Federal-Provincial Fiscal Arrangements Act (R.S.C. 1970, c. F-6)

Provincial Revenue Stabilization Payments

Marginal note:Provincial revenue stabilization payments

• 10 (1) The provincial revenue stabilization payment that may be paid to a province for a fiscal year is the amount, as determined by the Minister, by which

  • (a) ninety-five per cent of the net general revenue of the province for the immediately preceding fiscal year

  exceeds

  • (b) the adjusted current net general revenue of the province for the fiscal year.

• Marginal note:Definitions

  (2) In this section

  adjusted current net general revenue

  adjusted current net general revenue, as applied to a province for a fiscal year, means the net general revenue for the fiscal year adjusted in prescribed manner on the basis of the revenue rates and revenue structure of the province in effect for the immediately preceding year; (revenu général net courant ajusté)

  net general revenue

  net general revenue, as applied to a province for a fiscal year, means the net general revenue for the fiscal year as shown in the table “Net General Revenue for Fiscal Year” in the publication of the Dominion Bureau of Statistics entitled “Provincial Government Finance, Revenue and Expenditure”, altered in prescribed manner to reflect

  • (a) the average revenue of the province from the revenue source described in paragraph (c) of the definition revenue source in subsection 8(2) for that and the two immediately preceding fiscal years, and

  • (b) the average revenue of the province from the revenue source described in paragraph (k) of the definition revenue source in subsection 8(2) for that and the four immediately preceding fiscal years,

  and minus any amount deductible under subsection 8(3) in determining the revenue of the province for the fiscal year from the revenue source referred to in that subsection. (revenu général net)

• Marginal note:Application to be made

  (3) A provincial revenue stabilization payment may be paid to a province in respect of a fiscal year only upon receipt by the Minister, not later than eighteen months after the end of the fiscal year, of an application by the province therefor containing such information as may be prescribed.

PART IIPost-Secondary Education Adjustment Payments

Marginal note:Definitions

• 11 (1) In this Part

  adjustment payment

  adjustment payment means a post-secondary education adjustment payment referred to in section 12; (paiement de rajustement)

  educational institution

  educational institution means an institution of learning that offers courses at a post-secondary level; (établissement d’enseignement)

  federal revenue abatement relating to post-secondary education

  federal revenue abatement relating to post-secondary education applicable to a province for a fiscal year has the meaning given to that expression by section 15; (abattement du revenu fédéral relatif à l’enseignement post-secondaire)

  junior matriculation

  junior matriculation, in respect of a province, has the meaning given to that expression by regulation; (immatriculation junior)

  operating expenditures

  operating expenditures for post-secondary education in a province in a fiscal year has the meaning given to that expression by section 14; (frais de fonctionnement)

  post-secondary education

  post-secondary education, in respect of a province, means every course of studies in the province that

  • (a) requires for admission the attainment of a level not lower than that of junior matriculation in the province,

  • (b) is of not less than twenty-four weeks duration, and

  • (c) has been certified as a course of studies at a post-secondary level by such person or persons as may be designated by the Lieutenant Governor in Council of the province for such purpose; (enseignement post-secondaire)

  post-secondary level

  post-secondary level has the meaning given to that expression by regulation. (niveau post-secondaire)

• Marginal note:Determination of population and financial year

  (2) For the purposes of this Part

  • (a) the population of a province for a calendar year is the population on the 1st day of June in that year as estimated by the Dominion Statistician; and

  • (b) a financial year of an educational institution is related to a fiscal year if more than one-half of the total number of days in the financial year fall within the fiscal year.

Marginal note:Post-secondary education adjustment payments

12 Subject to this Act, the Secretary of State of Canada may, for each fiscal year in the period commencing on the 1st day of April 1967 and ending on the 31st day of March 1972, authorize the payment to a province of a post-secondary education adjustment payment not exceeding the amount computed in accordance with section 13.

Marginal note:Adjustment payments for 1967

• 13 (1) The adjustment payment that may be paid to a province for the fiscal year commencing on the 1st day of April 1967 is an amount equal to

  • (a) the greater of

    • (i) an amount, as determined by the Secretary of State of Canada, equal to fifty per cent of the operating expenditures for post-secondary education in the province in the fiscal year, and

    • (ii) the product obtained by multiplying $15 by the population of the province for the 1967 calendar year,

  minus

  • (b) the aggregate of

    • (i) the federal revenue abatement relating to post-secondary education applicable to the province for the fiscal year,

    • (ii) in the case of a province described in paragraph 7(b) or (c), the lesser of

      • (A) the portion, as determined in prescribed manner, of the provincial revenue equalization payment payable to the province for the fiscal year that is attributable to the federal revenue abatement relating to post-secondary education applicable to the province for the fiscal year, and

      • (B) the amount, if any, by which the general equalization applicable to the province for the fiscal year, computed in accordance with section 8, exceeds the guaranteed equalization applicable to the province for the fiscal year, computed in accordance with subsection 9(1) or (2), as the case may be, and

    • (iii) in the case of any other province, the portion, as determined in prescribed manner, of the provincial revenue equalization payment payable to the province for the fiscal year that is attributable to the federal revenue abatement relating to post-secondary education applicable to the province for the fiscal year.

• Marginal note:Adjustment payments after 1967

  (2) Subject to subsection (3), the adjustment payment that may be paid to a province for a fiscal year commencing after the 1st day of April 1967 is an amount equal to

  • (a) in the case of a province in respect of which the amount determined under subparagraph (1)(a)(i) is greater than the amount determined under subparagraph (1)(a)(ii), the amount, as determined by the Secretary of State of Canada, that is equal to fifty per cent of the operating expenditures for post-secondary education in the province in the fiscal year;

  • (b) in the case of any other province, the product obtained by multiplying

    • (i) the amount determined for the immediately preceding fiscal year under paragraph (1)(a) if such year commenced on the 1st day of April 1967, or under this paragraph if such year commenced after the 1st day of April 1967,

    by

    • (ii) the quotient derived by dividing

      • (A) the aggregate of the amounts, as determined by the Secretary of State of Canada, of the operating expenditures for post-secondary education in all of the provinces in the fiscal year,

      by

      • (B) the aggregate of the amounts, as determined by the Secretary of State of Canada, of the operating expenditures for post-secondary education in all of the provinces in the immediately preceding fiscal year,

  minus

  • (c) the aggregate of

    • (i) the federal revenue abatement relating to post-secondary education applicable to the province for the fiscal year,

    • (ii) in the case of a province described in paragraph 7(b) or (c), the lesser of

      • (A) the portion determined in the manner described in clause (1)(b)(ii)(A) for the fiscal year, and

      • (B) the amount, if any, determined in the manner described in clause (1)(b)(ii)(B) for the fiscal year, and

    • (iii) in the case of any other province, the amount determined in the manner described in subparagraph (1)(b)(iii) for the fiscal year.

• Marginal note:Alteration of adjustment payments

  (3) Where the adjustment payment that may be paid to a province, other than a province described in paragraph (2)(a), for a fiscal year commencing after the 1st day of April 1967 is less than

  • (a) the amount, as determined by the Secretary of State of Canada, equal to fifty per cent of the operating expenditures for post-secondary education in the province in the fiscal year

  minus

  • (b) the aggregate determined in the manner described in paragraph (2)(c) for the fiscal year,

  the adjustment payment that may be paid to the province for the fiscal year shall be an amount equal to the amount referred to in paragraph (a) minus the aggregate referred to in paragraph (b), and in computing the adjustment payment that may be paid to the province for any subsequent fiscal year the province shall be deemed to be a province described in paragraph (2)(a).

Marginal note:Operating expenditures

• 14 (1) Subject to subsections (2) and (3), the operating expenditures for post-secondary education in a province in a fiscal year are the aggregate of the operating expenditures incurred for post-secondary education by or in respect of each educational institution in the province during the financial year of the institution related to the fiscal year, but do not include

  • (a) any amount expended in respect of student financial aid;

  • (b) any amount expended as or on account of the capital cost of land, buildings, physical plant, facilities or equipment, except as otherwise proviced by regulation;

  • (c) any amount expended as or on account of interest;

  • (d) any amount expended in payment of a capital debt;

  • (e) any provision for depreciation on buildings, physical plant, facilities or equipment;

  • (f) any amount expended in respect of a prescribed ancillary enterprise undertaken or operated by an educational institution; and

  • (g) such portion of any amount expended as or on account of rent on land, buildings, physical plant, facilities or equipment as may be prescribed.

• Marginal note:Idem

  (2) In determining the operating expenditures incurred for post-secondary education by or in respect of an educational institution during a financial year of the institution, there shall be deducted from the amount thereof otherwise determined

  • (a) any amount received by the institution in the year for assisted, sponsored or contract research; and

  • (b) any amount received by the institution in the year from Her Majesty in right of Canada or any agent thereof or from the Canada Council;

  except as otherwise provided by regulation.

• Marginal note:Idem

  (3) In determining the operating expenditures for post-secondary education in a province in a fiscal year, there shall be deducted from the amount thereof otherwise determined any amount paid to the province in the year by Her Majesty in right of Canada or any agent thereof, otherwise than pursuant to this Act, that is prescribed for purposes of this subsection to be an amount paid in respect of post-secondary education.