This presentation is concerned with Ontario's publicly supported university financing system as it affects faculties and colleges of education. This program allows universities autonomy in designing programs and allocating funds, relies heavily on provincial grant revenue, utilizes a complex formula system recognizing program cost differentials, and accounts for a high proportion of total revenue. Preservice or bachelor of education programs are funded through per student grants computed at $2,656.00 per full time equivalent (FTE), with bachelor of education students weighted as two FTE. Graduate education programs are funded through a similar formula but with a freeze on funding as of 1975-76. No public funding is available to colleges of education for general teacher inservice education, but it is available for programs leading to Ministry of Education specialist or other certificates through student grants of $235.00 per FTE. As enrollment in preservice programs declines, it is significant that 12 students in one certificate course are necessary to offset a loss of one student in the preservice program. Serious money and student shortages now face colleges and faculties of education. They are attempting to replace the loss of preservice students by concentrating on graduate and continuing education, but the shift will not be easy. (Author/JM)