Alberta says universities are over budget; must freeze travel, hiring, hosting

EDMONTON — Alberta’s advanced education minister says post-secondary schools are going over budget and he’s urging them to immediately freeze hiring and stop spending on travel and hosting.

Demetrios Nicolaides says, in a letter to Alberta’s 21 largest post-secondary schools, that his ministry is starting to get year-end financial statements and spending is not meeting expectations.

“Expenditures are forecasted to be much higher than anticipated,” Nicolaides said in the letter sent Wednesday to the board chairs of the schools, including the University of Alberta, University of Calgary, University of Lethbridge and Athabasca University. “I have been very clear from the beginning that institutions were to exercise fiscal restraint and prudence when making spending decisions. This will not be easy, simple, or painless. However we must take action immediately to improve the financial state of our province before it’s too late.”

The letter does not give financial details, breakdowns or estimates on the overspending.

Along with the freeze on hiring, hosting and travel, Nicolaides has asked schools to defer all other expenditures where possible until April 1, after the current budget. His ministry wants to see monthly reports to ensure schools stay on track, and is asking departments to not allow egregious last-minute expenditures of unused funds, known colloquially as “March Madness.”