Province calls for “savings” across post-secondary sector

The BC government tabled its 2013 budget in the legislature on Feb. 19. UVic has provided information on its website outlining the implications of the budget on the university.

The $50-million cut in funding to the post-secondary system previously announced in Budget 2012 will now be spread over three years instead of the original two: $5 million in 2013/14, $20 million in 2014/15 and $25 million in 2015/16. The government’s stated intention is that the cuts will be covered by “savings” in the post-secondary education system over the next three years.

“This substantial amount will be difficult to achieve without affecting the quality of educational services to students, given the budget reductions and unfunded cost pressures that universities have experienced the last several years,” says UVic Vice-President Academic and Provost Reeta Tremblay.

UVic already has an ongoing structural deficit in its operating budget resulting from the annual cost of salary progression increases for faculty and staff that every year exceed the increase in tuition revenue allowed by government, UVic Vice-President Finance and Operations Gayle Gorrill explains. Salary increases are not covered by provincial government funding.

As part of the university’s budget planning, all areas at UVic were asked to cut four per cent from their budgets, effective April 1, 2013. This reduction will cover UVic’s structural deficit as well as the cost of salary settlements in 2013/14 (with a built-in, but as yet untested assumption about the possible size of the faculty salary increase that is currently awaiting a decision through arbitration) and enable the university to meet its statutory obligation to operate with a balanced budget.

Further reductions in UVic budgets will be required in the future, says Gorrill. The extent of budget reductions will depend on a variety of factors, including the faculty salary arbitration award, the reductions in provincial operating grants to universities, and settlements in upcoming negotiations for labour contracts that expire in 2014/15.

On May 14 British Columbians will go to the polls to elect a new government, which may present a revised budget after the election. In the current uncertain environment, Gorrill points out, the university must continue its budget planning based on the best information available.