Photo by Amanda Erickson/The Griff

Budget 2026 signals a change for Alberta universities

Alberta’s 2026 provincial budget promises a continued investment in post-secondary education, but the government’s push to overhaul how universities and colleges are funded could reshape the future of campuses across the province.

Released Feb. 26, the provincial government’s plan outlines billions of dollars in spending across many provincial sectors, including healthcare, municipal infrastructure, agriculture and natural resources, K-12 education, post-secondary education, and others. It also estimates a $9.4 billion deficit, a $4.2 billion increase from the previous year. 

The government is also considering recommendations from the Expert Panel on Post-Secondary Institution Funding and Alberta’s Competitiveness, known also as the Mintz Panel, which could significantly change how that funding is distributed. 

Together, the budget and the panel’s recommendations point to a post-secondary system that will be increasingly shaped by labour market demand, government priorities, and institutional performance. 

“Despite a proposed $9.4 billion deficit, the government says it intends to maintain funding for key public services, including education, which closely aligns with the Mintz Panel’s focus on improving Alberta’s economic competitiveness through post-secondary training.“

What is the Mintz Panel?

The Mintz Panel was established by the Alberta government in 2024 to review how the province funds universities, colleges, and polytechnics. The panel is chaired by economist Jack Mintz, a president’s fellow at the University of Calgary’s School of Public Policy, and includes a group of academic and industry leaders tasked with evaluating whether Alberta’s current funding model is competitive and sustainable. 

The panel examines how public funding is distributed across the post-secondary system and recommends ways to improve efficiency and alignment with Alberta’s economic priorities. The review comes after several years of significant changes to post-secondary education, including tuition increases and operating grant reductions. 

Its final report, released last September, argues that Alberta’s current funding model is not well-suited to the province’s future economic and population growth. The panel notes that enrolment in Alberta’s post-secondary institutions is expected to increase by 21 per cent by 2033/34, while more than 60 per cent of future job openings will require at least two years of post-secondary education.

To respond to those pressures, the panel proposes replacing the current funding model with a new framework built around enrolment-based funding, performance incentives, and base operating funding for institutions.

“For students across Alberta, the outcome of these decisions could shape everything from tuition costs to the availability of certain programs.”

How does this impact the budget?

With the 2026 budget maintaining spending in post-secondary infrastructure and operating costs, the Mintz Panel’s proposals could ultimately determine how and where that funding is distributed across Alberta’s post-secondary education sector in the years to come. 

Despite a proposed $9.4 billion deficit, the government says it intends to maintain funding for key public services, including education, which closely aligns with the Mintz Panel’s focus on improving Alberta’s economic competitiveness through post-secondary training. 

The province has allocated $800 million for post-secondary institutions as part of a broader $28.3 billion infrastructure strategy. The capital plan also expects $8.7 billion in spending for 2026-29, $48 million higher than the estimate in the 2025 budget.

Under the proposed model, institutions would be funded based on three components. The first being enrolment, cost of programs, market demand and government priorities – this puts individual institutions in what the panel calls “clusters” of similar expense. Second, a performance component that “recognizes and rewards outcomes achieved by post-secondary institutions” in areas like research, teaching and student experience, and contributions to local communities. Finally, each institution would receive a base funding component to cover the costs of staffing, administration, student services, and “other related costs.” 

The panel also recommends targeted provincial funding for “attracting top research talent,” supporting innovation, and collaboration between institutions. 

For universities like MacEwan, that could mean increased funding for programs tied to workforce shortages, while programs with less direct workforce connections may face greater financial strain.

The Mintz Panel also proposed changes to tuition policy. Currently, tuition increases for domestic students are capped at two per cent per year. The panel recommends replacing this system with a new model, allowing the provincial government to set maximum tuition levels for program clusters, while institutions would have the flexibility to set specific tuition rates within those limits. It also advocates for increasing non-repayable financial aid for students instead of relying so heavily on loans.

Now what?

The Mintz Panel’s recommendations are not binding, and the Alberta government hasn’t confirmed which proposals it will adopt. The report is expected to guide future reforms to the province’s post-secondary funding system.

For students across Alberta, the outcome of these decisions could shape everything from tuition costs to the availability of certain programs. As the province balances budget pressures with the growing demand for post-secondary education, the way funding is structured will determine which programs expand or collapse, and how accessible post-secondary education remains for future students. 

While the government says its goal is to build a system that better prepares students for the workforce, tying funding to market demand may risk narrowing the role of universities in Alberta. With enrolment expected to rise and these policy changes still under review, the next few years mark another major transition in Alberta’s post-secondary system.