UNews - Campus Alberta Operating Grant

Mahon speaks to proposed budget reductions

trevor.kenney — Tue, 23 Apr 2013 15:50:59 +0000

April 23, 2013

In addressing the budget reductions imposed on the ��Ѹ��Դ��߿�Ƭ of Lethbridge through the 7.3 per cent reduction in the Campus Alberta Operating Grant, a framework of values was developed to guide the Budget Advisory Committee in developing the 2013/14 ��Ѹ��Դ��߿�Ƭ of Lethbridge consolidated operating budget. The 2013/14 reductions require us to find $11.8 million. Assuming no increases in the Campus Alberta Grant for the following two years as has been suggested by Enterprise and Advanced Education, this number grows to $20 million by 2015/16.

The approach committed to by our community was to, "maintain the forward vision of the ��Ѹ��Դ��߿�Ƭ of Lethbridge" and to not compromise our future through shortsighted reaction. "Our strategic priorities remain priorities independent of the financial challenges our ��Ѹ��Դ��߿�Ƭ encounters. To take us to our desired future the ��Ѹ��Դ��߿�Ƭ will pursue its established strategic directions and identified priorities." The values, which were reaffirmed by both the General Faculties Council and the Board of Governors, are that:

Our people define our ��Ѹ��Դ��߿�Ƭ and are our greatest strength

People are the essential resource of our institution and as such the ��Ѹ��Դ��߿�Ƭ will strive to preserve employment. All ��Ѹ��Դ��߿�Ƭ employee groups will be treated with fairness and with respect in all that lies ahead in our work to maintain our student centred focus and to ensure the continuing financial sustainability of our institution.

High quality is central to all that we do

Our commitment to maintaining high quality undergraduate and graduate academic programmes is key to our ��Ѹ��Դ��߿�Ƭ mission to build a better society. High quality instruction and teaching are essential to this commitment. Research and creative activity are also key to our mission and their vitality and vibrancy serve as a differentiating feature of our institution and a central part of our culture as a comprehensive academic and research institution. High quality facilities and services support our mission and best serve our students, staff, and academic staff.

Access to our university is a foundational value

As a Comprehensive Academic and Research ��Ѹ��Դ��߿�Ƭ, dedicated to liberal education, that was born out of the needs and aspirations of our local communities, we are committed to providing student access to our high quality academic programs throughout the province without creating unnecessary financial barriers. Community engagement with our university and community use of our facilities play a role in defining us as a public institution.

I am committed to the ��Ѹ��Դ��߿�Ƭ quickly achieving as much of the targeted reductions as possible without compromising the long-term prospects of the ��Ѹ��Դ��߿�Ƭ and without making decisions that lack adequate data or debate to support those decisions. While there is much more work yet to complete, the recommendations put forward to date look to achieve a balanced budget by the 2015/16 fiscal year if not sooner. The following outline the initial recommendations of the Budget Advisory Committee to bring forward a ��Ѹ��Դ��߿�Ƭ of Lethbridge 2013/14 consolidated operating budget.

Academic Staff Voluntary Retirement Plan

The Academic Staff Voluntary Retirement Plan was introduced to help address budget issues at the ��Ѹ��Դ��߿�Ƭ at a time when we were anticipating a 2% increase in base grant funding. The plan was voluntary and faculty members were provided a three-year window to transition to retirement. A total of 34 faculty members have decided to participate. For the most part, these faculty members will not be replaced. In the situation where the continuance of a program is predicated on the replacement of a faculty member or where the quality of a program will be severely compromised, the Dean of the Faculty and Provost of the ��Ѹ��Դ��߿�Ƭ will develop a plan for replacing the member.

This program will enable the ��Ѹ��Դ��߿�Ƭ to save approximately $4.2 million by 2015/16.

Ancillary Services

Additional revenue will be provided from Ancillary Services operations to the operating budget of the ��Ѹ��Դ��߿�Ƭ. Currently, Ancillary Services contributes $150,000 per year, in addition to covering all of the expenses associated with their operations. This will rise to $500,000. To support this, Ancillary Services will reduce the contributions it makes to their respective capital reserves and maintenance funds and will explore additional, new revenue opportunities.

Lifecycle Equipment Annual Allocation

Annual funding for the replacement of equipment will be reduced by $1 million on a continuing basis.

Research Enhancement Fund

The Research Enhancement Fund of $300,000 per year will be discontinued. This fund is used differently by each Faculty to enable research initiatives.

Student Administrative Fee

An increased Student Administrative Fee will be assessed. This fee will be used to preserve services offered to students that would otherwise have to be reduced and maintain student-centered projects already in progress as identified in our Comprehensive Institutional Plan (CIP). With the increase in this fee, the ��Ѹ��Դ��߿�Ƭ of Lethbridge Student Administrative Fee will remain the lowest in the Comprehensive Academic Research Institution (CARI) sector. As well, the combined tuition and fees for the ��Ѹ��Դ��߿�Ƭ will still remain the lowest in the province of Alberta among the CARI sector.

International Student Differential Fee

The ��Ѹ��Դ��߿�Ƭ of Lethbridge currently has the lowest differential fee assessed on International Students in the CARI sector. This fee will be increased. With this increase, the ��Ѹ��Դ��߿�Ƭ of Lethbridge will still have the lowest International Student Differential Fee among the CARI sector.

Executive Compensation

Salaries for the President and the four Vice-Presidents of the ��Ѹ��Դ��߿�Ƭ will be frozen at the 2012/13 levels.

Employment Costs

Salary and economic benefits negotiations are on going with the ��Ѹ��Դ��߿�Ƭ of Lethbridge Faculty Association (ULFA). The Alberta Union of Provincial Employees (AUPE) is in the final year of their contract. A commitment has been made that all employment groups will be treated respectfully and fairly through the reduction process. Employment costs and entitlements are subject to negotiation with the relevant bargaining unit and as such, ��Ѹ��Դ��߿�Ƭ Administration will not publicly discuss anything related to the negotiations or suggest anything publicly that would compromise those negotiations.

Infrastructure Maintenance and Renewal

Projects funded from the Infrastructure Maintenance Program (IMP) grant provided to the ��Ѹ��Դ��߿�Ƭ by Enterprise and Advanced Education will continue as planned. All additional infrastructure maintenance and renewal projects that are funded from operating funds have been suspended or cancelled.

Additional Reduction Strategies

The Budget Advisory Committee has struck a number of committees to explore opportunities for reductions, structural change or revenue that will require more time than the current budget process allows for. The committees will present their recommendations to President's Executive by July 31, 2013. The committees will be reviewing communications and marketing, information technology, recruitment, finance, faculty work assignments and Faculty program costs, collaboration with other institutions, and opportunities for new revenue generation.

I am grateful to the members of the ��Ѹ��Դ��߿�Ƭ community who have submitted ideas or suggestions through the online budget feedback forum. Many of those suggestions have been incorporated into the proposed reductions. Others will be addressed by the work of the noted committees.

We are also exploring other opportunities for greater efficiency that could result in reductions that would impact the budget of the ��Ѹ��Դ��߿�Ƭ. These include reducing the number of computer labs on campus, a review of the library acquisition budget, an employee voluntary reduced workload program and increasing fund-raising and sponsorship activities to help offset operating budget support for initiatives that would be attractive to external funders such as scholarships and bursaries.

These recommendations represent the initial work of the Budget Advisory Committee. It is worth noting that there were many ideas vigorously debated that were rejected as it was decided they were not compatible with our values or long-term plans, or they would too severely compromise the student experience or programs of the ��Ѹ��Դ��߿�Ƭ. While these recommendations get us a significant way toward achieving our budget reduction targets, there is still a projected deficit for the 2013/14 year. This deficit will be addressed through the continued work of the Budget Advisory Committee and the committees noted earlier.

The budget reduction recommendations will be reviewed by the Budget Priorities Advisory Committee and ultimately incorporated into the 2013/14 consolidated operating budget of the ��Ѹ��Դ��߿�Ƭ. General Faculties Council (GFC) will review the budget at the May meeting and the budget will then go to the Board of Governors for approval at its May meeting. The budget will be submitted to Enterprise and Advanced Education as part of the CIP that is due by May 31, 2013.

Once again, I want to thank the members of the ��Ѹ��Դ��߿�Ƭ community for their engagement in this process and their continuing commitment to the ��Ѹ��Դ��߿�Ƭ of Lethbridge.

Sincerely,

Dr. Mike Mahon
President and Vice-Chancellor

Updated budget message

trevor.kenney — Wed, 20 Mar 2013 20:50:45 +0000

Budget Message 3

More information has been provided regarding the 2013-14 Alberta Provincial budget and I am pleased to share that there is a bright point within this news for our ��Ѹ��Դ��߿�Ƭ. In the Capital Plan Details Supplement to the Provincial Budget, it is identified that the ��Ѹ��Դ��߿�Ƭ of Lethbridge will receive $10 million over two years to continue the planning process for the Destination Project. I have included the specific reference in the link below:

http://www.infrastructure.alberta.ca/documents/Capital_Plan_Details_2013-16.pdf

As you know, the pillars of the Destination Project include the development of new science facilities, the revitalization of ��Ѹ��Դ��߿�Ƭ Hall and the addition of a new power plant for the ��Ѹ��Դ��߿�Ƭ. We expect to receive a letter outlining the terms of this grant and have been told that it is expected that the funds will be used to move this important project into the design phase. These new funds are in addition to $2.3 million received from the Ministry of Enterprise and Advanced Education in September 2011.

There are many grants that the Government of Alberta provides to the ��Ѹ��Դ��߿�Ƭ of Lethbridge in addition to the Campus Alberta Operating Grant. Examples of other grants include the Infrastructure Maintenance Program (IMP) and targeted grants for programs and capital like the Campus Alberta Innovation Program (CAIP). IMP funds are used for infrastructure maintenance and the CAIP funds are used to support Chairs in specific areas of research. These additional grants are targeted and restricted to the use for which they are intended. The ��Ѹ��Դ��߿�Ƭ has no ability to use the funds for any other purpose – including offsetting the reductions to our Campus Alberta Operating Grant.

While the reduction of 7.3 per cent to our Campus Alberta Operating Grant does pose a severe budgetary challenge to the ��Ѹ��Դ��߿�Ƭ on a continuing basis, I am pleased that this $10 million grant is firm recognition from the Government of Alberta of the importance of the Destination Project to our ��Ѹ��Դ��߿�Ƭ and our community. It is further evidence that while the current budget situation poses many challenges, the future continues to look bright for the ��Ѹ��Դ��߿�Ƭ of Lethbridge.

On Wednesday, Mar. 27, from 3:30 to 4:30 p.m. in the Atrium of ��Ѹ��Դ��߿�Ƭ Hall, I and other members of senior administration will be providing a Community Update on the budget of the ��Ѹ��Դ��߿�Ƭ. While we will not yet have a scenario established for the budget reductions we must face, we will outline the process we will follow to establish those reductions and build the revised 2013-14 ��Ѹ��Դ��߿�Ƭ budget as well as provide any further updates we can on the provincial budget.

Sincerely,

Dr. Mike Mahon
President and Vice-Chancellor

Updated President's message on 2013/14 Alberta budget

trevor.kenney — Tue, 12 Mar 2013 20:50:25 +0000

��Ѹ��Դ��߿�Ƭ of Lethbridge President Dr. Mike Mahon discusses latest details

On March 7, 2013, the Alberta government released the 2013/2014 budget for the Province of Alberta. As indicated in my initial message, the Campus Alberta Operating Grant for the ��Ѹ��Դ��߿�Ƭ of Lethbridge will be reduced by 7.3% in 2013/2014. Since that time, Senior Administration has had the opportunity to have additional conversations with the Ministry of Enterprise and Advanced Education and have learned the following additional details.

Campus Alberta Operating Grant – The ��Ѹ��Դ��߿�Ƭ of Lethbridge will receive a Campus Alberta Operating grant of $92,072,000 – a 7.3% decrease from last year. This reduction translates into reducing the operating budget by approximately $11.9 million in 2013/2014.

The 7.3% decrease is consistent with some, though not all; of the Campus Alberta Operating Grant reductions that other Alberta post-secondary institutions were assessed. The Comprehensive Academic and Research Institutions all received a cut in the range of 7.2%-7.3%.

In the 2012/13 Alberta budget, post-secondary institutions were informed by the government that there would be three years of stable funding with a 2% increase in the operating grant per year. While the economic climate suggested that the planned 2% was in jeopardy, there was no indication or warning from the Ministry of Enterprise and Advanced Education, or elected officials, that a cut of this significance was planned or forthcoming. Even with a 2% increase in the operating grant the ��Ѹ��Դ��߿�Ƭ would have been looking to decrease its overall budget expenditures by $2.6 million in order to produce a balanced budget.

Infrastructure Maintenance Program – Last year, the ��Ѹ��Դ��߿�Ƭ had its Infrastructure Maintenance Program funding cut by 50% from $3,646,729 to $1,823,365. The 2013/14 Alberta Budget reduced this grant a further 2.3 % to $1,782,000.

These funds are restricted grants for use only in the maintenance and replacement of ��Ѹ��Դ��߿�Ƭ infrastructure. These funds cannot be used for operating expenses or to offset the operating budget deficit. Ongoing infrastructure renewal projects and projects slated to commence during the spring and summer of 2013 are enabled through this dedicated grant. More information on these planned projects as well as the source of funds for the projects will be released in a subsequent communication.

Campus Alberta Innovation Program (CAIP) Chairs – The Government of Alberta is maintaining its commitment to the CAIP Chair program. The U of L has hired two CAIP Chairs to date and will continue the process to fill the additional chairs. Also, the U of L will look to fill its allocated health-related chairs through a similar Alberta Innovates - Health Solutions Chairs program.

Letters of Expectation – There has been much media and public speculation about the introduction of letters of expectation ("Mandate Letters") directed to each institution in Alberta. Through our discussion with the Assistant Deputy Minister, we have been informed that our approved government mandate will not be changed. We have been told that the letter will include expectations pertaining to learner pathways, working with government, industry and system partners, fiscal responsibility, and research and entrepreneurship directions.

While the details of this letter are not yet fully understood, the Assistant Deputy Minister has assured us that the letter will be received in draft form and that we will be consulted before the letter is finalized. I will be attending a meeting on April 12 with the Ministry, along with the other Alberta post-secondary Presidents, to discuss our letters of expectation and to gain further details of the budget.

Other items in the provincial budget that will be of direct impact on the ��Ѹ��Դ��߿�Ƭ community are:

Student Aid - The Alberta budget outlines $211 million for the Student Aid programs in 2013‑14. This budget includes:

$71 million for merit‑based scholarship awards;

$59 million for bursaries and grants;

$42 million for student debt management programs; and

$11 million for Alberta Centennial Education Savings Plan grants.

In addition, $425 million in student loans will be disbursed in 2013‑14.

Innovation and Economic Competitiveness - The budget is $204 million in 2013/14 for economic development, innovation and technology commercialization.

I will continue to provide regular updates to the ��Ѹ��Դ��߿�Ƭ community as more information becomes available regarding the Letters of Expectation, the impact of the provincial budget on our own operating budget and most importantly on the process we will follow to address these budget reductions. As well, I will schedule a series of open meetings to ensure that everyone at the ��Ѹ��Դ��߿�Ƭ has access to the information I have just shared with you. I have no doubt that utilizing the experience, intelligence and the breadth of talent of the people we have at the ��Ѹ��Դ��߿�Ƭ of Lethbridge we can find innovative solutions to this current challenge.

As a community, we cannot understate the significance of these reductions and the negative impact they may have on our students, faculty and staff. As one of the largest employers and contributors to the economies in Lethbridge and southern Alberta, these reductions will also be felt well beyond our campuses.
We also cannot understate the fact that the ��Ѹ��Դ��߿�Ƭ of Lethbridge has faced significant challenges in the past and from those challenges we, along with those who have come before us, have built one of the top ranked universities in Canada recognized for the quality of its academic programs and research, and for the outstanding experience provided to our students.
Dr. Mike Mahon
President and Vice-Chancellor
The ��Ѹ��Դ��߿�Ƭ of Lethbridge

Mahon addresses provincial budget

trevor.kenney — Fri, 08 Mar 2013 20:47:39 +0000

Message from President Mahon regarding Province's 2013/14 budget

On March 7, the Alberta government released the 2013/2014 budget for the Province of Alberta. As has been reported, this budget features a significant funding adjustment for the entire post-secondary sector and for our institution. Senior Administration has had an initial discussion with the Deputy Minister and were informed that the Campus Alberta Operating Grant for the ��Ѹ��Դ��߿�Ƭ of Lethbridge will be reduced by 7.3 per cent in 2013/2014.

What this budget reduction means to the ��Ѹ��Դ��߿�Ƭ will become clearer in the coming days as we learn more details from the Ministry of Enterprise and Advanced Education. While this obviously poses a challenge for the ��Ѹ��Դ��߿�Ƭ and perhaps represents a new reality for the post secondary sector in our province, we have been working through a variety of budget scenarios in recent weeks. As well, our record of prudent financial planning and management has served the ��Ѹ��Դ��߿�Ƭ well in the past and will continue to do so into the future. Most importantly, our ability to work through this difficult budget will be based on our collective efforts, and imagination. I will continue to communicate with the ��Ѹ��Դ��߿�Ƭ community as details become clearer on the budget and on the development of the ��Ѹ��Դ��߿�Ƭ budget.

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