Funding of Ontario universities is addressed by the Council of Ontario Universities, including financial requirements of universities for 1988-1989, and the capital requirements for major repairs and renovations, alterations, deferred maintenance, and new construction. While the universities have requested an increase in base operating grants of 10.9% for 1988-1989, the government announced an increase of only 4.5%. Since 1977 university enrollment has grown by 23% and university research activity has increased by 30%. However, government operating grants have grown by only 2 percent in real terms. For fall 1988 there has been an increase of over 10% in students applying to college admission. To minimally maintain existing levels of service, Ontario universities need a 6.2% increase in funding for 1988-1989. Once enrollment levels are determined, special funding will also be needed to accommodate new applicants. In order to support the research enterprise, a further 1 percent increase in overall university funding to the research infrastructure is also recommended. A 20% improvement in university funding over a 5 year period is also proposed. (SW)