The key points are that while no other province is reducing post secondary level funding, the attached MOU announces a further overall cut to funding of 3% for 2012-13 (in addition to the 4% cut for 2011-12 that was previously announced). When inflation is factored in, it is calculated that this represents an overall reduction in funding equivalent to $75 million over two years.
Funding for the remaining two years of the MOU has yet to be determined. Funding for 2013-14 will be announced before the end of 2012. There will be an attempt (in line with the recommendations of the O’Neill Report) to arrive at a formula for stable ongoing funding. What that might look like remains unclear since the funding would be determined by what it was linked to. For example, if it was linked to provincial GDP it would result in ongoing increases, whereas if it was linked to provincial population it would likely result in decreases.
Under the terms of section 9, a “pot” of $25 million will be available to institutions who can make a case as to how funds from this “pot” could help them to reduce overall operating costs. This will be awarded on the basis of competitive bids from University administrations.