Annual Service Plan Reports 2004/05 -- Ministry of Advanced Education

British Columbia's post-secondary education system is a pillar of our province's social and economic strength. It provides students with education and training that communities, employers and entrepreneurs need, and it conducts research that fosters discovery, innovation and the creation of knowledge.

The work that yields these benefits is done by public and private post-secondary education institutions and organizations. Leading, coordinating and supporting this work is the role of the Ministry of Advanced Education. More specifically, post-secondary institutions develop and deliver programs and courses, provide education and training to students, undertake research, and serve their communities. The ministry provides leadership and direction, establishes policy and accountability, and provides funding through operating grants to public institutions as well as contributions toward capital projects and financial assistance to students.

Among the ministry's responsibilities identified above, only the last one — student financial assistance, which provides loans and grants to eligible students for education and living costs — is a service that the ministry delivers directly to British Columbians. The BC Student Assistance Program (BCSAP) is a needs-based program created to help eligible students with the costs of post-secondary studies while enrolled at public and designated private institutions. The ministry also administers student loan and grant programs on behalf of the federal government, the Canada Millennium Scholarship Foundation and other ministries and agencies.

Aside from student financial assistance, all other public services for which the ministry is responsible are delivered by post-secondary institutions and organizations. Public post-secondary institutions in British Columbia, like those in other provinces, have a significant and appropriate degree of autonomy from government in many areas. This autonomy affords institutions the necessary independence to determine how to best meet the needs of their students, their communities, and the province.

The balance between institutional autonomy on the one hand and the need to address government's post-secondary priorities while ensuring accountability for public funds on the other is maintained through funding arrangements and reporting requirements that emphasize outcomes-oriented service delivery targets. The ministry consults with public institutions to ensure that targets are reasonable while reflecting government's priorities. These are communicated to institutions in annual budget and accountability letters outlining service delivery and outcomes targets and the funding the ministry will provide. Public institutions allocate ministry funding as they deem necessary to meet their targets, and they provide the ministry with information necessary to ensure accountability for outcomes, public funding and research. Institutions also issue annual three-year service plans to inform the public of their goals, objectives, measures and targets, and annual reports to inform the public of the outcomes they achieved.

The internal and external governance and accountability structures for most public post-secondary institutions are set out in legislation: the University Act, the College and Institute Act, the Royal Roads University Act, and the Thompson Rivers University Act. Each act provides for a board of governors with responsibility for operational and financial matters, and for academic governance structures with responsibility for decisions and advice concerning academic matters including credentials, curriculum and academic standards.

In addition to public post-secondary institutions, British Columbia also has a diverse private post-secondary sector that offers a range of education and training programs. Unlike their public counterparts, private post-secondary institutions are not directly funded by the ministry. However, private degree and career training institutions are subject to legislative and regulatory frameworks including the Degree Authorization Act and the Private Career Training Institutions Act respectively. These frameworks address education standards and provide consumer protection for students enrolled in private degree and career training institutions. In addition, BCSAP policies ensure that publicly-funded student financial assistance is available only for students enrolled in those private post-secondary programs that are deemed eligible.

Industry training in British Columbia is overseen by the Industry Training Authority (ITA), a Crown agency that governs an industry-led system capable of responding to the immediate and long-term needs of employers and trainees in all regions of the province. The classroom portions of industry training programs are delivered by both public and private institutions. The ITA works with institutions and industry to increase the quality and quantity of training in the province, and to ensure that training standards are current. The ITA provides services to trainees and apprentices including registrations, coordinating examinations and issuing certifications, and has the lead role in promoting industry training in the province.

The ITA is governed by a board of directors whose members are appointed by the minister and are drawn from diverse sectoral backgrounds. The ITA's governance relationships and accountabilities are set out in the Industry Training Authority Act, the Budget Transparency and Accountability Act, the Financial Information Act and the Financial Administration Act. Further accountability is outlined in an annual budget and accountability letter and in a shareholder's letter of expectations between the minister and the board chair. The ITA is required to submit a service plan and report to government in accordance with the financial reporting calendar and performance reporting requirements set out for publicly-funded agencies.

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 Core Business Areas

The work of the ministry is encompassed by the following five core business areas.

1. Educational Institutions and Organizations

The ministry provides funding to British Columbia's public universities, university colleges, community colleges, institutes, and other organizations that support the province's public post-secondary education system.

2. Industry Training and Apprenticeship

The ministry provides funding to the Industry Training Authority (ITA), which oversees the industry training system in British Columbia. The ITA works with industry and the post-secondary education system to meet the needs of industry and learners.

3. Student Financial Assistance

Student financial assistance is available to students at the post-secondary level attending public and designated private institutions. It combines repayable loans, non-repayable assistance, and debt reduction measures awarded on the basis of each student's need. It also provides merit-based awards. In addition, the ministry administers student aid programs on behalf of the federal government, the Canada Millennium Scholarship Foundation, and other British Columbia ministries.

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, and new facilities and equipment. It services the debt associated with these projects and amortizes the resulting assets over their economic lives.

5. Executive and Support Services

The ministry provides leadership, establishes policy, and administers accountability and planning processes for British Columbia's public post-secondary education system. The ministry also establishes policy concerning private post-secondary institutions, and supports the Degree Quality Assessment Board, which administers a quality assessment process for new public and private degree programs. 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.

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 2004/05–2006/07 service plan continue to be relevant and to influence planning decisions. These trends include the increase in demand for post-secondary education and industry training, the increased diversity of British Columbia's population, and continuing technological advancements. Post-secondary providers have been and continue to be challenged to utilize technology, provide greater flexibility in education-related services, and develop relevant programs.

Demographics

Growing population and demand for post-secondary education

In recent years, British Columbia's annual population growth has been close to the growth rate of Canada, and has shown signs of overtaking the national average. In 2004, Statistics Canada estimated that B.C.'s population grew by 1.1 per cent over 2003, compared to 0.9 per cent for the Canadian population over the same period.

International immigration accounted for the bulk of B.C.'s population gains over the past few years and is expected to increase into the future, remaining the largest contributor to overall population growth in the province. Inter-provincial migration has also contributed a considerable share of the total population growth, and is projected to increase, due largely to a strong provincial economy.

The 18-29 year age group (the primary post-secondary cohort) grew faster than total population in the past year, and will continue to do so over the next decade. In 2004, the 18-29 year age group grew an estimated 1.7 per cent over the year, compared to 0.9 per cent for the total population.

Challenges and opportunities

Growth in the 18-29 year age group and increasing participation rates, as well as more adult learners, have increased demand for post-secondary education and training and student financial aid. This increase is expected to continue, intensifying pressure for more choice in the range of education and industry training options within the context of public sector fiscal constraints.

The increasing number of people migrating to B.C. includes a significant proportion of new immigrants who possess at least a baccalaureate level of education. These also include many whose first language is not English. This trend towards an increasingly diversified population is expected to continue, and will likely increase demand for English as a Second Language programs.

The Changing Economy, Learning and Labour Market Environments

Signs of a solid economic recovery

In 2004, for the first time since 1987, B.C. led all the other provinces in economic growth. The provincial economy performed well as it expanded by 3.9 per cent in 2004, compared to 2.5 per cent in 2003.

Although the aging of B.C.'s workforce continued to be a dominant demographic trend, an attractive job market has contributed to an increase in the 15–24 and 25–44 year-old age groups in the labour market. In 2004, there was a net increase of 28,700 workers to the labour force over the year, of which 9,000 (31.4 per cent) were aged 15–44 years. In contrast, in 2003, there was a net increase of 46,700 workers in the labour force, but new workers aged 15–44 years declined by 700 (1.5 per cent).¹

As the provincial unemployment rate continued to decline and some sectors of the economy operated at historically high levels, B.C. experienced labour market pressures in some occupations and in some locations of the province. Shortages were identified in certain high-skilled fields, including health care professions, particularly in rural and northern communities. In addition, there were also shortages identified in some construction trades, particularly in the Lower Mainland and Southern Vancouver Island.

Increased educational requirements for employment

Increasingly, post-secondary education or industry training beyond a high school level is a prerequisite for employment as the province's economy becomes more reliant on the high‑technology and knowledge sectors.

Generally, British Columbians, including young people, are well-educated and highly skilled. Enrolment in B.C. public post-secondary institutions as a proportion of the 18–29 year-old population in the province was estimated at 43.9 per cent in 2003/04. According to the most recent data available from Statistics Canada (1999/00), B.C. had the third highest participation rate in the country. Over the past year, employers recruiting for some occupations in the health care, high-tech and trades fields experienced competition for skilled workers, which is expected to continue. This competition can vary by specializations within occupations and by region.

Challenges and opportunities

The post-secondary education system must continue to adapt to the needs of an evolving labour market. This will require strong ties with community, regional and provincial stakeholders to ensure the system reflects the skills needs of local communities and economies as well as provincial priorities. Together with our post-secondary partners, the ministry has been expanding opportunities for students to pursue occupations in high-demand fields such as nursing, medicine, skilled trades, engineering, and industry training.This is being done by increasing the capacity of the post-secondary system and by targeting bursaries and student loan forgiveness where demand is greatest. The Industry Training Authority is also working to increase the number of people entering skilled trades by encouraging more youth to enter the trades through programs such as the Accelerated Credit Enrolment in Industry Training (ACE IT) program, and by providing additional options to pursue longer-term training and broader credentials, and to ladder or bridge to new career options over time.

New Era Commitments

On June 25, 2001, the Premier wrote to all cabinet ministers and identified specific New Era commitments for which they would be directly responsible. The New Era commitments specific to the Ministry of Advanced Education that were outstanding at the beginning of 2004/05 are identified below. Some are anticipated to be fulfilled in the near future; others involve ongoing routines or processes.

New Era Commitment

Current Status

Double annual number of graduates in computer science and electrical and computer engineering, within five years.

The ministry has targeted funding to increase the number of student FTEs¹ in these programs each year since 2001. In 2004/05, the ministry targeted 7,144 FTEs, up from 4,659 in 2001/02. Utilization rates have been below 100 per cent due to low student demand caused by labour market fluctuations in the technology sector in recent years. British Columbia is expected to see robust growth in the industry in the coming years and this will no doubt be reflected in increased utilization rates for these programs in the future. Ministry staff are working with participating institutions to track the increased number of graduates that will result from the growth in seats.

Strengthen our network of colleges, institutes and online learning throughout the province.

In October 2002, the ministry announced the creation of BCcampus, an initiative to co-ordinate distance and online education programs involving all B.C. public post-secondary institutions. In 2004, the ministry announced the creation of Thompson Rivers University, a special purpose university created through a merger of the Open College and Open University with University College of the Cariboo. Also in 2004, the ministry announced the creation of Okanagan College and the University of British Columbia Okanagan. These new institutions will be officially established in 2005/06, fulfilling this New Era commitment.

*New Era* Commitment	Current Status
With the Ministry of Children and Family Development
Train more social workers to meet the critical skills shortages.	The ministry has targeted funding to increase the number of student FTEs in social/child protection worker programs each year since 2002/03. The commitment to train more social workers will be fulfilled in 2005/06 with 1,050 student FTEs in these programs, up from a baseline of 976 in 2001/02, thereby addressing any potential skills shortages in this area.
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.	The ministry has replaced the Industry Training and Apprenticeship Commission with the new Industry Training Authority (ITA) and has introduced a new industry-training model to address shortages in skilled trades and technical sectors around the province. The minister has tasked the ITA with increasing the number of trainees and apprentices in industry training programs by 30 per cent by 2006/07.
With the Ministry of Health Services
Expand training programs for care aides, licensed practical nurses and registered nurses in collaboration with our universities, colleges and institutes.	In August 2001, the ministry announced a $21 million strategy to provide additional education and training opportunities for nurses and health care professionals. In each fiscal year since, the ministry has targeted increases in the number of student FTEs in these programs. In 2004/05, the ministry targeted 10,914 FTEs, up from 8,393 in 2001/02. Further annual increases are planned through to 2007/08.
Increase the number of medical school graduates over next five years.	In 2002, government announced a plan to almost double the number of medical school graduates through a new collaborative model of physician education involving University of British Columbia (UBC), University of Northern British Columbia (UNBC) and University of Victoria (UVic). In 2004/05, new facilities at UBC, UNBC and UVic supporting the expansion and funded by the ministry were officially opened. The first students under this major expansion were admitted in fall 2004, and the first graduates are anticipated in 2007/08.
With the Ministry of Health Services
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. As part of the 2004 First Ministers' Ten-Year Plan to Strengthen Health Care, B.C. is participating in developing and publishing a health care human resource action plan by December 2005.