Tuition plan revenue-neutral

Re: “Giveaways aren’t good for Alberta,” Editorial, April 4. This editorial states that the University of Alberta, as an example, would have to scramble to replace about $250 million in tuition income once the Alberta Liberal Party achieved its zerotuition goal of our post-secondary education promise.

This is not true. Our plan is revenue-neutral to educational institutions.

Our tuition program will be funded by hefty annual resource revenue contributions to an endowment fund. The fund’s principal would never be spent. Annual investment returns distributed to trade schools, colleges and universities would replace disappearing tuition revenue.

We anticipate beginning the endowment fund in mid-decade with annual contributions in the $1.5 billion range. After 10 years of investments at that level, the fund’s principal would be worth about $15 billion. Earning a five-per-cent return, it would produce $750 million a year, more than enough to do away with firstdegree or diploma tuition for Alberta’s 160,000 post-secondary students.

For post-secondary institutions, the Alberta Liberal plan does not place them in a funding bind.

For students, it’s a huge plus. They will still know the value of education because they’ll continue to be responsible for working hard and saving for the cost of books, rent and food while they’re at school.

But the day they walk into the world, credentials in hand, they’ll do so completely free of the burden of student debt. Corey Hogan, 2012 campaign manager, Alberta Liberal Party, Edmonton