Ontario's current public university and college system was essentially established in the late 1960s; however, both systems have since changed, and the objective of colleges increasingly includes degree-granting powers. This brings into question the design of a college system discrete from universities and has led to Ontario's Ministry of Finance's formal recommendation to increase differentiation through establishing mandate agreements.
Since 2012, Ontario is driving its Differentiation Agenda encompassing several initiatives undertaken by the Government of Ontario to transform the postsecondary education system with the following overarching transformation goals: 1) support student success and access to a high quality Ontario postsecondary education; 2)increase the global competitiveness of Ontario's postsecondary education;3) build on and help focus the well-established strengths of Ontario colleges and universities -while avoiding unnecessary duplication; and 4) maintain an efficient and financially sustainable postsecondary education system.
On November 29, 2013, Minister of Training, Colleges, and Universities released the final version of Differentiation Policy Framework for Postsecondary Education. The framework contains six components including jobs, innovation & economy, teaching and learning, student population, research and graduate education, program, and institutional collaboration; and two directions, namely strategic enrolment and financial sustainability with an associated set of metrics. Very limited information regarding how the components and metrics are to be used is available as the framework intends to provide a "vocabulary" for institutions to construct Strategic Mandate Agreements (SMAs). Strategic Mandate Agreements are the primary vehicles for implementing Ontario's differentiation goals. Institutions were required to submit SMA proposals in 2012 followed review by a committee appointed by the Higher Education Quality Council of Ontario. In August 2014, Ontario signed SMAs with its all 45 publicly funded colleges and universities. In 2015, Ontario's launching University Funding Formula Consultation with university sector to review and modernize the funding model. Consultations will include students, university leadership and faculty, as well as important partners such as employers, colleges, the elementary and secondary sector, and professional associations.