If I understand you correctly, I think the key challenge therein is the 2% limit, as you mentioned, that came from a program review era on the federal side.
The federal government honours, if you will, the portability or transferability of education rights, providing choices to parents and young people to study on reserve or next door or to travel to study in the provincial system. By and large, that's provided for. In some cases, the department will directly pay the provincial tuition through its regional office. In some cases, the allocation is fully transferred to the first nations, and the first nations will in turn pay tuition for their students.
The issue, of course, is that the cost of education in some provinces escalates disproportionately to the resources the department has. This is particularly evident in provinces that are able to invest more heavily in education. The tendency, at least on the surface, is that they seem to outpace us and the resources we have available.
This can result in tougher choices at the community level for how much they'll support. Will they support transportation as well as tuition? They may be crunched and not be able to. It may in fact cut into limited resources if they pay the full amount.
These comparisons are difficult to make because when you get the unit cost in the province, you're comparing a tuition rate that flows out of a system that has elaborate secondary and third-level support mechanisms or support structures, which the first nations schools don't have. It takes a lot of work to find true comparisons to make the argument on whether or not this is overfunded or underfunded. It's usually to try to make the argument that it's underfunded.