The Budget Advisory Committee (BAC) is recommending a varied approach to balancing the university鈥檚 operating budget for 2013-14, with the goal of minimizing fee increases and cuts to faculties and services.
, released in January, the committee identified that even with a 3 per cent tuition increase 鈥� the maximum allowed by the province in most programs 鈥擜V俱乐部 would still need to balance a $17.6 million shortfall. (Read: )
In its follow-up report, the BAC is recommending cost savings in a variety of areas, including using $6 million in reserve funds set aside in previous years, to avoid more significant cuts this year. The approach would mean all faculties and service units would manage a 3.5 per cent cut next year, saving $8.2 million.
Read: [PDF]
鈥淓ven keeping this year鈥檚 across-the-board reduction to 3.5 per cent means our faculties and units will have managed reductions of 9.4 per cent over the past three years,鈥� explains Carolyn Watters, vice-president academic and provost and chair of the Budget Advisory Committee. 鈥淕iven this, the committee believes an approach that looks for savings in a variety of areas is the right approach, rather than asking for larger budget reductions that may put the quality of our programs and services at risk.鈥�
She adds that the university鈥檚 three-year look-ahead budget planning within Faculties and service units has been presuming a minimum 3 per cent reduction for the coming year, given the state of provincial funding. The recommended budget model keeps those plans on target.
鈥淲e鈥檝e been preparing for this, and that鈥檚 why we鈥檙e able to apply a varied approach to balancing the budget,鈥� adds Dr. Watters.
In addition to the 3.5 per cent reduction and the reserve funds, the BAC is recommending savings in a number of areas:
- Further reductions in select budget areas:
o聽聽 聽3 per cent reduction in non-space equipment ($75,000)
o聽聽 聽1 per cent reduction in student assistance ($101,000)
o聽聽 聽1 per cent reduction in library acquisitions ($64,000)
- Reducing strategic initiative funding for this year by $1.3 million.
- Forgoing the scheduled $1 million increase in the facilities renewal budget.
- $800,000 decrease in the budget based on reduction from the historic pricing for heating fuel.
As in its first report, the BAC is projecting AV俱乐部鈥檚 overall enrolment will be the same year-over-year.
Tuition and fees for 2013-14
The recommendations for tuition and fees have also been released by the BAC. There are no surprises for general tuition: as indicated throughout its planning process, the BAC is recommending a tuition increase of 3 per cent.
What it鈥檚 not recommending are any further increases in areas where the province鈥檚 cap doesn鈥檛 apply: medicine, law, dentistry or the international differential fee. All of those areas will see the same 3 per cent increase as the rest of the university.
This is partly because those areas have all seen larger increases in recent years, but also because the BAC is leading a review of the university鈥檚 Tuition Policy, which outlines the factors that inform how Dal sets tuition rates.
鈥淕iven that it鈥檚 been some time since the policy was last officially reviewed, the president has asked us to consider if its principles still apply or whether we need to consider other factors when looking at tuition fee changes,鈥� says Dr. Watters. 鈥淲e didn鈥檛 feel it was appropriate to recommend fee increases this year beyond the 3 per cent until our community can weigh in on a new policy.鈥�
Read: [PDF]
The policy is one of the topics up for discussion at this year鈥檚 student consultations on budget, tuition and fees. Students can learn more about the budget and ask questions at one of three consultation sessions the week of March 11. The BAC leadership will also be present and answer questions at that week鈥檚 DSU council meeting.
- Studley Campus: Monday, March 11, 5:30-6:30 p.m., Student Union Building Room 303
- Carleton/Sexton Campuses: Tuesday, March 12, 5-6 p.m., Dentistry Building Room 4116
- AV俱乐部 Student Union council meeting: Wednesday, March 13, 6:30 p.m., Council Chambers, Student Union Building
- Agricultural Campus: Thursday, March 14, 5:30-6:30 p.m., Room 24, Cox Institute
Students who are unable to attend the consultation sessions can share their thoughts by emailing bac@dal.ca by March 18. The sessions will also be able to be viewed on the web, with details to follow next week in Sticky Notes. The committee will report back to students on the feedback by April 1.
Looking ahead
The Board of Governors is scheduled to vote on tuition and fees in April, ahead of its vote on the final operating budget in June.
Provided the BAC recommendations are adopted, it will be up to faculty or service units to find 3.5 per cent in cost savings, similar to how it鈥檚 been done in the past. Some of the ways units may look for savings include tapping into reserve funds; finding turnover savings from faculty or staff that retire or leave the university; considering rationalizing programs or services; finding reductions in non-salary budgets; generating new streams of revenue; and, if need be, personnel.
So if that鈥檚 what 2013-14 might look like, what lies ahead for the 2014-15 budget?
鈥淎fter three years of cuts, it鈥檚 crucial that we work with the province and the other universities in Nova Scotia to begin increasing our provincial operating grant once again,鈥� says Dr. Watters. 鈥淭he current Memorandum of Understanding commits the province to increasing the grant by a funding stability mechanism that ensures some predictability, and we鈥檙e working with all parties to help meet this goal.鈥�
That鈥檚 not to say that increased funding will be the entire solution next year: as noted in the BAC report, a modest increase of 2 per cent to Dal鈥檚 operating grant next year would still require an estimated 3.5 per cent budget reduction due to rising operating costs.
However, a stable funding formula might allow AV俱乐部, where appropriate, to provide students with a multi-year outlook on tuition fees 鈥� one of the ideas that鈥檚 up for consideration in the draft Tuition Policy.