U of S Board Announces Multi-Year Operating Budget

Posted May 07, 2004


FOR IMMEDIATE RELEASE - May 7, 2004              2004-05-14-OTHER

U of S Board Announces Multi-Year Operating Budget

The University of Saskatchewan's Board of Governors today approved its first-ever multi-year operating budget framework for 2004-07 which was developed in the context of a campus-wide planning initiative and complements the strategic vision of the University.

The multi-year budget framework addresses the University's structural deficit and ensures a balanced budget by 2006/07. It also focuses on increasing revenues, improving operating efficiencies and ensuring a quality education for students.

"The multi-year budget framework provides us with a more responsible way of allocating funds from our operating budget," said University President Peter MacKinnon. "It allows the University to make informed decisions about the management of resources over the longer term in order to better serve our students and the people of this province."

The budget includes a reduction in funding to the Colleges of Agriculture ($1 million), Commerce ($1.2 million), Nursing ($0.26 million), Pharmacy and Nutrition ($0.4 million), Extension Division ($1 million) and the Facilities Management Division ($1.2 million) totaling $5.06 million over three years.

MacKinnon said: "Reducing funds, although initially challenging, will leave these colleges free to generate higher revenues from increased tuition and enrolments in selected programs, and to make changes to their academic and business practices instead of relying solely on the central operating budget."

A levy of 1 per cent, over two years, will be charged to the operating budgets of most other academic and administrative units totaling $1.48 million. These measures will enable the University to meet its current and projected operating expenses including salary settlements; increases in utilities' costs; and critical investment in the renewal of the University.

"The 1.52 per cent increase in our operating grant from the Provincial Government fell short of the required 6.7 per cent increase needed to meet our basic financial obligations without incurring a deficit," explained MacKinnon. "We have therefore taken responsible action by making necessary reductions to ensure a balanced budget by 2006/07."

The University's operating budget for 2004-05 is $263.8 million. It includes an average tuition increase of 4.8 per cent. The majority of students, around 70 per cent, will face an increase of 2 per cent or less.

The 2004-05 tuition increases continue to reflect the national norm tuition policy and range from 0 per cent to 19.1 per cent. Professional colleges face the greatest increases, but in some cases a large proportion of new tuition revenue will be funneled back into colleges to enhance academic and student services.

In addition, the Board is increasing funding for student services. A total of 10 per cent ($0.163 million) of the tuition rate increase is being allocated to student support including scholarships and bursaries. As well, an additional $1 million will be allocated to graduate students support from the Academic Priorities Fund. This is in addition to $0.5 million for undergraduate scholarships announced early this year.

"We are determined to build on the University's strategic vision for a nationally competitive university and can only do so if we remain accountable for our spending and focus on our strengths, " concluded MacKinnon.

Highlights of the 2004-05 to 2006/07 Operating Budget and background information are located at: http://www.usask.ca/communications/Budget_Highlights.pdf (PDF).

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For more information, please contact:

Peter MacKinnon
President
University of Saskatchewan
(306) 966-6612

Tina Merrifield
Office of Communications
University of Saskatchewan
(306) 966-2213

For more information on the University of Saskatchewan Integrated Plan:
http://www.usask.ca/vpacademic/integrated-planning/.