Statistics Canada also reveals expenditures rose by $1.4bn, with provincial funding increasing for the first time in three years
Statistics Canada has reported that revenue at Canadian universities rose by $2.2bn to $47.5bn in 2022/2023, while expenditures increased by $1.4bn to $45.1bn.
The lifting of all COVID-19 pandemic-related public health restrictions by the beginning of the 2022/2023 academic year allowed for the full resumption of on-campus activities. This contributed to an increase in ancillary revenue, including that from residence halls, food services, and parking.
However, travel and utility costs also increased.
Dollar figures in this release are expressed in 2023 constant dollars to remove the effect of inflation and enable comparisons over time.
The inflation rate of 4.3 percent in the two-year period resulted in higher operating costs for Canadian universities in terms of materials and supplies, maintenance, travel, furniture, and equipment, following a 6.7 percent increase in 2021/2022.
Provinces remain the largest contributor to university revenue, accounting for just over one-third (34 percent) of university revenue in 2022/2023, down 1.4 percentage points from one year earlier and 4.6 percentage points lower than in 2013/2014, when they accounted for 38.6 percent of university revenue.
Nevertheless, provincial funding rose for the first time in three years, edging up 0.4 percent year over year to $16.1bn in 2022/2023. Nova Scotia (+19.6 percent) reported the largest increase in provincial funding, driven by capital and special projects.
Other provinces and territories that saw an increase included Yukon (+9.5 percent), Quebec (+2.1 percent), New Brunswick (+1.4 percent), and British Columbia (+0.5 percent).
Conversely, provincial funding decreased in seven provinces in 2022/2023, ranging from a 1.1 percent decline in Ontario to a 7.4 percent drop in Newfoundland and Labrador.
Federal funding for universities increased by 1.4 percent to $4.8bn in 2022/2023, following an 18.8 percent decrease in 2021/2022 due to the ending of federal research funding to support universities during the pandemic.
Federal funding increased at the fastest pace in Yukon (+172.8 percent) and Manitoba (+37.2 percent) in 2022/2023 due to new research grants. Federal funding was also up in Ontario (+7.3 percent) but declined in every other province.
Tuition accounted for 31.2 percent of total university revenue in 2022/2023, down 1.3 percentage points from one year earlier. This decrease is out of step with the historical trend of tuition's increasing share of total revenue. Tuition revenue rose 0.6 percent year over year to $14.8bn in the two-year period.
Despite higher tuition fees for both Canadian and international students, the growth rate for tuition revenue in 2022/2023 remained well below the pre-pandemic five-year (2014/2015 to 2019/2020) average of 5.1 percent.
Tuition revenue in 2022/2023 rose at the fastest pace in Newfoundland and Labrador (+12.9 percent) and Alberta (+6.3 percent), while Yukon (-11.7 percent), Manitoba (-1.9 percent), and Ontario (-0.3 percent) saw the largest decreases.
In the two-year period, tuition was the largest source of revenue for universities in Ontario (41 percent) and Nova Scotia (33.3 percent) and the lowest in Yukon (6.9 percent) and Newfoundland and Labrador (15.6 percent).
Conversely, among provinces and territories where tuition accounted for the smallest share of revenue in 2022/2023, provincial/territorial funding as a share of total revenue was highest. This was the case in Yukon (62.6 percent), Newfoundland and Labrador (52.6 percent), and Quebec (51.7 percent).
Interest revenue from investments rose by $1.2bn year over year to $2.1bn in 2022/2023. Ontario (+$1.1bn) accounted for over 90 percent of this increase.
Conversely, Manitoba (-46.9 percent), Nova Scotia (-30.3 percent), Alberta (-22.2 percent), Newfoundland and Labrador (-16.4 percent), and British Columbia (-11.3 percent) reported a decrease in interest revenue in the two-year period.
Investment returns accounted for over half (54.3 percent) of the increase in total university revenue in 2022/2023. Investment revenue accounted for 4.4 percent of university revenue in the two-year period, down from the record high of 11.7 percent in 2020/2021.
Ancillary revenue rose from 6 percent of total revenue in 2021/2022 to 6.9 percent in 2022/2023, reaching $3.3bn. Ancillary revenue was up across Canada, with increases ranging from 9.4 percent in Alberta to 28.6 percent in Nova Scotia.
The complete resumption of on-campus activities undoubtedly contributed to higher ancillary revenue. The re-opening of campuses and the lifting of all travel restrictions post-pandemic contributed to an increase in ancillary expenditures in 2022/2023.
Travel expenses (+193.4 percent to $689.6m) more than doubled, while product- and service-based costs increased by 16.8 percent to $411.1m. Utility costs rose by 11.8 percent to $784m, mostly due to increased activity on campus and higher energy prices.
Universities in Newfoundland and Labrador, Saskatchewan, Alberta, and Yukon saw the largest increases in utility expenses.
