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Budget 2015 reactions: “Night and day” to 2013 deficit, SU continues to fight for tuition cap

The Alberta post-secondary sector was struck with a four per cent slash in funding over the next two years at today’s Budget 2015 announcement. But 2015 is “night and day” compared to the budget cuts institutions saw in 2013, University of Alberta Board of Governors Chair Doug Goss said.

Post-secondary institutions will see a 1.4 per cent decrease ($28 million) in the Campus Alberta Base Operating Grant in 2015–16 and a 2.7 per cent decrease ($60 million) in 2016–17. In 2013, the sector saw a 7.2 per cent reduction in post-secondary funding.

Goss said, “you never like to see a decrease,” but applauded the government for working on a “balanced” long-term approach to stabilizing the post-secondary sector. The government’s prospective long-term plan aims to bounce back into surplus by 2017–18.

“We don’t want to go backwards,” Goss said, despite the cuts to funding announced on Thursday. “We want to use every tool available to assure that we do just that. We have to make sure the University of Alberta stays strong, and I think that’s the message (the Alberta government) is sending.”

The Alberta government will be working with institutions’ boards of governors to create a sustainable five-year model that reduces the sector’s reliance on government funding. But Students’ Union Vice-President (External) and President-elect Navneet Khinda said one of those revenue generators could be a future reliance on tuition. The Ministry of Innovation and Advanced Education is estimating that $1.15 billion of revenue in 2015–16 is generated from tuition, up from $1.12 billion in 2014–15.

“What’s disturbing is their long-term goals,” Khinda said. “That’s something that’s our next push and the next fight we have to have. We can’t use tuition for more revenue, that’s not going to work.”

The government will be providing an extra 6.6 per cent ($14 million) in student aid, increasing the budget to $227 million in 2015­­–16. Khinda said she’s pleased with the government increasing the loan limit to make the increase possible, but added that it could sink students into more debt and doesn’t solve any structural problems with post-secondary education.

Alberta Minister of Innovation and Advanced Education Don Scott said the increase in student aid was “very important to him,” and that it enhances accessibility to post-secondary education.

Scott said his department will also “continue to work on excellence” in post-secondary, and will use the next six months to communicate with stakeholders and institutions on how to develop a more sustainable system.

“We have a very good sound system here in Alberta, and we’re going to make it better,” he said. “We’re going to engage in the consultation process and take some time to get the best ideas.

“We’re going to have every idea on the table.”

Scott added that there are “no imminent changes” to be made to the tuition cap, which regulates the cost of tuition in Alberta post-secondary institutions.

But SU Vice-President (External)-elect Dylan Hanwell said he’s still worried that one of those ideas would be eliminating the tuition cap and using tuition fees to “dampen” budget cuts down the road. The province’s current tuition cap, which allows tuition to increase by one to five per cent inflation within the cap, expires in August 2016.

“The potential that (the tuition cap) is still on the table is concerning, because ‘imminent’ doesn’t mean in the next year,” Hanwell said. “We have to be wary and cautious and make sure it’s always being talked about.

“I think it’s a scary prospect.”

For U of A President Indira Samarasekera, creating alternative revenue streams will be a “collective commitment” from students, administration and the government.

Samarasekera called 2015–16’s 1.4 per cent cut to post-secondary funding “modest” and “a very small reduction.” From there, it will be Alberta institutions and the government’s job come up with more effective and sustainable revenue generators to make up for the 2.7 per cent decrease in 2016–17.

“We all have to do our part,” Samarasekera said. “Wages have to be competitive, but responsible. Benefits must be credited, but responsible. Students have to pay their fair share, but not so much that they get into excessive debt.

“We have untapped opportunities to increase revenue, and we just need to step up and figure out how we’re going to do that.”

The main difference between the 7.2 per cent cut to post-secondary funding in 2013 and the four per cent cut in 2015 is the “encouraging” and a long-term plan Premier Jim Prentice and Minister of Finance Robyn Campbell have laid out, Samaraksekera said.

Although Samarasekera leaves her post as president in April, she said she has “zero concerns” about how president-elect David Turpin will manage the impending budget cuts and develop long-term strategic plan in line with the government’s and U of A’s goals.

“I’ve got enormous confidence in David Turpin … if there’s anyone who can imagine how we can get there, it’s him.”

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