U of A plans to cut another $56 million from its budget

The University of Alberta will chop $56 million to compress its budget cutting into two years, rather than three, to meet a deadline from the provincial government, president Indira Samarasekera said Friday.

The result will be fewer places for students, larger classes and it may take students longer than four years to complete their degrees because course choices will be reduced this year and next, she warned.

But the U of A will produce a balanced budget by spring 2015 as requested by the ministry of advanced education, Samarasekera said after consulting for two days with top administrators and deans.

The seven per cent cut from the academic side and an eight per cent cut from support services in 2014-15 will be achieved through voluntary severance, more program cuts, fewer session teaching staff, layoffs and looking for ways to raise revenue. That will be followed by two more years of two per cent cuts.

Those cuts are on top of the $28 million cut in the current fiscal year.

Samarasekera could not say how many more programs will be cut. That number will become clear by December as deans in various faculties make their decisions, and the big impact will be felt by students in the fall of 2014.

The arts faculty announced last week that 20 low enrolment programs will be cut and the science faculty will take 300 fewer students again this year for a cut of 600 students in two years. Program cuts must be approved by the minister.

The U of A’s announcement comes a week after Advanced Education Minister Thomas Lukaszuk sent independent financial advisers onto campus to assist the U of A to trim its budget, deal with the structural deficit and ensure the finances are “on a sustainable footing.”

Samarasekera, who described her relations with Lukaszuk as “cordial,” said she hopes this new budget will satisfy Lukaszuk’s concerns. “This is what we were asked to do by the government of Alberta and that’s what we’re doing,” she said.

Lukaszuk said he wants the U of A on get to a stable financial footing because it is a “major player in Campus Alberta.”

“I am happy they are taking the steps they have to to get financial stability and we will provide what assistance is needed,” said Lukaszuk, adding that “before, the university said it can’t be done.”

“I’m very proud of all the other schools that have already done so and are starting the school year on a positive note,” he added.

In a memo to faculty, staff and students, U of A president Indira Samarasekera says these “major cuts” stem from “the direction the board (of governors) has now received from the ministry.”

“We recognize the urgency of the situation and agree that it is in the best interests of our university and the morale of our community to accelerate our original plan,” Samarasekera said in her letter.

“We will not achieve the goal of a balanced, sustainable position by April 1, 2015 without further suspension and closure of programs, courses and course sections, some in degree programs that are unique in Campus Alberta,” she said.

Samarasekera noted that more than 6,000 qualified high school students, including 3,000 in the Edmonton area, applied to Alberta universities last year but there was no space for them.

Access will now get tighter as the U of A restricts its enrolment in some faculties, she said.

“This is very serious when you are failing to provide opportunity for Alberta students,” she said.

Meanwhile, Doug Goss, chairman of the U of A board of governors, expressed full confidence in Samarasekera’s leadership. “We need strong leadership and she delivers it,” said Goss, adding, “she is not going anywhere.”

Samarasekera cited Sept. 16 as both the deadline to apply for voluntary severance and the annual budget presentation to the General Faculties Council.

Three days later, she’ll deliver the state-of-the-university address.