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New provincial budget offers funding and stability to U of A

Three-year funding cycle promises two per cent increase per year to operating grant

It was mostly good news for the University of Alberta last Thursday with the unveiling of the 2012-13 provincial budget, which brings an end to the zero per cent grant increases that Alberta post-secondary institutions have experienced for the past two years.

The annual budget included a two per cent increase to the U of A’s operating grant over the next three years.

Despite the government failing to provide the four per cent increase the U of A claims it needs to break even due to inflation, the new budget will still provide some stability for the institution and a relief from the zero percent increase that it was expecting.

“From a post-secondary perspective, I’m pretty pleased with the budget,” said Greg Weadick, minister of advanced education and technology. “I know that in our discussions with students, boards, presidents and faculty, (that) they really were asking for the three-year funding model so they would have that stability.”

President Indira Samarasekera also commented positively on the budget at last Friday’s Board of Governors meeting.

“The (government) made a very clear signal about their support of post-secondary and the level at which they are prepared to provide that funding,” she said.

The new budget also includes increases in funding to Alberta Innovates for research, much of which is done in post-secondary institutions.

“This is funding that can directly support activities on our campus and research work, which in turn supports our undergrads, graduate students, and post-docs,” Weadick said. “(Institutions) are also pleased with the increases around the research funding, because of course Alberta Innovates is a very close partner with Alberta’s post-secondary institutions.”

Weadick said another highlight of the new budget is the inclusion of more student financing. Almost $500 million has been allocated to student loans, grants, and bursaries.

“Right now, when we look across the global budgeting, many jurisdictions are actually reducing funding in post-secondaries, and we thought it was critical to send a message in a very tight fiscal time that we are dedicated and committed to post-secondaries,” Weadick said.

On Monday, the Alberta government also announced a number of changes to student aid programs, which Students’ Union Vice-President (External) Farid Iskandar said will make the student loan process much easier for students.

“For Alberta student loans, how much your parents make is not going to matter anymore — it will for Canada student loans, but not for Alberta student loans,” Iskandar explained.

“Now, they’re not going to dock you if you’re working part-time, if you have a summer job, or if your parents make too much money.”

The government has also cut its remission program, which had $69 million in funding. Depending on how much debt a student had accumulated over the course of their degree, a part of that debt could be remitted, but Iskandar said that only three per cent of students ever saw that money.

“Either you got a letter saying you were going to get the remission or not,” Iskandar said. “Now, that $69 million is going to go to graduates upon completion of their degree. For U of A students who have taken out a loan, upon graduation they are going to get $2,000 back, like a flat fee once you finish your degree.”

Iskandar added that this is good news for all students in the Alberta education system, but that it’s less positive for people struggling under huge amounts of debt.

“This will increase the amount of money in the system for student loans. More students will be able to access student loans now, which is good for students who are already trying to go through the system, but not good for students who are under a crippling amount of debt,” Iskandar said. “More students will see that ($69 million), but students who are under huge amounts of debt will see less of it.”

Despite the province’s overhaul on student loans, Iskandar said it may not have the effect the province is hoping of drawing in more students, since the changes do not provide an increase to student grants. However, Weadick expressed optimism that Alberta’s post-secondary numbers will continue to grow.

“There’s a number of students I’ve talked to that simply couldn’t access education because they could not afford it,” Weadick said. “We’re hoping that affordable opportunities for students will be there now.”

Weadick added that student assistance was essential in producing this year’s budget, since many of the ideas in it were things the province worked with students on.

“I’m hoping that we’re back next year because our enrollments are going up, since we’ve been successful with Alberta education and helping attract more students into the system,” Weadick said.

“The nicest thing to see is my budget going up because more young people are accessing the post-secondary system here.”

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