November 27, 1998


 

How high tuition?

Government grants biggest factors in size of tuition fee increases


by Judy Goldsand
Folio Staff

We all need to act now to avoid a maximum tuition fee increase in 1999. A coordinated effort by university students, their parents, faculty, staff and community groups is needed to convince the government that a larger share of the provincial surplus should be directed towards universities. That was the message senior administrators and student leaders shared with the 50 people who attended the University of Alberta’s Nov. 10 Town Hall Meeting. The meeting was called to seek input from the university community about the funding dilemmas facing this institution.

There'’s not much room to move, said Glenn Harris, vice-president (finance and administration). Of the 1998-99 projected operating budget of $317 million, 96 per cent comes from Alberta government grants and tuition. The remaining four per cent is revenue from investments, royalties and licensing, sponsorships, profit from ancillary operations (bookstore, housing and food services, parking services) and private support other than endowments. Although the U of A Campaign has almost reached its goal of $144.65 million, it is not yet a source of much relief for the core operating budget, said Harris. Many campaign contributions are for specific purposes, and large gifts are usually given over a period of years.

Harris presented three preliminary operating budget scenarios to consider for 1999-2000.

  1. A tuition fee increase of five per cent, with a 1.75 per cent increase in government grants, would result in a potential deficit of $4,725,000.
  2. A tuition fee increase of five per cent, with a three per cent increase in government grants, would result in a potential deficit of $1,924,000.
  3. A maximum tuition fee increase, with a 1.75 percent increase in government grants, would result in a potential deficit of $2,232,000.
Harris said a one per cent change in tuition, up or down, changes the budget by approximately $750,000 while a one per cent change in government grants corresponds with a change of approximately $2.2 million.

The option of an across-campus cut of one per cent would generate $2.5 million, he noted, but this would be a last-resort scenario after making every effort to find other sources of funding.

Vice-President (Academic) Doug Owram echoed Harris’ message, saying the Board of Governors is trying desperately to avoid cuts across campus. Having instituted the biggest faculty renewal program in the university’s history, it’s vital to show the cuts of the last decade are past, and that the institution is stable and moving towards growth, he said.

The board’s first task is to eliminate a potential deficit of at least $2 million and, secondly, to find the funding needed for new initiatives, said Owram. The board has created a Revenue Enhancement Task Force with this mandate. Owram underlined that potential cuts to faculties or maximum tuition fee increases are seen as unfavorable options.

Students’ Union President Sheamus Murphy said tuition is the number one issue for students. Focused on efforts to increase government funding, Students’ Union members are meeting with MLAs. One of the concerns they are raising is that the province’s key performance indicators are biased against universities and should be changed.

Kim Speers, Graduate Students’ Association president, said GSA members also are speaking with government representatives about tuition fees. She proposed a study of university accessibility to find out the extent to which high tuition fees are barriers.

Graduate student Julie Harris said the philosophy underpinning post-secondary education needs clarification both within the university and the government. Is a university education a public good, or a private commodity? In her opinion, a unified stance within the university on this issue would make lobbying more effective.

After two hours of discussion, there was agreement that the university’s options are limited, and the best option for averting a maximum tuition fee increase and avoiding program cuts is to convince the government of the critical need for its increased funding.


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