Second round of budget conversations well attended
Many Concordians took advantage of the opportunity to learn more about Concordia’s proposed budget and current fiscal situation at a second round of open conversations, held recently on both campuses.
Hosted by Interim Provost Lisa Ostiguy and Chief Financial Officer (CFO) Patrick Kelley, the converations featured a presentation on how the university is addressing the budget reductions, announced by the Government of Quebec last December. For Concordia, the cuts amount to a total of $26.4 million for the fiscal years 2012-13 and 2013-14 ($13.2 million per each year).
Ostiguy and Kelley also visited the Faculty Councils, the School of Graduate Studies and the Libraries to provide an update on the proposed budget for 2013-14, noting there has been no change in the situation facing the university since the cuts were first announced, and that long-term funding commitments remain uncertain.
Even though the Government of Quebec has promised to reinvest $1.7 billion in the education sector starting in 2014, Kelley said Concordia has not received instructions from the government about these reinvestments in the coming years.
Despite government cuts in the university’s operating budget, Kelley said Concordia was able to balance its budget for 2012-13; however, the proposed budget for 2013-14 is forecasting a deficit in the range of $7 million.
“Any deficit we have has to be repaid,” Kelley said, adding that the government has allowed universities to spread out the repayment of their deficits over a period of five years.
Concordia’s budgetary challenges resulting from the cuts will be compounded by substantial increases in pension funding costs beginning next year.
“Relief measures that allowed us to spread the funding amounts over a period of five years come to an end on December 31 of this year,” Kelley said.
The proposed budget for 2013-14 includes a 2.5 per cent cut within the academic sector ($5.7 million), while the non-academic sector will face an overall cut of 6.8 per cent.
“Our goal is to protect the academic mission of the university,” Kelley said.
The interim provost noted that other universities across the country are also facing reductions in public funding. “Some provinces have been hit particularly hard. Ontario, Alberta, British Columbia and Saskatchewan are all taking fairly drastic measures to accommodate their budget reductions,” she said.
Following the presentation, Ostiguy and Kelley fielded questions about how the university was planning to reduce costs. Kelley gave two examples: leaving vacant positions unfilled, as well as reducing the costs of various internal processes where possible. “The choices are going to get tougher to make, but we have to make them,” he said.
Conversation participants gave numerous suggestions for generating additional funds, such as forging stronger connections with Concordia’s alumni, and allowing four-day work weeks for staff members during the summer months.
Following each discussion, Kelley and Ostiguy thanked those who attended and said their concerns and suggestions would be considered during future budget preparations.
“The first time we held these converastions, people gave a number of ideas that we’ve been able to act on and include in the budgets,” Kelley said.
Ostiguy said she was glad the conversations were well-attended and that the audiences represented all sectors of the Concordia community.
“We have been encouraged by the collective response in working together to reduce our costs, examine revenue possibilities, and focus on strategies to attract students to the university and retain our current students,” says Ostiguy. “We certainly plan to keep the dialogue going.”
Related links:
• “Senate receives budget update” — NOW, April 24, 2013
• Update on budget process — Message from the President, April 3, 2013
• Update on operating grant cuts — Message from the President, March 1, 2013