Nova Scotia’s universities are facing another cut in funding from the provincial government.
On Thursday, the Government of Nova Scotia announced a 3.1 per cent reduction in the operating grant for the province’s universities for the 2012-13 fiscal year. The total grant, shared across all 11 universities, will decrease by $10 million this year.
Considering the inflationary costs that universities are expected to absorb, this amounts to $33 million in reduced funding next year across the Nova Scotia university system, according to the Council of Nova Scotia University Presidents. When added to the cut universities were dealt in 2011-12, that number becomes $75 million in funding reductions over two years.
It’s not yet known what this will mean for Dalhousie directly. How the grant will be shared among the universities is still undetermined, though the government indicated that it is working with the schools to decide this over the next few weeks.
Universities and students disappointed
University leaders—both administration and student—were understandably disappointed in the cuts.
“We do understand the fiscal pressures this government is facing, but you can’t cut your way to success – you can only grow your way to success,” said Dalhousie President Tom Traves, speaking with Dal News. “And Nova Scotia’s universities—through education, research and innovation—represent one of the most important opportunities for economic growth in our province.”
Sarah Bouchard, vice-president academic and external of the Dalhousie Student Union and vice-chair of the Alliance of Nova Scotia Student Associations, believes the cuts will significantly affect the quality of education and student service across the province.
“This will just continue to plague the system, [one that’s] already under stress.”
Tuition increases capped for most programs
The funding cut was announced alongside, but separate from, a new three-year Memorandum of Understanding (MOU) between the province and the universities. While previous MOUs in 2004 and 2008 set clear funding commitments from the province, this one does not: universities don’t know what their funding will be from the province beyond this upcoming fiscal year.
What is known, to some extent, is what tuition in Nova Scotia may look like in the years ahead. Increases will be capped at 3 per cent for most programs in each year of the MOU, which extends through March 2015. As was the case in 2011-12, programs in law, dentistry and medicine will be exempt from the tuition cap because of those programs’ higher delivery costs. Also exempt are international students, reflecting the higher expenses in recruiting and supporting those students.
However, the cap is subject to a tuition policy review that will take place sometime during the MOU period. This means that while next year’s tuition fee increases are capped at 3 per cent for certain, this may change later in the agreement.
The review is one of several parts of the MOU’s “change mandate,” a process by which the universities will work with the government to address a number of areas, including developing a stable, consistent formula for determining the provincial operating grant and expanding opportunities to collaborate to reduce costs.
To assist in this process, the government is establishing a University Excellence and Innovation Program, funded at $25 million over three years. Universities will be able to apply—individually or as teams—for funding to support projects that will create significant cost savings in the long run.
At the press conference, Marilyn More, minister of labour and advanced education, said that what the province is asking of universities—to review their program delivery, work together to reduce costs and collaborate in areas of common or shared interests—is similar to what’s being asked of public sector institutions and government departments.
“We cannot afford the growth in cost of providing programs and services that we’ve had in the past,” she said.
“Another belt-tightening year”
President Traves says that the University Excellence and Innovation Program is a welcome idea, and expects Dalhousie to make a number of proposals: “We’re always keen to find more efficiencies that won’t compromise the quality of education and research.”
Dr. Traves cautions, though, that the program is unlikely to result in enough savings to make up for the reduction in the operating grant. The bottom line, he says, is that all universities are entering a cutback scenario next year.
Student leaders say they’re concerned both by the impact of cuts, but also on how rising tuition fees may affect students.
“The bottom line for students is that tuition is the least protected, going forward, that it has been for the past few years,” says Ms. Bouchard, reflecting concerns that the MOU doesn’t provide the same stability that previous agreements did, particularly for international or professional students. “There’s no way to predict what will be coming down the line.”
President Traves notes that the university has been working with the DSU on a policy formalizing how it consults on and communicates tuition and fee increases with students. The policy is expected to be approved by the Board of Governors and implemented before any fees are approved for next year.
As for the rest of the 2012-13 budget, the work of the university’s Budget Advisory Committee (BAC) is underway, with a first report expected to be available for review and feedback in the coming weeks. The BAC is chaired by the vice-president academic and provost, and consists of three faculty members, a dean, a student representative, the assistant vice-president of human resources and the vice-president administration and finance. It advises the president on budgetary matters and issues public reports prior to the approval of the budget itself by the Board of Governors in June.
Given that Dalhousie faced a 4 per cent cut to its funding in 2011-12, Dr. Traves says that the university can likely anticipate a comparable budget scenario to the one it confronted last year. The 2011-12 budget saw a 3.5 per cent reduction for all units.
“Our circumstances are helped slightly by our success in growing our enrolment, but with these new cuts, the university community should expect yet another belt-tightening year.”
Read: Memorandum of Understanding between the Province of Nova Scotia and the Nova Scotia Universities [PDF]