency.
With the Ministry of Health Services
Expand training programs for care aides, licensed practical nurses and registered nurses in collaboration with universities, colleges and institutes. Note: This commitment was adopted as a Service Plan measure and developed into a precise number of student FTEs.	In August 2001, the Ministry announced a $21 million strategy to provide additional education and training opportunities for nurses and health care workers. For 2003/04, the Ministry targeted a total of 7,135 student FTEs in health programs. The Ministry will continue to address this commitment in future years and has targeted further increases in FTEs in health programs for the next three years. These FTEs will be allocated to priority areas as identified by the Ministry of Health Services.
Develop a Rural and Remote Training program and provide forgivable loans to students attending accredited nursing and medical schools provided they practice for five years in underserved communities in BC.	The Ministry has implemented a student loan forgiveness program for nursing and medical students who agree to work for three years in under served areas of the province. Implemented in November 2001 and revised in November 2002, the program offers students a chance to write off all outstanding BC loan debt provided that they practice for three years (i.e., 33 per cent per year of practice) in underserved communities. The program has since been expanded to include midwifery and pharmacy students.
Increase the number of medical school graduates over next five years. Note: This commitment was adopted as a Service Plan measure and developed into a precise number of student FTEs.	In March 2002, Government announced its plan to increase the number of medical school graduates through a new collaborative model of physician education involving University of British Columbia, University of Northern British Columbia and University of Victoria. The number of first-year medical student FTEs will almost double, from an intake of 128 to 224 by 2005/06. In addition to start-up and operating funding to support the medical expansion, Government has committed $134 million for capital costs, including the $110 million Life Sciences Centre at University of British Columbia, and new facilities at University of Northern British Columbia and University of Victoria.
Develop a 10-year human resource plan that properly provides for the training, recruitment and retention of physicians, nurses, specialists and other health care providers in every area of the province and that addresses critical skills shortages and staffing levels in under serviced areas.	The Ministry continues to participate in the development of a 10-year health human resource plan, led by the Ministry of Health Services. For future years, the Ministry will continue to support the Ministry of Health Services and ensure that expansion of health programs in the public post-secondary system is closely aligned with the overall 10-year health human resource plan.
Increase training spaces and recruitment of foreign trained nurses and physicians.	The Ministry along with the Ministries of Health Services and Community, Aboriginal and Women's Services has funded the development of transition programs for internationally educated nurses. In addition to on-site programs at Kwantlan University College and University of British Columbia, a program at Open Learning Agency, which is accessible throughout the province, began accepting students in January 2004.