Hooray for transfer payments!

Heh.

I remember those days in Undergrad, where you thought your input and "voice" actually could make a difference in the day-to-day operation of the University. Yeah, I'm far more cynical now, and have a better understanding of the inner workings and how this University, as a whole, operates.

As an Undergrad, you assume that this institution runs as another school. Plain and simple. This institution exists to teach you the skills necessary to become an Engineer, Nurse, Teacher, Artist, Professional Dodgeballer, etc, and that's it.

As a Grad Student, you learn that the University is first and foremost a research institution, and that the majority of money (and yes, this is when you realize that the world runs on money, not idealism or good intentions (lol SU). ) comes from research grants and royalties from technology. The teaching of students is revealed to be a secondary concern, essentially something that is another revenue scheme, an avenue of Grad Student recruitment, and more often than not a charter obligation for the massive operational governmental grants that the institution recieves.

Now, with the recent governmental cutbacks (usually a year or two lag behind the economy), the University is seeing tough times. Research grants will be smaller. Operational grants will be smaller. Tuition credits (that the undergrads recieve indirectly) will be smaller. The end result? Massive budget gaps for the University.

It is funny, however, that the general undergraduate population seems to think that they will be receiving the brunt of the burden in making up this gap. I think its absolutely laughable. Of course, in typical "Undergrad Style" half of the problem is understood.

First, I'll talk about the tuition issue. Generally, tuition is getting a big hike next year. A fair bit more substancial than previous years, specifically because the operational grants and tuition credits (from the government) got cut. What the average Undergrad Student does not realize is that the total cost of their tuition is automatically subsidized by the government. Yes, you may be paying 5-8k a year. The real cost, at this institution, is 2x or 3x that. Ask an international student what their tuition is, and you'll get a fair gauge of what you *should* be paying per year. The amount of tuition that is subsidized by the provencial government is different from province to province, this is why, generally in Quebec, tuition is much less than Alberta. In any case, the increase of tuition that you are seeing is directly tied to the reduction of subsidy that is being given by the province.

Secondly, the "fact" that this "bailout" is being "forced" on the Undergrads is completely false. Grad tuition is basically doubling. University Employees are getting 5-8 days of *unpaid* vacation. Operational budgets are being slashed by 5%. There will be layoffs. Research grants are getting significantly reduced. For example, last year we had 17 summer students in our department. This year, it looks like we'll be getting 5. At this point, I'm wondering if there will be enough funding to complete my research, or if I will have to pay alot of the costs out of pocket.

The Undergrads are getting a $550 increase in tuition in the form of a fee to maintain the standards of education and building services. Right now, this is for next year, as a temporary measure.

Yes. This is much more harsh than people losing their jobs, taking a paycut of roughly 2-4%, or in my case most likely not getting funded (income --> $0) and scaling back/not finishing my research due to lack of funds.

Unfortunately, I don't have the time to be completely selfish and kick up a media/protest storm about how my specific segment of the University Community is being abused/mistreated/squeezed to make up the budget gap, without considering how others are affected.

Even if this fee of $550 is mandatory for the length of an undergrad degree (4-5 years), say maximum $3750 extra, that's a drop in the bucket in comparison to, for example, my case of outright losing 6 years of my prime career years with ultimately nothing to show for it.

But hey. What do I know? I'm only a lowly Grad Student.

Ironically, this whole problem, the health care cash shortage, and our provincial deficit could be completely wiped out with one single act: the removal of transfer payments.

What are transfer payments?

Well, when Canada was formed, transfer payments were used in order to prevent provinces and territories from adding taxes and tariffs to trade. Simply a general payment scheme handled by governments at a high level to encourage trade and prosperity. Eventually, somewhere along the way, this idea got super-socialized. Without giving a major history lesson, the end result is that the general wealth of a province is measured, and according to that measurement, funds are redistruibuted in order to "Equalize" wealth.

The end result is that financially strong provinces (Alberta, BC, Sask, and Newfoundland) get to pay the social programs of the other provinces.

If you want to go read about how this is actually done, go wikipedia it, there's a reasonable (however "slanted to Ontario") explanation.

The end result is, as a province, Alberta pays billions to the other provinces, and receives nothing in return. Now we're dealing with a large deficit, and stressed social programs (ie, University Funding).

It would be interesting to see the difference if transfer payments were simply abolished.