The freeze on government funding is forcing universities to make difficult decisions. Meeting on Saturday in a regular session, the Council of the University of Moncton decided to give itself a few more weeks to refine its budgetary strategy.
Traditionally, it is during its spring meeting that the University Council (formerly the Board of Governors) adopts its budget, which has a direct impact on the tuition fees paid by students.
But this year is a little special, since the educational establishment learned on March 17 that the provincial government was freezing its subsidies this year. These represent approximately 60% of UMoncton’s budget, which reaches approximately $150 million annually.
“Normally, the broad outlines of our budget are prepared a year in advance,” explains Council President Denis Mallet. So with three weeks to go, that didn’t give us much time to react.”
In fact, the University had made its budget forecasts by counting on a 1% increase in subsidies, which was already less than the average of the last 10 years (1.5%).
These calculations are no longer valid, and we must therefore redress the course.
“We realized that the members of the Council needed additional information” on the strategies proposed by the administration, relates Mr. Mallet about the discussions which took place on Saturday.
More precisely, “they asked for more information on the cuts we are preparing to make, and how we are going to increase our income.”
Among these members, the president of the Moncton University Center Student Federation (FÉCUM) Emma Raphaelle describes the decision to postpone the adoption of the budget as “enlightened”.
“This means that the governors [ancien nom des membres du Conseil] take their role seriously, and want to evaluate all the potential angles of the budget,” she comments.
“I hope this will lead to good decisions for students, but unfortunately, a cut or freeze in university funding will necessarily affect tuition fees or services for students.”
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The University “already looks in the mirror”
The worst, however, is yet to come, while NB’s finances are not in good shape – the Moody’s agency has just reduced the province’s basic credit rating.
If the government has renounced cuts of 10 to 15% in subsidies to universities this year, it could still announce some in October, according to rector Denis Prud’homme, who however has no additional information on this subject.
Meanwhile, the institution’s fees are increasing. For example, she suffered the recent increase in the cost of electricity, like everyone else in New Brunswick.
“The average rate of increase in provincial subsidies to universities was 1.5% per year over the last 10 years, while the average inflation rate was 2.6% per year over this same period,” laments Denis Mallet.
Two weeks ago, the Minister of Post-Secondary Education suggested that universities make savings by closing study programs when the number of registrations is not there. However, the University of Moncton already does this regularly, replies the President of the Council.
“Every time we don’t get at least one increase that reflects inflation, we are forced to cut our spending. So, when the minister asks us to look in the mirror… I think this exercise is done, constantly.”
The University must have adopted its budget by May. An extraordinary meeting of the University Council will therefore be organized for this purpose in the coming weeks.
We must expect this budget to be in deficit, warns Denis Mallet.
