[img_inline align=”right” src=”http://padnws01.mcmaster.ca/images/university_hall.jpg” caption=”Students in front of McMaster’s University Hall.”]The federal 2006 Budget signals that the conservative government recognizes the important role universities play in Canada's economic growth and development. The budget speech outlined a number of new investments in higher education including research, infrastructure, and new benefits for students.

“The budget gives a clear signal that universities and university research in particular are important drivers of economic success,” says McMaster President Peter George. The additional investments will make a positive difference in our ability to create new knowledge and opportunities and we look forward to working with the government on developing the proposed science and technology strategy to build on these budget commitments.”

New government research investments include new money for the indirect costs of research and additional support for the Canada Foundation for Innovation and the federal granting councils that total an additional $100 million for 2006/07.

The government also announced a $1 billion Postsecondary Education Infrastructure Trust Fund. The fund is contingent on a 2005-06 federal surplus of more than $2 billion and will be available for provinces for what's described as “critical and urgent infrastructure”. “Deferred maintenance at McMaster now totals more than $154 million,” says George. “New money to improve classrooms, libraries and infrastructure is critically important and we're anxious to hear more from the province on how it plans to allocate Ontarios share of this new investment in higher education and the student experience.”

Other budget measures that benefit higher education include expanded eligibility for Canada Student Loans, a new textbook tax credit, and a tax exemption for all scholarship and bursary income.

Universities and other charitable institutions also stand to gain from the elimination of the capital gains tax exemption for donations of publicly listed securities. According to George, this change in the tax policy will be of significant interest to a number of potential donors and will help generate new opportunities for people to get involved with McMaster's innovative teaching and research.

The University will also benefit from the reduction in the GST, a move that will mean some cost savings in all departments and areas of the University.