This report describes and assesses the current state of that system in the context of emerging financial and demographic challenges in the province, and in relation to wider trends in post-secondary education (PSE) regionally, nationally, and internationally. [...] New challenges The provincial government and the universities are now in the final year of a three-year memorandum of understanding (MOU) that defines levels of financial support from the province to each institution. [...] On the financial side, the 2009 Deloitte report, supported later by the report of the Premier’s Panel of Economic Advisors, projected a provincial government deficit of $1.4 billion by the end of the current government’s mandate. [...] See Section 4.3 for an extensive discussion of the benefits and costs of major restructuring prospects, in general, and the array of specific possibilities for the Nova Scotia university system and its individual institutions. [...] Recommendation 10: Retain the basic framework of the University Funding Distribution Formula and the multi- year funding agreement, under the following guidelines: a. N. egotiate the enrolment baseline and the proportion of the formula driven by changes in enrolment levels.