BREAKING: Budget 2025’s impact on Alberta post-secondary education 

The Government of Alberta’s Budget 2025 features investments in post-secondary capital projects, but base operating grants provided to public post-secondary institutions (PSI) remain the same as in 2024–25.

Budget 2025’s total expenses are estimated to be $79.3 billion, an increase of $4.4 billion or 5.9 per cent from the 2024–25 third quarter forecast. It also outlines a $5.2 billion deficit for 2025–26. The forecasted deficit for 2026–27 and 2027–28 is $2.4 billion and $2 billion, respectively. 

The projected 2025–26 operating expense for advanced education is $6.6 billion. While this is a 5.2 per cent increase from the $6.3 billion operating expense allocated for 2024-25 in Budget 2024, PSIs are expected to cover 58 per cent of the operating expense — a five per cent increase from 2022–23. This means that PSIs will cover $3.8 billion of the total projected operating expense. Budget 2024 projected that PSIs will cover 58 per cent of the operating expense in 2026–27, not 2025–26.

Operating grant funding remains at 2024–25 levels

Budget 2025 maintains a stable base of funding for PSIs. As such, the 2025–26 base operating grant for PSIs is remaining at the 2024–25 level. The University of Alberta’s provincial operating grant has remained at $436.6 million for the last three budget years, and will remain at $436.6 million for this budget year. 

In his response to Budget 2024, President and Vice-chancellor Bill Flanagan said “that without additional provincial funding to cover inflation and our rising costs, there will be significant ongoing pressure on our institutional budget.” 

Since 2019, the U of A has faced $222 million in cuts to its operating grant as well. These cuts, and the provincial operating grant not being tied to inflation, are contributing to the U of A’s financial pressures. 

On February 27 at a press briefing on Budget 2025, The Gateway asked President of Treasury Board and Minister of Finance, Nate Horner, if the Government of Alberta shares PSIs’ concerns about financial sustainability amidst continuous cuts and limits on alternative revenue sources, like domestic tuition caps and international study permit caps.

“We share concerns with many things,” Horner said. “That decision wasn’t made to increase it, neither was the one to cut it. That’s the kind of balance we’re looking at across the table. I think that shows our support given the financial position that we’re in.”

The Gateway asked if there are factors that would make the government consider restoring full or partial operating funding to 2019-levels.

Horner said that “a more optimistic forecast would help.”

Budget 2025 supports one capital project request from U of A 

The Capital Plan for Budget 2025 allocates $528 million over three years toward improving post-secondary education facilities. 

The U of A is among the few PSIs to receive funding for capital projects. It will receive $100 million over three years for the redevelopment of the Biological Sciences building, increasing its capacity by nearly 3,200 spaces. 

According to the U of A’s 2024–27 Capital Plan, redevelopment of the building “into a high service lab and teaching space” is an “immediate need.” Budget 2025 grants the U of A’s request of $100 million to begin phase one construction. Phase one’s total cost is $218.7 million. The project has five phases and is expected to cost $500 million.

Budget 2025 only addressed one request from the U of A.

The U of A’s Capital Plan lists two other priority projects. First, the development of an Integrated Health Sciences Innovation Complex, which requires $463 million. The U of A is requesting total funding from the Government of Alberta. The second top priority project, redevelopment of the Education Complex, requires $359 million. The U of A is also requesting total government funding for the project.

Additionally, the U of A’s Capital Plan lists government funding requests for six capital investment renewal priorities.

Budget 2025 also allocated funding for the U of A Hospital Brain Centre – Neurosciences Intensive Care Unit, which will receive $51 million over three years.

Four other PSIs are allocated funding for projects. In Edmonton, MacEwan University’s School of Business will receive $110 million over three years. In Calgary, Mount Royal University will receive $10 million in 2025–26 to repurpose its existing facilities. The Southern Alberta Institute of Technology (SAIT) is allocated $30 million in 2025–26 for the redevelopment of its Campus Centre. Lastly, $39 million over three years will be allocated to the University of Lethbridge Rural Medical Teaching School towards training doctors in smaller communities.

U of A students majorly rely on public transit. Budget 2025’s Capital Plan allocates $1.6 billion towards the City of Edmonton’s LRT expansion of the West Valley Line, the Metro Line, and Capital Line South. 

Budget 2025 allocates $4 million for CSJ over three years

Budget 2025 features increases in support for Campus Saint-Jean (CSJ) and mental health supports for students.

In 2025–26, CSJ will receive an estimated $2 million — an increase of $1 million from Budget 2024 — for upgrading to foster transdisciplinarity, inclusion, and innovation. 

The $2 million in funding that CSJ is receiving is part of ongoing short-term funding. Funding is received jointly from the province of Ottawa, the province of Alberta, and the University of Ottawa. Through the Capital Plan, CSJ will receive up to $4 million over a three year period. 

The Alberta Student Grant (ASG) will increase by $5 million in 2025-26 and future years. The ASG enhances post-secondary education for lower income students in one-year undergraduate, apprenticeship, and graduate-level programs. 

Budget 2025 allocates over $990 million for student loans. This is a decrease from the $1.2 billion allocated for student loans in Budget 2024. Additionally, Budget 2025 allocates $113 million for scholarships and awards, as well as $70 million in grants.

In 2023, Premier Danielle Smith sent a mandate letter to Minister of Advanced Education Rajan Sawhney, directing $4 million to be allocated to mental health professional spaces at PSIs. 

Aligned with the objective to advance mental health and addiction support, in 2025–26, Budget 2025 is investing $4 million into the expansion of mental health professional spaces at PSIs.