Lethbridge College & University respond to province’s letter saying schools are overspending

LETHBRIDGE, AB – LNN reported last Thursday that Alberta’s Minister of Advanced Education told the province’s 21 post-secondary schools that they are going over their budgets and need to reign in spending.

Demetrios Nicolaides says that, over the last decade, funding for colleges and universities has risen by 106% while enrollment has only grown by 21%.

“Despite this massive investment, we still have one of the lowest participation rates in the country at 17%.”

Some of the actions the Minister has advised post-secondary schools take include:

• Freeze spending on all non-essential items such as hiring, travel, and hosting
• Defer all other expenditures until April 1, 2020, wherever possible
• Implement measures to curb the “March Madness” spending that many organizations do towards the end of their fiscal year
• Provide monthly reports on actuals to the Ministry of Advanced Education

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“This list is not exhaustive and you are strongly encouraged to take other action that will result in decreased expenditures by March 30, 2020,” writes Nicolaides.

LNN has obtained statements from both Lethbridge College and the University of Lethbridge.

The University said they are working towards a balanced budget that will be presented to the board this spring.

“At this time, the U of L is conducting 13 individual consultation sessions with student leadership and employee groups, which will help inform our budget process. To date, the University has implemented many of the measures mentioned in the letter including restrictions on replacing vacant administrative positions.”

Dr. Paula Burns, the President and CEO of Lethbridge College, said her institution “has worked diligently to balance its budget in accordance with guidelines from the provincial government.”

Nicolaides adds that he recognizes that the requests being made to post-secondary schools puts considerable constraints on them.

“This will not be easy, simple, or painless. However, we must take action immediately to improve the financial state of our province before it’s too late.”

“I am confident that we can and will overcome these challenges and build a better, more sustainable post-secondary system.”

Colleges and universities in Alberta will be required to submit interim financial statements to the ministry by April 15th that “clearly articulates an expenditure reduction and a diligent and thoughtful attempt to bring costs in line.”