UNews - Budget Advisory Committee

Open Mike - May 2013, Dealing with budget challenges while celebrating our harvest

trevor.kenney — Wed, 15 May 2013 17:21:51 +0000

There is no denying that the last few months have been very challenging for the province's post-secondary sector, and I recognize that this is a difficult time for the ��Ѹ��Դ��߿�Ƭ of Lethbridge.

I want to thank all those who have contributed to the ongoing budget discussions and brought your valued perspectives into the conversation. From the General Faculties Council and the Strategic Planning Committee to the Budget Advisory Committee and Dean's Council to the many individual students, staff and faculty who have taken part in the process, your contributions will help us move forward effectively as we continue to work together.

��Ѹ��Դ��߿�Ƭ of Lethbridge President Dr. Mike Mahon chats about what's happening in the ��Ѹ��Դ��߿�Ƭ community.

As difficult a time as this is, we can never forget that we are an educational institution and as such, we have the great pleasure of being able to graduate a large number of students each spring and fall. As Spring 2013 Convocation approaches, let us take the time to celebrate all the terrific things we do daily at the ��Ѹ��Դ��߿�Ƭ in support of the young people we educate at the undergraduate and graduate levels.

The challenge that lies before us is substantial and in no way do I want to minimize its impact on the ��Ѹ��Դ��߿�Ƭ community, but it is in times such as these that we must take pride in the incredible value the ��Ѹ��Դ��߿�Ƭ of Lethbridge brings to the city of Lethbridge, the province of Alberta and beyond. We will not be deterred in continuing to graduate these amazing young people, and we will continue to perform outstanding research that benefits society. This will continue today, tomorrow and many years from now as we remain committed to growing as a comprehensive research university.

All of this is possible because of the people who contribute to the ��Ѹ��Դ��߿�Ƭ of Lethbridge. Do not forget the contributions you make to the ��Ѹ��Դ��߿�Ƭ and take pride in the fact that regardless of the challenges that confront us, we will always look forward and we will continue to build the U of L and its impact on society.

I urge you to attend the May 30-31 convocation ceremonies and watch our students cross the stage to receive their degrees. You have all played a role in their successes and thereby have helped to make an impact on society. These are our future accountants, musicians, chemists, nurses, teachers, psychologists, artists and so much more.

We, as an institution, help create something that society tremendously appreciates, bright young minds eager to make contributions to our world.

We are all dealing with difficult challenges at this time, but remember to recognize that as our graduates cross the stage, their whole lives lay in front of them – a future for which we have helped them prepare.

In the end, that is what the ��Ѹ��Դ��߿�Ƭ of Lethbridge is all about and it's something we will continue to do, regardless the obstacles we face.

This column first appeared in the May 2013 edition of the Legend. For a look at the entire issue in a flipbook format, follow this link.

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

Update from President Mahon on the Budget Adjustment Process

trevor.kenney — Thu, 11 Apr 2013 22:26:27 +0000

April 11, 2013

At the Community Update held on March 27, 2013, I committed to developing a values-based process to guide the ��Ѹ��Դ��߿�Ƭ through the operating budget adjustments that we as a community must participate in. In his presentation, our Provost, Dr. Andrew Hakin, outlined the process through which those values will be determined and endorsed, and the timeline under which we would conduct this process.

The values that will guide us are those that we, as a community, have collectively developed over multiple years, through many inclusive, collegial processes. They are a distillation of the values that are the foundation of our Strategic Plan, our Academic Plan and our Research Plan. Most importantly, the values are reflective of our community, and have been endorsed by both governance bodies of the ��Ѹ��Դ��߿�Ƭ, the General Faculties Council and the Board of Governors.

While much work has been done to develop the 2013/14 ��Ѹ��Դ��߿�Ƭ budget, there is much yet to do. Using these values as a compass we will over the course of the next month develop and debate options and ultimately bring forward the 2013/14 consolidated budget for the ��Ѹ��Դ��߿�Ƭ of Lethbridge. Using the pre-existing budget development entities and processes I expect to make a recommendation to the Board of Governors to approve the 2013/14 consolidated budget in mid-May to allow the Comprehensive Institutional Plan (CIP) to be submitted to Enterprise and Advanced Education for the May 31 deadline. The budget is a key component of the CIP.

At the end of this message I have included the values statement that has been presented, vigorously debated and refined by Deans' Council, Executive Directors' Council, President's Executive, the Budget Advisory Committee, the Budget Priorities Advisory Committee, the Strategic Planning Committee, General Faculties Council, and the Board of Governors. I encourage you to read the document.

The Budget Advisory Committee will begin its deliberations on the budget adjustments, which include reductions as well as revenue opportunities, on Saturday morning. Their recommendations will be reviewed and refined by the Budget Priorities Advisory Committee. The Strategic Planning Committee will review the proposed adjustments and provide guidance on whether the proposed adjustments are respective of our values and to help the ��Ѹ��Դ��߿�Ƭ ensure that the adjustments being proposed are not being made solely for expediency and do not compromise the long term development of the ��Ѹ��Դ��߿�Ƭ as it relates to our priorities and aspirations as an academic community. President's Executive will be fundamental through this process and will review all of the proposed adjustments before the budget is presented to GFC and to the Board of Governors.

While this process will be challenging and must be conducted in a very compressed time period, I do encourage you to continue to provide your feedback and ideas via this website.

To date, I have received over 50 submissions from U of L community members on the Letter of Expectation as well as suggested budget adjustments. A fair summary of those ideas has been posted to this web page

for your review. I am grateful for the thoughtful and considered ideas that have come forward to date. All ideas that are proposed will be provided to the Budget Advisory Committee.

On April 23 from 10 to 11 a.m. in the Students' Union Ballroom Level 3, we will host another Community Update to discuss the budget progress made to date. I am hopeful that there will be additional clarity with regard to the Letter of Expectation by that time. As well, I hope to be able to share with you the ��Ѹ��Դ��߿�Ƭ's response to the Letter to Enterprise and Advanced Education.

This continues to be a stressful and challenging time for our sector and our ��Ѹ��Դ��߿�Ƭ. I am buoyed however by the positive support and collective will of our ��Ѹ��Դ��߿�Ƭ community to work together to address our current challenges. Our Board of Governors, our General Faculties Council, the Senate, the alumni of the ��Ѹ��Դ��߿�Ƭ and our community have been rallying in their advocacy and support of the ��Ѹ��Դ��߿�Ƭ of Lethbridge. I am proud of and grateful to members of our academic community who have engaged in public debate and civil dialogue on these issues. I am proud of our students who have actively engaged with government in a positive way and have regularly exercised their rights to express themselves and their opinions. I am assured through this very tangible support that our future remains ours to determine and is bright.

Sincerely,

Dr. Mike Mahon
President and Vice-Chancellor

Reaffirming our Values:
A ��Ѹ��Դ��߿�Ƭ Response to the 2013-14 Provincial Budget

We commit to maintaining the forward vision of the ��Ѹ��Դ��߿�Ƭ of Lethbridge. Our Strategic priorities remain priorities independently 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 Alberta Provincial Budget 2013-14 has imposed severe reductions and thus introduced significant financial challenges for the post-secondary sector in our province and for the ��Ѹ��Դ��߿�Ƭ of Lethbridge. A reduction to our ��Ѹ��Դ��߿�Ƭ's Campus Alberta Grant of 7.3% will require the ��Ѹ��Դ��߿�Ƭ to eliminate $11.9 million from its continuing operating budget.

An increase of 2% to the Campus Alberta Grant for 2013-14 had previously been communicated by the Government of Alberta to the ��Ѹ��Դ��߿�Ƭ, as part of a three year funding commitment. This was presented with the intention of enhancing future financial planning and sustainability. Although it became increasingly clear during the 2012-13 fiscal year that the 2% increase was becoming less likely, the ��Ѹ��Դ��߿�Ƭ, and others in the post-secondary sector, were not informed or warned by the Ministry of the deep financial reduction that has been applied to our continuing operating funds.

In managing the impact of this severe funding reduction, members of ��Ѹ��Դ��߿�Ƭ senior administration have committed to clear, timely, and transparent communication to all members of the ��Ѹ��Դ��߿�Ƭ. Our first order of business is to enter into a process that will address our required reductions. To do this our institutional values will be reaffirmed and will be used to guide and influence all budget related decisions and processes that lie ahead. The processes by which these values will be endorsed and reaffirmed by the ��Ѹ��Դ��߿�Ƭ and by which the 2013-14 budget will be established are provided within Appendix 1 of this document. They follow closely the paths already utilized for budget approval within our ��Ѹ��Դ��߿�Ƭ.

Fortunately, in the last few years much work has been completed with respect to the values of our institution. They are contained within the documents that provide the framework for the operation and the establishment of priorities for the ��Ѹ��Դ��߿�Ƭ. These documents include our current Strategic Plan, Academic and Research Plans, and our Comprehensive Institutional Plan. All of these documents were approved utilizing the full scope of the ��Ѹ��Դ��߿�Ƭ bicameral governance framework. Although they were created and approved at times in which significantly different financial conditions were anticipated, these documents enshrine both our values and our priorities as an institution. These values and priorities are independent of our immediate financial future as the long-term future of our three-campus ��Ѹ��Դ��߿�Ƭ extends well beyond immediate budgetary issues.

To intentionally follow our priorities will require all constituents of our ��Ѹ��Դ��߿�Ƭ to work together. Working together provides strength. As we address our financial challenges we will strive to ensure that all groups within the ��Ѹ��Դ��߿�Ƭ are engaged in the protection of the academic integrity and the future of our institution. There are no aspects of the ��Ѹ��Դ��߿�Ƭ's operation that will be excluded from consideration in constructing the path by which we will best ensure the continuing financial sustainability of our institution. Indeed, in moving towards this desired outcome it will be necessary to explore all possible operational collaborations to achieve efficiencies. New forms of revenue generation will be considered an important component of any plan to mitigate our financial challenges.

The values presented below are purposely non-prioritized as they provide a holistic framework to guide and influence the budget processes and decisions that lie ahead. Underlying these values is a commitment to open, transparent and timely communication to our ��Ѹ��Դ��߿�Ƭ community. And fundamentally, as president Sam Smith asserted in his August 1, 1967 address to the students of summer session, our core commitment is still "to the individual student as a person and as of ultimate worth.

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 ��Ѹ��Դ��߿�Ƭ 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 ��Ѹ��Դ��߿�Ƭ and community use of our facilities play a role in defining us as a public institution.

UNews - Budget Advisory Committee

Open Mike - May 2013, Dealing with budget challenges while celebrating our harvest

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Mahon speaks to proposed budget reductions

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Update from President Mahon on the Budget Adjustment Process

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