No reason for cuts at U of A, minister says

NDP’s Schmidt asks why president didn’t trim his $824,000 income

Advanced Education Minister Marlin Schmidt has slammed the University of Alberta board of governors’ recent decision to cut four per cent of its budget and raise student residence rents.

Schmidt also took aim at president David Turpin, who takes home about $824,000 annually, including salary and benefits.

Turpin is one of the most highly paid university presidents in the country, Schmidt told Postmedia while on his way into a cabinet meeting Monday morning, yet has he failed to examine his own compensation or deal with administrative costs.

“It’s concerning to me to see the president lining his own pockets while he’s cutting money being spent on classrooms and students,” Schmidt said.

Friday’s board vote also means another tuition hike for international students — a kick in the guts for those who have already seen their fees rise markedly since 2010.

In February, the body that represents more than 100,000 undergraduate university students in Alberta called on the province to immediately freeze international tuition.

Schmidt said Monday the government will make an announcement later this year to protect international students.

Schmidt said there is no reason for the U of A’s budget cut, pointing to year-over-year operating grant increases and tuition backfill for two of the last three years (to cover the government-implemented tuition freeze).

“We’re not quite sure what information they’re working from to make these decisions,” he said.

University board of governors chair Michael Phair said in an email he was surprised by Schmidt’s comments.

The university is concerned about affordability for students, he said, but it can’t use domestic tuition or government grants to subsidize international fees, or residences and meal plans.

Phair said despite the U of A’s “significant financial challenges,” the board is committed to the university’s long-term financial health and stability.

“We have worked closely with the president and the administrative team to come up with viable solutions to the financial challenges.

“We also recognize their high level of skill and compensate them competitively,” he said.

Voting in the changes wasn’t easy, Phair said, “but we also understand the dangers of not taking action.”

Schmidt said the university needs to look internally for savings.

In particular, he suggested it examine its administrative costs, which are higher than the University of Calgary’s as a proportion of its budget.

Friday’s board vote came on the heels of campus protests against university administration.

Student union president Marina Banister said in an interview Monday the university needs to regulate its spending and consider more revenue streams.

“From a student’s perspective, it can be very hard to understand why university staff and administrators are getting pay increases every year when they’re putting the cost of that on the backs of students,” she said.

The university has been mulling over the cuts since October.

At the time, university brass asked its faculties and administrative units to find efficiencies to reduce costs.

The University of Alberta is facing a $14-million structural deficit, which has grown by $2 million since 2013.

Turpin could not be reached for comment.